I
4
address, will show how enormously this charge on the revenue of the Colony has increased in recent years; it now amounts to but 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.
My Lord Marquis,
Enclosure No. 3 in No. 76.
The Governor of Hong Kong to Colonial Office.
Government House, Hong Kong,
9th March, 1894.
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, endorsing 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 40,0002; 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 caused 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 inopportune 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 strenuous 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 should contribute such a proportion of the cost of its defence as it can reasonably afford. I entirely acknowledge the fairness of this principle, and all that I ask is that it should be applied to the existing circumstances. The concession of my demand would involve a material, but temporary, reduction of the sterling amount of the contribution, and it would, of course, be understood that, caeteris paribus, the reduction would be removed whenever the value of silver might regain the level which it occupied when the contribution was fixed at its present amount of 40,000%.
8. As regards the amount of reduction that should be granted, the unofficial members of Council are of opinion that it would be fair to fix the contribution at the equivalent of the number of dollars that sufficed to satisfy the demand when it was originally imposed, and I beg leave to strongly urge this proposal on your Lordship's early and favourable consideration.
WILLIAM ROBINSON,
;
Sir,
5
No. 77.
War Office to Treasury,
War Office,
29th June, 1894.
I am directed by the Secretary of State for War to transmit herewith, to be laid before the Lords Commissioners of Her Majesty's Treasury, a copy of the Report of the Inter-Departmental Committee on Colonial Military Contributions, dealing with the question of the Contribution to be paid by the Colony of Hong Kong for the five years, 1894–98.
I am to add that the proposal referred to in paragraphs 21a to 26 of the report is one that can only be satisfactorily dealt with by their Lordships, as, if adopted, it would probably affect other interests than those dealt with by the Committee.
The report has been considered by Mr. Campbell-Bannerman, who concurs generally in the conclusions arrived at by the Committee.
Sir,
H. T. DE LA BÈRE.
No. 78.
War Office to Colonial Office.
War Office,
29th June, 1894.
I am directed by the Secretary of State for War to transmit herewith, for the consideration of the Marquis of Ripon, a copy of the Report of the Inter- Departmental Committee on Colonial Military Contributions, on the subject of the Contribution to be paid by the Colony of Hong Kong during the five years, 1894-98.
I am to add that the proposal referred to in paragraphs 21a to 26, affecting,
as it probably would, if adopted, other interests than those dealt with by the Committee, has been referred to the Treasury for consideration.
The report has been submitted to the Secretary of State for War, who concurs generally in the conclusions arrived at by the Committee.
Sir,
H. T. DE LA BÈRE.
No. 79.
Treasury to War Office.
Treasury Chambers,
10th July, 1894.
40248 435
I am directed by the Lords Commissioners of Her Majesty's Treasury to acknowledge the receipt of Mr. De la Bère's letter* of the 29th ultimo, transmitting a copy of the Report of the Inter-Departmental Committee on Colonial Military Contributions, dealing with the question of the contribution to be paid by the Colony of Hong Kong for the five years 1894 to 1898.
Their Lordships desire me to say that they join in the general concurrence expressed by Mr. Secretary Campbell-Bannerman in the report.
FRANCIS MOWATT.
(526)
* No. 77.
B
592
40248 435
435
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10187
94
40248
438
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