49
that Ceylon (which is understood to be in a more prosperous
condition than Hongkong at the present time) pays only 9 per
centum of its revenue for land defence, that its maximum con-
-tribution is limited to three-fourths of the cost of that
defence, and that "Ceylon also provides the cost of land and
buildings required for Military purposes" the inference being
that Hongkong and others do not. Hongkong peys 20 per centum of
its gross revenue the limit of its liability was stated to be
the entire cost of Defence and it also provides all lands
required for Military purposes. It is true that a Military Land:
Account is kept on record, but it is subject to the stipulation
that the Military Authorities shall never have to pay a single
dollar in actual cash for any land they may require, and they
possess some of the most valuable land in the Colony (as also
does the Navy). All Military and Naval Lands are subject to no
Crown Rent, and their buildings are not assessable for Rates or
Taxes of any kind. I do not submit that it should be otherwise,
but it would appear from the reply to Colonel Yate that you
were under the impression that the lower percentage of Revenue
paid by Ceylon was in some degree justified by an exceptional
arrangement in that Colony in regard to Military Lands. The Lands exclusively occupied by the Naval and Military establisk-
-ments