1846-05-13 — Page 1

13th May 1846.

Present: His Excellency Sir J. F. Davis Bart: Governor.

Honorable Major General D'Aguilar.

Honorable the Chief Justice.

Honorable the Attorney General.

The minutes of last Council were read and approved.

Consideration was given to an Ordinance passed by the Governor and Council on the 12th July 1845 entitled "An Ordinance to levy a duty on the importation of Spirits Wine and Beer for consumption within the Colony of Hongkong." This Ordinance was transmitted to England by His Excellency the Governor for approval prior to its being printed and published and the reply of the Secretary of State for the Colonies approving of its provisions was read to the Council by His Excellency.

But as doubts were entertained by Honorable Members as to the expediency of carrying this Ordinance into effect, HE the Governor expressed a wish that any objections which might be made to it should be given in writing with a view to their being transmitted to the Secretary of State, and it was Resolved that this Ordinance be suspended until a reply should be received from him. Whereupon the Honorable Major General D'Aguilar made the following observations.

General D'Aguilar,

I doubt very much the desirability of this Ordinance and for the following reasons:

I consider from the small number of European Residents in this Colony, and which independent of the military, hardly exceed 300 of every denomination, that the consumption would do little more than pay the expense attending the collection of the revenue. But admit it did so, and that a surplus would remain over, then I think that such surplus would be but a small compensation for the discontent which this tax is likely to excite.

The people of this Colony whether, justly or unjustly are under a strong impression that they have been hardly dealt with, by which I mean that they have been taxed too soon, and while they have been struggling under all the difficulties incident to new establishments in an infant Colony.

They fancy too that the present tax has a tendency to interfere with the freedom of the Port, and many of the Merchants, looking at their heavy Ground Rents, and the large sums expended on their establishments, are meditating at this moment their removal to Canton or Macao, or the Northern Ports. One or two (I believe) viz: Messrs Rawson & Co. and Messrs Boustead & Co. are gone already. Now I think this tax is very likely to influence others not from its amount, but from the trouble it entails, and the principle it involves, and that the absence of any one of the leading houses would carry with it a great many of the minor ones.

It is on these grounds I would dissuade from this tax, as well as from all other taxes of a similar description for the present, and until we have given strength and maturity to the Colony, by allowing the inhabitants to take root under all the advantages of the most liberal protection. If I am told that taxes of a similar nature are levied at Singapore which is also a free port, then I would ask how soon, or at what period was taxation of this kind made part of the Policy of that settlement.

Looking at the tax as a source of revenue independent of the above considerations, I learn that near 4,000 gallons of Wine have been landed in the last 4 months, and that therefore 12,000 gallons may be calculated on in the course of the year, but I do not consider this reasoning by any means infallible. What quantity, I would ask of the above 4,000 galls is stock in hand and in store? What quantity has been re-exported to Canton and Macao and Chusan and the northern Ports? And above all what portion has been consumed by the navy, and the large number of merchant ships that constantly frequent this Port?

In short I doubt the revenue likely to result from it, both looking to the expenses of collection, and the prevention of smuggling for which the coast affords every possible facility but if these objections go for nothing, then I suggest that public feeling is worthy of some consideration in the present infant state of this Colony.

(signed) George D'Aguilar

Major General

The Honorable the Chief Justice.

I object to this Ordinance for the two following reasons.

First Because it is calculated to retard the commercial prosperity of the Colony.

Secondly, Because it is not shown that the duties if imposed will realize a sum sufficient to justify the passing of an obnoxious measure.

(signed) John Walter Hulme.

Chief Justice.

The Honorable the Attorney General.

I do not think it would be prudent to carry the proposed ordinance into operation, in as much as I cannot calculate on its realizing one year with another a larger sum than £1,000, while under the present circumstances and feelings of the Colony, I apprehend that any additional measure of taxation will render Canton still more than it is a rival location with this Island for the establishment of mercantile firms.

It may be added that the boarding and examination of vessels under this Ordinance will probably interfere with the improvement of the port, or the establishment of a Junk Trade.

In viewing these objections, to an otherwise apparently fit measure of taxation they may require additional weight, when it is borne in recollection that the Colony is one of recent formation, and can also be regarded as a Diplomatic and Military position protective of the British Trade with China and therefore without the more stringent rules relating to Colonial taxation.

(signed) Paul Sterling.

Attorney General.

(signed) J. F. Davis

Read and approved

this 21st day of May 1846.

(sgd) A. E. Shelley.

Clerk of Councils.