CO129-539-8 Military contributions- basis of assessment 25-4-1932 - 27-2-1934 — Page 93

Whitehall

7.92624/32LIVO 1]

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.

Abroad/276. (F.1.).

NATIONAL

FOR

FOR DISA

SCHEME

DISABLED

MEN

sir,

THE WAR OFFICE,

LONDON, S.W. 1.

93

25th April, 1932.

PRINTED

USE

OF

Caste COLONIAL OFFICE

for

Anowd5

I am commanded by the Army Council to refer to your letter of 20th November, 1931, No. 82756/31, regarding the exemption from assessment for military contribution or other special treatment of certain items of the revenue of Hong Kong, and to offer for the information of Secretary Sir Philip Cunliffe-Lister the following remarks on the several points raised in the letter,

A. Wireless Telegraphy.

2. The Council agree that this undertaking can be regarded as a productive undertaking and subject to assessment on net receipts only.

The Council agree, moreover, that in this and other recognised productive undertakings, a case has been established for increas ing the rate of allowance in respect of capital expenditure met from revenue, above the 4 per cent permissible, under the current Military Contribution Ordinance. In view of the data which have been furnished showing the rates of interest at which Colonial Loans have been raised in London since 1915, an allowance of 5 to cover interest alone would appear to be justified. The corresponding sinking fund allowance for such a rate of interest over a period of 50 years does not, however, exceed and after full consideration of the arguments adduced by your Department for an increase of the total allowance to 6 the Council feel that the maximum allowance to be made should not be more than 5 They are prepared to agree to the adoption of this rate of allowance in respect of capital expenditure on recognised productive undertakings incurred from revenue since 1915 or to be incurred in the future, and to the extension of a similar concession to

The Under Secretary of State,

Colonial Office,

S.W.1.

¡

/other

-Gp.b, 131 2963. 24.8/34. (18292) mes.