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Appendix A.
Appendix B.
Appendix C.
28. Lord Morley's award-a copy of which is appended to the present case- while confirming generally the procedure outlined above, introduced some new features:--
(1) India was practically relieved of all liability in respect of sections
eastward of Colombo (paragraph 9, clause (6) of award).
(2) To provide for any disparity between the volume of outward and homeward mails, the pooling of postage receipts was instituted (clause (c)).
(3) The United Kingdom was relieved of all liability for the cost of sea
sorting (clause (d)).
29. A question having been raised by the India Office as to the interpretation of clause (c) of the award, the point was referred to Lord Morley, who decided in favour of the interpretation adopted by the Imperial Post Office. The correspond- ence relating to this question is also appended.
30. The annexed account shows the division of the cost of the Service under the current contract, and the pooling of the receipts, in accordance with the prin- ciples embodied in Lord Morley's award. In applying the new rulings to the three Colonies, care has been taken that the relief accorded under clause (b) to any con- tributor should not have the effect of increasing the liabilities of any other contributor. The additional burden has, in each case, been assumed by the United Kingdom.
31. The Indian contribution thus arrived at (59,3307.) has been accepted and paid by the India Office as from 1st February 1898, the date of commencement of the contract, and it is agreed that the contributions of the Eastern Colonies, to be settled by the present arbitration, shall be payable as from the same date.
A con- tribution in full would, of course, entitle Ceylon and Hongkong to be relieved of the payment of the sea postage-hitherto credited to the United Kingdom through the postage accounts, and estimated at 2,500l. and 3,000l. a year respectively-as from the date at which the new contributions begin.
32. The Imperial Post Office submits that the principles of Lord Morley's. award should be regarded as applicable to the whole Service. As shown in Appen- dix C., the application of these principles in the case of the Eastern Colonies would result in an inclusive annual payment of 6,0551. by Ceylon, 7,7197. by the Straits Settlements, and 12,8937, by Hongkong.
General Post Office, London,
22nd October, 1904.
(Sd.) H. BABINGTON SMITH.
Lord Morley's award. *
Appendix A.
Appendix B.
Copy of correspondence exchanged between the Treasury, the India Office and the Post Office respecting the interpretation of clause (c.) of Lord Morley's award. t
Appendix C.
Division of cost in accordance with the principles embodied in the award of Lord Morley. ‡
* See Appendix II of this Minute,
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