47

for military contribution, and that the averages

mentioned above might therefore be regarded as

being too high to be taken as the basis for a new

method of assessment. Nevertheless, he would

personally be prepared to consider a 12% basis if

by that means a permanent settlement could be

obtained. At 12% of the annual valuation the

figures for military contribution for 1925/9 would

have been as follows:-

1925

1926

:

$2,768,494.

1927

1928

1929

:

:

3,410,983.

...

3,499,779.

3,627,055.

3,799,431.

In sending these proposals to the War

Office, the Secretary of State said that he

12/1/2/% considered that the proposed new basis of 12% on

the annual valuation made during the preceding

year, while yielding approximately the same amount,

would be much more convenient in that it would

enable the Government of Hong Kong to know its

liability a year in advance and also to avoid

continual disputes as to what constituted revenue.

He added that the amount of the contri bu tion would

grow automatically with the growth of the wealth

of the Colony. If, however, the new basis was not.

acceptable to the War Office, it would be necessary

to take up the various claims to relief under the

existing system.

if all

The Hong Kong Government estimated that

before the deductions claimed under the existing

method of assessment had been made, the military

contribution for 1926 and for 1927 would have been

$2,367,584.

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