The births and deaths for the last five years were as follows:

There is a constant flow of emigration and immigration from and to China passing through Hong Kong. In 1898 the number of Chinese emigrants was 60,432, and of immigrants 105,441 respectively; in 1899, 61,075 and 110,448; in 1900, 83,643 and 121,322; in 1901, 69,774 and 129,030; in 1902, 71,711 and 129,812.

Instruction.

The Government schools of the Colony include Queen's College, with an average attendance of 940 scholars, mostly Chinese; the Kowloon school, exclusively for children of both sexes of European British parentage, with an average attendance of 46; the Belilios girls' school, a mixed school with an average attendance of 95; and three Anglo-Chinese District schools and a Normal school, with an average attendance of 265. All the above schools have staffs wholly or partly composed of English teachers. There are also 6 Vernacular Boys' schools and 1 Vernacular Girls' school, with a total average attendance of 271.

Besides, there are schools (mainly managed by representatives of various religious societies) which receive grants from Government and are subject to Government inspection. The average attendance in these schools was 3,542 in 1903.

The total expenditure on the above schools in 1903 was 97,651 dollars, and the total number of scholars in average attendance was 5,159. This expenditure is equivalent to 2.06 per cent. of the total revenue of the Colony (excluding land sales) as against 2.13 per cent. for 1902, and 1·73 per cent. for 1901.

There is also a police school with about 313 scholars. There are 107 schools with about 2,926 scholars, which receive no aid from Government. There is a College of Medicine for Chinese which does good work without Government support.

Justice and Crime.

There is a supreme court, a police magistrate's court, and a marine magistrate's court. There were 1,821 civil cases before the supreme court in 1903, of which 665 were settled or withdrawn before trial. The number of criminal convictions before the supreme court in 1901 was 82; 1902, 74; 1903, 104. The daily average number of prisoners, including naval and military prisoners, confined in the gaol was 576 in 1902; 653 in 1903. On December 31, 1902, there were 215 convicts in gaol; 1901, 180. There is a police force in the colony numbering 921 men, of whom 133 are British, 367 Sikhs, and 421 Chinese.

Finance.

The colony has paid its local establishments since 1855, since which year it has held generally a surplus of revenue over and above its fixed expenditure. The public revenue and expenditure of the colony were as follows in each of the last five years :

The public revenue of the colony is derived chiefly from land, taxes, licences, quarry farın, and an opium monopoly, which together more than cover the expenses of administration. A large portion of the expenditure has to be devoted to the maintenance of a strong police force. Expenditure on establishments in 1902, 1,956,250 dollars; in 1903, 2,646,842 dollars.

Hong Kong has a public debt, amounting to 341,8007. which was raised in 1887 and 1893 for waterworks, fortifications, and sanitation, and other public works. On December 31, 1903, the liabilities of the colony exceeded its assets by 62,711 dollars. Considerable expenditure is about to be incurred for the extension of existing and construction of new waterworks necessary to meet increasing needs of the population and to provide against drought. The sanitary measures to keep down plague lead to large expenditure.

Defence.

The

There is an Imperial garrison of about 3,200 men. The contribution payable to the Imperial Government towards the cost of the garrison (20 per cent. of revenue, exclusive of land sales) was fixed at 1,292,557 dollars for 1904. There is also a Volunteer Corps of about 375 effective members. cost of the volunteers was about 50,000 dollars for 1901. Hong Kong is an important naval station, and the headquarters of the China Squadron. There are usually several war-vessels present. The dockyard is being extended and improved. The China Squadron consists of about 60 vessels in all.

Commerce and Shipping.

The commercial intercourse of Hong Kong-virtually a part of the commerce of China-is chiefly with Great Britain, India, Australia, the United States, and Germany, Great Britain absorbing about one-half of the total imports and exports. Hong Kong is a free port, and, having no custom house, there are no official returns of the value of the imports and exports of the colony from and to all countries, but only mercantile estimates, according to which the imports average four, and the exports two millions sterling. Hong Kong is the centre of trade in many kinds of goods. Among the principal are opium, sugar and flour, salt, earthenware, oil, amber, cotton and cotton goods, sandal wood, rice, coal, timber, hemp, bulk and case oil (kerosene), ivory, betel, vegetables, live stock, granite, &c. The Chinese tea and silk trade is largely in the hands of Hong Kong firms.

