Considerable profit... We must, I think, eventually refer to come about the Imperial subsidy of the postal rates to the Treasury, but before doing so, I ask for their reply to our letter asking whether Lord I. can see any way to support the proposal that an increased subsidy should be granted to enable the opening of new agencies. I mean to carry out instructions on this matter.

Ray 10/12

Draft for copy of this letter.

* Address reply to "The Secretary, General Post Office," quoting Registered No. 387072.

X-Circular

To send 299863.

GENERAL POST OFFICE LONDON

20th December 1901.

Sir,

With reference to your letters of the 28th of August last and the 4th of last month, No.29163 and No.37115, with which were transmitted copies of despatches and other papers relating to the Agencies of the Hong Kong Post Office in China, I am directed by the Postmaster General to offer the following observations on the points raised by the Governor of Hong Kong.

In his despatch of the 18th of July last, No.261, Sir Henry Blake points out (paragraph 2) that at the French Post Office recently opened at Canton, letters for France may be posted at the rate of 6 cents the half ounce, whereas for such letters posted at the British Post Office in the same port, a postage of 10 cents the half ounce is required; and he remarks that this is the only difference between the French and British rates. As a matter of fact, however, there is also a difference between the French rate (6 cents) and the British rate (5 cents) per half-ounce on "local" correspondence.

Under Secretary of State, Colonial Office.

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