CO129-565-3 Defence Contribution Amendment Ordinance draft bill 17-9-1937 - 29-8-1938 — Page 11

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.2

SLIGATONHCH THEI: KGT

A.YALAMOGGAN HEROJAM

.*$ ..53

- 3-

effecting any comparison between the true revenues and

expenditures of successive years. Misgivings had been

felt on the subject from the start but it had been

intended to carry out your predecessor's instructions

until the actual figures as ascertained showed what a

considerable distortion would be produced. I shall be

very grateful therefore if further consideration can be

given to the permanent exemption of Hong Kong from the

application of the new system as well as its suspension

for 1939.

5.

Since I do not anticipate that it will be

possible to receive your instructions before the completion of the preparation of the 1939 estimates

they are being framed on the basis of the old accounting

system so far as revenue refunds are concerned.

6. If the system is not to be introduced here the

question of amending the Defence Contribution Ordinance

No.1 of 1901 which was discussed in Mr. Smith's despatch

No.563 of 7th September, 1937, and Mr. Ormsby-Gore's

4 despatch No.41 of 9th February, 1938, need not be

further pursued. I am, however, advised that there are objections to the definition of the words "revenue

refunds" suggested by the War Office and should wish to

have an opportunity of addressing you further on that matter if it does become necessary to carry on with

the amending of the Ordinance.

I have the honour to be,

Sir,

Your most obedient, humble servant,

1. At bathote

Governor.