519
7. In all the circumstances the Governor with the advice of the Executive Council de- cided that the proposed temporary increase in Light Dues was a reasonable one for the purpose proposed, and that past experience showed that it would not injuriously affect the Port. His Excellency has, however, read with interest the facts you adduce to show that the conditions of the present day are not identical with those of the past and that in your view the exper- ience of the past inay prove to some extent fallacious when applied to the conditions of to- day. He proposes therefore to limit the temporary increase to 2 cents instead of 24 cents per ton, and to exclude the cost of deepening Causeway Bay from the special fund towards which the additional dues are to be devoted.
8. His Excellency is not prepared to raise a loan for this work in view of the fact that inclusive of the Loan of 1902 the Colony has already raised a sum of £1,485,733 for Rail- way Construction and other purposes. The interests and sinking funds on these Loans will probably reach 10 per centum of the Colonial Revenue and in these circumstances no addi- tional Loan is feasible, nor would it meet with the concurrence of the Secretary of State. The proposal of your Committee to borrow from a local Bank at 6 per centum as an over- draft whatever funds are required to meet the excess of expenditure over the annual amount raised by the addition of a half cent Light Dues and an equivalent sum from Government Funds would, on the assumption that the total cost amounted to $1,500,000 and was equally ex- pended each year during a period of 5 years, result in a debt to Bank by the shipping interest of a sum of $657,285; (assuming that the half cent extra due would produce a sum of $40,000 per annum) to cancel this debt with continued payments of $40,000 per annum would involve the continuance of the extra half cent for a further period of 73 years. His Excellency proposes in lieu of this that advances should be made by the Crown Agents or from the Colony's reserves at 4 per centum to meet the yearly deficits. With the proposed increase of the Light Dues to 2 cents, the amount paid by the shipping interest would be $80,000 and the debt remaining to be extinguished by the shipping interest at the end of the years con- struction period would be $394,308 which at the same rate of 2 cents would be extinguished in about 5 years. It is therefore calculated that the temporary increase in the Light Dues would extend over a total period of eleven years. His Excellency concurs in your view that the funds for the construction of the Shelter should be kept separate entirely from current Revenue and has recommended to the Secretary of State in this sense.
His Excellency is at the same time prepared to give the assurance that the Government has no intention of continuing the proposed increase to Light Dues after the cost of the Typhoon Refuge has been met, and that this cost will be shared equally by the Funds of the Colony and the produce of the additional cent Light Dues. It must, however, be clearly understood that His Excellency cannot bind himself or his successors in office not to again increase Light Dues should urgent occasion arise, but in such a case a new Resolution would be proposed to the Legislative Council and the matter would be considered on its own
merits.
I am, &c.,
F. H. MAY, Colonial Screctary.
The Secretary, HONGKONG GENERAL CHAMBER OF COMMERCE.
Typhoon Relief Fund Committee.
Sir Paul Chater, Kt., C.M.G., (Chairman). H. E. R. Hunter, Esq., (Hon. Treasurer). Hon. Mr. E. A. Hewett, (Han, Secretary). Hon. Mr. W. J. Gresson.
Hon. Mr. A. W. Brewin.