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Treasury) stated that "the insertion of this provision will
remove the inconvenience of having to
introduce an amending Ordinance in each case of the establishment of a new productive undertaking" and
2
"Mr. Chamberlain will instruct the Governor of the Straits Settlements that no new undertaking is to be deemed of a similar character' to railways or telephones without previous reference to the Secretary of State, who will then submit the proposal to Their Lordships and to the secretary of State for War"
The second portion of the Section follows the lines of a provision introduced in Ceylon, Mauritius, and the Straits Settlements in 1904 (Treasury letter No. 6103/04 to ti War Office of 19th April, 1904, and Colonial Office letter NGz-14246/1904 to the War Office of 17th May, 1904 to enable capital expenditure met from revenue to be treated as if the expenditure had been met by a loan, deductions for the servic of which were provided for in the first portion of the section
No such provisions were required in Hong Kong until the construction of the British section of the Kowloon-Canton Railway in 1911, as until that date there were no "productive undertakings" in the Colony recognised for military contribution purposes. On the opening of the railway it was agreed that the principle of net receipts should be extended to it, and an amending Ordinance on the lines of the Straits Settlements Ordinances of 1899 and 1904 was approved.
that "
It was, however, expressly laid down (Treasury Lette No. 15072/11 to the Colonial Office of 12th August, 1911)#
as in the similar case of the Straits Settlements (Colonial Office letter of the 5th July, 1899, 4168491t. in the event of any 'reproductive undertakings' other than railways or telephones being established by the Colonial Government, the principle of net receipts to military contribution shall not be extended to such undertakings withou previous reference to himself (the Secretary of State for the Colonies), in order that the question may first be submitted to this Board and the Army Council". This condition was definitely reported to the Colony in Colonial Office despatch, of 19th August, 1911 to the Governor of Hong Kong. The second portion of the Section can obviously not be applied unless it has been previously agreed that an undertaking
5
11 No. 14248/04.
#
+
/should
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