է
(
Treas
22334
H
542
more than 40 years, that during the greater part of that period they were a source of profit to the Colonial Exchequer, and that the difficulties of the present situa- tion are largely the result of action taken by the Colonial Government.
In view of these considerations My Lords subnit that it is scarcely reasonable for the Colony to dis- claim all responsibility for the future maintenance of the agencies and to endeavour to transfer the whole burden to the Imperial Government.
The proposal made in the letter from this De- partment of the 20th July was that the deficit actually arising on the maintenance of the agencies should be made
good out of Imperial Funds; but that the Military Contri-
bution of the Colony should not be interfered with.
As the Secretary of State is aware, the Army Council attach the greatest importance on general grounds to the maintenance of the basis on which the Military
Contribution is assessed in all the Colonies which are
subject to it. If any modification were made, it would
no doubt be necessary to re-open the whole question of
these contributions not only in Hong Kong but elsewhere,
a course which My Lords are unwilling to contemplate at
the present moment.
Bearing these considerations in mind My Lords
remain of opinion that the solution which They have already
proposed fully meets the equity of the case; and They
would again urge the Secretary of State to press its adop-
tion upon the Colonial Government.
I am, Sir,
Your obedient Servant,
J.Marray