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199
convert this profit into a considerable annual lose to the
Colony.
It was recognised when these Agencies were instituted
that the Colony was entitled to some profit to cover the extra
Staff and buildings required in Hongkong, (the maintenance of
which falls on the Colony, and is not debited to the Agencies)
and in return for the work and responsibility involved. To
secure this the Treaty Ports must pay the 20% to the Military
Fund, which appears equally inadmissible and for the same
reasons as in the case of the Gap Rock Lighthouse. Otherwise
the Colonial Government must abandon this valuable service
and refrain from opening new Agencies, so that Imperial as well
as Colonial expansion is restricted. Some of the Agencies
have been established since the percentage was fixed.
In a similar case the Straits Settlements treat an
extra-Colonial charge as a separate concern and deduct the
expenass of administration of Christmas Island from the
revenue received, charging 20% on the net profits only, so that
even uniformity is lacking in the present system.
(c)
It involves an apparent unfairness in charging on
cross-entries etc., and induces a consequent tendency to
evasion,
Illustrations of this may be multiplied indefinitely.
One or two only need be adduced. A Government has expended
certain monies on Stores and on the Revenue from which their
cost was defrayed has paid 20%. The sale of worn out **ış
stores is clearly therefore not a fresh source of Revenus,
yet being entered as a credit it has to pay 20% again.
Suppose the Government to have ordered a steamer and
paid for it, and that after being in use for a short time it
was found to be unadapted for the purpose required end is sold
at a 25% loss; the money received being credited to 'Sale of
Government Storea' again pays 20% to Defence, and it would
seem to be a ¿xxdunud 'reductio ad absurdum" to regard a
transaction
23