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trade between their own ports, and from those ports to the mother country. These ports differ, therefore, from those of Hong Kong and Singapore, in so far as they are not merely naval bases and harbours of refuge for the trade which passes them in its transit between the United Kingdom and foreign countries.
10. Unless this distinction is kept well in view, no proper and fair consideration will be given to the conditions which govern the defence of these eastern coaling stations. It is of course reasonable and just that the mercantile community and alien inhabitants of Singapore and Hong Kong should bear their full share of the cost of protecting the ports in which they carry on their business, and of the security which they enjoy. The amount which they should contribute is a subject for careful examination and discussion, but as regards Hong Kong, Lord Knutsford must observe that the discussion was closed for the present by the conference of himself and his colleagues, when the contribution was fixed for five years, at £40,000 a-year.
11. Their Lordships being dissatisfied with the conclusions of a Committee, to which their own representative was a consenting party, caused the matter to be referred to the two Secretaries of State and the Chancellor of the Exchequer, and, according to Lord Knutsford's distinct recollection, the result of this meeting was that the recommendations of the Committee were accepted, so far as regards Hong Kong. He cannot, therefore, adopt the view apparently underlying your letter under acknowledgment that this conference was merely of a preliminary character, designed to clear the ground for subsequent discussion; and should the Secretary of State for War concur in this recollection of what passed at that meeting, Lord Knutsford trusts that their Lordships will reconsider their present decision, and agree to this contribution of £40,000 for the five years, from 1st January last.
12. As regards the sum of about £9,000 for submarine mining works, which their Lordships desire should be demanded from the colony, Lord Knutsford would point out that when the conference accepted, as according to his recollection was the case, the recommendations of Sir Arthur Haliburton's Committee, no exception or reservation was made in respect either of this sum or of the payments on account of the new barracks. And in any case he would deprecate any demand on account of this sum, not only because no similar demand has been made upon any other colony, and no objection has been raised in Parliament, but also because the Colonial Legislature, in 1886, when voting a sum of £60,375 in addition to the original estimate of £55,625 for works, making together the sum of £116,000, did so on the distinct understanding that "this vote shall be final for the military and defensive purposes of the colony," and although Her Majesty's Government never formally accepted this condition, yet if the demand for this £9,000 is pressed, the colony would naturally point to the resolution, and the difficulty would be considerably greater of obtaining the increased annual contribution, and the money necessary for the new barracks.
13. For it must be remembered, that hitherto all barracks at Hong Kong have been built by the military authorities, and any demand upon the colony on that account will be unexpected, and give rise to much opposition. And there is a matter of considerable importance to which Lord Knutsford desires to draw their Lordships' attention. The colony has recently carried out, at enormous cost, certain large works for bringing into the town a copious supply of fresh water, of which the military and naval departments enjoy the benefit, without contributing to the cost of the works, and the colony may claim to set off a portion of this expenditure against demands which they consider unjust, seeing that the War Office and Admiralty pay only half rates for the water they use, and it is understood that the Admiralty have objected even to this. No such suggestion has yet been made by the Governor, and very possibly never will be made, but the circumstance should not be overlooked when considering the demands which it is judicious for Her Majesty's Government to put forward.
14. It only remains to notice the 8th paragraph of the letter under reply, and to observe that if the Straits contribution has not been paid in sterling, this is due to the Treasury having refused to accept sterling in the first instance, and afterwards when the exchange turned in favour at the colony, to its having for years omitted to deal with a proposal from the Colonial Office, submitting a scheme, which, whatever may have been its merits, was at any rate an honest attempt to come to an arrangement upon the subject. Upon this question I am to refer you to the letter from this department of the 18th of September.
I am, &c.,
The Secretary to the Treasury.
J. BRAMSTON.
War Office to Colonial Office.
War Office,
30th November 1889.
Sir,
With reference to your letter of the 17th October 1889, respecting the provision of additional barrack accommodation at Hong Kong, I am directed by the Secretary of State for War to transmit herewith, for the information of Lord Knutsford, a copy of a letter* which has been addressed to the Treasury in regard to the sale of land in that colony, and I am to state that no trustworthy estimate of the cost of the barrack accommodation can yet be furnished, nor is it expected that a complete estimate can be so furnished for some length of time, as the amount of building will be considerable, and its plans, &c., will take a long time to prepare. Nor does the Secretary of State for War conceive that it will be possible to bind himself absolutely that the estimate will not be exceeded, though every effort will be made to adhere strictly to the figures quoted.
The variations in prices, and the necessary modifications of the plan in execution, render it impracticable to give an undertaking beyond this.
The plans, however, will be prepared and revised in this office upon the information available at the latest date, and with due regard to economy. The War Department also will have to bear half the cost beyond the proceeds of the sale of property, and it is clear that it will be to the interest of the War Department as much as to that of the colony, to keep the cost as low as possible.
The Under Secretary of State, Colonial Office, S.W.
Sir,
I am, &c.,
RALPH THOMPSON.
Colonial Office to War Office.
Colonial Office, Downing Street,
16th January 1888.
With reference to your letter of the 8th December, I am directed by Secretary Hong Kong Sir H. Holland to acquaint you that Captain Morant, R.N., has attended at this office, and with Colonel Locock, R.E., and Mr. Bramston, of this department, discussed the questions connected with the proposed extension of the Hong Kong Praya, and received such valuable information from Sir George Phillippo, Chief Justice of the Colony, who, as chairman of a land commission, which has recently reported to the Governor, is well acquainted with all matters relating to land in Hong Kong.
2. The position of affairs, as Sir H. Holland understands it, may briefly be stated as follows:-The population of the colony, which is almost entirely concentrated in the town of Victoria, numbered, according to the census of 1881, 160,402 persons, of whom no less than 150,690 were Chinese. This number is now very much larger, and is increasing at the estimated rate of some 10,000 a year; nearly all Chinese; and very great difficulty is found in providing them with house room. This difficulty is increased by the circumstance that the town, which extends in a long line along the harbour, is occupied about the middle of the line by the naval yard, and the barracks and other military buildings, which practically cut the town in two.
3. The only communication between the eastern and western halves of the town is by the Queen's Road, a thoroughfare of moderate width, passing behind the naval yard and some of the military buildings, others of which are on the other side of the Queen's Road, some on the same level, some on a cliff which here abuts on the road, and effectually prevents any second road from being made there for relief of the traffic.
4. For many years the Colonial authorities have desired to obtain such relief by reclaiming a portion of the harbour and building a sea wall and road on the harbour side of the naval and military establishments; but all negotiations on the subject have hitherto failed, the Admiralty and War Office refusing to contribute to the expense, and at the same time objecting to being deprived of their water frontage, which would necessarily follow if the land reclaimed from the harbour were retained by the Colonial Government and utilized for building purposes.
5. The necessities of the colony have now become so urgent that a proposal was made to the Admiralty to accept a larger site at Kowloon in exchange for the present yard, which is already too small for naval requirements, and in front of which the water
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*For copy of letter
see page 13.