51

From your reply to Colonel Yate it

further appears that the Federated Malay States (which are I

learn from their official reports in a very prosperous condi-

-tion), pay under 1.8 per centum (8448,213 out of £24,962,617)

with no remission of Crow Rents or Taxes due to Military

occupation. While the Straits Settlements which nominally pay

the same percentage as Hongkong deduct certain items which Hong-

-kong is compelled to include, and pay only on the net not the

gross Revenue of Christmas Island &c. But the most serious

discrepancy arises from another source. Hongkong being a small

Colony has no system of lunicipalities, and all Hunicipal

expenditure is included in the General Budget of the Colony.

The total Revenue of the Straits Settlements therefore to

correspond with that of this Colony was in 1908 29,837,624

3,024,494 13,362,118

and in 1909 $12,062,029 on which a Military Contribution of

81,929,272 and $1,626,505 respectively was paid (Colonial Re-

-ports No. 663) viz.:- 14.4 per centum and 13.5 per centum. I

say nothing of the deductions from Revenue assessable to Hili

-tary Contribution which are brought about by the recent es-

-tablishment of an Educational rate and a Rural Board rate which

I believe involve the expenditure of considerable funds on juick

no Military Contribution is paid. I presume that the 9 pet

centum

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