CO129-586-8 War Taxation 2-2-1940 - 11-5-1940 — Page 77

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shape of ships and the cash gift of £100,000 (Sub-head

3).

3.

-

abnormal

In the case of the second category

recurrent expenditure imposed on the Colony by

-

war conditions Sub-heads 4-9 are self-explanatory.

To Sub-head 2, Extraordinary Local Defence, Item 1,

Naval, $875,000, will be charged the expenses of

the partly-mobilized Naval Volunteer Force to the

extent by which they exceed the average normal

expenditure of that Force over the four years

1935-1938 and consequently savings to the extent

of 19,149 are anticipated under Head 6, Defence,

3., Hong Kong Naval Volunteer Force, on page 27

of the printed estimates for 1940-41. Similarly,

to Sub-head 2, Extraordinary Local Defence, Item

2, Military, 337,000, will be charged the war- time expenses of the Volunteer Defence Corps to

the extent by which they exceed the average

normal expenditure of that Force over the five years 1934-1938 and savings to the extent of $336,496 are anticipated under Head 6, Defence,

A., Volunteer Defence Corps, on page 26 of the

printed estimates for 1940-41.

4.

In addition no expenditure will be

charged to the block vote of $1,000,000 under Head 6, Defence, E., Special war Expenditure, on page 30 of the printed estimates for 1940-41. The total savings are therefore estimated at

$1,355,645.

29.

5.

The consent of the Finance Committee of the

Legislative Council to this additional expenditure was

obtained at a meeting of that Committee held after the

meeting of the Legislative Council on 14th March, 1940.

A full account of the proceedings of the meeting of the

Legislative Council on that day was forwarded to you under

cover of my confidential despatch of 16th March, 1940.

I have the honour to be,

Sir,

Your most obedient, humble servant,

). As. korthet

Governor.

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