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In the reply to this Letter the following Number should be quoted.

20458

11

CO 38164

Rece Rrot 28 NOV II

TREASURY CHAMBERS.

27 November 1911.

%

157

Sir,

I am directed by the Lords Commissioners of His Majesty's Treasury to transmit herewith, to be laid before Mr. Secretary Harcourt, a copy of a letter from the War Office, dated the 6th instant, relative to the assessment to Colonial Military contribution of the grant made to Hong Kong by the Imperial Government in respect of the loss of revenue due to the new opium policy.

As Mr. Harcourt is aware, no mention was made, when the amount of the grant was under discussion, of any

intention to exempt it from assessment to military

My Lords accordingly✅

contribution in the ordinary course. assumed that, like the recent grant in aid of postal expenses, and like the opium revenues whose place it partly takes, the grant would be included in the revenue of the Colony for assessment, and it was on this basis that They fixed the amount payable. Otherwise They would have felt bound to reduce the amount of the grant by the shortage resulting to Army Votes from the loss of

military contribution.

I am accordingly to request that the Secretary

of State will take the necessary steps with a view to the

inclusion of the grant in the statement of revenue for 1910 and the two following years.

1 am, Sir,

Your obedient Servant,

The Under Secretary of State,

Colonial Office.

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