204

"Courie heghat

0.0. letter to W.O., 24. 1. 90.

breach of faith on the part of the War Office," and again that the "War authorities shift their original ground" and "take a different line."

10. In making these statements the Council evidently overlooked the letter to you from this department of 15th January 1890-on the subject of the draft despatch, which Lord Knutsford proposed to address to the Colony. In that draft was a paragraph (subsequently omitted), which, referring to the proposed contributions for 1890-91-92, stated, "If these payments are made, Her Majesty's Government will provide the above-mentioned garrison and maintain it as nearly as possible at the full strength, allowing for variations of reliefs and similar matters."

Mr. Stanhope objected to that paragraph, on the ground that under it "the Colony, which is only asked to bear one-seventh part of the estimated cost of the garrison, might claim to have its contributions reduced, if the force, for other reasons than those above mentioned (viz., reliefs and similar matters), fell below the full strength given in the Appendix, a claim which could not be admitted unless the garrison were so reduced as to bring the total cost below the contribution demanded from the Colony,"

11. This objection was concurred in by the Treasury, and accepted (though with some hesitation) by the Colonial Office, and it proves clearly that there has been no "breach of faith," and no "shifting of ground," in this matter, the actual position that has arisen having been foreseen and guarded against.

12. The proposal in paragraph 6 of your despatch under reply, that Mr. Stanhope should move the Lords Commissioners of the Treasury to consent to a reduction of the contribution of 40,0001. until the whole garrison, estimated to cost 280,0001., shall be present in Hong Kong, is one that he regrets he cannot concur in. It would be contrary to the understanding come to with regard to paragraph 8 of the draft despatch just referred to, and would be inconsistent with the principle so clearly laid down in paragraph 15 of the final despatch of January, 1890, viz., that "Colonies, so far as their means allow," shall provide for their own land defence.

13. To grant the request of the Colony in this matter would also be in- consistent with the decision recently communicated to the Government of the Straits Settlements. When it requested that its contribution of 100,000l. should be reduced because the full contemplated garrison was not actually present in the Colony, it was informed, in your despatch of 27th February, 1891, that "inasmuch as the cost of the garrison present in the Straits Settlements during last year much exceeded the amount of the contribution payable by the Colony, Her Majesty's Government are of opinion that there are not sufficient grounds for allowing any abatement.”

14. Under these circumstances Mr. Stanhope does not consider that there are any valid reasons for reducing the very moderate contribution asked for from the Colony of Hong Kong. When determined upon, it amounted to 16 per cent. of the Colonial revenue, whereas, in 1890, it only represented 12 per cent., this decrease being due to a large increase in the revenues of the Colony, and to a slight improvement in the value of silver, in which the contribution is paid.

15. There seems to be no doubt but that the Colony can well afford this contribution, and the only real objection made to it is that the despatch announcing it misled the Colony.

16. It is very much to be regretted that any misunderstanding should have arisen as to the conditions which led to an increased contribution being asked for, but no other course seems properly open to the Government except to explain the misunderstanding while adhering to the decision already given, if this course be considered necessary, in view of the fact that the explanations already given in your despatch of the 7th March last, must have reached the Colony very soon after the date of the Governor's despatch of 7th April, con- veying the representations under consideration,

WO

WO 388

17. With regard to the troops which are to be drawn from India for service in Hong Kong and other Eastern Colonies, much greater delays have occurred in India than was anticipated in determining the class of natives to however, be recruited, the conditions of service, &c., &c. The subject is now, in an advanced stage; the Officer Commanding the regiment for Hong Kong has been selected, and in a few days a Committee, of which he will be a member, will meet to settle all the points not yet finally decided upon. Mr. Stanhope is not yet able to say when the Indian troops will be actually present in Hong Kong, but every effort will be made to expedite their arrival

there.

F2W!

I have the honour to be,

Your obedient Servant,

Rasphethupson

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