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With reference to the subsidy, that is an Imperial matter that does not concern the Colony. The fleet, however, burns $100 worth of coal a week communicating with Chefoo, and I am proposing to the Commissioner to ask the Admiral to move the Admiralty to pay that amount towards the subsidy demanded—the money would be spent all the same, but the Welsh coal would be in stock, if the General Post Office London supplied the other moiety.

Even if the subsidy does not materialize, closed mails in the absence of direct steamers could be sent via Chefoo.

I have &c.

(Signed) W.C.H. Hastings,
Postmaster General.

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