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'
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SLIGATONHCH THEI: KGT
A.YALAMOGGAN HEROJAM
.*$ ..53
- 3-
effecting any comparison between the true revenues and
expenditures of successive years. Misgivings had been
felt on the subject from the start but it had been
intended to carry out your predecessor's instructions
until the actual figures as ascertained showed what a
considerable distortion would be produced. I shall be
very grateful therefore if further consideration can be
given to the permanent exemption of Hong Kong from the
application of the new system as well as its suspension
for 1939.
5.
Since I do not anticipate that it will be
possible to receive your instructions before the completion of the preparation of the 1939 estimates
they are being framed on the basis of the old accounting
system so far as revenue refunds are concerned.
6. If the system is not to be introduced here the
question of amending the Defence Contribution Ordinance
No.1 of 1901 which was discussed in Mr. Smith's despatch
No.563 of 7th September, 1937, and Mr. Ormsby-Gore's
4 despatch No.41 of 9th February, 1938, need not be
further pursued. I am, however, advised that there are objections to the definition of the words "revenue
refunds" suggested by the War Office and should wish to
have an opportunity of addressing you further on that matter if it does become necessary to carry on with
the amending of the Ordinance.
I have the honour to be,
Sir,
Your most obedient, humble servant,
1. At bathote
Governor.