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scheme for an Empire Air Mail service

to start in 1937, with all first

class air mail to be carried at

specially low rates.

We are

I am hopeful

that the War Office will agree to

this exemption.

But we take the view that

we are on stronger ground there

than we should be with a claim

፡ኣ

respect of

for exemption for the ordinary

A

air mail receipts in present

circumstances) As you know, the

Defence Contribution at present paid by

Hong Kong is not nearly sufficient to

meet the current cost of the garrison,

as the revenue of the Colony, and con-

and

sequently the Defence Contribution, shows

a declining tendency, the War Office

and the Treasury are not likely to

consent to the exemption or partial

exemption of any further portions of

the Colony's revenue. To raise the

question of general receipts from

air

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