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•N° 259.
1501848/12.
Sir,
GOVERNMENT HOUSE,
HONGKONG. 4th July, 1921,
With reference to the despatches noted in the
margin, I have the
honour to observe that
cretary of State's despatch No.232 of 20.7.1912 cretary of State's despatch No. 68 of 26.2.1920
while I am fully in agreement with the view that the value of
returned stores (in which category I include the proceeds of
the sale of stores which are obsolete or which have been
condemned by a board of survey) should be credited to a head
of revenue the result of adopting the correct method of
accounting is to subject the Colony to a considerable penalty since it involves payment of Military Contribution in respect
of the amount realised.
2.
In every case such stores were originally purchased from revenue on which Military Contribution had been paid and the payment of a further contribution on the
value of the recovered or condemned stores constitutes a double payment in respect of what is to all intents the same
money.
I submit that this result is anomalous and
unfair and I would ask permission to credit incomings of this nature to a separate head of revenue which shall be exempt from assessment for Hilitery Contribution.
I have the honour to be,
sir,
Your most obedient humble servant,
THE RIGHT HONOURABLE
WINSTON CHURCHILL, M.P.,
&c.
&0..
0..
7.E. Stubbs.
Governor,
&c.