CO129-359 - Governor Sir Lugard - 1909 [12] — Page 447

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10/1180. (F.1.).

WAR OFFICE,

LONDON, S.W.

12th June, 1909.

Sir,

With reference to your letter 6859/09, of 5th ultimo, regarding the indemmification of the Hong Kong Government against loss in connection with the Post Office at Wei-hai-Wei, I am commanded by the Army Council to acquaint you, for the information of the Lords Commissioners of His Majesty's Treasury, that in the special circumstances, and in view of the fact that the receipts from this Post Office were brought into account after the fixing of the percentage of revenue payable by Hong Kong in respect of military contribution, they agree that these receipts should be treated separately from those arising from the British Postal Agencies in the Treaty Ports of China.

So long, therefore, as the expenses in respect of the Wei-hai -Wei branch of the Hong Kong Post Office exceeds the revenue derived from it, they see no objection to receipts from this source being excluded from the general revenue of the Colony for the purposes of assessment. If, however, the receipts should at any time exceed the expenditure, the Council consider that the net receipts should be included in the assessable revenue, in the same manner as the net receipts from Christmas Island and Labuan are included in the revenue of the Straits Settlements (Treasury letters 20463 of 8th November 1905 and 13827 of 31st July 1906).

I am, Sir,

Your obedient Servant,

(Sd) R.H.BRADE.

The Secretary,

The Treasury.