Sir,

Enclosure No. 1 to Despatch No. 57 of the 12th February, 1903.

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H.M. Consulate, Amoy, January 24th, 1909,

I have the honour to inform you that the French Government propose on the 1st prox. to open a French Post Office just behind the British Concession in the business quarter of Amoy. The Offices of this Consulate and the British Postal Agency are, as you are doubtless aware, situated on the Island of Kulangsu on the opposite side of the Harbour. The French Office will therefore start with a very considerable advantage, but this is not all. It appears that by an Agreement made last year between Monsieur Pichon, French Minister at Peking, and Sir Robert Hart, the French Post Offices have undertaken to accept letters franked with Chinese stamps so that from the 1st February the Customs Post Office will cease to purchase Hongkong stamps which they have hitherto done to the extent of $300 per month, to frank letters for abroad which are posted with Chinese stamps. I am also informed that the French Postal rate for Europe will be 9 cents instead of 10 cents as charged by your Agency. There appears to be no doubt but that with the above advantage the new French Office will completely supersede the Hongkong Postal Agency, and that the latter will only be carried on at a loss.

2

I cannot say how far the present action of the French Government is in accord with the Postal Convention, but it is obvious that unless energetic measures are promptly taken the French Office will be a complete success at the expense of the Hongkong Agency.

3.

I would suggest for the consideration of His Excellency the Governor, that the Hongkong Government should at once open an Agency on the Amoy side and that the Hongkong rate of 4 cents only should be charged on all letters for Great Britain and its dependencies. Whether a reduction can be made in the postage of other countries I do not know. There is a large correspondence here with the United States in connection with the Tea Trade.

4.

I need hardly point out that a Post Office on the Amoy side could not be carried on with the present staff.

5.

It would be a matter of great regret that the British Post Office should be entirely ousted in a Port where nearly all the interests are British, and where France has neither interests nor subjects.

Honourable

The Colonial Secretary, Hongkong.

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