Sessional_Paper_1895 — Page 544

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already erected, as "the ratepayers will very much resent being called upon to pay for works which, without any reference to them or their representatives, "have been already completed or are nearing completion."

7. The arguments, advanced by the Unofficial Members regarding the exemption of the municipal items from contributing towards the military expendi- ture, appear to me to be reasonable and worthy of favourable consideration.

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I have the honour to be,

Your Lordship's most obedient,

humble Servant,

WILLIAM ROBINSON,

Governor.

Enclosure 1.

(Unofficial Members, Legislative Council, to Colonial Secretary.)

23rd August, 1895.

SIR,

We have given our most careful consideration to your letter of the 2nd instant, addressed to the Senior Unofficial Member, in which you transmit the proposal of the late Secretary of State for the Colonies with regard to the military contribution to be paid by the Colony, and would beg to submit certain consider- ations in this connection.

1. The amount fixed by the Secretary of State, viz., 174% on the revenue of the Colony, with the exception of land sales and the premia on leases, would appear to be based on that of the contribution to be paid by Singapore, which is also 17%. Permit us, however, to point out a fact, which may have escaped the notice of the Secretary of State, namely, that the revenues of the two Colonies are on a somewhat different basis, for Singapore has a Municipal Council, and so a distinct municipal revenue, which is exempted from the military contribution, while in Hongkong the figures of the municipal, and of the rest of the revenue, are shown together. It does not appear clear to us from the Secretary of State's despatches whether he recognizes the existence of this difference, as he seems to include the municipal revenue of Hongkong in the amount on which the 17% has to be paid. Against this we must protest, and we would beg to lay before him some most important considerations against such a proceeding.

We consider that the municipal revenue of Hongkong should be treated on the same footing as that of Singapore, the more so, because most of the important municipal works of Hongkong have been paid for by means of loans. From many of them we derive a considerable revenue, out of which we have to find the interest on the loans and provide a sinking fund; and it seems hardly reasonable to ask us at the same time to do this, and also to be paying for the military contribution 17% of these revenues.

2. It may be objected that if the amount of the municipal revenue, say, $700,000, be subtracted from the total estimated revenue of the Colony, the military contribution would not reach the sterling sum of £40,000. But we would ask you, Sir, if it has not been our constant contention that this sum has