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20784/00

omparison ith other ofonies.

would have increased the total Contribution payable by the

Colony to considerably more than 20% of its Revenue. Mr.

Chamberlain, (337 of 24.10.1900), proposed, alike in the

interests of the Imperial Government and of the Colony, that the Contribution should be fixed at 20% of the Revenue,

excluding Land sales, "in full return for the annual coat

of the Imperial garrison, including all capotal expenditure

for Military lands and buildings".

This proposal was accepted and became law in Ordinance

1 of 1901, and took effect in the Estimates for 1902.

In addition to the 20% all Military buildings are

exempted from rates,

Under this arrangement the Contribution has steadily

increased in amount, (pari passu with the Revenue), and

atands in the Estimates of the current year (1808) at

$1,186,578.

From this brief historical

summary it is evident that

the present modification or the previous system, inaugurated

in 1901, was made with the full acquiescence of the Colony. That, however, would not form a valid argument against revision if it could be shewn that contrary to anticipation the system had proved unduly onerous. More increase in direct proportion to increase in Revenue does not prove this, for that increase was anticipated.

(a)

Self-governing.

The Military Contribution affecte, of course, et only

those Colonies which borrow their Defensive Forces from the

Imperial Government. The Self-governing Colonies, with the exception of South Africa, supply their own defence, and most of them contribute steadily increasing sums towards the cost of the Navy.

These contributions were in 1907-08 as shewn:-

DINOV

India

5-

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