MS.
1
A
Action on this file has been held
up for months by the absence of the General
papers referred to in 6. They are still in
circulation; but we may get on with the other
matters involved, leaving this point, the treatment of " profits on exchange", for
separate consideration afterwards.
The War Office have prepared a very
useful memorandum on the general principles
governing the method of calculating revenues
assessable to military contribution;
but
they do not suggest that we should concur
in the memorandum or embark on a discussion
of principles and I think it will be best
to avoid doing so.
Our immediate concern is to settle
claims put forward on behalf of Hong Kong in
the Governor's despatch of 11th December, 1930
(1 on this file). The proposals, with the
War Office reply on each, are as follows: -
Wireless Telegraphy.
(a) Capital Expenditure.
The Hong Kong proposal is that the
percentage representing the interest
charges should be deducted from
Revenue before 20% computation is
made. The War Office are evidently
prepared to accept this.
The Colony further propose that
the percentage allowed by the Defence
Contribution Ordinance (4%) should
be raised to 6% "owing to increased
interest