Money and Credit.

The principal banking institutions in the Colony are the Hong Kong and Shanghai Banking Corporation, the Chartered Bank of India, Australia and China, and the National Bauk of China.

The value of Bank notes in circulation in December, 1901, was 11.988,193 dollars, in December 1902, 15,276,437 dollars, as compared with 4,114,787

Finance.

The colony has paid its local establishments since 1855, since which year it has held generally a surplus of revenue over and above its fixed expenditure. The public revenue and expenditure of the colony were as follows in each of the last five years :

The public revenue of the colony is derived chiefly from land, taxes, licences, quarry farm, and an opium monopoly, which together more than cover the expenses of administration. A large portion of the expenditure has to be devoted to the maintenance of a strong police force. Expenditure on establishments in 1902, 1,956,250 dollars; in 1903, 2,646,842 dollars.

Hong Kong has a public debt, amounting to 341,8007. which was raised in 1887 and 1893 for waterworks, fortifications, and sanitation, and other public works. On December 31, 1903, the liabilities of the colony exceeded its assets by 62,711 dollars. Considerable expenditure is about to be incurred for the extension of existing and construction of new waterworks necessary to meet increasing needs of the population and to provide against drought. The sanitary measures to keep down plague lead to large expenditure.

Defence.

The

There is an Imperial garrison of about 3,200 men. The contribution payable to the Imperial Government towards the cost of the garrison (20 per cent. of revenue, exclusive of land sales) was fixed at 1,292,557 dollars for 1904. There is also a Volunteer Corps of about 375 effective members. cost of the volunteers was about 50,000 dollars for 1901. Hong Kong is an important naval station, and the headquarters of the China Squadron. There are usually several war-vessels present. The dockyard is being extended and improved. The China Squadron consists of about 60 vessels in all.

Commerce and Shipping.

The commercial intercourse of Hong Kong-virtually a part of the commerce of China-is chiefly with Great Britain, India, Australia, the United States, and Germany, Great Britain absorbing about one-half of the total imports and exports. Hong Kong is a free port, and, having no custom house, there are no official returns of the value of the imports and exports of the colony from and to all countries, but only mercantile estimates, according to which the imports average four, and the exports two millions sterling. Hong Kong is the centre of trade in many kinds of goods. Among the principal are opium, sugar and flour, salt, earthenware, oil, amber, cotton and cotton goods, sandal wood, rice, coal, timber, hemp, bulk and case oil (kerosene), ivory, betel, vegetables, live stock, granite, &c. Chinese tea and silk trade is largely in the hands of Hong Kong firms.

The

The amount of the commercial intercourse between Hong Kong and the United Kingdom (Board of Trade returns) is shown in the following table for five years :

The principal imports into Great Britain from Hong Kong and exports from Great Britain to Hong Kong have been as follows in five years :—

The registered shipping (Dec., 1903) consists of 18 sailing vessels of 5,835 tons and 48 steamers of 32,250 tons; total tonnage, 38,085. In 1903, 7,251 vessels of 9,519,053 tons entered at ports in Hong Kong, being an increase on 1902 of 1,363,069 tons. Besides these, in 1903, 15,803 junks of 1,347,001 tons arrived. The number of fishing and other boats frequenting the harbour and bays of Hong Kong in 1902 may be estimated at 9,000. The number of rowing boats, &c., licensed in 1902 to ply for hire within the waters of the Colony was 2,786. The number of cargo boats, lighters, and other boats licensed for 1902 was 2,058. The number of steam-launches licensed for 1903 was 98.

23,054 vessels, including 15,803 junks, representing altogether over 10,860,000 tons, entered the ports of the colony in 1903, and 23,201 vessels, including 15,963 junks, and representing over 10, 850,000 tons, cleared in 1903. Hong Kong is provided with excellent dock accommodation which is being extended, and there is every facility for repairing and refitting vessels.

Money and Credit.

The principal banking institutions in the Colony are the Hong Kong and Shanghai Banking Corporation, the Chartered Bank of India, Australia and China, and the National Bauk of China.

The value of Bank notes in circulation in December, 1901, was 11,933, 195 dollars, in December 1902, 15,276,437 dollars, as compared with 4,114,787

K