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29. The colony has, however, never been asked to make provision for this charge, and the Committee consider that, under the terms of the corres- pondence which has since taken place with the colony, the Imperial Govern- ment is now practically precluded from demanding any further payment from the colony towards the cost of these defences.

30. The total estimated cost of the Hong Kong defences and the division of that cost will be as follows:-

Colonial.

Construction of works-fortifications

£

116,000

Imperial.

£

Armaments

153,910

Submarine mining buildings, &c.

vessels and stores *.

9,017

46,500

209,427

Total cost

325,427

*

The incidence of the charge being 35 per cent. to Colonial and 65 per cent. to Imperial funds, as against 60 per cent. to Colonial and 40 per cent. to Imperial funds contemplated in 1884 (para. 30).

BARRACKS.

31. In consequence of the increase to the garrison, recommended by the Colonial Defence Committee, it will be necessary to provide additional accommodation at Hong Kong for a force of about 1,500 of all ranks, or for double the existing garrison. The rough preliminary estimate of its cost Appendix is 212,000%. but it is possible that this may be exceeded.

D.

32. In connection with the scheme for providing this accommodation-- Ibid. though forming no necessary part of it-there is a proposal under consideration for surrendering to the colony certain sites in the town of Victoria, which are stated to be of great commercial value, and for constructing barracks and military buildings elsewhere to replace those thus surrendered.

33. The cost of the barracks, say 212,000l., would be then augmented Ibid. to about 262,000l., but the value of the surrendered sites would be set off against this, say 140,000l., leaving a balance of about 122,000l. to be provided. The finance of this scheme has not yet been sufficiently worked out to enable the Committee to say what the total net charge will finally be, nor, consequently, what the exact charge to Imperial and Colonial revenues will be.

34. After devoting the realized, or estimated, value of the surrendered sites to the provision of the required accommodation for the garrison, the Committee consider that the balance required to complete that accommodation should be divided as follows:-One-third against Colonial and two-thirds against Imperial revenues, being about the proportions in which the capital expenditure on defences has been shared; the colony in addition, providing Ibid, para. 5. the necessary sites for the barracks.

35. The Committee consider that when land is required for colonial military purposes, it should be provided by the colony, and save in very

* The cost of submarine mining defences includes expenditure incurred prior to 1884.

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