366
Ceylon.
Straits Settlements.
Hongkong........
Ceylon,
Straits Settlements,
Hongkong,
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II—DIVISION OF SEA POSTAGE.
COLONY.
Total Sea Postage accruing from
the Correspondence of the Colony.
Colonial Share, one half.
£ £ 2,142 1,071 4321 2,142 1,071III—APPORTIONMENT OF LOSS.
COLONY. Difference, being Loss Apportioned to Amount of £ £ £ 2,721 1,321 1,400 7,071 1,071 6,000 13,771 1,071 12,700General Post Office, London, 22nd May, 1882.
(Copy)
SIR,
(Signed)
GEO. CHETWYND, Receiver and Accountant General
The Colonial Office to the Treasury.
DOWING STREET,
7th December, 1882.
I am directed by the Earl of KIMBERLEY to acknowledge the receipt of your letter of the 12th of June last respecting the annual payments which in their Lordships' opinion ought to be made by the three Eastern Colonies of Ceylon, Hongkong, and the Straits Settlements respectively in reduction of the loss on the conveyance of mails.
2. Their Lordships observe with regard to the letter from this Department of the 23rd of February, "It is stated in your letter that the financial view of the question was not considered by the Secretary of State when the present contract was made." And it is further observed that efficiency and a high rate of speed can only be obtained by a corresponding expenditure.
I am to point out that the words quoted above do not accurately represent the state of the case as explained in the Colonial Office letter of the 23rd of February.
That letter stated that when the present contract was being considered "the question of a money contribution by the Eastern Colonies was not before the Secretary of State," and I am to observe that when their Lordships submitted the alternative tenders for the new Contract to the Secretary of State in a "very pressing" letter of the 3rd of August 1878, they gave him no intimation that contributions would be expected from the Eastern Colonies.
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3. Lord KIMBERLEY is ready to admit that in principle these Colonies may fairly be asked to bear a share of the cost of a Mail Service, provided that such share be reasonable and proportioned to the benefit derived by the Colonists generally, but His Lordship feels himself obliged to point out that each of the Eastern Colonies is almost entirely inhabited and its revenue contributed by a native population making little or no use of the mail service, and that so far as its value for purposes of correspondence is concerned, this population would have no objection to dispense with it altogether. It would therefore hardly be reasonable to ask communities so constituted to pay the large subsidies in question, amounting in Hongkong to 5 per cent, on the whole public revenue of the Colony. On the other hand His Lordship considers that the importance to the Mother Country of regular mail communication with the East is not to be measured only by the number of letters conveyed.
Besides the assistance which it affords to Her Majesty's Government in facilitating the administration of these dependencies and the direction of the Naval forces in the East, it may fairly be said that the mercantile community of the United Kingdom who supply the capital for and control the operations of the commerce of these Colonies have a greater interest in the correspondence than their Colonial Correspondents, and should bear more than half the expense.
4. In the case of Ceylon and the Straits Settlements the sums are comparatively small, and Lord KIMBERLEY, notwithstanding the reasons which might be urged, as has been stated above, will invite the Colonial Governments to make total contributions of £1,400 and £6,000 respectively.
In the case of Hongkong, however, a much more considerable sum is involved, and considering that the Colony was not consulted, at the time when the Contract was made, as to contributing to the subsidy, and that there are numerous Steam-ships to and from the Colony, which, as far as the interests of the Colonial Community are concerned render a subsidy unnecessary, His Lordship cannot undertake to press the Colonial Government to provide a contribution. His Lordship is nevertheless prepared to direct the Governor to propose to the Legislative Council an annual contribution not exceeding £6,000.
The Secretary to the Treasury.
(Copy)
No. 19939.
SIR,
I am, &c.,
(Signed) R. G. W. HERBERT.
The Treasury to the Colonial Office.
TREASURY CHAMBERS,
28th December, 1882.
I am directed by the Lords Commissioners of Her Majesty's Treasury to acknowledge the receipt of your letter of the 7th instant, respecting the contributions to be made by Ceylon, Hongkong and the Straits Settlements towards meeting the loss on the Eastern Mail Contract.