Before I pass on to deal with other countries in which we operate, you will expect me to say something about Shanghai, since its status is likely to be a prominent subject once again in coming months. This is a matter which is of very great importance to all foreign business interests in Shanghai. We have seen the neutrality of a part of the International Settlement violated during he recent fighting. This would probably have been avoided responsibility it is to obtain at any rate a satisfactory modus vivendi if an agreement on a permanent basis cannot be found just yet.
And now to turn away from China: Here in Hongkong we have been fortunate in, that the misfortunes of China have not so far had any ill-effects on the Colony. In fact, many of our local industries have made satisfactory progress during the year. It is, however, certain that for real and lasting prosperity the Colony must rely upon normal and sound "trading conditions in China and the present struggle is therefore being watched with much anxiety.
Text read from the printed page and cleaned; old type leaves the occasional error.