specifically emphasises that the intention of the proposal is not to reduce the contribution.
8.
An appendix is attached, based on figures supplied by Hong Kong, showing the difference between the actual yield from the present system and the amount that would have been yielded by 12 of rateable value for the years 1901-1928. The differences in column 5 of the appendix tell heavily against the new proposal; the bulk of the difference, however, occurs in the abnormal period of the war and for several years subsequent to the war, when a rent-restriction ordinance was in operation. For the years 1901 to 1913
there would have been a small net balance in favour of the new proposal. The Colony appears to regard the war years as outside comparison, and the Governor argues that during the years 1923-28 the rent-restriction ordinance adversely affected the rateable value by as much as 10 But an increase of 10% in the levy on rateable value during 1923-25 would not by any means have wiped out the large differences, shown in column 5 of the Appendix, between the actual contribution and the amount of the 12% levy. effects are again referred to in paragraph 26.
The financial
This
9.
As regards the question whether the rateable value or the revenue of Hong Kong i、the better criterion of the relative prosperity of the Colony, it will be observed from columns 2 and 4 of the appendix that for the years 1901-1913 the rates of increase of gross revenue and rateable value fairly corresponded. Thereafter the rateable value increased at a much slower rate than the gross revenue. ie doubtless accounted for by war and post-war cond it ions, and the disparity may be held to be abnormal. The fact remains that for the period 1914-1928 rateable value and gross revenue would have yielded very different amounts of military contribution. But apart from this, the Governor's point; referred to in para.7, that the assessor is bound by law to assess in a particular way hardly offers a sufficient safeguard. The same legal obligation is imposed in this country, but that does not prevent one authority from "assessing low and levying high" and another from "assessing high and levying low". If the assessor at Hong Kong decided at any time to assess low, the War Office levy would remain fixed at 12%..
The Reserved Claims.
If the scheme outlined in paragraphe
10.
2-9 is not accepted, the Colony has expressed its intention of proposing some revision within the existing system. Under this system, the assessment of the contribution is made upon the gross revenue of the Colony, but with certain qualifications.
(a)
The qualifications are:-
Exclusion of certain sources of revenue altogether from gross revenue
(i) Condemned stores.
fiil
Adjustments of exchange.
(iii) Widows and orphans' pension contributions.
(iv) Land sales.
v
Interest and sinking fund on war loan.
10
(b) /
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