As regards para¡¡raph 14 of War Office

91

letter whilst it is admitted that Military contribution does

not cover cost of garrison it is vry strongly felt in the

Colony that garrison is not mainta ned here merely for

defence of Hong Kong akan but also for defence of British

interests in China and that it wou d be entirely inequitable

to charge Hong Kong with the whole cost.

Before any actin is taken to charge

military contribution on interest and Sinking Fund either

existing Bublic Works Loan or on proposed new loan astion

which will arouse acute unofficial opposition I suggest

that Peel be consulted.

Matter is urgent as Estimates for 1933

arè now being considered and military contribution on

interest and Sinking Fund for 192 Loen alone would be over

180,000 dollars.

2 END

3

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