MALE CAME A
July saw the Air Service to Canada and U.S.A. by P.A.L., augmented by the addition of a thrice- weekly service by P.A.A.
Intensification of the civil war in China caused gradual suspension of Air Mails culminating in entire suspension with the mainland in December. The only remaining services are with Formosa and Hainan,
(c) With the exception of China, Shipping services continued to improve. As with Air Services, the China civil war caused disruption of a normally heavy traffic. In July it was necessary to restrict mails to China to unregistered correspondence. Accumulated mails were gradually disposed of by blockade runners and rail transport via Canton. On the 10th January, 1950, the first direct despatch of mail from Shanghai and North China was received by rail via Canton. A daily service was thereafter commenced, and mails for all Central and North China are now being received and despatched by this route.
Mails to the remaining Nationalist areas of Formosa and Hainan continued unhampered and have shown a tremendous increase in volume.
Army Post Office.
(d) With the increased military forces in the Colony an Army Post Office
Army Post Office was established in September 1949.
Parcels.
4.
Parcel post statistics show a total increase of 48,664 parcels, or 14%, over the corresponding period 1948/49.
Despite the prevailing situation in China and the inevitable gradual suspension of parcel post service as the fighting intensified, terminating in complete cessation to the whole of the mainland by November, an increase of 5,396 parcels, or 15%, is shown over 1948/49.
Service now operates to Hainan and Formosa only, and of the 37,584 locally posted parcels for China, 33,050 were for the Nationalist base of Formosa.
Substantial increases are shown in the traffic with U.K., U.S.A., Japan, and other countries. Air parcels with U.S.A. increased by 80%.
As from the 1st of December parcel post rates to "hard currency" countries were revised consequent on sterling devalua-
tion.