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APPENDIX B.

COPY OF CORRESPONDENCE BETWEEN THE SECRETARY OF

STATE FOR THE COLONIES AND THE GOVERNOR OF HONG

KONG UPON THE SUBJECT OF MILITARY CONTRIBUTION.

083 1413

Sir,

No. 1.

Copy of Despatch from Sir F. Rogers to Governor Sir H. Robinson.

Downing Street,

25th April 1863. You are probably aware that the attention of Her Majesty's Government has been much occupied, during the last two years, by a consideration of the important subject of colonial military expenditure, and that an enquiry was instituted by a committee of the House of Commons whether the most wealthy and important colonies might not be called upon, with a due regard to justice and to their own interests, to defray a larger proportion of the cost of their military defence than they had hitherto done.

2. After a thorough examination of the subject, it was decided that those colonies which, as regards the cost of their military defence, were more particularly a burden to the Imperial Exchequer should (allowing of course that the state of their revenues was such as to justify the additional charge) be required considerably to increase their contributions towards that object.

3. In accordance with the decision Ceylon, Mauritius, and the principal Australian Colonies, will be called upon to contribute more liberally towards the support of the several detachments of Her Majesty's troops which are maintained in those colonies, chiefly for the protection of colonial interests.

4. I make these few remarks, by the direction of the Duke of Newcastle, in order that you may be aware of what has already taken place in the matter, and for the purpose of bringing to your notice the fact that colonies, which have never to any great extent involved a heavy charge on the Imperial Treasury, excepting as regards a portion of the cost for their defence, will now be desired partly to relieve the revenues of this country by making additional contribu- tions in aid of their military protection.

5. Under these circumstances it is not to be expected that a rich and flourishing colony like Hong Kong should any longer be allowed an immunity from such charges, on this account, as it may so justly be called upon to bear. But before taking any definite action in the matter, His Grace would be glad to be favoured with any remarks which you may have to make, and with this view, and in order that you may be the more easily enabled to furnish any suggestions which may occur to you, it will be necessary that I should briefly review the past and present financial state of the colony.

6. It would appear, from an examination of all the data bearing on the subject, that, during the first 14 years of its existence as a colony, Hong Kong

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