Sessional_Paper_1903 — Page 421

1336!

The Coronation of His Majesty the King was celebrated in the Colony by a Special Service in the Cathedral, by general illuminations, and by the presentation of loyal addresses.

A statue of His Royal Highness the Duke of Connaught-the gift of Sir PAUL CHATER, C.M.G. -was unveiled on 5th July, 1902, and it was announced on that occasion that the same donor and Mr. J. J. BELL-IRVING intended to present the Colony with statues of His Majesty the King and of His Royal Highness the Prince of Wales.

The New Territory has continued its gradual and peaceful development; and if it were not for the occasional inroads of disorderly characters from the Chinese side of the frontier there should be but little to record in the way of robbery or outrage. The demarcation of the whole of the New Territory, with the exception of certain strips, and the Island of Lamma, was finished during the year. The construction of an excellent road from Kowloon to Taipo, a distance of about 18 miles, was practically completed. The system of Police Stations is also complete, and nearly every Station is connected with the City by telephone. The settlement of land claims has been steadily progressing, and it is hoped that the work for which the temporary Land Court was created will shortly be concluded. The area of the New Territory is about 370 square miles, of which the cultivated area is about 45,000 acres or 60 square miles. The estimated population is slightly over 100,000. At present the expenditure on the New Territory, largely due to the cost of the Land Court and Public Works Extraordinary, is considerably in excess of the revenue; but judging from the present rate of progress and prospects for the future it may be expected that the revenue will equal the expenditure within seven or eight years.

The local Chamber of Commerce has pronounced itself strongly in favour of the compulsory adoption of the Metric System of Weights and Measures through- out the Empire, and will welcome any change in that direction.

In spite of the depression caused especially in Import Trade, by the fluctua- tions in the Silver Market and other more remote causes, the prosperity of the Colony has continued to expand during the past year.

Statistics show that in spite of the heavy drain upon the resources of the Colony caused directly and indirectly by the annual recurrence of plague, the financial position of the Colony is sound and gives no cause for uneasiness for the future. At the same time it is well to remember that the assets of this Colony are practically the goodwill of its commerce, and it is only by a continuance of its sea-borne trade-which fortunately as yet shows no signs of declining--that the Colony can expect to remain in its present prosperous condition.

I have the honour to be,

Sir,

Your most obedient, humble Servant,

H. A. BLAKE,

Governor.