CO129-354 - Public Offices & Others - 1908 — Page 173

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hitherto received by them.

Their revenue thus suffered

a loss of £150 per annum, the effect being precisely the same as if the Colony had obtained the Crown Rent

and paid £150 in cash annually towards the military

requirements of the Colony's defence.

The waiving of the rent is, in the opinion of the Army Council, a contribution to the permanent defence fund of the Colony; the reimposition of the

rent is equally the cessation of that contribution.

But the assumption upon which the Colonial

Office Circular of 30th December 1894 rests is that each

Colony is able and bound to maintain the integrity of

its permanent defence fund in money or in kind. On

this assumption the Army Council suggested that the

Colony should be asked to make good the deficiency which

would arise in its defence fund on the disposal of this

property, in the manner laid down in the Circular, i.e.

by an equivalent credit to the War Department in the

Military Lands Account. That credit is clearly £150 per

annum, or the capitalized value of that sum.

In this connection I am to refer you to War

Office letter, Number Hong Kong 8/17 of the 2nd April,

1907, where it is stated that for a road of approach to

Bowen Road Hospital the Colony received credit in the

Colonial Military Lands Account for the premium and

commuted