480

1H4

AYA

Water-Works, the extension of the Gaol, the new Central School, the necessary Repairs to the Police Barracks, and the new Water Police Station, with its appurtenances, are estimated to require, in round numbers, $1,300,000. To this amount we must add the Sanitary expenditure which is considered by Mr. CHADWICK (the Civil Engineer recently sent out from England to report on the Sanitary condition of this Colony) to be absolutely necessary to ward off the imminent danger of a severe epidemic. This expenditure is estimated at not less than $1,200,000. It will be seen, therefore, that while the assets are only $1,150,000, the necessary expenditure will be $2,500,000, a sum equal to more than double the assets.

Of course, there is the obvious alternative of following the example of most Nations and Colonies, by raising a moderate loan for public works of a permanent character, the whole burden of which cannot be fairly cast upon the present generation. I believe that Hongkong is the only community of importance in the world which is absolutely without a public debt. I am, myself, in favour of a loan of the character to which I have referred; but this is a question which must be decided by the Legislative Council, with the sanction of the Imperial Government.

There is little prospect, under the circumstances stated above, of the Imperial Government sanctioning any remission of taxation. Indeed the Secretary of State has already delivered his decision in this matter in a Despatch (No. 170 of the 9th December, 1881) which has already been laid before the Legislative Council. It is there stated: "Any change in the "direction indicated will require careful and detailed consideration; but, at "present, while there are many much needed public works still to be undertaken, I should not be ready to sanction any measure diminishing the sources of revenue.”

Such being the broad state of the case, it would be superfluous for me to enter at present upon any minute examination of the details of all the subjects to which my attention has been directed. I may, however, observe that the proposed reduction of the Light Dues raises a somewhat difficult and delicate question. I am advised that the Licenses on Chinese Junks are regarded as an equivalent for the non-payment by them of the Light Dues; and that if the latter are reduced, it would be equitable that the former should be reduced also. Now the Light Dues and Junk Licenses together produce an annual revenue of about $42,000; and it is to be feared that the Colony cannot afford at present to dispense with any portion of this sum.

Again, it should be remarked that the Light Dues at Hongkong are only 1 cent per ton of the shipping; whereas at Singapore, which is also a Free Port, they amount to 1d. per ton, i.e., three times as much as here. Mauritius and other Colonies these dues appear to be still higher than at Singapore. It should be remembered, moreover, that the Colony of Hongkong appears to pay in aggregate taxation less per head of its population than any other British Colony of importance.

I refrain from going further into details at the present moment. It is obvious that, after the decision of the Imperial Government referred to above, the Governor would not be justified in taking steps towards the reduction of taxation, without previous authority from home, even if he were more convinced than I can confess myself to be, that such a reduction, however desirable and logical in itself, is just now within the scope of practical politics. But if the Chamber of Commerce will present me with a full statement of its views and wishes, I shall have much pleasure in transmitting that statement to the Colonial Office, where it is sure to receive the respectful attention due to any communication emanating from so important and representative a body.

Perhaps, however, the Chamber may prefer to see this question, and the manifold questions connected with it, submitted, in the first instance, to the deliberations of a re-constructed Legislative Council. For, in conclusion, Gentlemen, I may take this opportunity of stating that I have satisfied myself that the present constitution of the Legislative Council of this Colony is wholly inadequate for the proper discussion and settlement of our public affairs. I firmly believe that the community at large will be better represented and satisfied, while the Government will be more fully informed, and, at the same time, strengthened by the weighty support of public opinion, if the Unofficial element is considerably increased. At the present moment there are really only two Unofficial Members. I shall propose forthwith to Her Majesty's Government that for the future there shall be six Unofficial Members; and that the system which has worked successfully in Ceylon shall be adopted also here. I mean that two of those six members should be, as a general rule, appointed on the recommendation of the Chamber of Commerce, and one more at least on the recommendation of some other public body, such as the Bench of Justices of the Peace. One of the six Unofficial members will of course be chosen from among our Chinese fellow subjects. It will be remembered that representatives of the native communities have for many years past held seats in the Legislatures of British India, Ceylon, New Zealand, and the Straits Settlements. Without going further into details at present, I believe that you Gentlemen, will agree with me in thinking that a system of the nature thus shadowed forth will confer on the Colony most of the advantages, without any drawbacks of popular election; which, for obvious reasons, is impracticable in a heterogeneous community, circumstanced as is that of Hongkong. Should the Imperial Government sanction my proposals, I feel confident that the Colonial Government and Legislation will derive valuable assistance from the knowledge and ability of the gentlemen recommended by the Chamber of Commerce. The Official and the Unofficial Members alike can have no object in view but the general welfare of the Colony; and I am sure that we shall all work together cordially towards that common object.

G. F. BOWEN,

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