40248
489
Sir,
12
No. 90.
War Office to Colonial Office.
War Office,
27th June, 1895. I am directed by the Secretary of State for War to acknowledge the
7611 receipt of your letter* of the 27th ultimo, relative to the contribution
95 * payable by Hong Kong, and to inform you that he concurs in the draft despatch, as modified by the Treasury, which it is proposed to address to the Governor.
I am to request that a copy of the despatch, as sent, may be transmitted to this office.
Sir,
499
No. 91.
ARTHUR L. HALIBURTON.
Colonial Office to War Office.
Downing Street,
28th June, 1895.
I am directed by the Secretary of State for the Colonies to transmit to you, for the information of the Secretary of State for War, with reference to a copy of the 489 despatch to the Governor of Hong Kong, on the subject of the Hong Kong Military Contribution,
the letter from your department of the 27th instant, 40248
و"
13
3. The expedient of fixing a proportion of revenue as the amount of the con- tribution will, I hope, prevent any further feeling of uncertainty and dissatisfaction, and will safeguard the rights of the Home Government as effectually as the expedient of fixing the amount for some years ahead, which was that adopted in my predecessor's despatch, No. 8, of 20th January, 1890. In adopting the decision above indicated, Her Majesty's Government have been largely influenced by the consideration that, so long as the contribution is fixed in sterling, the continued uncertainty in the matter of exchange is calculated to cause a greater dislocation in the finances of the Colony than would be caused to the Imperial finances if the contribution is fixed in dollars.
4. It is to be understood that the revenne on which the percentage will be taken shall include the gross receipts from all sources which are now brought into account as revenue, with one exception, viz., the proceeds of land sales, or premia on leases, which are not strictly revenue, but the proceeds of the sale of capital assets. The revenue for 1895, less premia on leases, is estimated at 2,018,526 dollars, so that a contribution of 17 per cent. would amount to 353,242 dollars; and I have now to authorize you to limit the payments for this year to that amount, in lieu of the maximum amount (384,000 dollars) provided in the Appropriation Ordinance.
5. When the actual revenue of 1895 is known, should it be found that there was an excess of receipts over the estimate, a further payment of 17 per cent. of such an excess can be made. If, on the other hand, the revenue should have fallen short of the estimate, the over-payment can be adjusted by deducting 17 per cent. of the deficit from the first instalment of next year's contribution. A similar course can be followed in each succeeding year.
6. It would probably be agreeable to all parties if a permanent Ordinance were passed appropriating a percentage of 17 per cent. of the Colonial revenues to the use of the Imperial Government as a Military Contribution, thus removing what has been a much vexed question from the arena of annual debate.
RIPON.
R. H. MEADE.
Sir.
Enclosure in No 91.
Colonial Office to the Governor, Hong Kong.
Downing Street,
27th June, 1895. With reference to the last paragraph of my despatch, No. 75 of 29th March last, relative to the Military Contribution, I have the honour to inform you that Her Majesty's Government, although hitherto adhering to the principle that the con- tribution, whatever its amount, should be fixed for the time being in sterling, have never lost sight of the fact that it could not, consistently with the efficient adminis- tration of civil affairs, exceed a certain percentage of revenue, and that if at any time through a diminution of receipts or a fall in the exchange value of silver the percentage assumed undue proportions, then a case for the revision of the sterling demand would arise; but as a matter of fact during the five years 1890-94, the average Military Contribution of Hong Kong has fallen considerably short of what the Home Government in 1890 considered a reasonable proportion of the revenue, namely, one of between 17 and 18 per cent., and even in 1894 it barely reached 17 per cent. regards the current year, however, owing to the continued low rate of exchange, the contribution, if continued at the present rate of 40,0002, would amount to nearly 20 per cent. of the revenue.
As
2. After careful consideration, Her Majesty's Government have arrived at the conclusion to fix the contribution in future at a certain proportion, viz., 171 per cent. of the revenue of the Colony. This appears to offer a basis of settlement which is the most likely to be acceptable to all parties, and which can be adopted without an undue sacrifice of the claims of the tax-payers of this country.
* No. 88.
↑ No. 90.
596