10

The following figures show the strength of

the Hong Kong case.

From 1890 until the change

effected by the Haliburton Committee, Hong Kong

paid a fixed sterling contribution of £40,000 a year ($266,666-$400,000 according to fluctuations in

the rate of exchange). In the enclosure on

14661/26 Hong Kong, will be found a table showing

that the Hong Kong military contribution increaed from $801,276 (£78,667) in 1901 to $4,198,058

(£485,400) in 1926. For subsequent years the

figures are as follows:-

1926-27

Military contribution

Cost of garrison.

$3,573,922(£390,406)

£712,130

1927-28 $3,826,463(£388,588)

£692,950

1928-29

$3,785,202(£386,334)

£688,885

1929-30 $3,882,821(£355,181)

2611,437

1930-31

$4,267,074(£285,666)

£798,006

In effect, assessment of military contribution

on the principles laid down by the Haliburton

Committee has resulted in a rise in the Hong Kong

military contribution from a fixed sum of £40,000

to an average of just over $1,200,000 for the

period 1901-1909, and to an average of $4,000,000

for the period 1923-1931. That the system

was not working equitably in Hong Kong was

recognised

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