CO129-348 - Governor Sir Lugard - 1908 [7-10] — Page 93

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Agencies". From this view the Treasury and Army Council

dissent. With regard to the penultimate paragraph of

Colonel Brade's letter, I would in explanation of my

contention invite Your Lordship's attention to pages 166

and 167 of the Straits Estimates for the current year. The

War Office states that the fact that the revenue derived

from Christmas Island (inter alia) pays only on net profits

involves no departure from the principles laid down be-

-cause it is a distant possession annexed after the per-

-centage had been settled and has no Military Garrison. I

may observe that the Treaty Ports are also distant but are

not even possessions, that they have no Military Garrisons,

and that several of them have been opened since the per-

-centage was fixed. The statement in the Straits Estimates

to which I have referred will show that various other

sources of Revenue in that Colony are exempted, which pay

the percentage in Hongkong.

3.

On the general question of the

Military Contribution I will address Your Lordship later

in a separate despatch.

•

The second point in the Treasury

letter refers to the proposal to increase the Postal Rate

H. M'b

at the Agencies. To this increase the Postmaster-General

has