said that the Agencies have been liberally conducted by the Hong Kong Government. Substantial Post Office has been built at Shanghai and is kept insured against fire. A Post Office built at Yokohama, upon retirement from Japanese Postal business it became necessary for repairs, painting, and for boatmen's uniform.

12. It may be said, the increase of work caused by increased steam communication between those ports and Hong Kong, America, and Australia, is in excess of local work, leading to increase in total loss. Salary and allowances at Hiogo in Japan to the amount of £75 a year have been paid for several years without any grant from London. Boats have been provided at most of the Ports at Colonial expense, and with these boats come, of course, charges for repairs.

That is true to some extent; it is nevertheless the fact that, but for the contrast mainly, I should advise this Government to close the Agencies tomorrow, and to confine itself to Postal work in Hong Kong.

13. Mr. Breane complains that his Consulate has to distribute...

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