39
and more revenue from rents and other non-taxation
sources. A proposal that the War Office should be
asked to accept a definite fixed sum for, say, ten
years, the position to be reconsidered at the end of
that period was not considered feasible.
It was, therefore, agreed that the Colonial
Office should keep to the Haliburton report, but aim
at modifications found necessary to meet
changes which had taken place since 1895. Mr. Gent
stated that such a position would not be inconsistent
with the attitude taken up in connection with the
Straits Settlements contribution. On this basis 1
the Governor's suggestions as to further items that
might be excluded from assessment were considered
seriatum, with the comments in the War Office
memorandum.
(1) Profits on sterling securities when
sold, where the profit is due to fall
in exchange. Mr. Vernon referred to the
proposed amendment to Colonial Regulations
so as to provide a revaluation of securities
each year, and an entry as revenue or
expenditure of any appreciation or
depreciation shewn. It was agreed to
maintain the view that such revenue should
not be liable to contribution, whether due
to appreciation in sterling value or to
fall in exchange.
(2)
Interest and sinking fund on capital
expenditure on railways and similar
productive undertaking financed out of
revenue