24th March, 1911.

61

Dear Colonel Seely,

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from

I congratulate you on your new appointment, although at the same time I regret your severance with the Colonial Office. Before you actually give over all connection with the Colonial Office,may I ask you to give favourable consideration to the following.

The compensation accorded to the Colony of

Hong Kong on account of the loss sustained by the Colony owing to the new opium regulations seems very inadequate. The opium farm used to bring in a revenue

of over two million dollars, it has now fallen below

one million, two hundred thousand, and shows signs

of further curtailment. Such a loss, coming so rapidly,

has naturally thrown the Colony's finances into confusion,

and the allowance made last year of nine thousand pounds

and this year of twelve thousand pounds is not enough

to meet the Colony's requirements.

The method of collecting the Military contribu- tion seems to me unfair. You collect 20% of the gross

revenue and you count as gross revenue what is received on account of the Post Office. I would point out that

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the Post Office this year is estimated to receive four hundred and three thousand dollars but the cost to run it

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