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COPY
(Rrot TT JUNTS
TREASURY CHALMERS,
22nd April, 1913.
Sir,
I have laid before the Lords Commissioners of Tis Majesty's Treasury your Report of the 38th ultimo (437570/11) relative to the loss incurred on the working of the British Postal Agencies in China during the year 1910.
In reply I am to explain that it was the intention of the letter from this Department of the 2nd September 1900 (12942/09) that, in calculating the net loss necessarily
incurred on the maintenance of these Agencies, one half of
which was to be borne by Imperial funds,
(1) the Military Contribution should be excluded:
(ii) the net loss should be based on liabilities in
resect of the year, not payments in the year.
My Lords have felt considerable doubt as to whether the former Imperial contribution of 2710 a year should not be regarded as superseded by the guarantee of one half of the
deficit but, in all the circumstances, They feel justified in
assenting to its payment in full (the amount, of course, being
included as revenue in calculating the deficit): and They
authorise you to settle the matter with the Crown Agents on
the foregoing lines.
The Postmaster General.
My