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4. As regards the last paragraph of your letter under acknowledgment, I am to suggest that a formal conference on the point raised therein seems hardly neces- sary; and, if Mr. Brodrick approves, I am instructed to discuss the question with a representative of the War Office at any time that may be convenient.

No. 137.

I am, &c.,

C. P. LUCAS.

THE EARL OF ONSLOW (FOR THE SECRETARY of State) to COMMISSIONER LOCKHART. (No..1.)

Downing Street, January 2, 1903. REFERRING to the latter part of paragraph 72 of Mr. Hare's administrative report on Wei-Hai-Wei, forwarded in Lieutenant Colonel Cowan's despatch, No. 14, of the

1st May last, I have the honour to enquire what arrangements can be made for audit- ing the public accounts at Wei-Hai-Wei.

2. It might be possible to have this audit carried out through the local auditor

at Hong Kong, as there would not be enough work to justify the appointment of a special auditor.

Stationery. $1,000

£100

22815

Transport, &c. $800

80

Printing. $1,000

100

Government Scholarships. $1,500

150

Tree Planting $380

38

Payment Weihaiwei City Official. $480

48

Village Administration. $650

65

SIR,

Lighting Harbour

300

Mail Service. $12,000

1,200

Launch Service. $2,400

240

Furniture. $1,000

100

Pony Allowances. $1,000

100

Telegrams

100

£2,621

7.-PUBLIC WORKS.

I have, &c.,

(FOR THE SECRetary of State),

ONSLOW.

51110

SIR,

Construction and Maintenance of Roads and

51128

Bridges

£2,500

...

Repairs and Alterations of Buildings

500

Sanitary Improvements

1,000

Building of Sea-wall on Island

500

Cemetery on Island and Mainland

500

SIR

£5,000

8. COST OF LAUNCH

9. STORES

£1,500

£358

(Confidential.)

No. 136.

COLONIAL OFFICE to WAR OFFICE.

Downing Street, December 16, 1902.

I AM directed to acknowledge the receipt of your letter of the 10th instant,* forwarding a copy of the report of the Inter-departinental Committee on the gar- rison of North China, including Wei-Hai-Wei, and stating that Mr. Secretary Brodrick has decided in favour of proposal "B" of the report.

2. It is understood that the decision to maintain only four companies of the Chinese Regiment at Wei-Hai-Wei will involve the disbandment of the remainder of the regiment, and that a certain number of officers and non-commissioned officers will be released from duty in consequence.

3. It is not known here which of the officers and non-commissioned officers, whose names have been mentioned in connection with police employment at Wei- Hai-Wei, will be retained with the four companies of the regiment; and it would be of advantage if this Department could be informed in due course, in order that the Commissioner may be notified.

• No. 134.

No. 138.

COLONIAL OFFICE to TREASURY.

[Answered by No. 143.]

Downing Street, January 3, 1903.

I AM directed to transmit to you, to be laid before the Lords Commissioners

of His Majesty's Treasury, a copy of a despatch† from the Commissioner of Wei- hai-Wei, submitting estimates of the revenue and expenditure of the Dependency, for the financial year 1903-04.

2. Their Lordships will observe that the revenue is estimated at £3,170, and the expenditure at £18,000 48., which leaves a deficit of £12,830 4s. on the year's working. Against this Mr. Lockhart sets an estimated surplus of £4,000 on the current year, which reduces the deficit to £8,830 48. Provision has therefore been made on the draft Colonial Services Estimate for 1903-04, which has already been submitted to their Lordships, for a grant-in-aid of the revenues of Wei-hai-Wei of £9,000.

3. It will be seen that throughout these estimates Mr. Lockhart has converted the dollar into sterling at an exchange rate of 2s., which, in view of the rate pre- vailing at present, must be regarded as fictitious. If the estimated revenue for 1903-4, and all items of expenditure which are in the first instance stated in dollars in these estimates, are converted into sterling at 1s. 7d. the dollar, the corrected sterling equivalent for the revenue and expenditure of 1903-4 will be roughly as follows:-

Estimated revenue Estimated expenditure

Deficit

£2,510

15,353

£12,843

A similar alteration in the calculation in paragraph 4 of the despatch reduces the estimated surplus for 1902-3 to about £8,508. The net deficit for 1903-4 may therefore be stated at about £9,335. In the absence, however, of more detailed information regarding the items of expenditure, these calculations can only be regarded as approximate.

9641

• No. 96.

† No. 135.

T

| PUBLIC RECORD OFFICE

Reference :-

11C.O. 882

6 PUBLIC RECORD OFFICE, LONDON

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