assessment for Military Contribution, and I am

to enquire whether the Army Council would be

prepared to agree to such exemption in respect

of the annual subsidy of £5,000, or of whatever

modified sum may subsequently be agreed upon.

Sir Philip Cunliffe-Lister considers it

very desirable for political reasons to ensure that

the proposed scheme should secure the unqualified

support of the unofficial community in Hong Kong;

and he is confident that exemption from Military

Contribution of the revenue required to meet the

cost of participation, will remain the main, if not

the only obstacle, in the way of securing that

support.

In these circumstances, he trusts that

the Army Council will be prepared to agree to the

exemption from assessment for Military Contribution

of the revenue required to meet the cost of the

annual subsidy.

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