CO129-539-8 Military contributions- basis of assessment 25-4-1932 - 27-2-1934 — Page 63

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basis of net receipts is abandoned.

I am also to refer to your letter No. 92622/32 of 14th 11 October, 1932, and previous correspondence on the subject of the assessment to contribution ofrealised profits arising from the appreciation of securities held by the Government of Hong Kong, and to state for the information of Secretary Sir Philip Cunliffe- Lister that the Council accept the statement of the War Office views contained in paragraphs 2 and 3 of your letter under reference, on the understanding that the investments hitherto made from general revenue can only be small and their appreciation correspondingly negligible; and, with the concurrence of the Treasury, they accordingly agree to the exemption from assessment to military contribution of realised profits on the appreciation of investments of the Hong Kong Government, subject to its being agreed that realised profits from investments of general revenue are in principle subject to assessment to military contribution.

I am to add that the Council will be glad to have an opportunity, in due course, of considering any draft amendments to the Military Contributions Ordinance which arise from the various points on which agreement has been expressed above, and also the terms of the draft Ordinance relating to the proposed new loan.

I am,

Sir,

Your obedient Servant

(SIGNED) A.E. WIDDOWS.