16
17
Sir,
40248
431
APPENDIX No. 6.
Colonial Office to War Office.
Downing Street,
20th April, 1894. I am directed by the Secretary of State for the Colonies to transmit to you, for the consideration of Mr. Secretary Campbell-Bannerman, with refer- ence to the letter from your department of the 2nd February, 1893 (10248), copies of the enclosed despatches from the Governor of Hong Kong, on the subject of the Military Contribution of that Colony, which have also been communicated to the Treasury.
377
R. H. MEADE.
Enclosure No. 2.
EXTRACT from a despatch from Sir W. Robinson to the Marquis of Ripon, No. 245, dated 23rd December, 1893.
5. In the Finance Committee it was strongly urged by the unofficial members that an endeavour should be made to obtain the fixing of the Military Contribution payable by the Colony at a stated number of dollars. A reference to the figures quoted in my opening address, will show how enormously this charge on the revenue of the Colony has increased in recent years; it now amounts to bat little short of one-sixth of the total revenue. It was represented with much force by the unofficial members that, apart from the gravity of the burden imposed on its resources, the Colony is subjected to the serious disadvantage of being unable to forecast its liabilities by reason of the contribution being fixed in sterling, while the variations in exchange prevent the estimation with any approach to accuracy of the equivalent in dollars; and it was contended that if some such inconvenience must necessarily fall on one of the parties to the transaction, it ought in common fairness to fall on the one that receives the contribution, and not on the one that has to find the money and make the payment. I need hardly say that I shall be extremely glad if your Lordship is able to induce the Treasury and the War Office to meet the wishes of the unofficial members.
Enclosure No. 1.
My Lord Marquis,
The Governor of Hong Kong to Colonial Office.
Government House,
Hong Kong, 24th April, 1893. With reference to your Lordship's despatch No. 13, of the 3rd of February last, and telegram of the 14th instant, I have the honour to transmit, for your Lordship's informa- tion, the enclosed copy of a telegram which I despatched on the 19th instant.
I regret that there has been so much delay in supplying the return of revenue, but it has arisen from the confusion caused by the defalcations recently discovered in the Treasury, of which full particulars will be found in a despatch which I hope to send your Lordship by this mail.
An exact statement of the expenditure for last year will be sent as soon as it has been received from the Treasury. It is delayed by the cause which I have just mentioned. I desire to take this opportunity of suggesting to your Lordship that an endeavour should be made to induce the War Office authorities to consent to a reduction of the amount of the annual Military Contribution of 40,000Z. (sterling) payable by this Colony, in view of the enormous fall in exchange and the increased expenditure in dollars entailed thereby on the Colony, and in view also of the fact that the revenue for the current year has been estimated at only a little over 1,900,000 dollars, an estimate which is not likely to be largely, though it may be slightly exceeded.
The revenue for 1992 was unusually large, owing to deferred payments by the opium farmer on account of the previous year having been credited to it, to unusually considerable arrears of taxes having been recovered by Mr. May while he was acting as treasurer, to a windfall of 20,000 dollars received from the military authorities for the Lazaretto, to a large land sale which produced 67,000 dollars towards the close of the year, and to other exceptional circumstances.
(Telegram.)
WILLIAM ROBINSON.
Sub-Enclosure in Enclosure No. 1.
Chapelries, London,
19th April, 1893.
Total revenue 2,237,000 dollars, but about 2,100,000 dollars deducting exceptional windfalls.
Total approximate expenditure 2,365,000, doubtful.
ROBINSON,
My Lord Marquis,
Enclosure No. 3.
The Governor of Hong Kong to Colonial Office.
Government House, Hong Kong,
9th March, 1891.
I have the honour to invite your Lordship's attention to my despatch, No. 89, of 24th April last, suggesting that, for the reasons therein stated, an effort should be made to obtain a reduction of the amount of the Military Contribution payable by this Colony, and also to the fifth paragraph of my despatch, No. 245, of 23rd December last, endursing a recommendation by the unofficial members of the Legislative Council that the contribution should be fixed at some stated annual number of dollars.
2. The arguments in favour of these recommendations have been materially strengthened by the enormous fall in the exchange that has occurred since the first of the two despatches in question was written, and by the uncertainty which attaches to the future of silver,
3. At the present rate of exchange the amount of the Military Contribution is equivalent to about one-fifth of the whole revenue of the Colony, and the market is still falling.
4. It will readily be perceived that this charge is already, and apart from the possibility
of exchange falling still lower, considerably in excess of the amount of the proportion of the Colonial revenue, which it was intended to alienate when the contribution was fixed at 40,0007; and it is my duty not to conceal from your Lordship that, unless the amount be reduced, the result will probably be a deficit on the transactions of the current year, and the creation of serious financial embarrassment.
5. The revenue for the current year has been estimated at 2,007,210 dollars, showing an estimated surplus of some 8,000 dollars over the estimate of ordinary expenditure. But at the present rate of exchange the equivalent of the Military Contribution is some 80,000 dollars in excess of the provision made therefore in the Estimates.
6. Excluding the disturbance introduced by the violent fall in exchange, the financial position of the Colony is in a sound and satisfactory position. But the disturbance causer by this factor is so great as to imperatively call for relief, and while I see no reason to anticipate that the estimate of revenue will be materially exceeded, the time is most inoppotune for attempting to impose additional taxation.
7. In these circumstances I trust that your Lordship will agree with me that the time has fully arrived for making a strenuons effort to obtain a substantial reduction in the amount of the Military Contribution payable by the Colony. The principle which is supposed to regulate the requirements of the Imperial Government is that the Colony
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