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2. On receiving this despatch I at once communicated it to the unofficial members of the Legislative Council, who have forwarded to me the reply, a copy of which is enclosed.
3. In this reply you will observe that the unofficial members, while not opposing the principle of fixing a proportion of the revenue as the amount of the Military Contribution, urge that, what may be regarded as the municipal items of revenue, should be exempted from the percentage to be charged, such exemption having been granted in the case of the Straits Settlements.
4. As you are aware, no municipality exists in Hong Kong, and for that reason no distinction has hitherto been made between the revenue collected for general and for municipal purposes. But, though no such distinction has been made, there are certain items of revenue which may legitimately be regarded as municipal, and which, if a municipality existed or were created, would be levied and expended by it. The enclosed list, drawn up by the Acting Treasurer, Mr. Thomson, shows what these items are.
5. In this connection it should be remembered, as the unofficial members point out, that loans have been raised by this Government for the purpose of carrying out works of a purely municipal nature, such as water works, markets, &c., and it appears equitable that the revenue derived from such works, instead of being subjected to a charge of 174 per cent., should be applied to their upkeep, to defraying the interest on the moneys raised by loan to construct them, and to forming a sinking fund with a view to the ultimate liquidation of the debt incurred on their account.
6. With respect to the question of barrack accommodation, the unofficial members, as will be seen from their reply, are quite prepared to consider any vote that may be brought forward to defray the cost of such buildings as have not yet been commenced; but they are opposed to voting the moneys required for buildings already erected, as "the ratepayers will very much resent being called upon to pay for works which, without any reference to them or their representatives, have been already completed or are nearing completion."
7. The arguments advanced by the unofficial members, regarding the exemption of the municipal items from contributing towards the military expenditure, appear to me to be reasonable and worthy of favourable consideration. Unless some concession can be made in the direction desired, there may possibly be a repetition here of the constitutional crisis which occurred in Singapore.
8. On the other hand, if the Imperial Government can meet the views of the unofficial members, I am confident that the objections which have been raised to voting the money required for barrack services will be waived, and that the much-vexed question of Military Contribution, which has been a subject of frequent discussion and a source of much irritation in Hong Kong for the last 30 years, will at last be settled.
WILLIAM ROBINSON.
Sir,
Sub-Enclosure in Enclosure 1 in No. 30.
Unofficial Members of the Legislative Council to Colonial Secretary,
Hong Kong.
23rd August, 1895.
We have given our most careful consideration to your letter of the 2nd instant, addressed to the senior unofficial member, in which you transmit the proposal of the late Secretary of State for the Colonies with regard to the Military Contribution to be paid by the Colony, and would beg to submit certain considerations in this connection.
1. The amount, fixed by the Secretary of State, viz., 174 per cent. on the revenue of the Colony, with the exception of land sales and the premia on leases, would appear to be based on that of the contribution to be paid by Singapore, which is also 174 per cent. Permit us, however, to point out a fact, which may have escaped the notice of the Secretary of State, namely, that the revenues of the two Colonies are on a somewhat different basis, for Singapore has a municipal council, and so a distinct municipal revenue which is exempted from the Military Contribution, while in Hong Kong the figures of the municipal and of the rest of the revenue are shown together.
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It does not appear clear to us from the Secretary of State's despatches whether he recognises the existence of this difference, as he seems to include the municipal revenue of Hong Kong in the amount on which the 174 per cent. has to be paid. Against this we must protest, and we would beg to lay before him some most important considerations against such a proceeding.
We consider that the municipal revenue of Hong Kong should be treated on the same footing as that of Singapore, the more so because most of the important municipal works of Hong Kong have been paid for by means of loans. From many of them we derive a considerable revenue, out of which we have to find the interest on the loans and provide a sinking fund, and it seems hardly reasonable to ask us at the same time to do this and also to be paying for the Military Contribution 174 per cent. of these revenues.
2. It may be objected that if the amount of the municipal revenue, say 700,000 dollars, be subtracted from the total estimated revenue of the Colony, the Military Contribution would not reach the sterling sum of 40,000. But we would ask you, sir, if it has not been our constant contention that this sum has always been too heavy a burden for this Colony to bear. At the time when it was imposed we assented to it, as exchange was comparatively high; but ever since then it has been falling. In 1891 we paid 254,211.12 dollars, and in 1894, 371,647.50 dollars. The burden has, therefore, become more and more irksome, as we have constantly represented. Now, however, exchange is rising, and the sum which we should have to pay in dollars, if the same arrangement were adhered to, would be becoming less and less. On the other hand, with the proposed new arrangement, the Imperial Government, receiving a fixed sum of 174 per cent. in dollars, will naturally benefit the higher exchange goes. This should be taken into consideration, and also the fact that they will have the advantage both in the fall and the rise.
3. It must be further borne in mind that any increase in the revenue of the Colony will mean a corresponding one in the Military Contribution. Now we are informed, on good authority, that the revenue for this year, instead of being, as estimated, 2,018,000 dollars, will probably be nearer 2,300,000 dollars, meaning a larger Military Contribution. There seems to be every reason for hoping that each succeeding year will show a fresh increase in the revenue, so that there would seem to be little cause for the Imperial Government to fear that our Military Contribution will be inadequate.
It may be argued that if, in 1894, when our revenue was 2,287,203 dollars, we were able to pay 371,647.50, as a Military Contribution, it should not be difficult for us to pay what the Imperial Government now demands. But what was the result of this heavy disbursement? That, to carry on the public works of the Colony, we were obliged to raise loans with which we are still saddled. Yet another effect is that we were so straitened for means that the Government buildings were neglected, and now we find that most of our public buildings are condemned, and that we shall have to rebuild them at a cost, we are given to understand, of 650,000 dollars. If we are again without funds, we shall find ourselves in the same difficulty as before, and burdened by a further debt.
We would beg you, sir, to lay our representations before the Secretary of State. That they are well founded we think there can be no contention, and we are confident that, when our case is put before him, he will acknowledge the justice of it. We merely ask to be placed on a par with our sister colony, and to be allowed to apply our revenues to our own needs. We are most anxious to meet the Imperial Government in every way that we feel is consistent with justice and fairness, and if they will agree to the point we have raised, there will be no hesitation on our part in supporting the Ordinance asked for.
With regard to the Colony's contribution for "Barrack Services," we know that the ratepayers will very much resent being called upon to pay for works which without any reference to them or their representatives, have been already completed, or are nearing completion. We may say that we concur in this feeling, and therefore feel ourselves bound to oppose any proposal that the Colony should be called upon to bear a share in this expenditure. The case is different with those works which have not yet been begun; and if his Excellency the Governor would bring forward a financial minute regarding them we would be prepared to consider it.
C. P. CHATER.
HO KAI.
E. R. BELILIOS.
A. McCONACHIE.
J. J. BELL IRVING.
(93)
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