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Colonial Secretary:-
Sir, I am the bearer of a message from Your Excellency
Honourable Members,
In my address to this Council on the occasion
of the presentation of the estimates for 1939 on 13th October,
I stated that I had addressed the Secretary of State with a
proposal for a new method of assessment for the Military
Contribution paid by this Colony. I am now glad to be able to
inform you that the Secretary of State has conveyed to me the
approval of His Majesty's Government of the adoption for an
experimental period of 5 years of a system of fixed contribution.
The amount of this fixed contribution is to be $6,000,000 per
annum, the figure suggested by me after confidential consultat-
ion with the unofficial members of this Council. It has been
agreed that if, owing to exchange fluctuations, the sterling value of this contribution for any year, at the average rate of
exchange for the year, should fall below £350,000, or if there
should be a formal devaluation of the dollar reducing its value
below that figure, the amount of the contribution should be
immediately reviewed without waiting for the end of the
quinquennium. It has also been agreed that the fixed
contribution system should be regarded as an experiment subject to review at the end of the first quinquennium, with the proviso that if the experiment is found to be unsatisfactory either the Colonial Government or His Majesty's Government
may propose to revert to the former percentage basis at the end
of the first 5 year period or to adopt some other basis of
calculation.
2. It is intended that, if the fixed contribution system
is continued, future re-assessments of the amount should have
regard to the general economic position of the Colony, not only,
to the revenue position; but no exact method of re-assessment
has
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