CAB11-57-2 — Page 44

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30

No. 7.

Copy of Despatch from the Duke of Newcastle, K.G., to Governor Sir H. Robinson.

(No. 22.)

Sir,

Downing Street,

16th February 1864.

"

I have to acknowledge the receipt of Mr. Mercer's despatch "Separate of the 2nd December last, in which he submits his observations respecting an annual contribution by Hong Kong towards its military expenditure.

It is impossible for me to doubt that the security given to the inhabitants and trade of Hong Kong (and more especially perhaps to the wealthy European merchants in the colony) by the presence of Her Majesty's forces, would be cheaply purchased by an annual payment of 20,000l., and, therefore, I should not be doing justice to the inhabitants of this country if I failed to require that the Imperial Treasury should be relieved to that extent, as soon as possible, from the burden of supporting that force.

Her Majesty's Government do not feel themselves bound to continue to protect an entrepôt for the Chinese trade, however important it may be, at the sole expense of the British Treasury, when the merchants who make use of it have, by great Imperial efforts, been placed in a position in which they are able to contribute towards the cost of that protection. I am fully aware that the satisfaction of the fair claims of the Imperial Government would be deferred for ever if it were to be postponed until all colonial improvements, which might be in themselves desirable, had been executed out of the produce of existing taxes. The real question is whether the wealth of the community is such as to enable them to pay such taxes as are necessary for the double purpose of developing the colony and meeting those claims; and this question appears to me to be sufficiently answered by the remark contained in Mr. Mercer's despatch, that the "residents of Hong Kong find the colony singularly profit- able, and are but lightly taxed." Entertaining, as I do, these views, I cannot hold out any hope that Her Majesty's Government will refrain from pressing the demand which was communicated to Mr. Mercer by my despatch, No. 115, of the 5th September last.

Governor Sir H. Robinson,

I have, &c.,

NEWCASTLE.

&c.,

&c.

No. 8.

(No. 30.)

Copy of Despatch from Governor Sir H. Robinson to His Grace the Duke of Newcastle, K.G.

My Lord Duke,

Hong Kong,

9th April 1864.

I have the honour to forward the following financial returns :--

(1.) Return of revenue and expenditure of Hong Kong during the

year ended 31st December 1863.

(2.) Comparative statement of the revenue and expenditure in 1862

and 1863.

(3.) Statement of assets and liabilities on the 1st January 1864.

2. This last differs slightly from the approximate statement of assets and liabilities transmitted by Mr. Mercer in his despatch, No. 12, of the 13th January last, as the Crown Agents' account for the last quarter had not at that time been received.

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