Enclosure 6a

C. O.

1140

RECO (RECP JAN 95

547

The Daily Press.

HONGKONG. DECEMBER 18TH, 1894.

HONGKONG LEGISLATIVE COUNCIL.

A meeting of the Legislative Council was held yesterday. There were present:

His Excellency the Governor, Sir WILLIAM ROBINSON, K.C.M.G.

Hon. J. H. STEWART LOCKHART, Acting Colonial Secretary.

Hon. W. M. GOODMAN, Attorney-General. Hon. N. G. MITCHELL INNES, Colonial Treasurer.

Hon. F. A. Cooper, Director of Public Works. Hon. R. M. Rumsey, Harbour Master. Hon. C. P. CHATER.

Hon. Ho KAI.

Hon. J. J. KESWICK.

Hon. E. R. BELILIOS, C.M.G.

Hon. A. McCONACHIE

Mr. J. T. BUCKLE, Acting Clerk of Councils.

THE APPROPRIATION BILL, 1895. The ACTING COLONIAL SECRETARY brought up the report of the Finance Committee and moved that it be adopted. With reference to the recommendations of the Committee with regard to the estimates he said he would refer to them when the Council was in committee on the Appropriation Bill.

The report was accepted and the Council then went into committee on the Appropriation Bill. The various items were gone through and the recommendations of the Finance Committee were adopted, the only point on which any discussion arose being the Military Contribution.

The ACTING COLONIAL SECRETARY-With regard to the military expenditure, sir, the non-official members unanimously opposed this vote when in Finance Committee, and I understand that to-day they wish to make some remarks in regard to it.

Hon. Ho KAI-Sir, in the absence of the senior unofficial member-the Hon. C. P. Chater and Hon. J. J. Keswick were not present at the earlier part of the meeting-I beg to move that this vote be not passed, for the reasons that were stated by the senior unofficial member in Finance Committee.

We are opposed to the vote because some time ago both the senior unofficial member and the Hon. Mr. Keswick asked your Excellency to be so good as to communicate with the Secretary of State recommending that the contribution should be fixed at a rate of so many dollars to the pound. On account of the decreased value of the dollar the colony has to pay a very great deal more in dollars for the same sum in sterling. In the estimates last year the dollar was taken at 2s. 6d, and now we have it down to 2s. and have to pay 6d extra. I think the subject has received the due consideration of your Excellency, and I think also your Excellency has strongly recommended to the Secretary of State the adoption of the course desired by the unofficial members, and our reason for opposing this vote to-day is simply because the Secretary of State, having our opinion on the matter before him, has not sent, though several months have elapsed, to give us an answer. For these reasons I opposed the vote in Finance Committee and I do so now.

Hon. E. R. BELILIOS seconded.

His EXCELLENCY-I think we will let this item stand over until the Hon. Mr. Keswick arrives. I understand he has some remarks to make on the subject.

On the arrival of the Hon. J. J. Keswick, His EXCELLENCY explained to him what had transpired.

Hon. J. J. KESWICK-I must apologize to your Excellency for my absence in the earlier part of the meeting, which was due to the official notice stating the hour as three o'clock, and I had not observed the alteration in the time. The remarks which I would have made in reference to the Military Contribution would have been few, as it is a rather well-worn question. Last year when the Appropriation Bill was before the Council I moved the rejection of this vote, which for two or three years has been challenged, unsuccessfully, by the unofficial members, although I am aware that since your Excellency's arrival in the colony you have made representations to the Secretary of State for the mitigation of this subject of the Military Contribution, which is gradually growing more and more onerous, in consequence of the steady serious depreciation in exchange. It seems exceedingly probable that in a year or, at all events, a few years after the contribution which this colony will have to make in dollars for the payment of this sum in sterling will be very heavy indeed. I, for one, do not see any good reason that can be brought forward in support of a possible advance in the value of silver; on the contrary, I should think it must be cheaper, and ergo exchange will further drop. Had I been present, sir, I would have proposed the rejection of this item, which has been done by my honourable friend opposite, doubtless with the support of all the unofficial members.

HIS EXCELLENCY-I am sorry to hear that the honourable member anticipates a further fall in the value of silver. It is certainly low enough at the present moment. I take the opportunity of repeating what has been said on the subject in another place, that is, that I have formerly, I think no less than four times, made representations to the Secretary of State on this subject. I think I may without breach of official etiquette say Lord Ripon has written to me, and has said in effect that he is doing all he can for the colony, but the position does not rest entirely with him. He has to fight with the Chancellor of the Exchequer and we all know what Chancellors of the Exchequer are-and also the War Department, so it is two to one. I would be glad if the amount could be reduced but I think this is rather an inopportune time to press the matter upon the home Government, seeing the extraordinary measures that are being taken to protect British interests in the Far East. Perhaps the unofficial members are not aware of the amount of military expenditure in this colony. It amounted last year to £238,000. The pay of the men was £37,000, and provisions £27,300 (these are items spent in the colony, most of them), and it is anticipated that to erect a hospital above Bowen Road will cost £30,000, most of which will be spent in the colony; so if you deduct £40,000, the amount of our contribution, it leaves as the expenditure of the Imperial Government £198,000 a year, and the contribution of £40,000 as compared with that of the Straits Settlements is not a very large one. I may say the last time I mentioned the matter to the Secretary of State was when I received the report of the Retrenchment Committee, and I then asked him to fix the amount at the rate of exchange which ruled when the additional £20,000 was first put. To that despatch I have not received any reply.

A vote was then taken, when the five unofficial members voted in favour of the Hon. Ho Kai's amendment that the item be struck out, and the officials, including His Excellency, against, the amendment therefore being lost by six to five.

Hon. C. P. CHATER-I am not quite sure if I am out of order, I should like to make one remark in reference to a portion of your Excellency's remarks.

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