Concerning the proposal made in the letter from this department on the 8th of January 1908: Viz;
the Military Contribution should be paid only on profits, if any, derived from the Agencies, the accounts being consolidated for the whole, i.e. deficits occurring in those Agencies which do not pay their way being deducted from the profits accruing from other Agencies.
3. While still preferring that solution, Lord Crewe will be content to recommend to the Government of Hong Kong to accept any other suggestion that the Lords Commissioners of the Treasury may consider more satisfactory, provided that the effect is to relieve the Colony (46838/07) from any loss in respect of these agencies, which are maintained not in the interests of Hong Kong alone but of the Empire and British residents in China.
His Lordship will be glad to learn as soon as possible what proposals the Lords Commissioners desire to put forward. In default of a satisfactory arrangement, it will be necessary for him to be instructed to take early steps to close all the Agencies, except those which show a profit, or at least an equilibrium after deduction of expenses from the gross receipts.
7. The Military Contribution is to be paid on the net profits. It is possible that in some instances an increase of the postal rates...