62
!
10
rejecting all the more substantial of these reserved claims, so that the real question lies therefore in the issue between-
(a) the present (Haliburton) assessment, viz.,
the cost of the garrison,
20
or
per
cent. of revenue, whichever is the less, and
(b) the new proposal, viz.,
the cost of the garrison,
or
121 per cent. of rateable value, whichever is less.
The comparison of yield of the two systems over a period of years, shown in the Appendix, has already been referred to in paragraphs 8 and 9. Up to 1913 there is not much in the differences one way or the other, but that from 1914 onwards Army Estimates would have lost heavily. The losses for the last few years in particular would have been (in sterling):
1923
1924
1925
1926 1927
£
173,500
192,000
164,400
8,250
34,550
It is true that these figures were adversely affected by the restriction of rents operating from 1923 to 1928; on the other hand any question of restricting rents in the future would be difficult to handle if the Home Government were the main party concerned.
26. The figures in column 2 of the Appendix include the elements of revenue which the Colony are now disputing in their reserved claim (paragraph 10). The effect on the contribution if the claims in paragraph 11 (iii) were allowed,* on the Colony's figures converted at an average rate of exchange for each year is as follows:-
Actual Contribution
due.
2.
£
388,600 388,050
12 per cent. of Valuation.
3.
£
380,350
353,500
Contribution if reserved claim had been allowed.
Year. 1.
1926
1927
4.
£
319,050
267,250
It is noteworthy that the Colony presses for a revision of methods which would maintain the contribution much about its present level; while alternative claims, which are held in reserve lest the Treasury and War Office should reject the new proposal, would, if conceded, reduce the contribution by a third. In pressing for the new proposal by which the contribution would be assessed at 12 per cent. of the rateable value, the Colony expressly state that they have no desire to reduce the present contribution; the proposal might have the effect of preventing a rise in the contribution which would automatically follow a rise in the revenue. A rise in the revenue need not necessarily be reflected in a rise in the rateable value.
11
Appendix.
Comparison between Hong Kong's Military Contribution at 20 per cent, of assessable revenue and 12 per cent. of rateable value.
Calendar Year
Military Contribution
1.
2.
Valuation
at Ist July
of previous
Valuation
12 per cent
Difference
yield
on
between Column 2 and
year
Column 4
3.
4
5.
$
1901
801,000
5,856,000
732,000
69,000
1902
914,000
6,890,000
861,000
53,000
1903
961,000
8,167,000
1,021,000
+ 60.000
1904
1,271,000
8,788,000
1,099,000
172.000
1905
1,363,000
9,929,000
1,241,000
122,000
1906
1,305,000
10,511,000
1,314,000
+
9,000
1907
1,214,000
10,969,000
1,371,000
+
157,000
1908
1,250,000
10,716,000
1,340,000
+
90,000
1909
1,226,000
10,817,000
1,352,000
+ 126,000
1910
1,372,000
10,751,000
1,344,000
28,000
1911
1,343,000
11,092,000
1,387,000
+ 44,000
1912
1,387,000
11,161,000
1,395,000
+ 8,000
1913
1,557,000
12,312,000
1,539,000
18,000
1914
1,819,000
12,436,000
1,555,000
264,000
1915
2,101,000
14,410,000
1,801,000
300,000
1916
2,117,000
14,287,000
1,786,000
331,000
1917
2,742,000
14,282,000
1,785,000
957,000
1918
2,704,000
14,410,000
1,801,000
903.000
1919
3,553,000
15,639,000
1,955,000
- 1,598,000
1920
2,761,000
10,305,000
2,038,000
723,000
1921
2,287,000
17,409,000
2,176,000
111,000
1922
3,195,000
18,697,000
2,337,000
858,000
1923
4,004,000
19,806,000
2.476,000
- 1,528,000
1924
4,250,000
21,060,000
2,633,000
- 1,617,000
1925
4,178,000
22,148,000
2,769,000
- 1,409,000
1926
3,485,000
27,288,000
3,411,000
74,000
1927
3,842,000
27,998,000
3,500.000
342,000
1928
*3,663,000
29,016,000
3,627,000
36,000
(To the nearest $1,000.)
* Estimated.
The figures in Columns 2 and 3 are those supplied by Hong Kong.
*The Colony has not stated the financial effect of (i) and (ii) of paragraph 11, nor whether it intends to pursue them. The effect is not likely to be large. See paragraphs 12-14.
63