CO129-386 - Public Offices & Others - 1911 — Page 117

6.

7.

was simply a question of the loss on the opium Tarm: that owing to the very high price of opium the Farmer may be unable to carry out his contract and that we may have to make considerable corcessions.

5.

I informed his that if he would accept the 1rinciple of bouring 1/2 the loss the Secretary of State would accept the £12,000 on the Imperial estimates for 1911-12, as a sufficient instalment on account, on the understanding that if we found that the actual loss was greater from any reason, then we had originally anticipated, then that he would allow the whole questio

to be re-opened and that the Treasury would give it their most favourable and sympathetic consideration.

To this he agreed explaining that he could not give an actual pledge to pay, as in abnormal con- ditions the Treasury might not be in a position to do so, but that under ordinary existing circumstances he expressed the opinion that there would be no difficulty in meeting our demands. I informed him that I thought this arrangement would satisfy the Secretary of State and he proposed that the Colonial Office should embody these provisions in the official answer to the Treasury letter, so that they may stand on record.

Before leaving,Sir George Murray told me that he would be glad, in view of the rapacious character of HongKong Government, if the Colonial Ofice would give

no hint to HongKong that the question might be re-

opened, and confine ourselves to the E12,000 for 2

years.

I said that I would report his earnest wish

to the Department, but that I was not in a position to pledge the Colonial Office on this point, not having sufficient knowledge as to how far this arrangement could be kept to ourselves only.

In the reply to this Letter the following Number should be quoted.

17444

10.

C

Sir,

CO 115 5447 1

TREASURY CHAMBERS,

18th

February 1911.

The Lords Commissioners of His Majesty's Treasury have had before then your letter of the 23rd September. last (28165/1310) further on the subject cl the amount to be contributed to the revenues of Hong Kong in respect of the loss due to the policy of His `ajesty's Government in restricting the sale of opium.

In reply I am to state for the information of

Mr. Secretary Harcourt that Ny Lords, upon a careful consideracion of the whole question, are prepared to ask Parliament to provide a contribution o1 £12,000 in such

of the years 1911 and 1912, on the undersounding mentioned

Hee

in the last paragraph of the letter from your department of the 24th March last (5755/1910) the the Government

of the Colony will accept the contribution of £9000 already made as fulfilling 1 or the year 1910 the pledge of His Majesty's Government that a substantial contribution

should be made towards supplying the loss of revenue from

opium.

Under Secretary of State,

Colonial Office.

I wn,

Sir,

Your obedient Servant.

Та

any

(1390). W1,20,024--20. 6000, 11/08. A.&E.W. (15,613),

18,012-27. 6000. 10/09.

L.R.

18/%.

202 11