CO537-(33-34) — Page 548

(Printed for the use of the Cabinet.)

78

CONFIDENTIAL.

Eastern

No. 47.

HONG KONG.

Colonial Military Contri- butions.

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REMARKS ON MEMORANDUM CIRCU. LATED TO THE CABINET BY THE CHANCELLOR OF THE EXCHEQUER IN REFERENCE TO HONG KONG.

The Chancellor of the Exchequer's Memoran- dum overlooks the principles which have actuated the Government in defending Colonial Stations.

Certain stations are being fortified, not because there are Merchants and Planters established in them who have houses and possessions to protect, but because these several points have been selected purely from Imperial strategic considerations, and have therefore become increasingly open to born- bardment. They are fortified on the one hand as secure bases for the operations of Her Majesty's Fleet, and as refuges in time of war for our Mercantile Marine, and on the other hand to prevent their becoming hostile bases in the hands of an enemy.

Taking, therefore, the case of Hong Kong referred to by the Chancellor of the Exchequer, it has been defended, not because Mesers. Jardine, Matheson & Co., have embarked their capital in stores there, but because it is the nearest British port to the Russian, Spanish, and French posses- sions in the Pacific. From Hong Kong as a basis, the Russian ports of Vladivostock and Nicolaieff would be blockaded and perhaps captured in the event of war, thereby preventing the Russian cruisers from carrying on their depredations on the high seas, possibly as far as the Cape.

It is the increasing strength of Vladivostock and the large French forces now maintained in Tonquin and in Cochin China which have led to the demand for an increased garrison at Hong Kong, not the increasing riches of the colony as being likely to invite the cupidity of Foreign

Powere.

If, therefore, the community of Hong Kong were non-existent or incapable of contributing at all, it would still be necessary for this country to maintain a fortified naval base there, or abandon all hope of naval action in the China and North Pacific seas. It may almost be said that Hong Koug is being defended to give effect to the Imperial policy on the frontiers of Afghanistan, at Constantinople, and in Egypt.

(23 189-H & 8 9899)

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