10/992(F.1)
C 0.
29010
REC
R 10 AUG 08:
WAR OFFICE,
LONDON, S.W,
18th July 1908
131
Sir,
With reference to your letter of the 1st ultimo number 9520/08, I am commanded by the Army Council to acquaint you that they have had under consideration the proposal of the Hong Kong Government that the revenue to be specially raised to provide one half of the capital cost of constructing a typhoon refuge at Mongkoktsut shall be excluded from the revenues of the Colony in assessing the military contribution.
They understand that under this proposal the assessable revenue will continue to include the proceeds of the light dues on shipping at present in force, and that the revenue to be appropriated to the proposed capital expenditure will be that arising from the increase in the dues.
As already stated in War Office letters 10/700 dated 19th March 1907 (in reply to Treasury Letter 1536 of 15th February 1907) and 10/962 dated 24th April 1908, the Army Council are not prepared to admit as a general principle that the appropriation of revenue to capital expenditure should entitle a colony to the exclusion of such revenue in calculating military contribution. Having regard,
however,
The Secretary,
The Treasury