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In 1890 Pis Majesty's Government decided they must ask Mauritius for a larger contribution especially as the revenue had greatly risen since 1865 when the £45,000 limit was fixed.
In 1890 accordingly the contribution was raised to £25,000.
As a result of the Interdepartmental Committee of 1888 (1889) Mauritius was asked to provide £30,000 in 1891 rising by 25000 to £45,000 in 1894. The Council refused to vote it.
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The hurricane of 1891 and subsequent distress made His Majesty's Government reduce its demande which were all rejected till in 1995 the Interdepartmental Committee recommended a contribution of 5 on gross revenue less land sales. The Council wanted also to deduct the pro- vision for the interest on debt frum assessable revenue: and produced a deadlock.
In 1897 it was proposed to fix the rate at 5% and to include only net revenue from railways and the Council
added the net revenue from waterworks. This was agreed to reluctantly. So that "auritius now pays 5# 3 on
Toss revenue excluding proceeds of land sales, and deducting from gross revenue working expenses, interest and sinking fund, of the railway and water works.
It will be seen that the general principle has always
been upheld that a colony should to the utmost of its
ability pay for its land defence though, as in the case
of Ceylon and Hong Kong it has been maintained by the
Polonial
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