573

3.

Under these circumstances, the Government should continue its efforts to retrench expenditure, and further I would ask you to take into consideration at an early date and report to me upon the question of raising additional revenue from new heads of taxation.

You will recollect that reference was made to this subject in the 5th paragraph of my despatch No. 229 of the 21st of September 1892; and it might be of use to you to apply to the Governor of the Straits Settlements for copies of or extracts from a correspondence which has passed between him and me and the officers administering the Government of Cyprus and Gibraltar on the same question as affecting the Straits Settlements.

In addition to the new heads of taxation referred to in that correspondence, I may remark that it is a question well worthy of consideration whether, looking to the fall in silver, the rates of existing imposts, such as fees and especially fees for the services rendered, should not be reassessed and increased.

The question of the Military contribution is under the consideration of Her Majesty's Government, the period for which it was fixed having expired and I hope before long to acquaint you with the decision arrived at.

I have etc.,

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