4
liability for Defence Contribution in
respect of the revenue to be raised for
the purpose.
Further I would say that there are
two reasons at the present time which, in
the Secretary of State's view make it desirable
to meet the Colony on this issue viz: that
as the War Office may be aware Hong Kong is
anxious to do its part in the arrangements
necessary to connect the Colony directly with
the air mail route to the United Kingdom, and
contemplates as generous provision from public
funds for this purpose as it can afford. And
secondly that the Colony is now suffering
from a severe economic depression with its
resulting effect on revenue, and that it is
most desirable that the need for retrenchment
should not force the Colonial Government to
withdraw from co-operating in the Air Mail
scheme.
Suggest that in the circumstances
the War Office may reconsider their view that
the exemption of revenue in respect of this
new service is not such as they would regard
as expedient or possible.
And send a copy to Air Ministry)
I agre
112 Grut.
19/3
lops
2013
F.Mtoward 2/3
Treasury
L. F.
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