437
C. 92622/32 [No. 24].
(Confidential.)
SIR,
134
No. 86.
HONG KONG.
THE GOVERNOR
to
THE SECRETARY OF STATE.
(Received 11th December, 1933.)
Government House, Hong Kong, 8th November, 1933. With reference to your Confidential telegram of 18th October, 1933*, regarding the Bill to amend the Defence Contribution Ordinance, 1901, copies of which were forwarded to you in my despatch Confidential (2) of 18th July, 1933f, I have the honour to enclose fresh copies of the Billt amended in accordance with the instructions contained in your telegram.
C. 92622/32 [No. 25].
SIR,
No. 87. COLONIAL OFFICE
to
WAR OFFICE.
I have, &c.,
W. PEEL,
Governor, &c.,
Downing Street, 30th December, 1933. With reference to the last paragraph of the letter from this Department of the 7th March§, I am directed by Secretary Sir Philip Cunliffe-Lister to transmit to you, to be laid before the Army Council, a copy of a Billl entitled "An Ordinance to amend the Defence Contribution Ordinance, 1901" which has been received from the Governor of Hong Kong.
2. Subject to the observations of the Council the Secretary of State proposes to approve the introduction of the measure.
C. 92622/32 [No. 26].
I am, &c.,
H. R. COWELL.
135
Council do not propose to raise any objection to the inclusion in the Bill of this section as drafted provided it is accepted that, so far as realized profits which arise from investments of surplus balance of general revenue are concerned, the exemption may be reconsidered in the event of the balances so invested becoming of large amount at any time in future. The Council assume that they will be informed should this contingency arise.
(b) Section 3 (3) (ii).-The Council assume that no additions will be made to the list of recognized undertakings contained in this sub-section without prior reference to the Treasury and this Department.
(c) Section 3 (4).-The Council consider that this section as drafted does not indicate the intention of the agreement with sufficient clarity and I am to suggest that it should read somewhat as follows:-
(4) In the case of any productive undertaking (including the Government Wireless Telegraphy Services), the capital expenditure on which, or a part thereof, has been or may be defrayed out of the Revenue of the Colony, and not by means of a loan, there shall be deducted annually from the gross receipts of such undertakings, during a period of 50 consecutive years from the date of such expenditure or, if later, the date from which the undertaking is recognized for the purposes of Sub-Section (3) (i), a sum calculated at the rate of 4 per centum on such capital expenditure incurred prior to 1915, at the rate of 54 per centum in respect of such expenditure incurred during the period 1915 to 1932, both years inclusive, and at the rate of 4 per centum in respect of such expenditure which has been or may be incurred from 1933 onwards. The percentage required for appropriation under Section 2 shall be struck on the net receipts,
any, of the undertaking after making the said deductions.
if
Objects and Reasons.
(d) Sub-paragraph 8. paragraph 4.—It appears to the Council that this paragraph as drafted may give rise to misunderstanding. They suggest that it might be so altered as to make it clear that the total of the proposed Public Works Loan of approximately $28,000,000, in respect of which they agreed to the exemption from assessment for military contribution of the amounts to be raised by extra taxation and appropriated from revenue to meet interest and sinking fund charges, includes the amount necessary to pay off the loan raised under the Public Works Loan Ordinance No. 14 of 1927.
As drafted this paragraph might be interpreted to mean that the amount authorized to be raised under the Public Works Loan Redemption Ordinance No. 15 of 1933 was distinct from and in addition to the $28,000,000 while it is clear from paragraph 8 of Colonial Office letter of the 19th August, 1932*, that it is included in the total of $28,000,000.
A copy of this letter has been sent to the Treasury.
SIR,
No. 88.
WAR OFFICE
to
COLONIAL OFFICE.
War Office, 30th January, 1934.
I am commanded by the Army Council to acknowledge the receipt of your letter of the 30th December, 1933, transmitting a copy of a draft of a Bill to amend the Hong Kong Defence Contribution Ordinance of 1901 so as to give effect to the concessions it has recently been agreed to make in connexion with the basis of assessment of the Military contribution of the Colony, and I am to offer the following observations for the con- sideration of Secretary Sir Philip Cunliffe-Lister:-
Draft Bill.
(a) Section 3 (2) (vii) of the draft Bill.-The Council's agreement to exemption from assessment of profits arising from the appreciation of investments when realized was conditional, see paragraph 11 of War Office letter No. 16/ Abroad/276 (F.1) of 25th April, 1932**, and the penultimate paragraph of War Office letter of the same number dated 25th February, 1933††, but the
C. 92622/32 [No. 27].
(Confidential (2).)
SIR,
No. 89.
HONG KONG,
THE SECRETARY OF STATE
to
THE GOVERNOR.
[Answered by No. 90.]
I am, &c.,
A. E. WIDDOWS.
Downing Street, 27th February, 1984. With reference to your confidential despatch of the 8th November, 1983†, enclosing copies of a Bill to amend the Defence Contribution Ordinance, 1901, I have the honour to transmit to you a copy of a letter from the War Office containing the observations of the Army Council on the Bill and on the Objects and Reasons attached thereto.
• No. 85.
↑ No. 84.
‡ Not reprinted.
§ No. 82.
Enclosure 1 in No. 84.
No. 87.
** No. 76.
tt No. 81.
(C 38061)
* No. 78.
↑ No. 86.
PUBLIC RECORD OFFICE
TI
I l l l l l l l l l l
Reference :-
C.O.882/11
PUBLIC RECORD OFFICE, LONDON | ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH—NOT TO