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The Troop went into camp near Sheung Shin in the New Territories from the 22nd to the 27th December, 1906. This is the first occasion that the Troop has gone into camp. I hope that an annual one will be held in future, as by this means members acquire much useful knowledge of the New Territories.

I attach camp reports.*

Competitions.

17. The following inter-unit competitions took place during the year :-

(1.) His Excellency the Governor's Efficiency Cup.--This was again won by the Right Half No. 2 Company.

The following is the order of efficiency:-

1. Right Half No. 2 Company, O.C., Captain Armstrong, A.D.C.

2. Left Half No. 1 Company,

3. Left Half No. 2 Company,

4. Mounted Troop,

5. Engineer Company,

O.C., Captain Lammert. O.C., Captain Skinner. O.C., Lieutenant Ross. O.C., Captain Crake.

6. Right Half No. 1 Company, O.C., Captain Macdonald.

(2.) The Blake Musketry Shield, for teams of eight from each unit, took place on the 28th April, 1906, and was won by Left Half No. 2 Company, H.K.V.A.

(3.) The Sanders Cup, presented by Captain Sanders, a former officer of the H.K.V.A., was competed for by the artillery units at 15-pr. B.L. gun drill on the 12th January, 1907, and was won by the Right Half No. 2 Company (O.C., Captain Armstrong, A.D.C.).

(4.) The Gascoigne Shield for Maxim gun practice was fired for on the 2nd March, 1907, and was won by Right Half No. 2 Company (O.C. Captain Armstrong, A.D.C.), Left Half No. 1 Company (O.C., Captain Lammert) being second.

Miscellaneous.

18. A semaphore signalling class was formed during the summer months.

The corps took part in the King's Birthday parade with the remainder of the garrison on the 9th November, 1906.

19. On the 6th February, 1907, the corps had the honour of parading and lining the streets on the occasion of the arrival of H.R.H. the Duke of Connaught, Inspector-General of the Forces. The Troop furnished an escort.

20. A small cadet corps was started in May 1906 with boys from the Victoria British School; there are now twelve members. They are instructed in squad drill and semaphore signalling. They attended camp, and many of them have already proved themselves very efficient signallers. It is hoped that their numbers will soon increase.

21. The new volunteer headquarters were opened on the 15th December, 1906. The building has been paid for out of the Hong Kong Volunteer Corps Fund, with the addition of a sum of 5,000 dollars from the Government. All the rooms have been well furnished, and the officers' and sergeants' mess-rooms and the billiard-room have been completely fitted up out of private funds, at no cost to the Government. The building has already proved very popular, and I personally feel very pleased that it should have been opened before the departure of Major Pritchard, who made a great point of the necessity of suitable headquarters ever since his arrival in the Colony. I am convinced that this will tend to make volunteering more popular, and trust that the numbers will increase; the separate messes for officers, sergeants, and rank and file should also improve the discipline of the corps. 22. A sub-target machine was requisitioned from England, subject to the approval of the War Office, but the purchase of the apparatus has been postponed until the merits of similar, but cheaper, devices now being tested have been ascertained.

23. The great expense of building and furnishing the headquarters has prevented the men being supplied with winter clothing, but I consider that khaki is not sufficient for them, and I hope funds will now be available to enable me to submit indents for warm clothing to be taken in to wear next winter.

24. In conclusion, I am glad to be able to report that the officers and senior n.c.os. of the corps have all greatly assisted in bringing the corps to its present state of efficiency.

I am also indebted to Captain A. J. Thompson, R.G.A. (who has since been appointed Staff Officer to the corps) for the assistance he has given me from the date of Major Pritchard's departure on leave.

Inspection.

25. The Annual Inspection of the corps was carried out on the 23rd March, 1907, by his Excellency Major-General R. G. Broadwood, C.B., Commanding the Troops South China, who expressed satisfaction with the turn-out of the men and their drill.

I have, &c.

(Signed)

ARTHUR CHAPMAN, Major, Commandant, Hong Kong Volunteer Corps.

May 3, 1907.

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* Sub-Enclosure.

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