CO129-503-3 Military contribution paid by Hong Kong 19-1-1927 - 17-1-1928 — Page 9

юто

Tel. No.-Victoria 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.

no3

119/Abroad/745 (F.1.)

in 30212/27

2

Capy to Gov

w.o.

11250/23

Ger

Sir,

NATIO

• FOR

CHEME

OP DISABLED

MEN

30212

THE WAR OFFICE,

LONDON, S. W.1.

8 December, 1927.

RECEIVED

- 9 DEC 1927

COL. OFFICE

With reference to your letter of September 7th, No.30212/27, transmitting a copy of despatches from the Governor of Hong Kong, I am commanded by the Army Council to inform you that they accept the view that the scheme for removing the Military Establishments postponed in 1925 on account of the circumstances of the Colony, should now be abandoned, owing to the difficulty of obtaining suitable sites for reprovision and because it is now considered that the defence needs of Hong Kong require the continuance of the Military Barracks in their present positions.

In these circumstances the Council agree that the special Reprovision Account is no longer necessary and that it should be closed. The disposal of the credit to the War Department of the $235,217.00 will be dealt with in a separate communication.

9

As regards the £114,317.188.9d. which is entered to the credit of the Colonial Government representing the overpayment of military contributions referred to above, I am to ask you to recall the history of this sum. It owed its origin to the fact that during the years of the war, 1917-18 and 1918-19, the payments of the Colony, which were made on the basis of 20% of the revenue at a time when the revenue (expressed in sterling) had experienced a sharp rise, exceeded appreciably the cost of the garrison, which was simultaneously low. The overpayments were brought to notice in War Office letter 10/2982 of 2nd March, 1920, to the Colonial Office, and at the same time attention was invited to the letter from the Governor of Hong Kong, dated 4th May, 1917, in which it was stated that it was the intention of the Members of the Legislative Council to place any surplus revenue there might

The Under Secretary of State,

Colonial Office,

S.W.1.

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