Hong Kong Annual Administration Reports, 1841-1941
PAPERS RELATING TO THE
FINANCIAL POINT OF VIEW,
There is no apparent prospect of Hong Kong ever yielding any revenue adequate to more than a very small civil government. The limited size, and rocky nature of the island; the absence of agriculture, manufactures or commerce, and the fluctuating and predatory character of the population, forbid the hope of an income being raised to sustain a regular government establishment on the scale now adopted, and which indeed is far beyond the present or prospective wants of the island community.
Under the most favourable circumstances, there may possibly some years hence be obtained from the rent of the building land from 5,000l. to 7,000 l. per annum. The markets, licenses, fines, and fees of every description may realise hereafter about 1,000 l. per annum. The levy of a tonnage duty would not yield more than 500l. to 1,000 l., per annum, if it did not drive away the ships that now enter the harbour; it is not probable that vessels would pay 6d. per ton, merely to call for orders, when they can lie in Macao Roads, and daily communicate with Hong Kong. A registration or licence for each male Chinese, resident on the island, might, if there were a more respectable class of inhabitants in the colony, produce 600l. to 1,000l. a year; neither auction duties, stamps, or any of the other ordinary sources of taxation, would under present circumstances yield any revenue worth consideration.
The idea that the Chinese Government will sanction the introduction of opium into China at a moderate fixed duty, and that a large revenue may then be raised by warehousing the drug at Hong Kong, must, I think be abandoned, as illusory. The legal admission of opium into China by the Emperor, according to the best information I can obtain, is not at all probable; but even were the traffic in opium legalized, the traders have declared they would not pay any duty in Hong Kong, they can keep their large receiving ships the whole year round in Hong Kong or in any other harbour, or tranship the opium from the vessels which convey the drug from Bengal and Bombay to this place, on board the smaller vessels which proceed along the coast to sell, or deposit it at Whampoa, Namoa, Amoy, Chimmo, Chin-chu, Chusan or Woosung in the "receiving ships," which lie in these bays or stations the whole year round. I will not discuss the question of raising a revenue in Hong Kong from the introduction of opium for smoking in the island, either by farming out the drug, or otherwise, independent of the morality or immorality of the question of the Government deriving an income from a vicious indulgence; so long as the Chinese Government prohibit the introduction of opium, and make its use a capital offence, it would not, to say the least, be seemly of us to encourage the use of this destructive, and poisonous stimulant in Hong Kong.
The total revenue to be expected from this colony in my opinion cannot exceed 10,000 l. per annum, and to obtain this amount, several years must elapse under the most favourable circumstances. The per contra side shows an expenditure at this moment for mere civil establishments, salaries, and wages at the rate of 50,000 l. per annum, irrespective of the cost of public works, roads, and buildings which is estimated at 50,000 l. per annum for several years; independent also of the consular charges of 30,000l. per annum, and the army and navy; the whole showing a yearly drain on the British Exchequer of half a million pounds sterling (see Documentary Appendix.) And here it may be necessary to remove an erroneous assertion, that this heavy yearly charge is only a portion of the revenue which England derives from the China trade. The revenue which is obtained from tea, is paid by the people of England who buy, and consume the tea. It might as well be said that the West Indies furnished the revenue derived by the British Exchequer from the coffee, and sugar consumed in the United Kingdom. The incidence of taxation is on the last purchaser of the taxed article. The tea merchant in England adds to the invoice cost of the tea bought at Canton, the freight to England, the insurance, interest of money, warehousing, customs duty levied in England, and the fair profits of trade, on every chest of tea he may sell the grocer; who then regulates the price at which he can afford to sell a pound of tea to his customer, who pays the whole charges, taxes and profits to the several parties before he drinks his tea. The revenue derived by the China trade is paid by the people of England; the merchant who carries on the trade does not pay a shilling.
It will be for Her Majesty's Ministers to decide whether, on a review of the whole case, there be any justification for spending half a million sterling annually on this coast. Commodore Chads, C.B., who has had extensive experience for many years in China, is of opinion that England would be wise in not establishing any colony in China. As a general principle, colonies that will not pay at least the expense of their civil government are not worth maintaining. There does not appear any reason why Hong Kong should be an exception to this rule. There is not, as has been fancifully supposed, any analogy whatever between Hong Kong and Gibraltar. Hong Kong commands nothing; a glance at a chart will show that the navigation of the China Seas is perfectly independent of Hong Kong; nay, even the entrance of the Canton River is not controlled by Hong Kong; it is not possible by any outlay of money to make the island a fortress, and its harbour is commanded by the opposite shore of the main land. But supposing several millions were spent in fortifying Hong Kong, and half a million were annually expended for its garrison, the cui bono would constantly recur. From a Chinese enemy the island has nothing to apprehend even at present. No European or American state would think of capturing Hong Kong, for it would be valueless to them; and if mere glory were sought by the acquisition, they must be aware the fame would be of short continuance, as troops and ships from India, from Australia,
14
12
Hong Kong Annual Administration Reports, 1841-1941
PAPERS RELATING TO THE
FINANCIAL POINT OF VIEW,
There is no apparent prospect of Hong Kong ever yielding any revenue adequate to more than a very small civil
government. The limited size, and rocky nature of the island; the absence of agriculture, manufactures or commerce, and the fluctuating and predatory character of the population, forbid the hope of an income being raised to sustain a regular government establishunent on the scale now adopted, and which indeed is far beyond the present or prospective wants of the island community.
