26
THE PROPOSED TYPHOON
REFUGE.
MEMORANDUM BY H.E. THE GOVERNOR The following correspondence has been for. warded by the Chamber of Commerce for publication :
Colonial Secretary's Office,
20th May, 1908. SIR, I am directed to acknowledge receipt of your letter of 1st May on the subject of Light
Dues, with its enclosures.
His Excellency is anxious that your Chamber should be in full possession of the reasons which have led him to the conclusions he has formed, and he has therefore desired me to enclose & Memorandum which he has prepared on the subject for your information.
•
I enclose the plaus and estimates for the sobeme, which, as you are aware from the omcial reports in the Gazette of the proceedings of the Legislative Council, have already been submitted to the Public Works Committee of that body.
The subject of the cost of the shelter is dealt with in His Excellency's Memorandum.
With regard to the question asked in the anti-penultimate paragraph of your letter, I am to state that the revenue derived from the increased fees on cargo boats, lighters and waterboats was made in the interest of General Revenue since it was considered that the fees were low.
The increase based on last year's receipts will amount to $18,000. per annum.
With regard to the suggestion put forward in the second paragraph of the enol-sure to your letter I am to state that the Government is at a loss to understand how such tax could be
properly distributed seeing that much of the underwriting is done outside the Colony, and I am to enquire how your Committee would propose to give effect to their suggestion.
I am, &o..
F. H. MAY, Colonial Secretary. The Secretary to
The Hongkong General Chamber of
Commerce. MEMORANDUM FOR CHAMBER OF COMMERCE RE LIGHT DUES.
THE HONGKONG WEEKLY PRESS AND
disastrous gale. This sum appeared to me to be beyond our present resources, and I referred it back to Mr. Boulton with a view to the prepare- tion of a less costly scheme which would, if possible, give partial protection, and be capable of later development as funds permitted. The
Reasons for undertaking Typhoon Shelter.- The vital necessity and urgency of this work has been pressed repeatedly upon Government by the Unofficial Members of Council, and my predecessor gave a pledge that Government would undertake it without delay, and would contribute a sum equal to that subscribed by the community towards the Typhoon relief fund, viz:-8279,903. The balance of this fund was handed over to Government. It amounted to $35,804 and has been earmarked as a fund for relief in similar circumstances in the future. On my arrival in the Colony it de- volved upon me to make good Sir Matthew Nathan's pledge, and when the estimates were discussed in September last Messrs. Osborne and Hewett again very strongly urged the necessite for the shelter and blamed Govern- ment for delay. From what I can gather they voiced the wishes of the Community,
Reasons for Delay. This delay had arisen in the first place owiar to a protracted dis- cussion as to the comparative merits of different sites, and in the second place to the time required for making a reliable estimate, and in endeavouring to find an alternative and cheaper scheme.
Cost.-When the project was first broached a rough calculation for foot run was made merely for the purpose of contrasting the comparative cost of the different sites proposed, and the one at Mongkoktsui was on this basis of cal- onlation put down at $600,000. When this site had finally been decided upon, a detailed estimate was prepared by Mr. Boulton, than whom there is probably no one better qualified for the task,
It was receir last Autumn, and com- municated by me to the Council in my speech when introducing the estimates. The amount was $1,400,000, and the great increase was stated to be partly due to a rise in prices of materials, and partly to the fact that the typhoon of September, 1906, had shown that a much higher and more substantial sea- yall would be required than had been contem- sted, before the experience gained by that
[July 11, 1908.
was not in the nature of a treaty or pledge to third parties but was merely a statement of the policy of the day vis :—to attract commerce to a new and undeveloped port. The policy_of to day is to charge a very moderate rate for improvements effected on behalf of shipping.
result was that after careful revision his (g) It has been urged that the Colony owes estimate was increased to $1,540,000 instead of its prosperity to shipping which would avoid decreased, and that he reported that no partial the Port if dues are levied. There are those or progressive scheme was possible.
The who maintain that shipping which would avoid alternative was to decrease the area of the shelter the Port for dues so small as these, were bet- from 166 acres to 57 acres at a cost of $883,800. ter away. The dues were raised to 2 cents The Engineer's report and estimates were
between April 1890 and October 1897 to pay referred to the Public Works Committee of for the Gap Rook Lighthouse, and between the Legislative Council of which the Chairman of the Chamber of Commerce is a member and they unanimously recommend the larger scheme at Mongkok tani.
Method of meeting Cost,—After a most care- ful investigation of the liabilities of the Goverument and the available |revenue which I need not detail at length in this Memoran- dam but which on fitting opportunity I shall fully explain, I satisfied myself that I had no alternative but to raise the light dues tempor. arily in the way which has been described to the Chamber of Commerce.
led me to this conclusion.
The following are among the reasons which
(a) On the last occasion when an increase of revenue was found to be necessary (in 190!) Practically all licences were largely increased but no additional contribution was asked from shipping. Its ability to contribute was re- cognised, but it was reserved for the next ocoa- sion which might arise.
