CO129-368 - Acting Governor May - 1910 [8-9] — Page 541

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7

reduction in the rent of the opium farm: they added that they attached importance to the influence of the anti-

opium movement on the tenders for the new farm.

On the 5th of October the Governor telegraphed that

the loss in 1910 would be $225,860 or £19762 and in the

succeeding years $270,660 (£23,717) and enquired the

amount of the contribution

•

The Treasury were informed on the 7th of October.

On the 15th of November the Treasury were reminded.

On the 23rd of December a copy of the figures showing how

the loss was arrived at was forwarded to the Treasury

who were reminded that the Governor was pressing for in-

formation as to the amount of the contribution.

On the 26th of January 1910 a further pressing reminder was

addressed to the Treasury.

On the 24th of February yet another reminder was necessary

Finally, after practically six months, the Treasury replied

on the 5th of March 1910. After explaining that the delay had been due to the outstanding question of the maintenance of the Postal Agencies, and that "My Lords naturally desired to treat as a whole Their obligations to the Colony and the amount of relief which Colonial revenues might

reasonably expect", they went on to say that the proposed

spirit duties were expected to bring in more than double the loss on opium. They added that His Majesty's Govern- ment were publicly pledged to some contribution, and "having regard to all the circumstances, including the fact that another question is still outstanding they suggest that a sum of £9000 should meet the requirements". No reference was made to succeeding years.

X

It was felt that the question could not be left in this

position

managed at

heary for Sort

or $10285

to th Aard, about

537

position and accordingly a reply was sent to the Treasury on the 24th of March, pointing out that the estimated revenue from liquor duties was merely conjectural and that in any case the duties were not introduced solely to meet the reduction of the opium

The estimates for 1910 with the covering with the letter despatch and the report of the debate were sent and attention was drawn to the fact that even if the liquor duties realised the full amount amated"there would be

Conjecture)

revenue .

a deficit of nearly $43,000 or £3762 on the year's working if His Majesty's Government contribution fere

From

left out of account. The Treasury were therefore pressed to agree to contribute an amount equivalent to half the loss in 1911 and 1912, approximately £12000 in each year. It was added that if this were agreed to, Lord

Crewe would endeavour to secure that the Governor of the Colony would accept the offer of £9000 for 1910 as fulfilling the pledge of a substantial contribution, but that in the absence of Treasury agreement feared that could not acquiesce in the sufficiency "of the present grant.

On the 28th of April a despatch was received from

Showing

A

Sir F. Lugard pointing out that the action of the Indian Government in restricting the number of chests exported and in discriminating against Bengal opium (practically the only kind smoked in Hong Kong) in favour of Malwa opium was having a disastrous effect on the farmers.

On the 18th of May a copy of the despatch was sent be to the Treasury in a letter pointing out that it might become necessary to reduce the rent of the farm

and

min

(21.442). Wt.32,696-3. 6000. 2/10. A.&E.W.

(26.462),

,. 068-28. 6009. 6/10

+=760