CO129-348 - Governor Sir Lugard - 1908 [7-10] — Page 92

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10 NFIDENTIA L.

Hongkong.

My Lord,

3 LE

C

29141

.9.0

+10 AUG 08

Government House,

Hongkong,10th. July, 1908.

Freas 19471

You

44835

I have the honour to acknowledge

Your Lordship's Despatch Confidential of May 13th., 1908,

which refers to the cost of the British Postal Agencies at

the Treaty Ports of China, and in which you ask for a

further expression of my views more especially in regard

to the Treasury letter of April 7th. which forms an

enclosure to the Despatch.

2.

The first issue raised is whether

the Military Contribution should be levied upon the

receipts from the Agencies, which as I pointed out in my

Despatch No. 289 of 23rd. November, 1907, are a wholly

extra Colonial Expenditure. Lord Elgin concurred in the

view I took in that Despatch, and Mr. Antrobus informed

the Treasury that in His Lordship's opinion "the proper

solution would be that the Military Contribution should be

paid only on net profits (if any) derived from the

HE RIGHT HONOURABLE

THE EARL OF CREWE,

80...

&c.

Agencies"