Xpe prably
9
she arrang deduct all forses
form
This cause
as a condicion
bringing in profits
when they
they or cur
be treated ona 'not receipts" basis. I think
it will be more valuable to this.n the long run Losses on investments whether due to a depreciation of sterling value, or a rise in exchange, will offset profits, but since it is clearly unlikely that both profits and losses will be realised in any one year, I think we should have
to insist on taking a considerable period of years,
# & at least,in calculating the net receipts.
"
As regards (), the rate of interest to be allowed on capital expenditure on railways and
similar productive undertakings financed out of revenue, the War Office are unable to deny that some increase over the present rate of 4% might
be justifiable and I think if we press this, they would probably agree to the proposed increase of 6%.
grouped
As regards the productive undertakings prated under ), the exemption of (e) and (g) Postal and Municipal Revenue, is opposed completely for the reasons already stated. (a), Wireless telegraphy, the War Office are apparently dis- posed to consider favourably, and I expect they would do the same for (c) (d) and (f)- Aerodromes.
Harbour dredging and Ferries, when revenue begins
to be received from these sources. from
1
(b)
Their
attitude as regards/water works is less certain as Hong Kong included this in the municipal revenue
and the War Office accordingly rejected it along
with the other municipal revenue. It is possible
concede however that they might be persuaded to consider the net receipts basis for waterworks.
I think that we shall have to write to Hong Kong in the sense of the War Office memorandum
adding
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