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7

Copy

X 6895/4111/505

sir.

C.207701

Foreign Office,

8

NOV 1026 !

414

9.7.1.

6th November,1926.

In reply to Sir G. Grindle's latter of the 27th ultimo (0 18840/26) regarding the remuneration of the Chief Justics of Hongkong for acting as Appeal Judge at shanghai, I am directed by Secretary Sir Austen Chamberlain to requeat you to inform Mr. Secretary mery that he fears that no useful purpose would be served by re-opening the subject with the Lords Commissioners of His Majesty's Treasury, Treasury decision is based on an objection raised by the Comptroller and Auditor-General to the prement method of recording in the scoounte the financial transactions now in queation, and it would appear that the Treasury have taken the

only course legitimately open to then.

The

2. I am to observe that the effect of the alternative

referred to in the second paragraph of the letter from this department of September 10th last would be to render Sir Skinner Turner liable for increased super-tax, Moreover, the

fact that the Chief Justios of Hongkong receives hia salary

free of British income tax, whereas tax is levied in the case of Sir Skinner Turner, already destroys the equality which the Governor of Hongkong was anxious to secure.

3. I am, therefore, to ask that the position may be explained to Sir H. Gollan, and to express the hope that

he will not insist on an arrangement that will place on

Sir Skinner Turner a burden from which he has hitherto been exempt, in order to secure the semblance of a uniformity

which,/

Inder Secretary of State,

Jolenial office.

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