Under the most favourable circumstances, there may possibly some years hence be obtained from the rent of the building land from 5,0007 to 7,000 1. per annum. The markets, licenses, fines, and fees of every description may realise hereafter about 1,000 I.
· per annum. The levy of a tonnage duty would not yield more than 5002 to 1,000 7, per annum, if it did not drive away the ships that now enter the harbour; it is not pro- bable that vessels would pay 6 d. per ton, merely to call for orders, when they can lie in Macao Roads, and daily communicate with Hong Kong. A registration or licenso for each male Chinese, resident on the island, might, if there were a more respectable class of inhabitants in the colony, produce 600l. to 1,000. a year; neither auction duties, stamps, or any of the other ordinary sources of taxation, would under present circumstances yield auy revenue worth consideration.
The idea that the Chinese Government will sanction the introduction of opium into China at a moderate fixed duty, and that a large revenue may then be raised by warehouse- ing the drug at Hong Kong, must, I think be abandoned, as illusory. The legal admission of opium into China by the Emperor, according to the best information I can obtain, is not at all probable; but even were the traffic in opium legalized, the traders have declared they would not pay any duty in IIong Kong, they can keep their large receiving ships the whole year round in Hong Kong or in any other harbour, or tranship the opium from tho vessels which convey the drug from Bengal and Bombay to this place, on board the smaller vessels which proceed along the coast to sell, or deposit it at Whampoa, Namsa, Amoy, Chimmo, Chin-chu, Chusan or Wossung in the "receiving ships," which lie in these bays or stations the whole year round. I will not discuss the question of raising a revenue in Hong Kong from the introduction of opium for smoking in the island, either by farming out the drug, or otherwise, independent of the morality or immorality of the question of the Government deriving an income from a vicious indulgence; so long as the Chinese Govern- ment prohibit the introduction of opium, and make its use a capital offence, it would not, to say the least, be seemly of us to encourage the use of this destructive, and poisonous stimulant in Hong Kong.
The total revenue to be expected from this colony in my opinion cannot exceed 10,000 Z. per annuin, and to obtain this amount, several years inust elapse under the most favourable circumstances. The per contra side shows an expenditure at this moment for mere civil establishments, salaries, and wages at the rate of 50,000 1. per annum, irrespective of the cost of public works, roads, and buildings which is estimated at 50,000 1. per annum for several years; independent also of the consular charges of 30,000l. per annum, aud the army and navy; the whole showing a yearly drain on the British Exchequer of half a million pounds sterling (see Documentary Appendix.) And here it may be necessary to remove an erroneous assertion, that this heavy yearly charge is only a portion of the The revenue which is obtained revenue which England derives from the China trade. from tea, is paid by the people of England who buy, and consume the tea. It might as well be said that the West Indies furnished the revenue derived by the British Exchequer from the coffee, and sugar consumed in the United Kingdom. The incidence of taxation is on the last purchaser of the taxed article. The tea merchant in England adds to the invoice cost of the tea bought at Canton, the freight to England, the insurance, interest of money, warehousing, customs duty levied in England, and the fair profits of trade, on every chest of tea he may sell the grocer; who then regulates the price at which he can afford to sell a pound of tea to his customer, who pays the whole charges, taxce and profits to the several parties before he drinks his tea. The revenue derived by the China trade is paid by the people of England; the merchant who carries on the trade does not pay a shilling.
It will be for IIer Majesty's Ministers to decide whether, on a review of the whole case, there be any justification for spending half a million sterling annually on this coast. Com- modore Chads, C.D., who has had extensive experience for many years in Chins, is of opinion that England would be wise in not establishing any colony in China. As a general prin ciple, colonies that will not pay at least the expense of their civil government are not worth maintaining. There does not appear any reason why Hong Kong should be an exception to this rule. There is not, as has been fancifully supposed, any analogy whatever between Hong Kong and Gibraltar. Hong Kong commands nothing; a glance at a chart will show that the navigation of the China Seas is perfectly independent of Hong Kong; nay, even the entrance of the Canton River is not controlled by Hong Kong; it is not possible by any outlay of money to make the island a fortress, and its harbour is commanded by the opposite shore of the main land. But supposing several millions were spent in fortifying Hong Kong, and half a million were annually expended for its garrison, the cui bono would constantly recur. From a Chineso enemy the island has nothing to apprehend even at present. No European or American state would think of capturing Hong Kong, for it would be valueless to them; and if mere glory were sought by the acquisition, they must be aware the fame would be of short coutinuance, as troops and ships from India, from Australin,
No comments yet.
Private notes are available after approval.