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however, to the fact that in this case the revenue proposed for exemption will be capable of being ear-marked as raised for a special service and will cease on the termination of that service, they are prepared, with Their Lordships' approval, to concur in the proposal of the Hong Kong Government.

I am to add that a precedent for this concession exists in the case of the special taxation imposed in the Straits Settlements for the service of a loan for river harbour improvement (vide War Office letter 10/443 dated 1st March 1906, in reply to Treasury letter 3227 dated 22nd February 1906).

The enclosures which accompanied your letter under reply are returned as requested.

I have the honour to be,

Sir,

Your obedient Servant,

(sd.)

R. H. BRADE.

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