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Hongkong but for the protection of British interesta in China and it would appear reas nable therefore that the inhabitants of the Concessions who benefit by the extra territotial rights possessed by Nis Majesty's Governmont 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 dajesty's Government in considerable expense in respect of Consular Courts etc. I au 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 Concess ons 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 obediont humble servant,
(so) R.E. Stubbe
Governor &o.
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