As to (2) we suggested sources of additional Taxation in para. 5 of despatch on 16345/92, we might perhaps now refer again to that despatch. I also note the suggestions recently made to the Straits as to reducing the present contribution, and should press for its reduction.
[I fear they eventh of increase] See also 22115/92 Akong and pass on the suggestion regarding the present system of taxing beer, spirits, tobacco & petrol petroleum. I have written to Lovemar to consider the question definitely before the drive for preparing next year's Estimates, observing that there will almost certainly be a deficit unless silver rises above its present low rate.
As to military contribution, it is referred to in para. 5 resp. See debate in Hongkong Daily Press reported at p. 479 of Hongkong Weekly Press of 21st Dec. It is quite hopeless to expect the Treasury to consent to any payment fixed in dollars, and as the Hongkong Revenue has not fallen at all (as the Straits Revenue has to some extent) I prudently think we shall act more wisely by not even asking.
W.O. & Treasury Not quite so sticky CPL but rather content with trying to make the best of it. However, we must first come to an understanding with the Straits. In the meantime, we should parse ? Say in reply to para. 5 of Marin despatch that the matter will be considered & dealt with shortly in a separate despatch.
Subject to above suggested remarks ? Approve Estimates appropriation Sanction Ord. Forward copy to A.O. LX. X Sat. & Ord. t 8.W.9.17/2
The Personal Emoluments are evidently being entailed, and I should not in any way pass the resolution. From the report of China Association I should gather that the Retrenchment Committee are satisfied with what is being done and are not likely to urge that the Committee should be called together.