O
156
Postal deficit as already estimated $42500
$74000
Add Extra Siberian Transit
$31500
Military Contribution
$24500
$24500
$98500
To be apportioned:
(a) Under Post Office proposal:
Imperial Government
$73875
Hong Kong
$24625
(b) Under Treasury Proposal:
Imperial Government
$74000
Hong Kong
$24500
In other words the Postal deficit which the Treasury
proposes to bear will, allowing for any reasonably possible
future reduction of Siberian Transit rates, increase more
rapidly than the gross Postal Revenue, of which the Treasury
propose that Hong Kong should contribute 20% as Military
Contribution. The Colony therefore stands to lose little and
may eventually gain by the Treasury Proposal as distinguished
from that of the Post Office.
IV.
grasp
The Colonial Adminsitration has probably failed to
(a) the full extent of the Agency deficit which the
V.
Treasury has undertaken to pay.
Certain items as
detailed in the Post Office letter of 2 April last
were omitted from the Hong Kong estimate;
(b) that on the Siberian Service in both directions
the Imperial Government (which pays the total cost of
outward transmission), in view of the fact that the
Outward correspondence is twofold that of the Homeward,
bears two-thirds of the total cost apart from any
direct contribution to the Agency Service in respect
of loss arising from the cost of Homeward conveyance,
(c) that the Agencies receive a generous concession
in contributing only £600 for the use of the Peninsular
and Oriental Packets, a sum which is a small fraction
only of the cost of the P. & 0. Mail Service between
Hong Kong and Shanghai.
The conclusion reached is that the Colony whether on
gr ounds of equity or of self-interest may well be advised-
to accept the Treasury Proposal.
6th August 1910.
Treasury