The Letters and Newspapers for from the Agencies passing through, this office may be estimated at about one-fifth of the whole correspondence of the office; but as such letters impose far more labour and expense for superintending the sub-offices in China and Japan.
In addition to the expenditure of the Hongkong Post Office (£4,107), the expenditure at the several Agencies is estimated at £926.13.4 per annum, as set forth in the enclosed return, thus showing that there is more labour and expense in the Hongkong Post Office than letters which are posted in or addressed to Hongkong. I am of opinion that at least one-fourth of the cost of maintaining the Hongkong Post Office, say £1,036.15.0, is chargeable to the Agencies.
The total annual Revenue receivable by the Colony from Agency letters will not, it is estimated, amount to more than £920, being £116.15.0 less than the expense entailed upon the central Office in Hongkong. There will be an excess of Expenditure on account of Agencies over the Amount allowed to the Colony of about £1,112.8.4, which might be covered either by the payment of a lump sum of not less than £1,000 per annum to the Colony, or by the Imperial Post Office paying the actual amount expended by the Colonial Government in maintaining these Agencies at the several ports—or, in other words, the expenses incurred beyond the