CO129-347 - Governor Sir Lugard - 1908 [4-6] — Page 224

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Prof 6 MAY 08

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Telegram

The Governor of Hong Kong to the Secretary of State

for the Colonies

(Received, Colonial Office, 11.48 a.m.6th May 1908)

Earnest ly request that you will await arrival

of despatch by next mail explaining position and propod-

ed steps to carry out orders from His Majesty's Government. In any case trust that you will defer statement (as to) in Parliament. I have no power to cancel under terms of contract with opium farmer. Cancellation of divan licences issued on payment by him proposal involves claims for damage as result of lawsuit and heavy compensation for loss sustained by opium farmer and sublessees. Require reasonable time for negotiation before news of Parliamentary (7) statement,appears in Press telegrams. Cost to this

Colony will probably be 700,000 to 800,000 dollars per annum in addition to initial amount of compensation

for breach of covenant I am at a loss to devise

increase of taxes sufficient to provide for this sum serious deficiency in local revenue already in con-

sequence of trade depression and falling rate of

exchange.

LUGARD