Proper funding of some schemes for both increasing the reserve, reducing the expenditures, or reducing the deficit is necessary. In my last annual report, it was stated that the Imperial revenue collected here, and that collected in London, are on our accounts on either side of postage.

ARA Letters sent in transit to Hongkong amount to £60,000 per annum at a low estimate, and this is perhaps another reason why a contribution towards this subsidy should be expected from this Government.

The substitution of Brindisi for Marseilles will no doubt be a great advantage, inasmuch as the mails for the United Kingdom sent by the latter route frequently reach London too late to catch the wards for Australia on the 10th and 26th of each month; the adoption of this Brindisi route will consequently not only admit certain delivery of correspondence from Hongkong to the United Kingdom, but it will often be the means of effecting a saving of nearly a fortnight in answering from here letters received.

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