CO129-547-4 Military contributions 23-2-1934 - 28-11-1934 — Page 11

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A.

assuming that the Colom's gross turime is constant C. Generally, Army funds stand to

gain as a result of the redemption

of the 1918/45 Sterling Stock

because when that operation is

completed they will receive Military

Contribution on the profits of the

Railway as a result of the lapsing

of the 1911 agreement, although they

at the same time suffer a

legitimate but smaller loss as a

result of the redemption of the 1887

and 1893 and, to some extent, the

1906 loans. Therefore it would be

unfair to penalise the Hong Kong

Government by rendering the $3,400,000

included under the 1934 loan to redeem

the remainder of the 1918/43 Stock

liable to assessment for Military

Contribution.

? Inform War Office semi-officially in the surse of. aat Afabove in reply to (5) and ask them,

if they wish to do so, to let us have their

objections to the inclusion of item 7 in the

schedule of the 1934 Loan Ordinance officially

for communication to Hong Kong for observations.

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