CO129-359 - Governor Sir Lugard - 1909 [12] — Page 443

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rate

A

including their enjoyment of the Imperial postage although outside the Empire.

3.

On the other hand it appears that Hong Kong

herself has a not inconsiderable interest in the mainten-

-

ance of the Agencies, and has profited by them in the past,

although now working them at a loss on the whole.

Sha

moreover, is herself responsible for that loss, in having

made what appears to My Lords the unnecessary concession

of penny postage, contrary to the intention of the Post- master General a concession which, once made, may no

doubt be somewhat difficult to withdraw, for reasons of

policy, so long as the Agencies exist.

It would appear

therefore that the communities have a distinct claim

on Hong Kong in the matter, while Hong Kong has really

little if any on the Home Government.

4. The promise which His Majesty's Government has

already made to contribute towards the relief of any dis-

location of Hong Kong finances (anticipated, but it is to be hoped temporary at most) through measures taken with

regard to the opium question, has also to be borne in

mind in this connection.

5. Having regard to all the above points, and in

order to give time for the further consideration of the

Earl of Crewe's general proposal of the 26th August already

mentioned, My Lords feel justified at the most, and that

with great hesitation, in offering to guarantee Hong Kong

for one year against one half of any net loss that may

necessarily