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pointed out by the Committee, the arguments contained in it appear to have been entirely overlooked in the subsequent correspondence from the Secretary of State, I did not feel that I should have been justified, on these grounds alone, in concluding either that the letter had miscarried, or that it had not received whatever consideration it may have been thought entitled to before the definite decision of Her Majesty's Government was arrived at, which was announced to me in your last despatch.
8. I accordingly, on the 5th instant, submitted the item of 20,000%. for military contribution to the Council, together with the other charges for the service of next year in the Annual Appropriation Ordinance. The rejection of the item was moved by Mr. Murray, who was supported by the two other non-official members, and by the Colonial Treasurer. The retention of the item was voted for by the Auditor General, the Attorney-General, the Colonial Secretary, the Acting Chief Justice, and by myself, so that it was carried by a majority of one.
9. But I must not conceal from you that, if the official members who voted for the item had considered themselves free to vote upon the question in accordance with their own opinions, the proposal would have been rejected by a majority of eight to one. These gentlemen, however, thought that a matter of this kind, which had originated with the Secretary of State, and which had been announced by Her Majesty's Government to be "definitively settled," differed from the ordinary cases submitted to the Council for deliberation before reference home, and they accordingly felt themselves bound to give effect to the decision of the supreme authority, without regard to their own convictions. With a view, however, to prevent the Home Government being misled as to their opinions by their votes, a resolution was agreed to by eight out of the nine members present, and recorded on the minutes, to the effect, that, in the opinion of the Council, the colonial revenues cannot fairly be charged with any contribution towards the military expenditure rendered necessary by Imperial requirements in China and Japan. This opinion was based upon the same grounds as those adopted at the public meeting upon the 23rd ultimo, that the maintenance of troops in Hong Kong is no longer necessary for the security of the inhabitants, or for the protection of any other purely colonial interest. The only dissentient to this resolution was the Acting Chief Justice, and he stated that he believed his opinion was not shared by any other resident in the colony.
10. I may mention that the justice of calling on all colonies to contribute, as far as they are able, towards the cost of the military defence of local interests is here acknowledged to the fullest extent, but it is simply denied that troops are required in Hong Kong for any such purpose. And it is further maintained that this colony would profit by the withdrawal of the troops far more than it gains indirectly by their presence, inasmuch as the commercial development of the place would then be no longer obstructed by the retention, in a limited area, of the most eligible and valuable sites for commercial purposes, as military reserves. If these were let, the public would derive vast convenience, and an annual revenue would accrue to the colony, estimated at not less than 10,000l. a-year.
11. To sum up the whole question then, it will be seen that, throughout the entire correspondence which has been published, His Grace the Duke of Newcastle justifies the demand solely upon the ground that the presence of Her Majesty's Forces is necessary for "the security of the inhabitants and trade of Hong Kong." In opposition to this view, the Local Government, the Legislative Council, the Chamber of Commerce, and the entire foreign community have now deliberately recorded their opinions, which are founded on local experience, that the presence of troops here is unnecessary for any purely local object, and it rests with Her Majesty's Government to decide what weight should be given to these local representations.
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