CO129-539-8 Military contributions- basis of assessment 25-4-1932 - 27-2-1934 — Page 11

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recognised by a majority of the Colonial

Military Contributions Committee in 1912, and

at that date the large and rapid amual increase

in the contribution had hardly begun.

It is quite immaterial that the cost

of the garrison stationed in Hong Kong, as

computed by the War Office, far exceeds the

military contribution. The fact that the

cost of the Hong Kong garrison has been

maintained and even increased in recent years

when Army establishments generally have been

greatly reduced, is a triumph for the War

Office accounts branch. It will be noted

from the estimate in 92614/32 that of the

1931 figure for the cost of the garrison, viz,

£798,006, no less than £215,501 is contributed

by the last three items which are described as

miscellaneous effective services, home

effective charges, and non-effective charges.

There must be great scope for clever accounting

in computing these figures.

War Office should be pressed strongly

to agree to some greater concessions to Hong

Kong than they have admitted in No. 1 on this

file. Concessions which would be reasonably

satisfactory, from the Hong Kong standpoint

would be that the Shing Mun waterworks

should be treated on a net receipts basis, and

that a clause similar to Section 15 of

Ordinance No. 14 of 1927, should be included

in the new loan which Hong Kong will have to

raise