CO129-370 - Governor Sir Lugard & Public Offices - 1910 [12] — Page 576

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Their Lordships may perhaps prefer that the dis- cussion of the adjustment for the period 10th October 1909

to 31st December 1910 should remain in abeyance pending

further information as to what the financial position for

this period may actually prove to be.

5.

As from the 1st of January 1911 the Colonial Office propose in their letter of the 30th of August last (returned herewith) that any expenses incurred by the

Government of Hong Kong should be repaid by the Imperial Government pending the assumption of direct control and responsibility by the Imperial Post Office; but the Post- master General would suggest that Their Lordships should request the Colonial Office to instruct the Colonial Govern- ment, that, as from that date, all Agency receipts are to be regarded as Imperial Post Office receipts and all Agency expenditure as Imperial Post Office liabilities, and that receipts and expenditure should be brought to

account accordingly. Under this arrangement, as the receipts will no longer be Colonial receipts, the Military

Contribution in respect of them will cease.

6. With regard to the third paragraph of the Colonial Office letter of the 30th August respecting Wei- hai-Wei, the Colony of Hong Kong, as Their Lordships are aware, has already been relieved of any financial liability with regard to this Agency. Their Lordships will probably consider that the control of it should pass to the Imperial

Post Office with the control of the Agencies on Chinese territory. Whether any Postal Deficit on its conduct

should