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In insisting on this arrangement the Secretary of State in 1864 said "Pis Majesty's Government admits that the larger part of the garrison in Hong Kong is maintained for Imperial purposes" and this is the reason why no small a proportion of the cost was asked for.
In 1883-4 large defensive works were sanctioned and the Colony agreed to pay a large proportion (43) of the cost; the estimated sum paid by the Colony was £116,000.
The Committee of 1888 recognised that Hong Kong could not pay any large proportion of the cost of the garrison even if the circumstances hud changed since His Majesty's Government admitted that the garrison was there chiefly for Imperial purposes: they recommended accordingly that as the Colony's revenue had increased so largely (about 200%) since the contribution was fixed it would be fair to ask the Colony to pay more Thoy suggested £40,000 a year for 5 years from 1st January 1889 and that the Colony should bear one third of the cost of accommodation for the garrison and pro- vide the necessary sites for barracks. This was agreed
to.
The 1895 Committee recommended the adoption of the percentage scheme in Hong Kong and suggested 17% plus 1/3 of the cost of new barracks plus whole cost
of new defence works (exclusive of armament). The
Colony at the time thought this a very advantageous
arrangement, but they had to pay so heavily for new
defence
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