Di.

BL? 10. YANG Jou beatstukna al (90)

239

Hongkong but for the protection of British interests in China and it would appear reasonable therefore

that the inhabitants of the Concessions who benefit

by the extra territorial rights possessed by His

Majesty's Government should contribute towards the cost of such protection.

At present, I understand, they pay

nothing in taxation except some trifling rates for

police and sanitary purposes, although the existence

of these concessions must involve His Majesty's Government in considerable expense in respect of Consular Courts etc. I am informed that American

citizens living in Shanghai and other settlements

pay income tax in the United States of America on

the incomes which they earn in these settlements and

even if it is not considered possible or desirable

to apply a similar rule to British subjects in the

Concessions in China, I would submit that they

might reasonably be called upon to pay some form of tax, the proceeds of which could be applied to the cost of maintaining the forces required for the protection of their interests.

I have the honour to be,

Sir,

Your most obedient humble servant,

7. e. Stubby

Governor &c.

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