From Our Own ConmesPonnent Hongkong, Oct. 18, An expression of friendship and goodwill to: Canton characterized the speech by Sir Cecil Clementi, Governor of Hongkong, before the Legislative Council this week, The end of the boycott has made it possible for people here to forget the past and to resume cordial relations with Canton, The substance of the speech is as follow:
"Tt is certain that a very definite step has been taken: by the Canton Government to curb the lawless aetivities of strike pickets, and we may reasonably hope that a determined effort will now be made by the Cantonese authorities to re-establish law and order in the territory which they control and to stamp out piracy and brigandage, I think I may) safely say that this Colony's most] ardent desire is to see'law and order re-established, if possible in China as a whole, but at least in the Liang-kuang provinces," His Exeellency deprecated civil war. "Therefore, above all else, the Colony of Hongkong desires to see in Kuangtung and Kuangsi a strong, stable} and' enlightened Government. Of] such Government we should gladly) be clote. friends and staunch' sup-
Sir" Cecil went on to denounce Bolshevism as alien to the Chinese mind, "A moment's thought should suffice to convince the, Cantonese authorities that in the development} of the Liang-kuang provinces by} peaceful and orderly processes trade and commerce Great Britain and the British Colony of Hongkong! can give more effective and lasting assistance than can the Russian Soviet. We uphold ideas which are good government, terprise, learning and loyalty to honoured tradition the past and an orderly advance towards all the future promises, am thankful to' say there is now a growing abomination of all that Bolshevism mea It is our earn- py est hope that the Ci people may pluck out this evil by the roots and cast it from their country, 'The Governor drew attention to the fact that according to the teaching of the ancient Chinese philsophers, Sun Szu and Lao Tzu, "there is no' instance of a country that benefited from a prolonged civil war." "Therefore, when _lip-service is no longer paid to Bolshevik tenets by any dominant section of the Cantonese, when testations when civil war and soon as ever restored in Kuangtung, we in Hongkong will be the first to pledge its; Government our full support in alli that makes for the beneficial dever to see throughout China good government instead of civil way, prosperity instead of havoc, commercial security instead of piracy and bri-bandage, We are very close neigh-ours of Canton. We wish also to be very close friends."
$40,000 Appropriated for Naval Reserve Unit Oct, 21, The Government has submitted its budget for 1927, The estimated revenue. is figured at $20,407,397 and the expenditure is estimated at $22,194,702. Imported sources of Revenue are assessed as follows: taxes $3,629,000, stamp duties, $8,600,000, "and opium monopoly $3,000,000. Heavy items of expenditure are public work extraord-Inéxy $3,700,264, military contribution $2,403,006, police force $1,828, 1592, "It is interesting to note that for' the first time in the budget of the Colony $40,000 jon the expenditure account is appropriated for the purpose of ithe Royal Naval Reserve.
Some surprise was felt when the [Colonial Secretary submitted a mo. {tion whereby an additional tax levied on Chinese liquor which should thus yield an increase of {$600,000 next year. The Hon, Colonial Treasurer seconded the motion which was passed without discussion.
The trade conditions in Hongkong. before and during the boycott were summarized by the Hon, Colonial Secretary who in proposing the budget said, "For over a year the Colony has been subjected to illegal restraint of trade which could not but affect the revenue of the Colony and the general property of the people; and it was unfortunate that the' attack came upon us at a time when the peak of the boom had just passed and the inevitable reaction had begun, "If Tam correctly informed, trade conditions in this Colony were not jin a healthy condition in the early of last years there had been 'a large volume of unwise and extravagant speculation, and the contraction of business which had already been set in was accelerated by the restriction caused by the legal boycott."
Now that the crisis has passed, Jo more cheerful outlook is anticipat-led. The Colonial Secretary further Jobserved, "The Government feels justified in assuming that we are now at the nadir of our period of depression, that our great merchant houses with their splendid traditions lof courage and foresight will seize {the opportunity now reopening and that prosperity will once more smile upon the people." lopment of the province."
"Our offer of an industrial loan
Text read from the printed page and cleaned; old type leaves the occasional error.