CO129-539-8 Military contributions- basis of assessment 25-4-1932 - 27-2-1934 — Page 99

(1)

662416/39

140240/23

キ

99

No. 10/962 F.1, of 20th April, 1908), was, moreover, in respect of special taxation, some of it local in incidence, created for the service of the loan and to cease when the loan had been repaid. The Lords Commissioners of the Treasury subsequently emphasized (Treasury letter No. 7673/08 of 8th August, 1908,to the Colonial Office) that they "must demur to the suggestion that revenue raised for the purpose of paying interest on loans for certain purposes would be exempt from assessment to Military Contribution. If in isolated cases My Lords have agreed to such exemption, they have never felt able to assent to any general departure from the principles which have, with the full agreement of the Colony, regulated the Colonial Military Contribution". The Public Works Loan of 1927 appears to have been raised for the normal purposes for which such loans are raised, viz., the improvement and expansion of activities required for the development and well-being of the whole Colony. No special taxation was imposed and the service of the loan, like other loans raised by the Colony, has been met from the general revenue of the Colony. The Council are unable to agree that a case has been established for the exemption from assessment of the revenue required for the service of this loan and they must, accordingly, press their request for the early repeal of Section 15 of Ordinance No. 14 of 1927.

H. Treatment of Profits on sales of Securities,

ー

10. It appears from the comments which are now made in connexion with this question that there is some misunderstanding as to the nature of this claim which has been previously considered by the Council on the basis of the Governor of Hong Kong's despatch No. 400 of 10th September, 1929.||

I am to observe that, with reference to the remarks in your letter on the treatment of the annual valuation of securities, the Council, following the query raised in War Office letter 16. 19/3720 3.1. of 11th August 1923 have accepted the view that any appreciation in value, which might be included in the revenues as a result of

/the

ho. C. 62916/29 [No. 1] # ho. 40350/23. 7/92

フ