CO129-526-13 Military contribution- basis of assessment 17-6-1930 - 26-7-1930 — Page 6

6

towards the end

of the last century

2 worl

Hong Kong but also of the other Colonies

who make such contributions.

3.

It is generally agreed that it is

equitable that all Colonial Governments

which are financially in a position to do

so should contribute in proportion to

their means towards the cost of their mili-

tary garrisons. In the case of Hong Kong

the contribu tion to be made has been fixed

for many years past at an amount equal to

the cost of the military garrison or 20%

of the "assessable revenue", whichever is

less. That percentage was fixed in the

light of the discussions of the Haliburton

Committee and of revenue conditions at the

time. In spite of occasional anomalies

it is not unsatisfactory as an index of

the means of the Colony. The Lords

Commissioners of the Treasury have

represented to me that the exemption from

assessment for contribution of any items

of revenue which were taken into account

in reaching this figure would protanto

disturb the proportion between means and

contribution then judged, after careful

consideration, to be equitable, and it

would accordingly be necessary to restore

the proportion by a corresponding increase

in the percentage, if such exemptions were

allowed. On the other hand since the

deliberations of the Haliburton Committee,

the sphere of governmental activities in

Hong Kong has been considerably enlarged,

and/