CO129-566-21 Military contributions 7-5-1938 - 31-1-1939 — Page 32

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1

reali

ised. From the War Office point of view a fixed

contribution would remove occasions for dispute as to

what constitutes assessable revenue for the purpose of

the Contribution and would thus tend to minimise

friction in Hong Kong between the Military authorities

and the Colony.

3.

While the annual amount suggested by the

Governor for the first quinquennium, viz., $6,000,000 may,

as pointed out by the Governor, fall short of what is due

in respect of the current year on the existing basis of

computation, it is recognized that a revenue similar to

that of 1938, cannot be counted upon in future years,

and in all the circumstances the Council regard the

Contribution proposed as a very fair and equitable one.

I am therefore to request you to inform Mr.

Secretary MacDonald that the Council accept the Governor's

proposal for a fixed annual contribution of $6,000,000 for

the quinquennium 1939 1943 subject to the following

4.

conditions /

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