539

No. 40

95

No. 267.

HONGKONG.

DESPATCHES ON THE SUBJECT OF THE MILITARY CONTRIBUTION.

SIR,

Laid before the Legislative Council by Command of His Excellency the Governor.

(Governor to Secretary of State.)

GOVERNMENT HOUSE, HONGKONG, 28th August, 1895.

I have the honour to acknowledge the receipt of Lord RIPON's despatch, No. 156 of the 27th June last, on the subject of the military contribution to be paid by this Colony.

2. On receiving this despatch I at once communicated it to the Unofficial Members of the Legislative Council, who have forwarded to me the reply, a copy of which is enclosed,

3. In this reply you will observe that the Unofficial Members, while not opposing the principle of fixing a proportion of the revenue as the amount of the military contribution, urge that what may be regarded as the municipal items of revenue should be exempted from the percentage to be charged, such exemption having been granted in the case of the Straits Settlements.

4. As you are aware, no municipality exists in Hongkong, and for that reason no distinction has hitherto been made between the revenue collected for general and for municipal purposes. But, though no such distinction has been made, there are certain items of revenue which may legitimately be regarded as municipal, and which, if a municipality existed or were created, would be levied and expended by it. The enclosed list, drawn up by the Acting Treasurer (Mr. THOMSON), shows what these items are. If this Colony is to be treated in the same manner as the Straits Settlements, where the local or municipal revenues, amounting in round figures to 1 million dollars, are exempted from contributing towards the military expenditure, it would seem to be only fair that the municipal revenue of Hongkong should be allowed to enjoy a similar exemption.

5. In this connection it should be remembered, as the Unofficial Members point out, that loans have been raised by this Government for the purpose of carrying out works of a purely municipal nature, such as water-works, markets, &c., and it appears equitable that the revenue derived from such works, instead of being subjected to a charge of 17 per cent., should be applied to their upkeep, to defraying the interest on the moneys raised by loan to construct them, and to forming a sinking fund with a view to the ultimate liquidation of the debt incurred on their account.

6. With respect to the question of barrack accommodation, the Unofficial Members, as will be seen from their reply, are quite prepared to consider any vote that may be brought forward to defray the cost of such buildings as have not yet been commenced, but they are opposed to voting the moneys required for buildings

The Right Honourable

JOSEPH CHAMBERLAIN, M.P.,

Her Majesty's Principal Secretary of State

for the Colonies,

&C.,

&c.,

&c.

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