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My Lords observe that the Secretary of State does not appear to contest the justice of the contributions my Lords have required from the Eastern Colonies, and that he proposes to ask the contributions of £1,400 and £6,000 from Ceylon and the Straits Settlements respectively, which are in fact the assessments claimed in the letter from this Board of the 12th June last.
With respect to the claim on Hongkong, which was stated in the same letter as £12,700, Lord KIMBERLEY proposes to ask the Colony for £6,000, but my Lords would represent that the gain derived by this Colony from the relief of half the additional loss due to its having joined the Postal Union, estimated at £3,300 or more, annually, appears to have been overlooked or at least insufficiently considered.
My Lords think that upon reconsideration it will be seen that the application to Hongkong should at least be increased from £6,000 by this sum of £3,300 of which the Colony has gained the benefit.
I have, &c.,
Sir R. G. W. HERBERT, K.C.B.,
Colonial Office.
(Signed)
R. R. W. LINGEN.
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HONGKONG GENERAL CHAMBER OF COMMERCE,
HONGKONG, 14th June, 1883.
SIR,-I have the honour to acknowledge the receipt of your letter No. 952, dated the 28th ultimo, together with a letter from the Postmaster-General relative to a proposed increased contribution by this Colony towards making good the loss caused to the Imperial Government by the Postal Contract to China now in force.
The letter and its enclosures were carefully considered at a Committee Meeting held on the 6th instant, when the following resolutions were passed.
1st. That the surplus revenue derived from the Post Office in Hongkong, notwithstanding that the rates of postage are higher than those charged by the French Post Office in Shanghai on correspondence by Messageries boats, being only $8,000 annually, it is manifestly impossible for the Post Office to bear the increased burthen which the proposed impost would throw upon it.
2nd. That the question is now agitated among the mercantile community as to the policy of subsidising any line of steamers between this Colony and Europe, considering the numerous means of direct and speedy steam communication now available.
3rd. That in the event of any further payment being required from the Colony towards the cost of the subsidy, the means could only be obtained either by an increase of the rates of postage, or from some other branch of the revenue such as stamps, which would enhance the taxation on trade, already too onerous, and the Chamber protest in the strongest manner against the proposed measure, and still more against any retrospective payment on account of the mails.
As regards any increase in the rates of postage, the Committee would observe that such a measure would be most impolitic and unjust, and one not likely to have a successful result in augmenting the postal revenue. British mail steamers are exposed to competition from numerous foreign lines of steam communication which would be glad to carry the letters of this Colony for half the rates now charged and were an increase resolved upon there would be nothing to prevent the public sending their correspondence by private steamers to Saigon to be posted there for Europe, a course which would deprive the Colonial Government entirely of the revenue derived from the French mail service.
The Committee also desire to point out that in the statement showing the division of cost and apportionment of the loss on the service, the share falling to the Hongkong and Shanghai section of the Mail route is set down as £20,968, which amount the Chamber submit should be deducted from £360,000, and the balance charged rateably against this Colony.
-I have, &c.
(Signed) F. BULKELEY JOHNSON,
Chairman.
The Honourable. W. H. MARSH, C.M.G.,
Colonial Secretary,