11

(15)

land sales should similarly be excluded.

have not been able to trace in the printed

correspondence or in the report of the

I

Haliburton Committee any specific confirmation of this, but it is probable that if Hong Kong

had invested their land sale revenue in a

separate fund, no difficulty would have been

raised about exemption the income of that

fund.

In this as in other matters, Hong Kong

adequately have not been welly alive to their own interests.

I attach a statement of the income of

the Hong Kong Government from land sales for

1895 onwards.

Since 1895, that is when the

Haliburton Committee reported, the total income

from land sales has been approximately $24,540,000. This considerably exceeds the total

surplus of assets over liabilities of the Hong Kong Government, which was estimated at $5,425,000

at the 31st December, 1930. It can be contended,

therefore, that the whole of Hong Kong's present

been

investments have met made out of proceeds of

land sales, and that the whole of the income

from such investments, either by way of interest

or capital appreciation, should be exempted in

the calculation of military contribution.

This seems almost too good to be true, but we

can at least put the suggestion to the War

Office and see how they react to it.

I submit for consideration a draft

to the War Office. A copy should be sent to

the Treasury.

I think we might now

I submit a

sp.

new accou

H.K.

accorating system

want is

wit's free

eply to 8

cring

Re

force S. Camé

2·11-3/

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