CO129-532-1 Basis of assessment for military contributions 9-12-1930 - 29-3-1932 — Page 69

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G. Water Works.

Extension of the net receipt basis to the

Water Works constructed since 1901 was discussed at

length, but no agreement was reached. It was agreed

that the Colonial Office should make out their case in

a letter to the War Office on the three distinct

questions of (i) assessment on net receipts basis;

ii) allowance on capital expenditure met from revenue;

and (iii) exemption of interest on the Water Works

expenditure from the 1927 loan.

H.

Profits on capital appreciation of investments.

It appeared that the War Office were quite

open to argument on this, and the suggestion was made

that in so far as these investments are made out of

proceeds of land sales, they are in any case to be ex-

cluded in the calculation of military contribution.