CO129-435 - Governor Sir May & Acting Governor Claud Severn - 1916 [9-11] — Page 657

THE

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HONGKONG LEGISLATIVE COUNCIL

War Loan of $3,000,000

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651

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necessary ways and means for a contri- bution was discussed at considerable ATTORNEY-GENERAL moved length. The matter was further discussed the first reading of a Bill intituled, An in the Executive Council on the 27th Ordinance to authorise the raising of a April and the 4th May. In the mean- War Loan." In doing so he said: This time I had been given to understand that Bill appeared in the "Orders of the Day" the Unofficial Members of both Councils at the last meeting of the Council, but had the matter under consideration; and it was not proceeded with. I beg to apolo- towards the end of June they requested cise to hon, members for their not having me to enquire of the Secretary of State Leen notified before-hand that the Bill whether a lump sum of $3,000,000, to be would not be proceeded with at the last raised by a local loan, would be acceptable meeting. A point which required con- to His Majesty's Government. The finan- sideration was raised at the last moment, cial position for the first half year was and though we made attempts to deal by this time known, and the outlook was with it there was not sufficient time to distinctly promising. The revenue had do so before the meeting of the Council. exceeded expectations, and additional It was only just before the Council sat sums had been raised by increasing the on the last occasion that the resolution price of prepared opium, and by increas- was taken not to proceed with the Billed liquor dues, while a further amount that day. 1 now beg to propose the

#rst reading of the Bill.

was about to be raised by the tobacco tax; and the increased cost of commodi- ties ordered from England was largely HIS EXCELLENCY-Honourable mem-counter-balanced by the rise in exchange; bers, the question of a contribution a rate of 1/9 having been estimated for. by the Colony to the Imperial War Large economies in expenditure had also Funds has for a long time past been made, while the high price of silver bad my Most careful consideration. had largely reduced the cost of the do The financial outlook throughout the monetisation of subsidiary coins. I was greater part of 1915 was not encouraging satisfied that the Colony was now in a and, in commenting upon the Estimates position to make a substantial contribu- for 1916, the Secretary of State for the tion, and I accordingly, on the 7th June, Colonies described it as most unsatisfac-addressed the following telegram to the tory. But towards the close of the year Secretary of State: - the position was much improved, and in January last, when addressing the Secre- tary of State at length upon the subject. of the finances, I felt myself justified in concluding my despatch with the follow ing words: I am very anxious to sub- mit to you proposals for special taxation from which to furnish a special contri- bution from this Colony to Imperial War Expenditure, and I hope to address you shortly on the matter." On the 24th February I informed the Executive Council that I proposed to make recom mendations to the Secretary of State re- garding a War contribution, and under date the 28th February I asked permis- sion to impose, if Unofficial Members of the Legislative Council agreed, a special war tax which would have given an annual contribution of over $300,000. Mr. Bonar Law pointed out certain objections to the scheme, which was ultimately abandoned. At a meeting of the Execu- t've Council held on the 20th April, I informed the members of what had tran- spired, and the question of providing the

"Unofficial Members of Executive and Legislative Councils wish to vots a special war contribution to the 'm perial Government and have request l me to enquire if a lump sum of $3,000,000, to be borrowed from the Hongkong and Shanghai Baok, or rais- ed by a local loan, or a special contri- bution of 21 per cent, on gross revenue of the Colony, less the items not assess- able for military contribution, would be preferred by you.

The second alternative suggested was the one which I personally preferred, on the ground that an annual contribution of a fixed percentage of the revenue would be the sounder proposition, since it would fluctuate with the prosperity of the Colony. I purposely avoided indicat- ing in the telegram that the alternative proposal emanated from myself, in order that the proposal of Unofficial Members might not run the risk of being preju- diced.