CO129-539-8 Military contributions- basis of assessment 25-4-1932 - 27-2-1934 — Page 13

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authority of the Secretary of State would be

required, since the only possible solution

of the deadlock would then seem to be a decision

It is, as I have previously

of the Cabinet.

indicated, an, inconvenient feature of these

arrangements for the payment of military

contribution that there is no provision for

an ultimate decision as to the interpretation

of the provisions of the arrangements.

If the War Office adhere to their

previous view, I think it would be necessary to

prepare proposals for a definite revision of

the arrangements under which military contribution

is paid.

The amount of the contribution

is assuming alarming proportions, and is

likely to increase still more rapidly if the

existing arrangements are maintained. I think

it is clear that the scheme adopted in 1895

is by no means suitable for the existing

conditions under which the Hong Kong Government

have extended their activities into fields which

were not contemplated when the arrangement

was made.

It is clear that this increasi ng

burden is causing serious resentment in

Hong Kong. If there were in Hong Kong a

legislature comparable to the State Council in

Ceylon, it is clear that the demand for

revision of the arrangement could not be

resisted,s since the Council would almost

certainly hold up the whole administration

until what they regarded as their legitimate

claims were met.

It is for serious consideration

whether we shall not be compelled to allow the

Hong