CO129-553-9 Empire Air Mail Services- participation of Hong Kong in proposed development 11-3-1935 - 21-5-1935 — Page 23

C. 52802/28 [No. 13].

PROOF.

SIR,

No.

COLONIAL OFFICE to WAR OFFICE.

[Answered by No.

.]

Downing Street, 12th October, 1928. WITH reference to the letter from this Department of the 12th of March,* I am directed by Mr. Secretary Amery to transmit to you, to be laid before the Army Council, the accompanying copy of a despatcht from the Governor of Hong Kong together with copies of despatchest from the Officer Administering the Government of Hong Kong relative to the military contribution payable by the Colony.

2. The Secretary of State considers that the proposed new basis of 12 per cent. on the annual valuation, made during the preceding year, while yielding approximately the same amount, will be much more convenient in that it enables the Government of Hong Kong to know its liability a year in advance, and also to avoid continual disputes as to what constitutes revenue. The amount of the contribution will grow automatically with the growth of the wealth of the Colony.

3. If, however, the new basis is not acceptable to the Army Council, it will be necessary to take up the various claims to relief under the existing system enumerated in paragraphs 7 and 8 of the Officer Administering the Government's Confidential' despatch of the 28th of July.§

I am, &c.,

WALTER D. ELLIS.

* C. 52802/28 [No. 2]: not printed. + No. 14661/26.

§ No. C. 52802/28 [No. 9]. Straits Defence Con.-Gp. 6. 13172963. 24. 8/34. (18266) M. & S., Ltd.

No. C. 52802/28 [Nos. 9 and 10].

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