CAB11-57-2 — Page 26

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revenue is at least 27,000l. above the estimated amount for 1862. Notwith- standing the large surplus revenue which has been available during the last three or four years, Hong Kong has never contributed anything towards her military defence either in the shape of pay, allowances, or barracks, and the charge on Imperial revenues for these services has been considerable both during that period, and for several previous years.

11. It would appear that the number of men stationed in Hong Kong in the years 1853-4-5-6, and the total cost of their maintenance, was as follows:

Men.

Cost.

£

In 1853

969

97,841

1854

628

63,209

1855

541

54,625

1856

651

65,731

12. During subsequent years, owing to the war in China, the charges on this account have been considerably increased, and it has been found practically impossible to arrive at an approximate estimate of the cost for the force which it was found necessary to maintain in Hong Kong for garrison duty. It is contemplated now that the force to be permanently stationed in the colony shall be about 1,000 strong, including artillery, and the question simply resolves itself into the proportion of the cost for these troops which the colonial revenue is able to bear.

13. The actual cost, judging from analogy, may be stated at about 100,000l., an amount which will probably be subject to some slight reduction whenever it shall have become expedient to abolish the Indian scale of allowances.

14. It may confidently be expected that exclusive of the large balance in hand, which at the commencement of the year was stated to be about 98,000l., a surplus revenue ranging between 30,000l. and 40,000l. per annum may be reckoned upon in future years, and Her Majesty's Government, while fully admitting the probability that the garrison of Hong Kong will be in part maintained for Imperial purposes (which purposes, however, are closely connected with the prosperity of the colony), consider that it would be only just and reasonable that for the next five years Hong Kong should contribute 20,000l. per annum towards the military protection which it undoubtedly requires for the security of its European inhabitants. At the expiration of that time the amount will be subject to any revision which the altered circum- stances of the colony may require.

15. I am to observe that in considering the amount which Hong Kong should be called upon to contribute, the Duke of Newcastle was of opinion that the question should be decided more with reference to the amount of revenue available, than according to any capitation rate which would be inapplicable to the circumstances of the colony. And I am to add that in fixing that amount at 20,000l. per annum His Grace has been actuated by the desire not to press too heavily at first on the colonial revenues, and thus possibly to retard works of public utility for which, arguing on the calculations which have been made, a sum of 15,000l. or 20,000l. per annum would still be available, besides the large balance in hand which would appear to be specially applicable to works of that nature.

Sir Hercules Robinson,

&c.,

&c.,

I am, &c.,

FREDERICK ROGERS.

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