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C. 92622/32 [No. 21].

(Confidential (2).) SIR,

130

No. 84.

HONG KONG.

THE GOVERNOR

to

THE SECRETARY OF STATE.

(Received 26th August, 1933.)

Government House, Hong Kong, 18th July, 1933. With reference to your Confidential despatch of the 7th March, 1933*, I have the honour to submit for your consideration the accompanying Bill to amend the Defence Contribution Ordinance, 1901.

reasons

objects and 2. A detailed explanation of the different sections is contained in the "

attached to the Bill and in the enclosed memorandum by the Colonial Treasurer. 3. The Bill has been considered and approved by my Executive Council.

C.S.O. 2860/26C.

I have, &c.,

W. PEEL,

Governor, &c.

Enclosure 1 in No. 84.

[No. 19: 23.6.33.--2.]

A BILL

INTITULED

An Ordinance to amend the Defence Contribution Ordinance, 1901.

Be it enacted by the Governor of Hong Kong, with the advice and consent of the Legislative Council thereof, as follows:-

Short Title.

1. This Ordinance may be cited as the Defence Contribution Amendment Ordinance, 1933.

Substitution for Ordinance No. 1 of 1901, ss. 2 and 3.

2. Sections 2 and 3 of the Defence Contribution Ordinance, 1901, are repealed and the following sections are substituted:—

Yearly Contribution for Defence of Colony.

2. A sum equivalent to twenty per centum of the Colonial Revenues shall be appropriated yearly to the Imperial Government as a contribution to the defence of the Colony.

Definition of" Colonial Revenues.”

3.-(1) The Colonial Revenues for the purposes of this Ordinance shall include, subject to the provisions of Subsections (2), (3), and (4), the gross receipts by the Colony from all sources of revenue.

Exclusion of Cerlain Revenues.

(2) The following sources of revenue shall be excluded:—

(i) the proceeds of land sales and premia on leases or statutory land grants;

(ii) revenue received from condemned stores:

(iii) contributions received from the Chinese Government for the maintenance of

Gap Rock Lighthouse;

(iv) contributions received for anti-piracy escorts;

(v) over payments recovered in respect of previous years;

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(vi) sums transferred to revenue under Colonial Regulation 291 in respect of the

appreciation of investments representing merely book profits;

(vii) profits arising from the appreciation of investments when realised; (viii) moneys receivable from officers and specially exempted by any Ordinance for

Widows and Orphans Pensions from contribution under this Ordinance;

(ix) moneys, dividends, interest or the produce of investments specially exempted

by any Loan Ordinance from contribution under this Ordinance;

(x) moneys received as punitive rates specially exempted under the provisions of any Ordinance for the time being in force relating thereto from contribu- tion under this Ordinance:

(xi) revenue from the profits arising from the Crown Agents' routine realizations.

Net Receipts of Certain Undertakings only to be Taken.

(3) (i) The charges for working expenses and maintenance of the British Section of the Kowloon Canton Railway and of any railways, telephones, or other productive under- takings of a similar character which may hereafter be established and for interest and sinking fund on any sums raised by loan and utilized for the construction of such railways. telephones, or undertakings shall be deducted from the gross receipts of such railways, telephones or undertakings respectively, and the percentage struck on the net receipts only in each case.

(ii) For the purposes of this Subsection the Government Opium Monopoly, the Government Wireless Telegraphy Services, the Government Motor Meat Van Services, and the Water Installation (House Service) Account shall be recognized as productive undertakings in respect of which the maintenance, cost of manufacture and other work- ing expenses shall be deducted from the gross receipts.

Deduction of Percentage when Productive Undertaking is constructed out of Revenue.

(4) (i) In the case of the Government Wireless Telegraphy Services the cost of construction of which has been defrayed out of the revenue of the Colony, and not by means of a loan, there shall be deducted in the year 1933 a sum equal to five and a half per centum on the capital expenditure incurred in the establishment of the undertaking during the years 1915 to 1932 inclusive.

(ii) In the case of the said Wireless Telegraphy Services after the end of the year 1932 and in the case of any railways, telephones, or other productive undertakings mentioned in Subsection (3), the cost of construction of which may be defrayed out of the revenue of the Colony and not by means of a loan, there shall be deducted annually, until the end of the year 1982 a sum equal to four per centum on the capital expenditure incurred in the establishment of such undertakings, and the percentage shall be struck on the net receipts, if any, after deducting the said sum of four per centum.

Objects and Reasons.

1. This Amendment Bill when enacted will repeal Sections 2 and 3 of the principal Ordinance and substitute two sections which represent their effect as modified by agree- ment contained in instructions received from the Secretary of State.

2. The new Section 2 corresponds with Section 2 of the Straits Settlements Ordinance No. 64 (Defence Contribution) and also with the first paragraph of the repealed Section 3 of the principal Ordinance.

3. The new Section 3 (1) corresponds with Section 3 (1) of the Straits Settlements Ordinance and with the repealed Section 2 of the principal Ordinance with the exception of the inclusion of a saving reference to Subsections (2), (3), and (4) and of the omission of the reference to land sales, premia on leases and statutory land grants which are now included in Subsection (2) of the new Section 3.

4. The new Section 3 (2) gives a list of sources of revenue excluded.

Paragraph (i), relating to land sales, comes from the latter part of the repealed Section 2.

Paragraph (ii), relating to condemned stores, appears in Appendix II of the draft Estimates for 1933 as authorized by Colonial Office despatch 129 of 29th April, 1922. Paragraph (iii), relating to Gap Rock Lighthouse, expresses the agreement by the Army Council in paragraph 4 of the War Office letter of the 25th April, 1932, enclosed with the Secretary of State's despatch of the 3rd June, 1932.

* No. 89.

PUBLIC RECORD OFFICE

Reference :-

TRELEC.O. 882/11

PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO