Sessional_Paper_1897 — Page 165

161

C. O. to P. & O.,

6th March, 1897.

P. & O. to C. O., 10th March, 1897.

HONGKONG, No. 64.

SIR,

(Secretary of State to Governor.)

DOWNING STREET,

17th March, 1897.

With reference to your Despatch No. 15 of the 18th of January last and to my telegram of the 15th instant, I have the honour to transmit to you copies of correspondence with the Peninsular and Oriental Steam Navigation Company, as noted in the margin, on the subject of the Light Dues at Hongkong.

2. I consider that the shipping interests were given a reasonable expectation that the Light Dues should be reduced, when the cost of the Gap Rock Light- house was met. At the same time, I concur in your view that moderate dues may properly be levied in Hongkong, provided the proceeds do not in ordinary times exceed the total expenditure on the Harbour Department including Light- houses, Water Police, etc.

3. I am, however, of opinion that in calculating the proceeds of the harbour dues, the charges on native shipping must be included, as well as those on ocean going steamers, as suggested in the enclosed letter from the Peninsular and Oriental Steam Navigation Company.

4. I am not therefore prepared to sanction your proposal to make a permanent charge of 24 cents per ton on general shipping although that charge must be con- tinued to the end of the present year, in order to avoid a dislocation of the year's finances.

5. Next year the charge must be reduced to such a rate as will, with the other harbour receipts, be sufficient to cover all harbour and lighthouse expenditure; and it will be necessary to find some other source of revenue to make up the deficiency, which may perhaps most conveniently be done by increasing the Assessed Taxes. I shall be glad to learn, at your early convenience, what changes in taxation you will recommend in order to carry out the above decision, so that the matter may be settled before the time arrives for passing next year's Estimates.

6. I desire to add, that if at any time bereafter urgent necessity should arise for increasing the general revenue, I should be prepared to consider any proposal for again raising the shipping dues, as I have no reason to think that the present charge has borne very hardly on the shipping interests.

I have, etc.,

J. CHAMBERLAIN.

Governor

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

(Under Secretary of State to Secretary, P. § 0. S. N. Co.)

(Immediate.)

Sir,

DOWNING STREET,

6th March, 1897.

With reference to the letter from this Department of the 18th ultimo, I am directed by Mr. Secretary CHAMBERLAIN to transmit to you, for your information and for that of the other steamship companies whose representatives signed with you the letter of the 13th ultimo, the enclosed copy of a despatch from the Governor of Hongkong, relative to the proposal to maintain, as Harbour Dues, the charge of 2 cents per ton at present levied as Light Dues on all shipping at Hongkong.

2. Mr. CHAMBERLAIN concurs in Sir W. ROBINSON's view that it is not unreason- able to levy moderate harbour dues in Hongkong, provided that the proceeds do not exceed the total expenditure on the Harbour Department, including Lighthouses, Water Police, etc., and he has at present under his consideration to adopt one of the two following alternatives, viz., (1) a uniform charge of 2 cents (instead of 2 cents) per ton on all shipping, or (2) a charge on a graduated scale such as is levied at Gibraltar beginning at 25 cents per ton on smaller vessels, and rising to a maximum charge of (say) $30 or $40 on ships of (say) 1,800 tons and over.

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