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of Postal business since that date has rendered that same policy proportionately more remunerative.
If then an expansion of business has brought profit to the Imperial and Colonial Coffers alike, and it has been found necessary in consequence of that expansion to increase the salaries of the Agents who in part manage that business, it is not equitable that the Colonial Government should bear the increased financial burden alone, and that the other partner in the gains should abstain from an increase of contribution on her part. Hence though it is true that no addition to the Imperial subsidy is needed, it is equally true that an addition to the Imperial subsidy is called for by the equity of the case. These remarks will also refer to the paragraph in the letter from General Post Office of 19th April 1890 beginning "In stating that," and ending, "considerable amount of Revenues, and will show that the conclusions arrived at in the 3rd paragraph of Lord Knutsford's despatch are untenable.
Concerning (c). the sum paid out of the Imperial Contribution towards the Branch Post Office at Shanghai, it is wrong to presume that the amount would be covered by taking the 1889 Estimates. If we find that £6,288 was to be spent on the salaries of the same China Postal Officers as exercised in 1869; against this is to be set off the $4,484 @ 3/2 derivable from the Imperial subsidy. There is no residue. The remarks of the G.P.O. as to Shanghai did not come within the sphere of the Imperial subsidy.