CO129-468 - Governor Sir Stubbs - 1921 [6-8] — Page 514

I

SEPARATE.

(

sir,

:

51625

18 JCT

GOVERNMENT HOUSE.

HONGKONG. 19th August, 1921.

509

Lord Milner having expressed the desire that I should report on the present condition and prospects of Weihaiwei, and the lines on which the administration should be carried on in future I visited the Territory in April and I now have the honour to submit my views on the subject.

2. The present position is that in order to

effect an equilibrium between the Revenue and the Expenditure of the Territory it is necessary to supplement local resources by a grant from Imperial funds, the amount of which has varied from year to year (see Enclosure 1) but

which has averaged, during the whole period for which the administration has been controlled by the Colonial Office, about £7000 a year.

It is possible that this grant might be somewhat reduced if it is desired to cut down expenses to a minimum without regard to any other considerations than

those of economy but I am strongly of opinion that this would be a mistaken policy to adopt. If the Territory is to be retained, it is, I submit, dangerous to the prestige of Great Britain in China that it should be left to drag on

a poverty-stricken and hand-to-mouth existence. Comparisons

cannot

THE RIGHT HONOURABLE

WINSTON CHURCHILL, M.P.,

&C..

&c.,

&c.