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the arrangement for a fixed contribution. It has, however, been
suggested that the provisions of this clause, which have little
if any legal effect, are inappropriate in the ordinance itself,
and that if a public record is desired of the agreement reached
between His Majesty's Government and the Hong Kong Government it
should be stated by the mover at the second reading of the bill in
the Legislature.
3.
In anticipation of the coming into operation of the new
system of contribution it is proposed, with the consent of my
Executive Council, to pay into the United Kingdom Treasury Chest in
the Colony before the end of the current year the estimated amount
of the arrears of contribution which will be due in respect of 1938.
As you are no doubt aware, it has been the practice to make a monthly
payment equal to one-twelfth of the contribution calculated on the
estimated revenue of the year and to make adjustments, according to
the actual revenue received, some time during the following year.
While this practice may have been unobjectionable when the percentage
basis of contribution was continuing, it seems to me preferable that
the Colony's liabilities under the old system should be cleared as
fully as possible before the new system is commenced, instead of
carrying over a liability which, owing to the large increase of
revenue, will amount at 31st December, 1938 to nearly $1,000,000.
It will, of course, be impossible to calculate the actual contribution
due for 1938 with absolute accuracy until some weeks after the end
of the year, but as close an approximation as possible will be made, and any necessary adjustment to be made in 1939 will, it is hoped,
be quite small.
I have the honour to be,
Sir,
Your most obedient, humble servant,
/. and. katuents
Governor.