CO129-100 - Sir Robinson - 1864 [9] — Page 105

1860, 1861, 1862,

Revenue.

£94,182. £127,241. £131,512.

and the estimated Revenue and Expenditure for 1863:

Revenue, £118,512.

Expenditure. £72,390 £109,632 £122,423

Expenditure £125,000.

From these figures it will be seen that the average surplus revenue over expenditure during 1860-2 was more than £15,000 per annum, and during that period the large sum £106,465 has been expended on public Works, in which are included repairs to roads, streets, and bridges. I am also to observe that in the Estimates of 1863, a sum of £42,200 has been set aside for objects of that nature.

The Duke of Newcastle has directed me to bring to your notice these charges on account of Public Works because, although there is no better way of disposing of surplus Revenue than on works of Public utility, the amount of that expenditure is in a great degree regulated by the amount of surplus revenue of which it in some degree thus furnishes a measure. I am also to remark that the amount of Assets over liabilities on the 31st December last was £98,549, and that even after the large expenditure for 1863, (supposing the Estimate to be correct), the Assets will be on the 31st December next £90,000.

Looking to the large additions which have been made within the last three years to the several departments, amongst which are included the Post Office, the Judicial Establishment, and the Police Department, His Grace anticipates that no further additions can possibly be necessary at present, and that the existing establishments will be able to bear the work required of them for some time to come, or at any rate that increased expenditure will only be called for by increased prosperity, which will furnish the means of meeting it.

I am to add that the Duke of Newcastle has not lost sight of the statement, contained in your despatch transmitting the half yearly returns of Land Sales to the 30th June last, that all the available sites for building within reasonable distance of Victoria had been disposed of. For this reason it may be expected that for the future there will be a falling off in the Land Revenue, under the head of land sales, as compared with former years, until the question connected with the acquisition of Kowloon has been finally disposed of, and the local Government has thus been enabled to put up lots for public competition. But the probable falling off in the Land Revenue does not affect the fact that the general financial position of Hongkong is, and is likely to remain in a highly sound and prosperous state, and the actual Revenue having been in 1862 £41,000 above the amount estimated for that year, while in 1863 the estimated revenue is at least £27,000 above the estimated amount for 1862. Notwithstanding the large surplus revenue which has been available during the last three or four years, Hongkong has never contributed anything towards her Military defence either in the shape of pay, Allowances, or Barracks, and the charge on Imperial revenues for these services has been considerable both during that period, and for several previous years.

It would appear that the number of men stationed in Hongkong in the years 1853-4-5-6 and the total cost of their maintenance, was as follows:

In 1853, Men 969. Cost £97,841.

1854, Men 628. Cost £63,209.

1855, Men 541. Cost £54,625.

1856, Men 651 Cost £65,731.

During subsequent years owing to the War in China the charges on this account have been considerably increased, and it has been found practically impossible to arrive at an approximate Estimate of the cost, for the force which it was found necessary to maintain in Hongkong for garrison duty. It is contemplated now that the force to be permanently stationed in the Colony shall be about 1,000 strong including Artillery, and the question simply resolves itself into the proportion of the cost for these Troops which the Colonial Revenue is able to bear.

The actual cost, judging from analogy, may be stated at about £100,000, an amount which will probably be subject to some slight reduction whenever it shall have become expedient to abolish the Indian Scale of Allowances.

It may confidently be expected that exclusive of the large balance in hand, which at the commencement of the year was stated to be about £98,000 a surplus revenue ranging between £30,000 and £40,000 per annum may be reckoned upon in future years, and Her Majesty's Government while fully admitting the probability that the garrison of Hongkong will be in part maintained for Imperial purposes (which purposes however are closely connected with the prosperity of the Colony), consider that it would be only just and reasonable that for the next five years Hongkong should contribute £20,000 per annum towards the Military protection which it undoubtedly requires for the security of its European inhabitants. At the expiration of that time the amount will be subject to any revision which the altered circumstances of the Colony may require.

I am to observe that in considering the amount which Hongkong should be called upon to contribute, the Duke of Newcastle was of opinion that the question should be decided more with reference to the amount of revenue available, than according to any capitation rate which would be inapplicable to the circumstances of the Colony. And I am to add that in fixing that amount at £20,000 per annum His Grace has been actuated by the desire not to press too heavily at first on the Colonial Revenues, and thus possibly to retard works of public utility for which, arguing on the calculations which have been made, a sum of £15,000 or £20,000 per annum would still be available besides the large balance in hand which would appear to be specially applicable to works of that nature.

I am, &c. Sir Hercules Robinson, &c., &c., &c.

SIR,

Letter No. 2.

(Signed)

FREDERIC ROGERS.

Copy of DESPATCH from Governor Sir H. ROBINSON

to Sir F. ROGERS.

London, 21st May, 1863. I have to acknowledge the receipt of your Despatch dated the 25th ultimo in which you inform me that the Duke of Newcastle is of opinion that it is not to be expected that a rich and a flourishing Colony like Hongkong should any longer be allowed an immunity from such a contribution towards the support of the Troops stationed there as it may justly be called upon to bear; and that His Grace has fixed that contribution at £20,000 per annum for the next five years; but that before taking any action in the matter he would wish to be furnished with any remarks which I may have to make.

The question appears to me to resolve itself into two considerations, (1) the ability of the Colony to meet any such charge as that proposed, and (2) the justice of calling upon it to do so.

I observe that the ability of the Colony to defray a portion of the Military expenditure on account of the Troops stationed there is based in your letter upon the assumptions that a surplus revenue ranging between £30,000 and £40,000 may be reckoned upon in future years, which would leave after payment of the contribution proposed a sum of £15,000 or £20,000 per annum available for works of public utility besides the balance in hand which is estimated by you as likely to be on the 31st December next £90,000.

I am afraid these calculations are altogether fallacious. The permanent revenue of the Colony at present, excluding the item of Premium on land Sales, can only be reckoned at about £105,000,

In 1859 the permanent Revenue was £63,732 and Premiums £1,493 Making a total of £65,225

In 1860: Permanent Revenue £75,069 Premiums £19,113 Total £94,182

In 1861: Permanent Revenue £88,381 Premiums £38,860 Total £127,241

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