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instructions, the Lords Commissioners of His Majesty's Treasury have given instructions that the arrangement in question must be terminated forthwith, the whole of the ten thousand dollars being paid over by the Government of Hongkong to His Majesty's Consul General at Shanghai and the remuneration of the Chief Justice at Hongkong for acting as Appeal Judge at Shanghai being paid to him from
Imperial funde. This arrangement will, of course, render the allowance subject to British income tax. The
only alternative is that Imperial funds shall bear one-
half the remuneration paid both to the Chief Justice at
Hongkong and to the Chief Justice at Shanghai for their services as Appeal Judges at Shanghai and Hongkong
respectively, the Government of Hongkong being responsible
for the payment of the other half. Ae, however, this
arrangement would render Sir Skinner Turner liable for
the payment of income tax on half the allowance which he
has hitherto received tax-free, Sir Austen Chamberlain
feels sure that Sir H. Gollan would not wish to press for
the adoption of this alternative.
3.
I am accordingly to request you to be so good as to
explain the circumstances to the Chief Justice at Hongkong
and, at the same time, to obtain from him formal receipts
for the sums already paid to him for his services &8
Appeal Judge at Shanghai.
I am,
sir.
Your obedient Servant,