*
34
9. Particulars of the items now put forward by the Colony for modification were enclosed with C.0. letter No. 82756/31 of 27th February, 1931; they are:-
A.
Wireless Telegraphy.
(1) 4 per cent rebate on capital expenditure to be
allowed.
૩)
(2) Assessment of net instead of gross receipts.
Increase of rebate under (1) from 4 to 6 per cent.
B. Charges for the use of Government Motor Vans.
of net instead of gross receipts.
C.
Assessment
Contribution from Chinese Government for maintenance of
Gap Rock Lighthouse.
Total exemption.
Exemption of
Contribution for Anti-Piracy escorts.
D.
actual disbursements.
E.
F.
House Service Account. Exemption of all but net receipts
from the installation of water in private houses.
Overpayments in previous years.
Rebate 4
G. Waterworks Undertakings built out of revenue,
per cent on capital expenditure met from revenue.
In their despatch of July 1930 inviting the se claims, the Colonial Office drew particular attention to the principles underlying agreement to modifications of revenue to be assessed and presumably it may be taken that the items referred to in paragraph 8 and not referred to in the latest despatch are withdrawn either because they cannot be modified without an alteration of the percentage basis of the contribution (Post Office, Municipal_revere, etc.) or because there is no revenue yet (Aerodrome, Ferries).
The War Office provisional remarks on the items mentioned in paragraph 8 (based on the information then available) are contained in the enclosure to War Office letter No. 16/Abroad/276 (F.1.) of 25th April, 1929, to the Treasury. They have been embodied, so far as they are appropriate in the light of the more detailed information now available, in the detailed remarks below,
10. A. Wireless Telegraphy,
(1) From 1915 to 1929 same $464,000 has been soent by the Colony on capital outlay on wireless telegraphy out of revenue and further expenditure of about $59,000 was anticipated in 1930. The Colony claim that the usual rebate of 47 on this capital expenditure should be allowed for 50 years (see para. 5 above). This claim is necessarily linked up with A(2) below, as we have never admitted any such rebate except in connection with the concession which is permitted in certain cases whereby only the net receipts and not the gross receipts of productive undertakings are assessed for contribution purposes (see para,4 above) The precedents are the same as those for A(2) below, and the financial offect is considered there.
11./