Men in numbers and in material. At first I thought the clerks were underpaid; now I am of opinion that some of them are overpaid; but until more liberal wages are offered and better prospects held out, the Government will not be able to compete with the hongs, and the Post Office will be merely a training school out of which the more capable Portuguese will pass as soon as opportunity serves.

No comparisons have been made with any neighbouring Colony; either the recommendations submitted are necessary for the efficient conduct of the Post Office at Hongkong, or they are not.

I have etc.

(Sd.) W. C. H. Hastings

Acting Postmaster General.

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