I will observe that the pung.

I am of opinion that from a purely fraternal point of view there is no sufficient reason for increasing the contribution at present paid from Imperial Funds,

3. In view, however, of this petition from British residents in Chefoo for the establishment of a British Agency in that port (see the extract from the letter's above referred to.) and reducing the desirability of the ratio charged by British agencies to a level with the one charged by Foreign Postal Agencies.

I am disposed to consider that the former's request for an increased subsidy might be granted in the interests of the British residents with Foreign Powers, since their Lordships will have to frame their despatches. Enclosed in the letters from this department referred to above, it is not considered possible to establish agencies at Chefoo as proposed by Mr. Houghing, of Peking, or Tientsin, nor to reduce the present postal rates unless the Colony is safeguarded against any resulting loss.

5. In these circumstances, I shall be glad to know whether their Lordships concur in the view that in this case the Treasury may reasonably be asked to grant a subsidy in the interests of British subjects resident in China.

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