Sessional_Paper_1896 — Page 613

609

No. 43

98

HONGKONG.

DESPATCH RESPECTING THE MILITARY CONTRIBUTION.

To be laid before the Legislative Council by Command of His Excellency the Governor.

Secretary of State to the Governor.

DOWNING STREET,

HONGKONG.

No. 249.

SIR,

18th November, 1896.

I have the honour to acknowledge the receipt of your Despatch No. 225 of 23rd September last, forwarding a Memorandum from the Unofficial Members of the Legislative Council, asking that the Military Contribution should be again fixed at £40,000 a year, instead of being 17 per cent, of the gross revenue, less the proceeds of land sales.

2. I request you to inform the Members of the Council, that Her Majesty's Government regret that they cannot agree to this proposal, as they cannot admit that a fixed rate of contribution for all time, irrespective of the comparative financial ability of the Colony to contribute to the cost of its defence, is a fair or reasonable arrangement.

3. You will remember that in Viscount KNUTSFORD'S Despatch No. 8 of 20th January, 1890, the contribution of £40,000 a year was fixed for three years only, (afterwards extended to five years), on the distinct understanding that the rate would be re-considered later on, and possibly increased. The Meinbers of the Council are therefore in error in implying, in paragraph 8 of their Memorandum, that the question was only re-considered in consequence of their representations that the contribution of £40,000 was excessive.

4. They are also under a misapprehension in supposing that my Despatch No. 128 of 8th June was intended to preclude any future remission of taxation in the Colony, should it hereafter appear that the Revenue exceeded the necessary expenditure of the Colony. That Despatch merely stated that if the accounts were altered so as to take large items of receipts out of the Revenue, on which the Military Contribution is calculated, it would be necessary to consider the question of altering the rate of percentage.

5. I adhere to the opinion that seventeen and a half per cent. of the gross revenue (less land sales) as at present brought to account, is by no means an unreasonable amount for the Colony to contribute towards its defence.

6. I request you to lay this Despatch before the Legislative Council.

I have the honour to be,

Sir,

Your most obedient,

Governor

Sir WILLIAM ROBINSON, K.C.M.G.,

&C.

&C.

$c.

humble Servant,

J. CHAMBERLAIN.