In this Report are set forth the conditions upon which the Committee recommend that the transfer should be made, viz;

That the Colony should receive, free from objection whatever, the Colonial postage. Under these conditions there will be no objection whatever. The colony will be fully entitled to the sum of £210,348, being its share of the total rate of sixpence chargeable upon all letters conveyed between the United Kingdom and Hong Kong.

1st. A rate of postage upon all Letters to and from the United Kingdom.

2nd. A like rate upon all letters passing through the United Kingdom, between Hong Kong and countries beyond.

3rd. And a like rate upon all letters conveyed by the British Mail Packets between Hong Kong and India.

4th. The whole of the postage on Ship Letters, as well as Letters from Ports in China.

5th. The fees upon "Late" Letters, whether posted in, or passing through the United Kingdom.

The colony will also be entitled to the postage upon letters conveyed to and from Hong Kong by private ships, and to the fees upon "Ship Letters".

As respects the postage between Hong Kong and India by the Mail Packets, I see nothing to prevent the Colonial Post Office leasing a Colonial rate of one penny as proposed.

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