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nother 1ternative
the available Mergin for each year, would appear to indicate
that the proportion of the Margin which should be assigned to
the Defence Contribution would be approximately half.
Although, as I have shewn, any sudden decrease in the
Margin due to a Loan for current works must be automatically
compensated in succeeding years, it may perhaps be considered
advisable that a maximum and a minimum should be fixed, and
these in Hongkong looking to the proportion hitherto paid, might
be fixed at one half and one quarter,of the actual cost of
Defence.
An alternative method which would obviate any such
misconception as was alluded to in a former paragraph, (p. 9)
-
would be for the Colony to pay a fixed proportion of the total
cost of the Forces and defence and barrack works. What this
proportion should be,- assuming again that the incidence on
the Colonial Revenue should remain such as at present would
be easily ascertainable by a comparison over a series of years
of the actual cost to the Imperial Government and the amount
paid by the Colony. The precise figures are only available
here for last year, (Table 2). The proposal has the dead-
vantage which Mr. Chamberlain desired to avoid, viz. that the
sum would fall upon the Colony equally in times of prosperity
and in times leas prosperous. It has also the disadvantage
that the amount to be spent on Defence each year must be fixed
by the Imperial Government without reference to the Colony and
the Legislative Council which votes the Colonial proportion.
I see no practical difficulty in this, however, if the Colony
haa consented to the principle to be adopted. Its simplicity
is a recommendation, nut I prefer the scheme I have proposed.
It
20