CO129-550-3 Empire Air Mail Services- cost of participation to be exempted from assessment for military contributions... 19-10-1934 - 17-1-1935 — Page 12

of

I think the question of the feeder

service had better be kept out of this altogether.

That will represent a payment by Hong Kong for a

service which is for the special benefit of Hong

Kong, not a contribution to the general main-line

Imperial service, and I do not think that quite the

same considerations apply to it.

18.V. Vernon

31.12.34

On directions from Mr.Cowell I submit

opposite a draft letter to the War Office asking

that the mona af the revenue required to meet the est of the)

(subsidy payable by the Hong Kong Government should

be exempted from assessment for Military Contribu-

tion; pointing out the desirability for political

reasons of obtaining the unqualified support of the

for the scheme

unofficial community in Hong Kong; and explaining

(which they wish to obtain

that Hong Kong could achieve the same result by

agreeing to pay only £4,000 as subsidy.

Ir. Bader

9/1

I han added that copis

an bewysmal bit/M

Trasy.

"Eit Gent.

10.1

This seemed to

me

a

logical extension

of the principle that the charges for working expenses on certaine undertakings are deducted from the prors receipts of such undertaking for the purposes of military vribution. This entsidy only be regarded as a "working expense' of the in once source. lowell