CAB11-57-2 — Page 42

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32. But, not to occupy more of Your Grace's valuable time, I may state my conclusions briefly thus:-

(1.) The presence of troops here is not absolutely necessary for colonial purposes, while the colonial revenue is urgently needed to the last cent. for public works, some of them largely contributing to the benefit of the Imperial Govern-

ment.

(2.) Hong Kong, in many respects, renders important service to the Mother Country-service equivalent, without direct money payment, to what may in reason be required of a colony established as this has been, and circumstanced as it is.

33. And next I propose to put forward practical suggestions in the form of alternative proposals:-

(1.) As I have shown that the military are not wanted for local purposes, I would propose that they be withdrawn altogether, except a battery of Artillery, for which the colony might be charged. I propose this in deference to professional opinion, which pronounced during the discussions of the Executive Council in June last that land batteries were required in aid of the naval force.

I enclose return of cost of battery, amounting to 6,1731. 5s. (say 29,631 dollars 60 cents).

(2.) Should the above proposition be considered inadmissible, I would suggest that the cost of the battery be the only part of the military expenditure that falls on the colony.

(3.) As 20,000l. would supply us with an additional European Police Force of between 200 and 300 men, is it not possible to utilize the military for a local purpose and work them as a police under the civil power? I recommended this on a special occasion seven years ago, and with the twofold consideration of economy to the colony (for the colonial allowance would only be small and supplementary to their regular pay) and of benefit to the soldier, whose pay and comforts would be increased, while healthy employment would be given him, the want of which, as all experience of Hong Kong shows, tends to the stagnation of his mental, and ultimately to the destruc- tion of his physical, powers.

(4.) If it be determined to levy the full sum of 20,000l. per annum, let not the necessary public works be stopped, as they other- wise must be; but let a special military contribution tax be levied to that amount under authority of a legislative enact-

ment.

I should, of course, prefer to see any other method pur- sued, and propose this only as a remote alternative; but I have the less hesitation in doing so under the circumstances in that the residents of Hong Kong find the colony singularly profitable, and are but lightly taxed. The police and lighting rates, with a water rate in prospect, are the only taxes to which they are subjected.

At the same time, it is proper to point out that the enforcement of this contribution amounts, in effect, to making the residents in a British colony pay for the protection of foreign and rival ports, and of the interests of the numerous nationalities there represented.

The natural tendency would be to drive people from Hong Kong, where they are taxed, to Shanghai and other places, where they are not and cannot be taxed.

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