CO129-516-3 Military contribution of Colony assessmenet of contribution 13-3-1929 - 28-3-1930 — Page 38

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A meeting to discuss the Hong Kong military

contribution was held in Mr. Vernon's room on the

17th December, 1929.

There were present Mr. Vernon,

Mr. A.J. Harding, Mr. Clauson, Mr. Gent and Mr.Martin.

It was agreed that it was useless to

press the Hong Kong proposal for an entirely new

basis of assessment (a fixed percentage of rateable

value) and discussion was accordingly confined to

various suggested modifications in the present system.

The percentage laid down in 1895 in

accordance with the recommendations of the Haliburton

Committee had been calculated with a view to producing

an amount approximately equivalent to the fixed

contribution previously paid. Since 1895, however,

the sphere of governmental activities has been

considerably enlarged, and it was felt to be equitable

that items of revenue which had not been contemplated

at that date should now be excluded from the reckoning.

The War Office could scarcely argue that if these were

excluded the percentage must be increased since the

exclusion would not involve any alteration of the

position as understood in 1895: in any case they

would hesitate to face the public outcry which an

increase from 20% to 25% would certainly produce.

Mr. Vernon suggested that the contribution

should be payable only on revenue from taxation;

but Mr. Hardingpointed out that the War Office would then raise the objection that it would be open to the

Colony to neglect the field of taxation and draw more

and