32
2. I am, however, discussing
with the Lords Commissioners of the
Treasury and the Army Council whether
any modifications may be desirable and
possible in the existing system in order
to bring it up to date. In any readjust-
ment it will be necessary to be guided by the
fellewing principlesstout in the following
مه
3.
It is generally agreed that it
is equitable that all Colonial Governments
which are financially in a position to do
so should contribute in proportion to their
means towards the cost of the defence
afforded to them by the Imperial armed
forces. In the case of Hong Kong the
contribution to be made has been fixed for
many years past at an amount equal to the
cost of the military garrison or 20% of
the "assessable revenue", whichever is
That percentage was fixed in the
Jess.
light of the discussions of the Haliburton
Committee and of revenue conditions at
the