442

T. No.

11365 94

40248

442

Sir,

6

No. 80.

Treasury to War Office.

Treasury Chambers.

26th July, 1894.

The Lords Commissioners of Her Majesty's Treasury direct me to transmit herewith, for the information of Mr. Secretary Campbell-Bannerman, with reference to recent correspondence, copy of a letter of to-day's date, which they have caused to be addressed to the Colonial Office on the subject of the Kong Kong Military Contribution,

7

that the Lords Commissioners of Her Majesty's Treasury have caused to be forwarded to this office a copy of the letter which they addressed to you on the 26th ultimo, signifying their concurrence in the recommendation of the Committee that the contribution should remain fixed at 40,000l. per annum for the five years 1894 to 1898, and expressing their unwillingness to depart from the principle that such contributions should be fixed in sterling.

Mr. Campbell-Bannerman presumes that, should the Marquis of Ripon also concur in the proposal of the Committee, he will cause the Governor of Hong Kong to be informed of the amount which that Colony will be required to pay during the period in question.

ARTHUR L. HALIBURTON.

FRANCIS MOWATT.

593

Sir,

Enclosure in No. 80.

Treasury to Colonial Office.

Treasury Chambers,

26th July, 1894,

The Lords Commissioners of Her Majesty's Treasury request you to inform the Marquis of Ripon that they have had before them the Report of the Colonial Military Contributions Committee, dated the 24th May last, respecting the contribution from long Kong for the five years 1894 to 1898, and that they have signified to the Secretary of State for War their concurrence in the recommendation of the Committee that the amount of the contribution should remain unchanged at 40,000l. per annum for the period in question.

It will be remembered that, when a contribution at this rate was first proposed by the Committee in 1888, the Treasury was strongly convinced of its insufficiency, having regard to the large cost of the garrison, the prosperity of the Colony, and the light taxation to which it is subjected. When this department at last consented in 1890 to accept 40,000l. per annum for three years, and afterwards concurred in a renewal of the contribution at that rate for one year more, it was in the hope that a material augmentation would soon become practicable.

Unfortunately the continued fall in the gold value of silver has so greatly increased the burden imposed on the resources of the Colony by a contribution of 40,000l. per annum since its first imposition, that my Lords do not think it prudent to propose any addition to it at present, and of course the serious epidemic by which the island is now being visited can only strengthen this view.

Reference is made by the Committee to a proposal to fix the contribution in dollars instead of in sterling. If such an arrangement were tojbe adopted, my Lords could not agree to any less sum in dollars than 40,000%, would represent at the current low price of silver; and although this would have the advantage of protecting the Colony against a further fall in silver, so far as the Military Contribution is concerned, it would equally deprive the Colony of the benefit of a possible rise. Under all the circumstances, my Lords are indisposed to depart from the principle that the contribution of a dependency, in aid of the sterling expenditure of the Mother Country for the defence of that dependency, should itself be fixed in sterling,

FRANCIS MOWATT.

No. 81.

War Office to Colonial Office.

War Office,

Sir,

No. 82.

Colonial Office to War Office.

Downing Street,

9th August, 1894.

I am directed by the Secretary of State for the Colonies to acknowledge the receipt of your letter" of the 2nd instant, and to forward, for the information of Mr. Secretary Campbell-Bannerman, the enclosed copy of a letter which was addressed by Lord Ripon's direction to the Treasury, on the subject of the future Military Contribution of Hong Kong.

Sir,

Enclosure in No. 82.

Colonial Office to Treasury.

R. H. MEADE.

Downing Street,

2nd August, 1894.

I am directed by the Marquis of Ripon to acknowledge the receipt of your letter of the

11365 26th ultimo, relating to the amount of the Hong Kong Military Contribution for

94

the five years 1894 to 1898, and intimating their Lordships' concurrence in the view that the amount of the contribution during these years should not exceed 40,0001. per annum,

2. From the enclosed‡ despatch, which has been received from the Governor of Hong Kong, it will be seen that the Colony has suffered in an unprecedented manner from the recent outbreak of plague, one-third of the population having, at any rate for the present, left the Colony, and the consequent loss of revenue, coupled with unavoidable expenditure on sanitary improvements, must necessarily cripple the resources of the Colonial Govern- ment for the time being.

This disaster has happened since the recommendation of the Committee was made, and it may be necessary to invite at an early date further consideration of the matter.

3. Before formulating his views, however, Lord Ripon proposes to wait until the Governor is in a position to estimate, with some approach to accuracy, the financial effects of the epidemic.

R. H. MEADE.

40218

445

Sir,

2nd August, 1894. With reference to the War Office letter* of the 29th June last, transmitting a copy of the Report of the Inter-Departmental Committee on Colonial Military Contributions on the subject of the contribution to be paid by the Colony of Hong Kong, I am directed by the Secretary of State for War to inform you

No. 78.

* No. 81.

+ Enclosure in No. 80.

Not sent to War Department.

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