Tel. No.-Victoria £400.

RECEIVED

Any further communication on this subject should be addressed

The Under-Secretary of

The War Office

20FEB 1930

COL. OFFIC

London, S.W. 1,

and the following number quoted.

119/Abroad/745 (F.1.)

62761/29.

(32)

(23)

sir,

OR D

CHEME

DISABLED

MEN

THE WAR OFFICE,

5

LONDON, S.W.1.

16

20

February, 1930.

с

I am commanded by the Army Council to acknowledge the receipt of your letter of the 10th January, 1930, No.62761/ 29, relative to the repayment of the Military Contribution overpaid by the Government of Hong Kong in the years 1917/18, 1918/19.

for

The Council note that their proposals, as set forth in their letter of the 31st August last, number as above, the settlement of this question have been accepted by the Government of Hong Kong, and that the final adjustment necessary was to be made in November last.

With regard to the question of the rate of exchange to be used in future in the comparison between the contribution paid and the cost of the garrison, since the contribution is at present based on 20% of the assessable revenue of the Colony, this being much less than the cost of the garrison - and since so far as can be seen it is likely to remain so,

the matter is of little practical importance at the moment. The Council suggest therefore that the long established method of using official rates of exchange, for conversion of the cost of the garrison for comparison with the actual contribution, should at present not be disturbed.

I am to add that should the position so change as to make the question of the rate of exchange to be used a practical issue, the Council will be quite prepared to review the matter.

insud. C

The Under Secretary of State,

Colonial Office,

S.W.1.

I am,

Sir,

Your obedient Servant,

Alllilous

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