I am to request that you will move the Earl of DERBY to cause My Lords to be informed if the Government of the Straits Settlements are prepared, after learning the result of the Conference between Mr. TROTTER, Auditor General of the Straits Settlements, and Messrs. REA and CARDIN of the General Post Office, to make any further offer as to the amount of their contribution, and further if the Ceylon Government are prepared to subscribe the annual sum demanded from that Colony.
I have, &c.,
THE UNDER-SECRETARY OF STATE,
(Copy.)
COLONIAL OFFICE.
(Signed)
J. H. COLE.
The General Post Office to the Treasury.
GENERAL POST OFFICE,
17th September, 1883.
MY LORDS,
I have the honour to return the papers No. 14,744 referred to me on the 15th ultimo, respecting the amounts which Her Majesty's Government have called upon the Governments of the Straits Settlements and Hongkong to contribute towards the loss incurred in providing the Mail Packet Service between England and those Colonies, under the Contract with the Peninsular and Oriental Steam Navigation Company which came into force on the 1st of February, 1880.
Both Colonies appeal against the amount of the assessment, and seem to think it hard that they should be called upon to contribute towards the support of a Contract which they had no voice in making.
The principal point urged by the Government of Hongkong is its inability to pay so large a contribution as £12,700 a year, and it offers, in lieu of that sum, a fixed annual payment of £4,000 from the 1st of February, 1880.
The Governor of the Straits Settlements states that he has laid the correspon- dence before the Legislative Council, but that no discussion has yet taken place upon the question. Before taking action, he has asked that the matter may be personally discussed between Mr. TROTTER, Auditor General and late Colonial Postmaster General, now in England, and the Post Office Authorities. In accor- dance with this suggestion, a Meeting has taken place at this Department with the results reported in the accompanying Memorandum. It will be seen that Mr. TROTTER has been set right on several technical points, on which he had formed erroneous views, with reference to the Postal arrangements between the United Kingdom and the Straits Settlements.
As there seems to be an impression in the two Colonies that the idea of calling upon them to share the loss on the Packet Service is a novel one, it may not be out of place to remind Your Lordships that, this question is by no means one of yesterday.