CO129-367 - Acting Governor May - 1910 [6-7] — Page 458

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- alan er nolie pe Cette

I fear that the answer to that question is not by any means satisfactory.

As regards the Navy, the Imperial Troopa quartered here, and the fixed Armanents, the matter is in the hands of the Imperial Authorities, and so long as we pay only one-third to one-half of the cost of our land

defences, and nothing for the Navy we cannot dictate to the Imperial Government, and must be satisfied to accept whatever they give. But I may say in this Confidential Memorandum that both the General Officer Commanding and myself consider that more Infantry is required here. The Financial Situation in England is as we are all aware, full of difficulty at the present time, and the Mother Country is not in a position to spend increased sims upon her Colonies. So much so that there are many responsible Statesmen whol hold that the burden has grown too great for the British tax-payers te bear.

In these circumstances we are compelled to ask ourselves whether or not we are bearing our own full share. With no Customs' duties (other than Liquor), and no Income Tax there is no doubt that the people of this

Colony are very lightly taxed in comparison to the people of England, to when nevertheless we look to pay the larger

part of our Bill for land defence. I have been carefully

matter into this question, - viɛ.:- the comparative burden of

taxation upon the British in Hongkong and in the United

Kingdon - and the comparative incidence of the cost of

defence to ourselves and to other Colonies. Both are

large and intricate questions with which I do not propose

to deal in this Memorandum.

The two questions which first present them-

-selves for consideration, therefore, are these:- Are we bearing a fair share of the burden of defonce ? and