C

Any further communication on this subject should be addressed to-

The Secretary,

War Office,

London, S.W.,

and the following number quoted.

10/2982.

(F.1.)

11250

READ

R. Want Office,

Zut

402

London, S.W. ud

Marah, 1920.

gir,

1565219

Gu

31706/17

With reference to War Office letter 10/2578 (F.1.) of the 11th March 1919, I am commanded by the Army Council to inform you that in consequence of the unusually large balance of Military Contribution received from the Colony of Hong Kong in respect of the Calendar Year 1918, the contribution in respect of the Financial year 1917/1918 has exceeded the cost of the garrison by £17,668.5.0. Revised statements (marked "A" and "B") showing respectively the cost to Army Funds of the Hong Kong garrison in the Financial Year 1st April 1917 to 31st March 1918 and the payments received from the Colony in respect of that, period are accordingly enclosed in substitution for those sent with the letter referred to above.

As regards the year 1st April 1918 to 31st May 1919,

I am to send you the enclosed statements (marked "C" and "D") showing that the payments made by the Colony in respect of that year exceeded the cost of the garrison by £84,356.19.6., meking a total overpayment in respect of the Financial Years 1917/18 and 1918/19 of £102,025.4.6.

In bringing this overpayment to your notice, I am to refer you to the letter from the Governor of Hong Kong dated 4th May 1917 forwarded with your letter 31706/1917 of the 3rd July 1917, in which it is stated that "it is the intention of the members of the Legislative Council to place any surplus revenue there may be at the disposal of His Majesty's Government for War purposes", and to suggest that it may be the desire of the Legislative Council of the Colony to treat this overpayment as a contribution towards the cost of the War and to waive the refund.

I am to ask, therefore, that you will be good enough to ascertain the wishes of the Colony in this matter.

I am,

sir,

Jnder Secretary of State,

Colonial Office,

Your obedient Servant,

BD

Lucite

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