CAB11-57-2 — Page 51

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No. 9.

Copy of Despatch from Sir H. Robinson to His Grace the Duke of

(No. 35.)

My Lord Duke,

Newcastle, K.G.

Hong Kong,

12th April, 1864.

Since writing mine of the 9th instant, I have received Your Grace's despatch of the 16th February intimating, in reply to one from Mr. Mercer of the 2nd December last, that the demand previously made for military contribution from this colony would be enforced.

2. Having placed Your Grace, as it was my duty to do, unreservedly in possession of my own views on this subject, it only remains for me to observe that I shall endeavour to carry out Your Grace's decision in the matter with all loyalty and to the best of my ability.

3. But I would earnestly plead for some slight modification merely as regards the time and mode of payment.

4. If the contribution of 20,000l. for 1865 is to be actually paid over during the course of next year, a special tax must at once be imposed to raise that amount; and I do not see how it will be possible to impose any tax for the purpose which shall press equally upon all interests in the colony without interfering with the freedom of the port. Any measure of the kind will cause great dissatisfaction, and in all probability seriously interfere with the progress of the colony.

5. Eventually also if a little grace be given it may be found that a special tax will not be required. The colony is advancing at this moment from its surplus 50,000l. for the establishment of a mint. This sum would be sufficient to pay the military contribution for two years and a-half from the 1st January next, by which time it is just possible that the colonial revenue may be able to meet such a charge.

6. What I would propose therefore is, that the colony in consideration of the sum advanced for the establishment of the mint should be considered to have paid the military contribution up to June 1867; and that all the profits of the establishment over and above the actual working expenses being remitted half-yearly to the Imperial Government until 50,000l. be paid up. The payment may be spread over a longer period than two and a-half years; or, on the other hand, it may possibly be made in less than that time. In either case, however, unless the mint should prove a failure, the payment would be secure; and if the mint should prove a failure it would be only just for the reasons explained in my letter on the 9th instant that the loss should fall on the Imperial Government.

7. In effect my proposal amounts simply to this, that the colony should now pay in advance the military contribution demanded of it for two and a-half years, namely 50,000l., and that the Imperial Government should advance the 50,000l. necessary for the establishment of the mint and be repaid this advance eventually out of the profits.

8. I think that this proposal is so reasonable that it can scarcely fail to receive the concurrence of Her Majesty's Government. It would indeed be hard if the colony were taxed to meet an Imperial demand because its surplus funds are being diverted for an undertaking which ought in fairness to be established at the risk and expense of the Imperial Exchequer; and in justice to myself I must observe that I should never have recommended the estab- lishment of a mint at the expense of the colony if I had known that a military contribution of 20,0001. a-year was to be imposed.

(366)

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