(b) This liability was recognised in December 1896 when the unofficial members with one
exception unanimously recommended that the imposition of a permanent tonnage due of li cents in addition to the 1 cent Light dues (n the grounds that shipping should pay its fair proportion to the revenue.
(c) It arises from the fact that shipping bene- fits directly both in respect of capital expendi- ture on works, and in respect of increased efficiency in administrative machinery. In 1342 the Colony could offer nothing but a harbour infested by pirates and ships watered from a waterfall near Aberdeen. There is now efficient police protection, hospitals, markets, better and oheaper water supply, various useful institutions like the Sailors Home, good wharves and piers for landing and discharging cargo, and a well organised Harbour Department which regulates native craft.
(d) The principle that shipping should con- tribute to general revenue is recognised by the United States of America, which assigned shipping dues to national debt charges, de fence, and general revenue. In reply to a petition from the Shipping interest in 1897 Mr. Chamberlain replied:- 'If at any time here- after urgent necessity should arise for increasing general revenue I should be prepared to con sider any proposal for again raising the ship. ping dues and again in 1902 be gave it as his view that a special tax should be levied to cover any harbour improvement.
(e) In my view the typhoon shelter is a great "harbour improvement which moreover direct. ly benefits Ocean shipping in that lighters and small craft which now bolt for the inadequate refuge at Causeway Bay on the first indication of a typhoon and so leave the Ocean steamers sometimes, I believe, for several days unable to load or discharge, and thus subject them to much delay and expense, will, when the new typhoon refuge is built, be able to remain to the last moment secure in the knowledge that they can gain an entrance, however late.
If, however, this direct benefit to Ocean ship ping should be disputed, the principles put forward in (c) and (d) go to show that Ship ping is liable for contribution to any harbour improvement and even to purposes of general
revenue.
*
(f). It has been argued that the imposition of any dues beyond the amount actually spent on lights and buoys would mean that Hongkong would no longer be a "Free Port." A Free Port" is one in which no Customs dues are charged. Copenhagen, a free port, charges the equivalent of six pence a ton, while Shanghai charges the equivalent of 14 cents per ton.
Others have urged that the Proclamation of 1842 made exemption of all dues, an increase would violate that pledge. The Proclamation
these dates the tonnage increased from
4,893,733 tons to 6,063,640 tons. The inducement of ships to come to this port is not that they have nothing to pay, but in order to earn freights, and proportionately as Hongkong becomes an industrial centre her shipping will increase, Our geographical position is equally advant- ageous to us as an industrial centre as it is as a Port of Call.
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(b) The Chamber of Commerce appear to co tend that the amount imposed upon shipping is too great, and that other interests should con- tribute a portion. Only half of the cost is asked from the shipping, and though I am not st present able to forecast the financial require- ments of
next year and shall дос
be
in a position to do so till the draft estimates are before me, I fear that the shipping interest is by no means likely to be the only one which will have to submit to increased taxation, look- ing to the large increase of revenue necessary for payment of interest on railway expenditure, the tall in exchange, the prospect of dɩolins in opium revenue, and the continued loss due to discount on subsidiary coius.
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(i) The Chamber of Commeros urge that the sum to be raised should be spread over a longer term of years, with a proportionate decrease in the extra dues. There is no point which has been more strongly emphasized by the represen tatives of the Community in Council than that the construction of the refuge should be pushed on with the utmost rapidity, and should not be allowed to occupy so long a time as the Post Office and Law Couris are doing. period of five years has been estimated for the work, but if it should take longer than that time, it may be possible to spread the con- tribution for the last year or two over a longer period. Government however is not able to supply the capital for the commencement of the work, and to rely on gradually recouping itself over a long series of years, mor, in view of the existing loans which amount to above one tenth of revenue, am I able to recommend to the Secretary of State, nor would he agree to a proposal for, a loan for such a purpose. I do not enter into this matter in detail in this Me- morandum however, since it has already extended to considerable length,
8th May, 1908.
F. D. LUGARE.
MEMO. BY THE HON. DIRECTOR OF PUBLIC
WORKS.
I beg to submit the accompanying plan and section of the proposed boat-shelter at Mong- kokteni and the following report :—
originally proposed, and, in green, a short The plan showe, in red, the long breakwater breakwater now suggested, but not commended. The section shows a design which has been prepared after full consideration of the effects of the 1908 typhoon.
The bulk of the work could be carried out The concrete block- work is the only part of the structure which by native contractors.
and very little special plant would be required would have to be carried out departmentally,
the Dock Company or Messrs. Punchard Low- for it. A dredger would have to be hired from ther & Co., for the purpose of exevating the
trench for the foundatious.
The blockwork is expensive but necessary, because three tons is the maximum weight of the boulders to be got by junks, and such blocks are too small to withstand the action of the sea
at or near low tide level. The concrete blocks would extend down to 7 feet below Ordinance
Datum, at which depth the three-ton boulders would not be liable to disturbance by the waves.
I estimate the cost of this design at $370,00 per lineal foot and the total cost of the long breakwater as follows:-
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