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returns, is 1,574 of all ranks, and the cost is about 170,0001. The estimated revenue of the Colony for 1891 is 2,052,098 dollars, or more than three times the revenue of 1863. In my despatch of 20th January, 1890, the charge of 40,0001. was estimated to amount to 17 per cent. of the revenue of 1888, but owing to the subsequent growth of the revenue, and the appreciation in the value of silver, the charge now only represents about 11 per cent. of revenue as against 16 per cent, when the contribution of 1863 was fixed.

Under these circumstances, Her Majesty's Government do not consider that any grounds exist for delaying the payment of the full contribution of 40,000%,

Enclosure 5 in No. 36.

To his Excellency the Officer Administering the Government and the Honourable

Members of the Legislative Council.

Addenda by the undersigned unofficial members to the Preliminary Report of the Select Committee appointed by his Excellency the Administrator to examine into the details of the Estimates for 1891, with a view to the reconsideration of the Salaries Question, the Public Works, and the Military Contribution.

Military Contribution.--The unofficial members recommend that the vote for 40,000 sterling Military Contribution for the year 1891 be reduced by 20,000% or to 20,000Z

The Council voted an increase of 20,0001. sterling in the Military Contribution to be paid by this Colony to the Imperial Government in respect of the year 1890, upon the assurance that the garrison maintained in the Colony by the Imperial Government would, during the year 1890, be increased to over 3,000 men, of whom over 2,000 were to be Europeans.

The demand for an increased contribution, contained in the despatch* from the Secretary of State, dated 20th January last, was based upon and accompanied by a promise to fucrease the garrison, it being considered inadequate, to a strength that would enable a reasonable defence to be made.

The demand for an increased contribution was based solely on account of and in consequence of the proposed increase in the garrison. fact. It is proved beyond any doubt.

There is no gainsaying this

In the despatch referred to, Lord Knutsford states as follows:-

Paragraph 5. "The garrison in 1863-61 was estimated at 1,000 of all ranks, and its annual cost at 100,000. In 1888 the garrison numbered 1,445 of all ranks (exclusive of Volunteers), and its cost has risen to about 160,0001. a-year, while the Colonial Contribution has remained at 20,0007." Paragraph 6. The future garrison, including local Regulars, but excluding

Militia and Volunteers, will be approximately as follows:-

Imperial troops, 2,525 of all ranks.

Local Regulars, 493

The details are given in the Table A annexed to this despatch." Paragraph 7..The cost of this garrison will be about 280,000l. a-year, and will consequently be nearly three times as great as was the expense of the garrison in 1863 when the Colonial Contribution was fixed." Her Majesty's Government, however, do not propose that the contribution should now be increased in the same proportion, and will only call upon the Colony to provide 40,000l. a-year for each of the three years, 1890-91-92, the Colony bearing in addition the cost of any Militia and Volunteers which it may raise, and the contribution to be paid after 1892 being subject to reconsideration during these three years."

Paragraph 8. You will remember that Lord Derby's despatch, No. 213, of the 17th September, 1884. enclosed, with other correspondence, a letter from the War Office of the 9th September, which stated that Lord Hartington considers that it should also be intimated to the Governor that the present arrangement as to incidence of charge only applies to the works now to be constructed and armed, and that the military contribution paid by the Colony will have to be reconsidered with reference to the increased garrison which may become necessary in consequence of these works, und to the general defence of the Colony,' amount which Her Majesty's Government demand from the Colony as its And in now informing you of the

* Enclosure in No. 18.

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contribution to the increased garrison, I desire to draw your attention to the following considerations, which have been duly weighed before that amount was determined,” and

Paragraph 19. "I will only further point out in reference to the annual pay- ments, what doubtless you will not have failed to notice, that the 40,000Z which the Colony will pay in each of the next three years is only one- seventh the cost of the garrisou, while the remaining six-sevenths, 240,000%, will still be borne by the mother country,"

The Council recognized the justice of the demand, and promptly voted the increase on the condition and in the belief that the proposed increase in the strength of the troops stationed here is essentially necessary for the safety of the Colony, and with the full assurance that the force mentioned in the appendix to the Secretary of State's despatch of 20th January last, viz., 3,018 men of all ranks, of whom 2,525 to be Europeans, would be present in the Colony within the year, and would be retained here.

The resolutions bearing on this subject, and agreed to unanimously by the official and unofficial members of the Council, are as follows:-

The Hon. P. Ryrie then moved the following resolutions:-

1. "That this Council, while recognizing the justice and fairness of the demand made upon the Colony for an addition to the Military Contribution, desires to place upon record the fact that the vote authorising the additional payment has been passed by the unanimous voice of the members, official and unofficial, in the belief that the proposed increase in the strength of the troops stationed here is essentially necessary for the safety of the Colony, and with the full assurance that the force mentioned in the appendix to the Secretary of State's despatch of the 20th January, 1890, 3,018 men of all ranks, of whom 2,525 are to be Europeans, will be present in the Colony within

and will be retained here."

the

year,

2. It is the unanimous hope of this Council that as the additional monies voted have been asked for and granted as the Colony's contribution to an increased garrison, and principally, if not entirely, because of the proposed increase, no demand will be made by the Imperial Govern- ment for the payment thereof until the strength of the garrison has actually been raised to the full extent of the figures in the Secretary of State's dispatch, and that, if any additional payment is demanded before that point has been reached, it should be proportional to such increase as shall from time to time be mude in the force stationed in the Colony."

3. "That in the opinion of this Council the attention of the Secretary of State should be directed to the fact, to which no reference is made in Lord Knutsford's despatch of the 20th January, 1890, that the military departments are in the occupation of rather more than 337 acres of land in this Colony, of which 84 acres are in the City of Victoria, that these 84 acres are situate in the very centre of the town, and are, at the very lowest, of the value of 3,000,000 dollars, representing a revenue in the shape of Crown rents and taxes of 50,000 dollars a-year lost to the Colony, and that this being so it is earnestly hoped that no further demand will be made on the Colony in respect to barrack expenditure, referred to in paragraphs 20, 21 and 22 of the dispatch above mentioned, at all events unless the land in the centre of town be given up by the military authorities, as has been suggested, in exchange for other sites nearer the batteries."

4. That his Excellency the Officer Administering the Government be requested to forward a copy of these resolutions to the Secretary of State with a view to their being laid before Her Majesty's Government."

The Hon. A. P. MacEwen seconded."

The following members addressed the Council:-Hon, P. Ryrie, Hon. A. P. Mac- Ewen, and the Treasurer."

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His Excellency addressed the Council"

Question-put and resolutions agreed to."

The Colonial Office despatch* of 23rd May last to the War Office, paragraph 3, reads....

(138)

"As regards the second resolution, Lord Knutsford considers that when the increased garrison has been supplied, the Colony may be expected to pay

* No. 24.

you

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