CO129-539-8 Military contributions- basis of assessment 25-4-1932 - 27-2-1934 — Page 58

C.92622.8.[ NO

Whitehall

Tel. No.-Victoria 9400.

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.

WOLYN FOR V

CHEME

SABLED

MEN

16/Abroad/276 (F.1.)

sir,

E

30 16

THE WAR OFFICE,

LONDON, S.W.1.

58

COLCHIC

L

USE

OF

OFFICE

February, 1933.

bopy to Gov.

With reference to your letter of the 19th August, 1932, No:92622/32 on the subject of claims for exemption from assessment for military contributi on or other special treatment of certain items of the revenue of Hong Kong, I am commanded by the Army Council to acquaint you for the information of Secretary Sir Philip Cunliffe-Lister that they have been in communication with the Treasury on the subject.

I am to state that the Lords Commissioners of His Majesty's Treasury concur in the agreement which has been reached as regards the treatment of the items detailed in paragraphs 2, 3, 4, 5, and 6 of War Office letter No.16/Abroad/276 (P.1.) of the 25th April, 1932

In connection, however, with the general question of the rate of allowance, in respect of capital expenditure met from revenue, to be used in calculating the net receipts of recognized productive undertakings, raised on the item dealt with in paragraph 2 of the War Office letter referred to, the Army Council consider and the Treasury concur that in view of the fact that loans generally can now be raised at rates of interest not appreciably higher than those current prior to the outbreak of war in 1914 the increase from 4 to 5in the allowance in respect of capital expenditure met from revenue would not be justified beyond 1932. The 5 rate should, therefore, only apply to the allowance to be given for capital expenditure met from revenue during the period 1915 to 1932. For expenditure arising after 1933 the old rate should be used.

The Under Secretary of State,

Colonial Office, S.W.1.

With/

+...

+ ho i gal

၄

ว

.-Gp., 131/2963 24, 8/34. (18301) M. 47

::