1.
To Gov. Hong Kong Conf.
2.
Gov. Tel. No.165.
19.x.34
20.11.34.
2
Yes, the GP.Q. also funded to let an have full
details although they are ashed to do so
Jilave
17.12.
In view of the statement in 2 that the
new scheme is likely to be a serious burden on Hong
Kong unless its cost is exempted from assessment of
Military Contribution, I attempted to discover what
d #
increase in the cost transporting mails the new
scheme would involve.
After speaking to Mr. Cade
I have abandoned the attempt, which I understand was
also made in G.D., as he assures me that it is not
possible at present to arrive at accurate figures of
comparative costs.
As I understand the position it is that
Hong Kong is asked, on the one hand, to make the
following payments in return for the carriage of all
Empire first-class mail by air from the point of connection between Hong Kong Feeder Service and
Imperial Airways
Mail payment
Subsidy
£7,500
5,000
£12,500
* This payment will be offset to the extent of approximately £500 on account of surcharge payments in respect of air mail for foreign destinations.
On the other hand, Hong Kong will receive
revenue from the sale of stamps. The net cost to
Hong Kong of the service performed by Imperial Air-
ways will therefore be considerably less than £12,500
per annum and it may happen that there will be a
first. profit, though perhaps not at me.
The payments referred to above will be made
from revenue and Hong Kong will be prepared to make
them provided the revenue concerned is exempted from
assessment of Military Contribution.
Such exemption
could
No comments yet.
Private notes are available after approval.