28

Majesty's Government in determining that a portion of the cost of their construction should be borne by the Colony.

21. Four different heads of expenditure were required in 1884-85 for putting the Colony in a proper state of defence, viz.:--

1. Forts.

2. Armaments.

3. Submarine defences.

4. Barracks for additional troops.

It was determined in the special agreement of that year, that the Colony should provide the works, and the Imperial Government the armaments, the estimated expen- diture being-

Works

Arinamente..

£

55,625 37,500

22. This estimate, as I have stated above, has, however, grown into an expendi- ture of 325,4274, of which 209,4271, or nearly two-thirds, will have been borne by the Imperial Exchequer, and if Her Majesty's Government now call upon the Colony to make a fair contribution towards the new barracks, it cannot complain of unfair treatment, especially as the additional barracks are in fact a necessary part of the defences.

23. It must be added that if, in the course of the three years, necessity for any new defence works should arise, their cost would form the subject of a separate agree- ment, and that it is not to be understood that the whole charge of them would be borne by the Imperial Exchequer.

24. In the confident hope that the present arrangement, which they consider equitable and reasonable, will be readily accepted by the Colony, Her Majesty's Government request that you will lose no time in laying this despatch before the Legislative Council, and in pressing forward the necessary votes by all the means in

your power.

APPENDIX A.

KNUTSFORD.

LANDS.

Sir,

29

No. 19.

Treasury to War Office.

Treasury Chambers,

25th January, 1890. The Lords Commissioners of Her Majesty's Treasury have had before them Mr. Knox's letter* of the 8th instant

188

T. No.

4307

550 Hong Kong 2), respecting certain

90

2

4307

new barracks at Hong Kong. They regret that Mr. Secretary Stanhope has Kong Kong ordered the commencement of these works, in anticipation of Treasury sanc- tion, especially as it is impossible for them to give this sanction without further information.

On comparing the estimate now submitted with that embodied in Mr. Knox's lettert of the 9th January, 1889 (599), my Lords find the following discrepancies:-

Estimate of January, 1889.

Barrack for half battery, Stonecutters Island, and half battery, Lymoon..

89

Estimate of January, 1890.

£

10,000

£ Barrack for half battalion at Lymoon 10,000

Married quarters, viz.:-42 at 450%

each (say)

Married quarters in Victoria ..

30,000

15,000

How is it that the estimate for half a battery now is as much as that for a whole battery a year ago?

Why has the estimate for married quarters doubled?

How will the increase on these two items affect the total estimate of 50,6001. given in Mr. Knox's letter of the 9th January, 1889?

PROPOSED ESTABLISHMENT OF THE GARRISON OF HONG KONG.*

Royal Artillery, 2 batteries

++

Staff, &c.

Royal Engineers, Officers and Staff

"}

Fortress Company

"

Eastern Battalion

Infantry, 2 battalions

General Staff

Ordnance Artificers

Gymnastic Instructor

Army Schoolmaster

Medical Staff and Corps

Pay Department

Comunissariat and Transport Staff and Corps

Ordnance Store Department and Corps

LANDS.

Officers.

Warrant Officers and Serjeants.

Rank and File, Drummers, &c.

All Banks.

Sir,

2: : : : :

10

12

220

242

7

..

16

10

21

6

87

98

54

62

1,372

2,026

10

2

1

1

32

7

5

2

Total Europeans

114

159

2,252

2,525

Natives

f Local Artillery

8

20

412

440

Engineers, Submarine Miners

3

4

46

53

Total

125

189

2,710

3,018

* Exclusive of 200 Volunteers and 150 Militia Engineers.

R. E. WELBY.

No. 20.

War Office to Treasury.

War Office,

6th February,

1890.

90

With reference to your letter of the 25th ultimo (No. 550), respecting the provision of barrack accommodation for the increased garrison of Hong Kong, I am directed by the Secretary of State for War to furnish, for the information of the Lords Commissioners of Her Majesty's Treasury, the following explana- tion in regard to the points raised by their Lordships :-

As regards the cost of the barracks for half a battery of Artillery at Lymoon, I am to observe that the estimate first given was based upon an approximate estimate supplied from Hong Kong, which was made before plans had been drawn.

A more accurate estimate has now been received,

It should, however, be remembered, that the Colony of Hong Kong is in a flourishing condition, and that prices have risen since the date of the original estimate.

As regards the cost of the married quarters at Victoria, I am to point out that the number of quarters proposed to be provided for 15,0001, were only 42, which were to take the place of the quarters vacated when the properties pro- posed for sale were disposed of.

* No. 15.

† No. 5.

4321

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