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in my despatch No 218 of February last, and approved by Your Grace's despatch No 53 of the 11th May.

2.

Messrs Mitchell and Rea in the course of their Inspection visited Japan and nearly all the Ports in China where Post Offices are maintained whilst Mr Rea extended his tour to Pekin, and I have much satisfaction in expressing my belief that the results of their tour will be highly beneficial to the Public interests and will eventually tend to increase the Postal Revenue.

3.

On account of the importance of the station and the unsatisfactory manner in which the duties had previously been discharged at Yokohama they recommend (Enclosure 1, Paras: 17+18) the appointment there of a separate Postmaster with a salary of £500 per annum, making with other necessary expenses a total cost of £800 a year, including rent for a Post Office and Quarters for the Postmaster.

4. As it was urgently necessary that a responsible and trustworthy Officer should be sent there at once, I selected Mr Simpson, the Assistant Postmaster here to fill the post, as already reported in my despatch No 313 of the 28th ultimo.

5. At Shanghai I regard the mission of Messrs Mitchell and Rea as having been extremely successful, and the arrangement there made as the best

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