12.

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form of a Military Contribution, 70% of the sun so paid

should in offnet be remitted by pormitting the Colony to

inglule the Military Contribution in the Agoney accounts furnished for the purpose of determining the Imperial

Tostel Contribution. The accounts woull then include,

under the hoading of revenue, roceipts from the conduct of postal huninong, and, under the howling of expenditure, (a) all postal experiiture and (b) a military contribution of 80% on moss Postal ravenue. The Imperial Postal

Contribution would not of course itself be subject to

angesemont as revenue for the purpose of the Military Contribution as the payment of £210 hitherto made has been. The present charges on the Post Office Vote would coage, viz, the £700 per canum already referred to, and the additional 100 per mnum pall personally to the Post- moter General of "ong Kong for mupervision.

10.

As to the amount of the deficit none further enquiry will ba nagcsary. Pho defloit for the year 1909 is estimated by the Governor, so far as the colony in

This estimts apparently conoared,at X 51,780. includes the Military Contribution, hile on the other hand there are certain onlesions. À memorandum on this

point ia armexort.

11.

The Postmater General has not thought it necessary to enter into detail on the muzestion made in the letters of 18th of llovenher last and 4th of Febranry from la Majesty's Kinister at Poking ag to plasing the Agencies under Consular control. There would certainly be serious difficulty in adopting this proposal at the

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