CO129-345 - Public Offices & Foreign Office - 1907 — Page 674

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which export Lärgely of their produce to North China, -(for

which Tientsin isoler entrapot)'- are concerned in the main-

mares of the British Arancy.

669

The financial difficulty appears to be unduly aggravated

by the contention of the Hongkong Govammont that the guarantee hould really he $10,574, if it were to be secured against loss,

for the reason that when the proposed contribution is credited

to the Colonial revenue it will become liable like all other

rovenue to a deduction of 20 A on account of Imperdil Military

charges.

It sooms from a business point of view an untenable pro-

positio

ion that a sum which represents a loss can be treated as

rav ergue. I har to remark that to do so in this case would be to

*iantsin in order to swall unduly the military contribu-

of Hongkong, and that for these reasons any payment made to

such loss should be excluded by the Colonial Coverment

rom its statement of income.

fonfidence is felt, however, that the necessity for insist-

hose considerations will not arise; but that the Post

A General will be led by the reasons stated in the annex að

Arandum, to admit that the maintenance of a British Postal

Agency at Tientsin is an Imperial interest which cannot fairly

be imposed on the resident British community.

I am to add copies of this latter and enclosures will be

communicated to the Toreign and Colonial Offices, and to the Chambers of Commerce of the manufacturing centres chiefly intar

ested in the trade of North China.

I have the honour to be,

Sir,

Your most obedient,

humble Servant,

(Signed)

J.H. SCOTT.

Chairman.