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PUBLIC RECORD.OFFICE
Reference :--
TCU.537
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to a Colony which had no existence when those debts were incurred.
With regard to the next five years, ending 1893, the military expenditure of Hong Kong, assuming the recommendations of the Colonial Contributions Committee to be adopted, will average as follows:-
Contribution
Local Forces
Direct expenditure on barracks
Total
£
40,000
3,000
8,000
51,000
To this should be added the interest at 3 per cent. on 140,0001., the value of Crown lands, which is to be expended on barracks, and which, if not so hypothecated, would be a legitimate asset of the Colony, making a total of 55,2001.
a-year.
The revenue of Hong Kong for this year is estimated at 266,1201. Assuming that its revenue will increase annually in the same pro- portion that it has increased during the past 10 years, its
average during the next five years will be 286,0201. Its military expenditure will thus be 38. 10d. in the £ of revenue, or 19.8 per cent., as against a present 48. 4d., and 21.78 per cent. in the United Kingdom. An addition of 7,0001. to the expenditure recommended by the Colonial Contributions Committee, would raise the Colonial expenditure to the same proportion of revenue as at present obtains in the United Kingdom.
If, in addition to its local expenditure, the Colony were required to contribute half the total cost of its garrison-viz., 140,000l. + 15,2001. 155,2001. a-year, as suggested in the Chancellor's memorandum, it would be neces- sary for it to more than double its taxation, and, assuming that it raised 100,000% more revenue, its proportion of military charge to revenue would then be 88. in the £, or 40 per
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81
cent, against a present 48, 4d. in the £, or 21-78 per cent. in the United Kingdom.
It would seem impossible to impose such a charge as this on the Colony, and, looking to the fact that the charge proposed by the Colonial Contributions Committee for the next five years nearly approximates the proportion
of the home charges for both naval and military services, it would seem to be a reasonable amount to impose. At the end of five years, when the barrack expenditure has been disposed of, it may then be practicable to augment the Colonial contribution to the Imperial Exchequer on account of the current cost of its garrison.
The Secretary of State has not gone into
a detailed comparison of the expenditure per head of the population of Hong Kong, and of the United Kingdom, aud various other countries. The present population of Hong Kong is about 200,000, and of this number only 7,000 to 8,000 are whites, including the garrison, the fleet, and the general shipping.
The Colony produces nothing, and it seems impossible to make any satisfactory comparison between the tax paying capacity of its mixed population and that of the populations of pro-
ducing countries, such as the United Kingdom, Belgium, Portugal, Brazil, &c.
WAR OFFICE,
15th December, 1888.
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PUBLIC RECORD OFFICE, LONDON
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