CO129-522-8 Military contribution payable by Hong Kong 3-1-1930 - 5-8-1930 — Page 12

Tel. No.-Vict. 9490.

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.

119/Abroad/745 (F.1)

23

on 62761

Sir,

100

NATIONAL

FOR DISA

SCHEME

DISABLED

MEN

REOGIVED

27MAY 1000

COL. OFFICE

THE WAR OFFICE,

LONDON, S.W.1.

26

May, 1930.

12

I am commanded by the Army Council to refer to your letter of the 8th March, 1930, No. 72761/30, relative to the rates of exchange to be used for the purpose of comparison between the military contribution paid by the Government of Hong Kong and the cost of the garrison in that Colony.

I am to state that after further consideration and consultation with the Lords Commissioners of His Majesty's Treasury, the Council are now prepared to agree that whenever the cost of the garrison determines the military contribution, commercial rates of exchange shall be used for converting into dollars the sterling portion of the cost of the garrison and, with the addition of the local expenditure in dollars, so calculating the number of dollars payable by the Colony as contribution. For this purpose it is proposed to utilize the monthly average of the daily rates of exchange published in the London Press as was done in the calculations accompanying War Office letter, of above number, dated 31st August, 1929.

The use of these particular rates of exchange, instead of the official rates of exchange, in preparing the annual statements of cost by Votes will, however, entail locally a considerable amount of additional clerical labour and accounting.

The Council agree to undertake this in the event of the amount of the contribution, as calculated on the percentage of revenue basis, approaching reasonably close

The Under Secretary of State,

Colonial Office,

S.W.1.

/to

6