the additional loss, when their postage was reduced by their entry into the Postal Union, superseded the claim for a contribution of half the loss on the Packet sections, in which the respective Colonies are interested.
It must be borne in mind, however, that, before the Colonies entered the union, a very considerable loss was already sustained, to which they had been asked to contribute, and that it was only a natural condition to lay down, before sanctioning their entering the Postal Union and thus reaping its benefits in the shape of a material reduction of postage, that they should consent to bear half the additional loss thus arising. This condition precedent was of course merely designed to protect the State from further and accumulated losses, and did not in any way abrogate the just claim of Her Majesty's Government to be relieved of half the cost of the Packet Services by which the Colonies so greatly benefit.
The correspondence which has since taken place on this subject is before Your Lordships, and I need not enter further into the discussion. You have already expressed your opinion that the assessment made by this Department could not have been calculated on a fairer basis than that actually adopted, and that the annual payment required from the two Colonies is equitable, and Your Lordships will no doubt consider whether anything has been advanced in the accompanying despatches from Hongkong and Singapore to induce you to modify the decision communicated to the Colonial Office by your letter of the 12th of June, 1282.
I have, &c.,
(Signed)
HENRY FAWCETT. ·
THE LORDS COMMISSIONERS OF
HER MAJESTY'S TREASURY.
The Treasury to the Colonial Office.
(Copy.)
18,233.
SIR,
TREASURY CHAMBERS,
1st November, 1883.
The Lords Commissioners of Her Majesty's Treasury have been in communi- cation with the Postmaster General on the subject of the contributions to be paid by the Government of Hongkong to the cost of the Eastern Mail Service, referred to in Mr. BRAMSTON's letter of the 11th ultimo.
I am directed to transmit to you a copy of the Postmaster General's Report for Lord DERBY's consideration, and I am to request that my Lords may be furnished with His Lordship's opinion thereon,
THE UNDER-SECRETARY OF STATE,
COLONIAL OFFICE.
I have, &c.,
(Signed)
J. H. COLE.