CO129-358 - Governor Sir Lugard - 1909 [10-11] — Page 199

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the available Mergin for each year, would appear to indicate

that the proportion of the Margin which should be assigned to

the Defence Contribution would be approximately half.

Although, as I have shewn, any sudden decrease in the

Margin due to a Loan for current works must be automatically

compensated in succeeding years, it may perhaps be considered

advisable that a maximum and a minimum should be fixed, and

these in Hongkong looking to the proportion hitherto paid, might

be fixed at one half and one quarter,of the actual cost of

Defence.

An alternative method which would obviate any such

misconception as was alluded to in a former paragraph, (p. 9)

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would be for the Colony to pay a fixed proportion of the total

cost of the Forces and defence and barrack works. What this

proportion should be,- assuming again that the incidence on

the Colonial Revenue should remain such as at present would

be easily ascertainable by a comparison over a series of years

of the actual cost to the Imperial Government and the amount

paid by the Colony. The precise figures are only available

here for last year, (Table 2). The proposal has the dead-

vantage which Mr. Chamberlain desired to avoid, viz. that the

sum would fall upon the Colony equally in times of prosperity

and in times leas prosperous. It has also the disadvantage

that the amount to be spent on Defence each year must be fixed

by the Imperial Government without reference to the Colony and

the Legislative Council which votes the Colonial proportion.

I see no practical difficulty in this, however, if the Colony

haa consented to the principle to be adopted. Its simplicity

is a recommendation, nut I prefer the scheme I have proposed.

It

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