9

Gap Rock Lighthouse. Hong Kong claims

exemption of the Chinese Government's contri-

bution on principle. War Office refuse to

agree, parrying Hong Kong's principle with

an

Other principle, viz that the item was

included in revenue at the time when the

percentage was fixed and so cannot now be

a correstondig alteration in the percentage

The amount

left out without RÉGION

involved is so trivial and yet provides such

an easy handle for criticism of the contri-

bution system that I think that we should

try to get War Office to agree to its

omission, saving their principle by expressly declaring this to be an exception.

Anti-Piracy Escorts. Hong Kong claims that

the charges collected from shipowners,

or so much of them as represents actual disbursements, should be exempt from

contribution. War Office are ready

to agree.

House Service Account: (which

is

not in accordance with Colonial Regula-

tion 289). Hong Kong claims that,

if the correct accounting system is

adopted and all receipts shown in the

Colony's revenue account, only net

receipts, if any, should be assessed.

War Office agree to total exemption

of revenue.

Overpayments in previous years.

recovered

Overpayments

should be

credited to revenue. In that event,

Hong Kong claims that such credits

should

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