Governor

(7)

463

3. That proportion, seventeen and half per cent., taken on the total gross revenue of the Colony, less Land Sales, and including all those items which have hitherto been accounted for as Revenue, appears to me to be by no means an unreasonable sum to ask the Colony to contribute; and I have already explained in my despatch No. 258 of 26th October last why I consider that there is no unfairness in charging the same percentage in the case of Hongkong as in that of the Straits Settlements, although in the latter Colony municipal revenues are not

taken into account.

4. Turning to those items of Revenue which were in the Estimates for 1895, (for the first and last time), treated as Appropriations in Aid, I would remark that they are in the nature of reimbursements towards expenditure, most or all of which expenditure would have to be incurred, even if nothing were recovered by way of reimbursement. These receipts are therefore, in my opinion, properly treated as Revenue, and as indicated in my telegram of this day's date I can see no sufficient reason for deducting them from the total on which the Contribution is to be based.

5. Similarly I can see no reason for deducting any portion of the Postal Receipts, as proposed in your despatch under acknowledgment. Most of the arguments advanced by you on this point would apply equally to several other Heads of Revenue, e.g., Harbour Receipts, Court Receipts, and Water Receipts, all of which might in one sense be regarded as reimbursements in aid of expenditure.

6. I request you to lay this despatch and my despatch of 26th October last before the Legislative Council.

I have the honour to be,

Sir,

Your most obedient,

SIR W. ROBINSON, K.C.M.G.,

&C.,

$c.

fc.

bumble Servant,

J. CHAMBERLAIN.

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NOTE. The previous despatches to which reference is made in the above corres- pondence, viz., Governor's despatch No. 267 of the 28th August, 1895, and Mr. CHAMBERLAIN'S despatch No. 258 of the 26th October, 1895, have already been printed and laid.

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