64
It would, I think, be undesirable to withdraw the penny rate. It would probably have been well never to introduce it but Hong Kong did it on its own initiative (see 9893/02) partly on the ground that the other Foreign Post Offices were profiting when the British Agencies charged 2d and British interests were suffering accordingly.
Solution (d) would be satisfactory but the Treasury are not likely to agree.
It has not, I think, been noticed before that Hong Kong actually pays Military Contribution on the Imperial Grant towards these agencies, which is absurd.
I think we should hold a pistol to the head of the Treasury. Send them a copy of the despatch for observations and tell them that the S of S cannot consent to the continuance of a system under which the Colony conducts at a loss a service which is maintained in the interests of the whole Empire and of British subjects in China and that unless some arrangement can be made to avoid this loss he will be compelled to advise the Colonial Govt to close the Agencies except that at Weihaiwei which would have to be taken over by the Govt of that Territory.
That his Lordship is ready to consider any suggestion that they may wish to put forward but that his own opinion is that the most satisfactory solution will be to pay Military Contribution only on the net revenue from the Agencies, taken as a whole.
Say that we are asking G.P.O whether they see any objection to the in para 4.
Send copy of despatch and our letter to G.P.O. asking them for observations on this point and send copy of despatch and our letter to Treasury to F.O. l.f.
Dr.41
C.PL.4 at once
It appears if this solution had been adopted it is a small profit. The whole of the revenue is not necessary to continue the solution (b) or (c) with...
No. 289.
Hongkong.
40075
My Lord,
144555
26 DEC 07
Government House, Hongkong, 23rd November, 1907.
I have the honour to inform Your Lordship that I have had under my consideration in connection with the Annual Estimates the subject of the Postal Agencies in various Treaty Ports of China which are maintained by this Government.
2.
Your Lordship will have seen from my Despatch No.260 of the 14th October, 1907, covering the Estimates, and from the observations which I made in the Legislative Council when introducing them, that a decrease of Revenue is anticipated, and that the sources from which the Revenue is obtained are precarious while the Colony stands committed to several expensive works in addition to the construction of the Kowloon-Canton Railway. In these circumstances it has become necessary to examine somewhat closely the question of expenditure upon these Postal Agencies.
THE RIGHT HONOURABLE
THE EARL OF ELGIN, K.G.,
&C.
80.
·
Agencies