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Exceptional nature. It does not represent the permanent acquisition of a property by the Colonial Govt; but merely its temporary acquisition with a view to re-sale as soon as possible. Could not treat the expenditure as capital outlay in line with the receipts as reimbursement finally charging the net loss if any.
Military Expenditure. If our Contractant the burden as I fear the repayment will be spread over many years judging from past experience, I would deprecate putting it to suspense account contrary to recognised practice for military works. We can get over the difficulty by not fearing unduly swelling the Revenue which the Net Revenue & Contribution is based on directing that the receipts from time to time by way of reimbursement of Military expenditure should be kept distinct from ordinary Revenue (see par. 5 of Instructions re Estimates, &c.). I inform W.O. & Treasury that such Exceptional receipts are not to count in the percentage.
This has since been agreed to 5Bug7/10/96
The Hongkong Accounts do now show the Loan Expenditure separately; the only differences that they send home all expenditure (dran & credit) at the same time, which is simpler & less confusing than the English method.
It is important not to swell the receipts by fictitious items, regarding Expenditure properly chargeable against Loan. I quote the Solicitor's opinion in England. The thing that happens to have happened is that the actual dollars paid on the Specific loan works out to ...
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