CO129-566-21 Military contributions 7-5-1938 - 31-1-1939 — Page 3

3

3 Au Gr. Northerte &/o

despatch

1876

which is

the

being forwarded. regarding

Refers to

a

firing of

for

G

number

of years.

the Contribution.

Gov Carf

4

3216

Desp. refered to in (3) regarding

suggestion for

a

fited Contribution.

subject to re-assenment every 5 years

As a

The Governor's proposal is that the

present basis for assessment of the Hong Kong

Military Contribution should be abandoned and

that the Colonial Government should pay a fixed

contribution of $6,000,000 (or the cost of the

garrison if this should be less). The amount

to be reviewed at five year intervals.

safeguard against the possibility of a serious

decline in the value of the dollar the amount

of the contribution would be reviewed at once

if in any year the sterling value of this sum,

calculated at the average rate of exchange for

the year, should fall below £350,000.

I think there can be no doubt that

the present basis of assessment is thoroughly

unsatisfactory and there is no need to elaborate

the arguments for this, which are fully set out

in the despatch. Proposals have been made

previously for a different basis of assessment

and Sir C. Clementi's proposal in 1926 for

assessment on the rating valuation of the Colony

was