436
132
Paragraph (iv), relating to anti-piracy escorts, and paragraph (v) relating to over- payments, expresses the agreement by the Army Council in paragraph 5 of the said letter. Paragraphs (vi) and (vii), relating to transfers to revenue under Colonial Regulation 291 and to profits from the appreciation of investments when realized, represent the understanding referred to in Colonial Office letter of 14th October, 1932, to the War Office enclosed with the Secretary of State's despatch of the 22nd October, 1932.
Paragraph (viii) refers to Section 5 of the Widows and Orphans Pension Ordinance, No. 15 of 1908, the consolidation of which with its amending ordinances is in course of preparation.
Paragraph (ix) refers to Section 14 of the War Loan Ordinance, No. 12 of 1916, the loan under which has been paid off to Section 15 of the Public Works Loan Ordinance, No. 14 of 1927 and to Section 13 of the Public Works Loan Redemption Ordinance, No. 15 of 1933, the loan under which is to be paid off shortly either in cash or by con- version bonds under the latter Ordinance, and to the proposed new Loan Ordinance for a loan of approximately $28,000,000 with respect to which, as stated in War Office Letter of 25th February, 1933, enclosed with the Secretary of State's despatch of 7th March, 1933, the Army Council is prepared to make a similar concession.
Paragraph (x) refers to Section 9 (8) of Ordinance No. 41 of 1912, the operation of which Ordinance is, however, suspended by Proclamation No. 3 in the Hong Kong Government Gazette of the 7th February, 1913.
Paragraph (xi) refers to routine realizations dealt with in paragraphs 12 and 13 of the Governor's despatch No. 400 of 10th September, 1929, and agreed to in paragraph 11 of the War Office letter to the Colonial Office of the 25th April, 1932.
5. The new Section 3 (3) (i) represents the first proviso to the repealed Section 3 of the principal Ordinance.
The new Section 3 (3) (ii) sets out the productive undertakings other than railways The Opium and telephones which have been recognized as entitled to similar treatment. Monopoly appears in Appendix II of two draft Estimates for 1933 as recognised under The Government Wireless Tele- Colonial Office despatch No. 173 of 10th July, 1914. graphy Services were recognized in paragraph 2 of the War Office letter of 25th April, 1932, enclosed with the Secretary of State's despatch of 3rd June, 1932. The Govern- ment Motor Meat Van Services and the Water Installation (House Service) Account were recognized in paragraphs 3 and 5 of the same letter.
6. The new Section 3 (4) (i) relates to the deduction at the rate of 5 per cent. in respect of the capital expenditure on the Government Wireless Telegraphy Services for the years 1915 to 1932 referred to in paragraph 2 of the War Office letter of 25th April, 1932, enclosed with the Secretary of State's despatch of 3rd June, 1932, and in para- graph 3 of the War Office letter of 25th February, 1933, enclosed with the Secretary of State's despatch of 7th March, 1933.
7. The new Section 3 (4) (ii) is derived from the second proviso to the repealed Section 3 of the principal Ordinance; but the period of fifty years is made to run from 1932 as stated in paragraph 2 of the said War Office letter of 25th April, 1932.
8. This draft Amending Bill is submitted for consideration under the instructions contained in the final paragraph of the Secretary of State's despatch of 7th March, 1933.
C. G. ALABAster.
Attorney-General.
June, 1933.
Enclosure 2 in No. 84. MILITARY CONTRIBUTION. DRAFT ORDINANCE.
The adjustment of military contribution in respect of the revenue of any one year is made annually when the final figures for that year are known. The revised assessment The draft on the basis of these despatches has been made in respect of the year 1932. Bill includes the various points on which settlement has been reached, but certain observations and explanations are necessary in regard to the first adjustment. '
Section (2) (v). Overpayments Recovered in Previous Years.-These overpayments, which previously had been deducted from expenditure, would amount normally to perhaps $10,000 a year,
At the end of 1932, however, the sum of $234,444.91 was standing to the credit of this account, and was made up of ordinary overpayments $11,571 and an extraordinary credit of $222,873, being a reimbursement from loan account in respect of the salaries and conveyance allowances of officers employed on loan works. The salaries
133
were in the first instance charged against expenditure to safeguard the pension rights of the officers concerned (vide Secretary of State's despatch Confidential of 24th November, 1930). The amount so charged being in 1931 $152,204.10 and in 1932 $67,282.31. The latter sum represents salaries for the period 1st January, 1932, to 23rd June, 1932, the new Pensions Ordinance being enacted on the 24th June, 1932. Strictly speaking, the sum of $67,282.31 was not an overpayment in previous years but an overpayment in previous months, and but for the fact of imperilling the pension rights of the officers concerned would have been deducted from expenditure account rather than credited to revenue account. If it is considered that such reimbursement from loan funds require Treasury sanction to exemption from military contribution it is requested that this may be obtained.
Section 2 (xi), Revenue from Profits arising from the Crown Agents Routine Realizations. This revenue might arise from many sources and is carried to the exchange account. The principal items are:-
(a) Withdrawals from Joint Colonial Fund for current purposes.
(b) Family remittances.
(c) Advances to officers.
to other Administrations.
(d) Sale of stock.
As regards (a) money is remitted to the Joint Colonial Fund at, say, 1s. 4d. Part is withdrawn when the Treasury rate is, say, is. 3d., and in a later month part is withdrawn when the Treasury rate is 1s. 44d., the differences in dollars being carried to exchange account. Regarding (b) family remittances are recovered by deduction from salaries monthly, but as they do not appear in the Crown Agents' cash account until the following month a difference invariably occurs which is adjusted by a transfer to exchange account. Similar differences arise with (c), advances where recovery is effected at a rate other than the Treasury rate ruling in the month in which the advance was made. Adjustments arising from (d) occur when the Crown Agents take advantage of a favourable opportunity for a sale of stock and reinvest in some other security.
It is of course quite conceivable that an exchange account of this nature may show a debit at the end of the year and would with a rising dollar exchange. A few examples have been shown above, but other cases will arise from time to time, and it is practically impossible to make an exact list.
Section 4 (1). Capital Expenditure met from Revenue. The capital expenditure on the Government Wireless Telegraphy Services defrayed from revenue up to the end of the year 1932 amounts to $618,975, 51 per cent. on which is $34,043.62. This figure of $618,975 will, therefore, be fixed and the 5 per cent. allowance from revenue of $34,043.62 for 1932 will, therefore, be constant. When the capital expenditure for 1933 is known 4 per cent. will be calculated on it and added to the constant figure of $34,043.62 and so on for the period of 50 years.
30th May, 1933.
C. 92622/32 [No. 22].
No. 85.
HONG KONG.
THE SECRETARY OF STATE
to
THE GOVERNOR.
(Sent 3.45 p.m., 18th October, 1988.) TELEGRAM.
[Answered by No. 86.]
EDWIN TAYLOR,
Treasurer.
Confidential. No. 90. Your despatch Confidential (2) of 18th July*. Defence Contribution Amendment Bill, Section 3, Sub-section 4. Intention of agreement with War Office is that annual rate of deduction of 5 per cent. should be allowed from 1933 in respect of any part of capital expenditure defrayed out of revenue in the years from 1915 to 1932 and a rate of 4 per cent. only in respect of any capital expenditure defrayed after 1932. Please submit redraft of this sub-section, see enclosures in my Confidential despatch of 7th Marcht. Sub-section 3 appears to require drafting amendment to include other undertakings already established.-CUNLIFFE-LISTER.
* No. 84.
(C38051)
↑ No. 89.
L
PUBLIC RECORD OFFICE
Reference :-
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