C. 52802/28 [No. 9].
PROOF.
SIR,
No.
HONG KONG.
THE OFFICER ADMINISTERING THE GOVERNMENT
(Confidential (1).)
to
THE SECRETARY OF STATE.
(Received 30th August, 1928.)
[Answered by No.
Government House, Hong Kong, 28th July, 1928. WITH reference to your despatch No. 421 of 13th December, 1926,* and my telegram of 24th July, 1928,† regarding the military contribution payable by this Colony, I have the honour to submit for your information the following figures in support of the proposal that in future the contribution in respect of any year should be a certain percentage of the annual valuation made during the previous year.
2. The military contribution paid in respect of the last three years and the esti- mated contribution calculated on the existing basis for the current year are :—
1925 1926
1927
1928 (estimated)
4,178,249.87
3,484,772.33
3,842,041.80
3,662,630.00
the average contribution for 1925, 1926, and 1927 being $3,835,021.33 and for 1926, 1927, and 1928 $3,663,148.04.
3. The table of annual valuations made during the years 1924 onwards is as follows:
$
1924
1925
1926
1927
1928
22,147,951
27,287,862
27,998,237
29,016,439
30,395,447
and the military contribution based on 12 per cent. of the annual valuation made during the previous year would be:—
1925
1926
1927
1928
1929
$
2,657,754
3,274,543
3,359,788
3,481,973
3,647,454
4. The three years prior to 1926 were for this Colony years of plenty while the immediate future seems likely to be, for some years to come, one of difficulty. The surplus funds accumulated in the last decade are becoming exhausted and recourse is now being made to loans for financing urgent public works. There have previously been many requests for consideration with a view to reduction of the contribution and I would refer you to Sir F. Lugard's despatch of 3rd August, 1911, asking for relief over certain items. In Mr. Harcourt's Confidential despatch of 17th May, 1912, § it was stated that the question of military contribution paid by the Eastern Colonies would be further considered and that a Committee had been appointed to inquire into the operation of the methods upon which the military contributions paid by Crown Colonies were being assessed. In Mr. Winston Churchill's despatch No. 233 of 13th August, 1921,|| it was stated that the Committee reported to the Treasury in 1914, but the war intervened to prevent any further action and the matter has since been in abeyance.
5. The hope of relief through the deliberations of this Committee now no longer exists, and it is therefore necessary again to bring before your attention certain points, over which you will no doubt agree that relief is justified and that if the proposed new method of assessment does not meet with the approval of the Treasury certain modi- fications of the existing practice are necessary and long overdue.
* No. 22459/26.
+ C. 52802/28 [No. 7]: not printed.
No. 29033/11. § No 14436/12.
No. 33574/21. Straits Defence Con.-Gp. 6. 131/2963. 24. 8/34. (18264) M. & S., Ltd.
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