Tel. No.-Whitehall 9400.

Any further communication on this subject should be addressed to:-

The Under-Secretary of State.

The War Office,"

London, S.W.1,

and the following number quoted.

16/Abroad/764 (F.1.)

DISABLED

CHEM

EN-3

JR

OR USE

THE WAR OFFICE,

15t

CULONIAL OFFICE

3!

LONDON, S.W.1.

22 October, 1938.

:

Sir,.

1.

4

I am commanded by the Army Council to refer to

* Colonial Office letter $3538/38 of 23rd August last

transmitting a copy of a despatch from the Governor of

Hong Kong regarding the basis for the assessment of the

Hong Kong Military Contribution.

2.

The Council agree that the proposal for a fixed

contribution made by the Governor in his despatch 53538/38

(No.4) of 22nd June, 1938 has many advantages both to the

Colony and to the War Office. They fully appreciate the

representations made by Sir Geoffry Northcote in paragraphs

7 and 8 of his despatch that the present system of assessing

the Contribution may have a deterrent effect on proposals for

social and industrial improvement and so may retard

legitimate development projects in the Colony. The accounting

difficulties instanced in paragraph 9 of the despatch are also

The Under-Secretary of State,

Colonial Office,

London, S.W.1.

/realised

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