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11. I am aware that a proposal to hand over Postal business to any one not under the immediate control of the British Government will be regarded by some persons, even by some persons whose opinions are entitled to great respect, with a feeling of little less than horror. Very much the same prejudice existed with regard to the withdrawal of our Post Offices from Japan some years ago. If, since that withdrawal, there has ever been a syllable of complaint from the foreign communities in Japan, I have not heard of it; and if there are Post Offices that do their work better than the Japanese Offices do, I have yet to be made acquainted with them.
12. Moreover the way in which the Customs Postal Agencies have been managed so far (of which I feel I am to some extent in a position to speak), the way in which the whole work of the Customs is done, and the manner in which the lighting of the coast of China has been accomplished and maintained-all these forbid the supposition that Postal work, which only requires ordinary care and attention, would be unsafe in the hands of the Customs establishment.
13. I therefore most cordially recommend the acceptance of the proposal put forward by Mr. KopSCH. 14. With regard to Mr. KOPSCH's further questions numbered 2 and 3, I may report as follows;— 15. It is not likely that anything can be definitely arranged so early as January, 1887.
16. Supposing foreign Post Offices withdrawn, but China not for some time subsequent to their withdrawal admitted to the Postal Union, the position would be this; China would be a Non-Union Country, the correspondence originating in which would find its way to the rest of the world through two Union Countries, Hongkong and Japan, the bulk of it through Hongkong.
17. It would be far more satisfactory than making any special and temporary arrangements for Hongkong at once to treat China as if it were a Union Country, that is to say:-
(a.) Correspondence posted at Chinese Post Offices would be prepaid in any stamps the Chinese Government chose to use, would be forwarded by Hongkong as paid to destination, and the Chinese Post Office would keep all the sums it collected by way of postage on such correspondence.
(b.) Once a year till China should enter the Postal Union, or once in three years after such entry, observations would be made in Hongkong, during 28 days, of the amount of correspondence originating in China passing through. The totals of these observations would be multiplied by 13.
(c.) China would pay Hongkong the actual sums this Colony would be out of pocket from having forwarded the correspondence at its own expense, plus transit rates of 2 fr. per kilogramme for letters and 25 centimes per kilogramme for other objects. In the case of correspondence made up into closed mails these transit rates would not be charged.
(d.) With regard to correspondence for China from foreign countries, the expenses of transit would be arranged by Hongkong with the countries of origin, which are responsible for such expenses, and the correspondence would reach Chinese Offices as paid.
18. This is precisely the course which has been adopted with regard to the Colony of Macao, the Post Office of which used to be regarded as a kind of semi-recognised agency of this Office. The financial results are, I should imagine, satisfactory to that Colony.
19. A great number of details will require settlement in the event of the acceptance of this proposal, but it is useles, to attempt to deal with them at present. I will only say that I know of none incapable of satisfactory adjustment. Fos the information of the Imperial Post Office I may add that the almost daily communication between this port and Shanghair and the possession by the Chinese Government of a line of steamers will prevent any difficulty as to the conveyance of mails, even if both the English and French Mail lines should cease to operate further than Hongkong.
20. The desirability of simplifying Postal matters at Shanghai, where, in a moderate-sized settlement, there are half a dozen different Post Offices, is a point on which I have reported so often that it is needless now to say more about it.
I have &c.,
The Honourable F. STEWART,
Acting Colonial Secretary.
A. LISTER,
Postmaster General.