CO129-368 - Acting Governor May - 1910 [8-9] — Page 286

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Gov

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Encloseared.

7.

As, however, the solution of the

difficulty suggested in my telegram of the 2nd. instant

may, to judge by previous correspondence, be objected to

on the ground that it involves the withdrawal of the

privilege of sending letters to British Possessions at

4 cents per ounce, I have after consulting the Executive

Council made the alternative proposal relating to the

Agencies in China only contained in my telegram of the

10th. instant, copy enclosed.

The payment of Military Contribut-

-ion on gross receipts at the Agencies is, I think Your

Lordship will admit, illogical and indefensible; and I

have no doubt Your Lordship will also agree that it is

equally illogical and indefensible that the taxpayers of

this Colony should bear any loss whatever in connection

with the Postal Agencies.

But apart from all considerations

of logic or morals the fact, I regret to say, is that the

Colony can no longer afford to be generous in this matter.

The financial condition is unsatisfactory and the prospect

for the future is more than unsatisfactory. Many important

Public Works, notably in connection with an increased

Water Supply, await funds for their prosecution, the Rail-

Way