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6. Mr. Campbell-Bannerman, having regard to the subsequent correspondence, has had a fresh list prepared, showing the order of precedence which should be attached to the services. The list includes the hospital.
7. The amount thus revised comes to 211,935l. or 1,338,580 dollars, instead of 174,735l. or 1,103,589 dollars. In this calculation the value of the dollar has been taken at the same rate (3s. 2d.) as in the previous calculations.
8. It is thought to be more convenient to do so, and thus assist comparison with the amounts of the previous programme, than to follow the fluctuations in the value of the dollar; and it may be observed that, although the present exchange value of the dollar is only 2s., the effect of this reduction in the rate, while it increases the charge on account of imported stores, reduces it in respect of local expenditure.
9. By the correspondence between the Treasury and the War Office, subsequent to the War Office letter* of the 27th July, 1893, Hong Kong the proportion payable by the Colony has been revised from one-half of the total to one-third of it. A correction on this account is, therefore, required to the figures given in that letter. These latter resulted as follows, after allowing, in the case of the War Department, for a provision of 35,000l. from the Imperial Defence Loan:—
For the Colony to find in the eight years 551,794 dollars or 87,367l. The War Department to find in the Annual Estimate 330,742 dollars or 52,367l.
10. The correction to one-third for the Colony and two-thirds for the War Department gives—
For the Colony to find 367,863 dollars or 58,245l. The War Department to find 514,673 dollars or 81,489l. The total of the two being about 882,536 dollars or 139,734l., i.e., as shown in the letter of the 27th July, 1893, already quoted.
11. To these sums must now be added the respective shares of the cost of the hospital. The estimate for this was made at the same time as those for the rest of the services, and amounted to 37,200l. or 234,947 dollars, giving for the Colony to find 78,315 dollars or 12,400l, and the War Department 156,632 dollars or 24,800l.
12. Adding these sums to the previous totals will give—
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Dollars £ Previous total 367,863 58,245 Add for hospital 78,315 12,400 Totals 446,178 70,645 Previous total 514,673 81,489 Add for hospital 156,632 24,800 Totals 671,305 106,28913. Mr. Secretary Campbell-Bannerman thinks that, in view of the larger sums involved, the period for execution of the services might fitly be distributed over ten years instead of over eight years, as previously proposed.
14. In the event of their Lordships concurring, the annual provision to be made would respectively be—
The War Department to provide in Annual Estimates about (apart from the sums chargeable to the loan) 67,131 dollars or 10,629l. (as compared with 64,334 dollars or 10,186l. under the previous arrangement).
15. Of the amount to be found by the Colony, it must be remembered that about one-sixth, i.e., about 1,177l. annually will be for payment in sterling for stores which will probably be necessary to send out from England.
16. In regard to the mode of execution, Mr. Secretary Campbell-Bannerman would suggest that the best course would be for the Colony to provide funds for specific services to the amounts payable,
17. The services to be either executed by the War Department on behalf of the Colony, or by the Colony to the satisfaction of the representative of the Secretary of State for War.
18. I am to solicit their Lordships' sanction for the adoption of the course herein indicated.
19. I am to add that a copy of this letter (with enclosure) has this day been forwarded to the Colonial Office.
WM. WOODALL.
Enclosure in No. 17.
ESTIMATE for Barrack Works for accommodating Increased Garrison, and for some other urgent Services.
Service Estimate £ Estimate dollars Order of precedence Barracks for Hong Kong Regiment at Kowloon, exclusive of European Officers' quarters. 65,700 414,947 In hand. Hospital to replace existing hospital ship "Meanee." 37,200 234,947 1. Hospital for Asiatics, Kowloon 11,000 69,474 2. Barracks at Kowloon for 2 Officers, 134 men, Europeans. 16,000 101,053 3. Barracks for Royal Artillery at Lyemoon. 8,850 55,895 Completed. Purchase of Lazaretto 8,150 51,485 Completed. For the Colony. Barracks for Royal Artillery at Stonecutters Island. 8,000 50,526 In hand. Quarters for increased number of Warrant Officers (8). 2,300 14,526 4. Quarters for increased number of staff-serjeants, serjeants, and married men (36). 21,600 136,421 5 for one-half and 8 for the second half. Quarters for Quarter-Master, Infantry 1,500 9,474 9. For the War Department. Increase of Royal Engineers, serjeants' mess 1,500 9,474 10. Serjeants' mess and recreation room, Victoria Barracks. 2,000 12,631 11. Gymnasium for European troops 2,500 15,789 12. Bathing pond 1,700 10,737 13. Alterations to F Block, Queen's Road Barracks, for Chinese Submarine Miners. 200 1,263 6. Alterations for library, school, &c., and to Royal Engineers' workshops. 450 2,842 Barracks for 1 company Asiatic Artillery and Officers' quarters. 10,000 63,158 7. 2,400 15,158 14. Total 211,985 1,339,536* Add contingencies 15,885 100,326 196,050 1,238,210* Not increased on account of the hospital.
No 8,
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