589
3. Until February this year no further action was taken, but at that time the Postal Secretary at Peking wrote to the Postmaster General of Hong-Kong desiring that the rate called the "Shanghai" rate as follows:-
Per Kilo of Papers Per Kilo of Letters Fcs. cts. Land Rate 12 60 16 50 Sea Rate 3. 90 Fcs. cts. .90 1.38-2 # 483should be substituted. This meant the reduction of the Land Rate by Francs 1.40 per Kilo for letters and 10 centimes per Kilo for papers and in addition the diminution of the Hong-Kong Territorial rate. About the same time a draft arrangement embodying the reduced rate was forwarded for acceptance, which it was requested should be engrossed, executed and returned to Peking.
4. As this proposal would approximately have meant a loss to this Colony of about $6,500 on Letters alone, a decouvert, exclusive of the loss from sale of stamps, the Postmaster General refused to entertain this request and so informed the Postal Secretary.
5. I attach a copy of the proposed arrangement and also copies of the Rates of Transit fixed by Hong-Kong and the Imperial Chinese Tariff of Postage.
6. At the present moment there are 8 British Postal Agencies in China and though apparently desired by the Chinese
344.
Tel: 2