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to paying the full cost but the acting Commissioner consider

that a Police Tax of moderate amount could be recovered

without much difficulty. The best method would be to levy it by villages, the sum payable by each village being based

on its size as indicated by the Census returns. Taking the

reasonable average of $10 a village a revenue of some

$3,500 could be obtained.

I have thought it right to mention thie suggestion but I do not advocate its adoption as it seems to me that the villagers get very little except Police protection in return for the taxes that they pay already and that it would scarcely be fair to expect them also to pay for it directly.

52.

Apart from these savings, which would come

to a total of about £8,000 not counting any possible saving

on, or contribution in aid of, the Police Force, I can see no possibility of reducing expenditure.

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in

I should like to make it clear that, in

suggesting the possibility of these economies, I do not advocate their adoption, except in regard to the Audit which matter I confess that I am probably prejudiced owing to the fact that the present system is inconvenient to Hongkong. I mention them only as being conceivable means of saving money if the policy to be adopted is to effect economy at all costs. As I have already stated, I believe that such a policy is mistaken and that the expenditure of a few additional thousands of pounds on the development of the territory would be advantageous to the interests of Great Britain. The rest of this report is written on the assumption that reasonable sums of money will be available.

STAFF.

53.

I have already expressed the view that the Commissioner should be an officer of the Hongkong service. The present salary would not be excessive for a good man

but

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