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Great stress has been laid by the Committee upon the necessity for the regularity of arrivals, and punctuality in despatch of the mails. Under the system I propose these features can be observed. For penalty clauses, similar to those which are part of the present contract, would be a condition in any engagement entered into with those running these sectional routes, and these penalties would be none the less operative than they are now. But to say, as the Committee do, that because the present contractors have performed the service well in the past, as they undoubtedly have, it would therefore be well to continue the service with them for the future, regardless of the facilities now offering for quick and economical intercommunication, is too ultra conservative to meet the wants of these days of progress. Advantage should be taken of the gradual, but surely extending development of communication that is the feature of the age.

The whole system

of subsidies, or the advantaging of one body over the rest, which is repugnant to the feeling of the majority of the trading classes, be they free or fair, should be limited as far as possible, till the practice of subsidising is extinguished, as I believe it will be at no distant date. For this reason I would suggest that under no circumstances should the duration of the contracts exceed five years, and if a shorter term could be arranged at a moderate increase, the lesser period should be accepted.

Tenders could be invited for terms of three and five years, optional with the Government to accept either period. For it can be safely assumed that the present means of communication will not stand still, on the contrary, it will progress with great strides in the future. The public interest therefore demands that the best system shall be availed of in the future, and at the very earliest possible date. To make the contract for any extended period appears to me most unwise.

The benefits which the various Colonies contributing to the Imperial subsidy will derive from a moderate payment for the entire service require only to be mentioned to meet acceptance. In this Colony, in particular, the amount contri- buted to the Imperial postal revenue has become a burning question, and it behoves us, if possible, to. suggest some means whereby the payment can be. minimised.

Very generally I have sketched my objections to the letter of the Committee approved by my colleagues, and I have suggested a system which I believe, if elaborated, will fully answer all requirements. I will be glad if you will send a copy of this letter to His Excellency the Governor, and for that purpose I hand you a duplicate. You will also confer a favor upon me by noting my objections in the Minutes of the Chamber, and if you will permit this letter to be printed along with the Committee's recommendation, in the usual annual publication of the Chamber's résumé.

I have the honour to be

Dear Sir,

Your most obedient servant,

To the Honourable W. KESWICK,

Chairman, Hongkong Chamber of Commerce.

E. MACKINTOSH.

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