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3. As regards the British Postal Agency at Liu
Kun Tao, existing as it does solely for the benefit of the Na
val and Military Authorities there, I venture to submit that
if it is to lead to this Government being called upon to in-
crease its contribution to the General Mail service, it will
be more advantageous to the Colony that the carrying on of
this agency should cease. The island could be fully served by
the Post Office already established at Wei hai wei under the
direction of the Chinese Imperial Customs.
4. The comparatively small value to this Colony
of the mail matter from the North, combined with the threatened
increased cost, and the fact that owing to the number of steam-
ers running to and from the Northern Ports, this Colony is
quite independent of the P. & 0. Company's steamers, would
justify the contention that the subsidised Mail service should
not be carried beyond Hong-Kong. The attached statement shows
that there are no less than 28 lines of steamers, running an
average of 48 ships per month, in regular communication with
the North,exclusive of the P. & 0. Company's Mail steamers, all
of which are available for forwarding correspondence to the
various Ports in China.
I have the honour to be,
Sir,
Your most obedient
Humble Servant,
Henry Arabe
GOVERNOR,&C.