Council 14 Sept 2
Gibraltar & when the hoops are paid in Dollars, it is at the rate of 5 pence for the ⋆ By order in Dollar. The Ships of war now in Hong Kong Bay, are paid at the dollar at 30 pence, while the Sheeps and Government servants there are paid at 52 pence.
In all our 1838 possessions except Hindostan, payments are made, and accounts kept in coin of British denominations. There does not appear reason why Hong Kong should form an exception to the general rule. If Dollars requisite for commercial transactions with the Chinese, they will always be bought thither from the South American Coast, in abundance; and as economically as they conveyed to Canada, or sent to England - the difference between 45 and 50 pence covering well the expense of freight, insurance, and Commission.
The annual expenses of this Colony, and of the Consular Establishments on the East of China will be about £80,000 a year. To meet these charges, neither the Colonial Revenue, nor the Consular fees will for some years be adequate: The Military force to be maintained here, must for reasons of state policy, for some years be retained not less than that now maintained. At the present moment two European and five Native Regiments with small detachments of Artillery, Engineers &c, cost about $1,292,000 per annum, at 44/4 per dollar £279,933.
These charges, which cannot be reduced, are independent of the cost of the naval squadron. It is therefore, a very serious question, how the coin to pay charges amounting to about $350,000 a year, is to be hereafter provided.
The importance of the subject immediately