Such having been done, what proportion of the Troops maintained purely for Imperial purposes (and which purposes are not cast for these purposes alone, but are also closely connected with the prosperity of the Colony) can fairly be expected that the Colonial Revenue is able to bear? And may I think it beyond doubt that the form of a lay fact & exclusive of the balance it is also reported to be in hand, which at the commencement of the year was stated to be about £98,000, a sum ranging very considerably for the security of the Colony, the Jenin(?) Bur(?) un-decided they think surplus Revenue of this reasonable and £40,000 per annum should now be reckoned upon and may be in future years, though not an equivalent.

That Her Majesty's Government, my opinion be, which fully admit the probability that Hong Kong will be required for Imperial purposes in future, the existing Commission of 1855, which purposes however are closely connected with the prosperity of the Colony, consider that it would be only just and reasonable that Hong Kong should, for the five years commencing the 1st of January 1865, contribute towards the support of the Military Expenditure which it undoubtedly requires for the security of its European inhabitants, at the rate of £20,000 per annum. At the expiration of that term, the amount will be subject to revision, which the altered circumstances of the Colony may require.

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