NATION
FOR
SCHEME
ED MEN
DISABLED
THE WAR OFFICE,
23.
LONDON, S.W.1.
31
st
30
August, 1929.
119/Abroad/745 (F.1.)
ટ્રા.
Sir,
REC.
- 2SEP 1929
COL.OFFICE
With reference to your letter of the 15th June, 1929, No. 62761/29, on the subject of the repayment to the Government of Hong Kong of the amounts of Military contribution overpaid in the years 1917/18 and 1918/1919, I am commanded by the Army Council to inform you that they note that Secretary Lord Passfield confirms his acceptance of the principle of repayment in dollars but that, unless the Army Council are prepared on reconsideration to make the payment in sterling, he asks for a review of the method of calculation of the number of dollars to be repaid.
As regards the suggestion that the Council might be prepared to reconsider the question of payment in sterling, I am to state that they are unable to modify their view on this point. Having regard to the attitude adopted by the Governor on the matter it may be desirable to set out the grounds on which they base their opinion, although these are no doubt broadly those underlying the Colonial Office acceptance of the same view. The arguments brought forward by the Governor in this respect, are in their view, contrary both to the historical sense of the contribution and to the terms of the Ordinance which provides for its payment. The Council would especially invite attention to the Colonial Office letter of 27th June, 1895, announcing the change in the method of calculation of the contribution, para. 3 of which reads as follows:-
"3. The expedient of fixing a proportion of revenue as the amount of the contribution will, I hope, prevent any further feeling of uncertainty and dissatisfaction, and will safeguard the rights of the Home Government as effectually as the expedient of fixing the amount for some years ahead, which was that adopted in my predecessor's
The Under Secretary of State,
Colonial Office, S.W.1.
despatch/
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