Enclosure No. 1 to Despatch No.
20th August, 1903.
Hon. Colonial Secretary,
C.O. 30068
Rec? 25 SEP 02
At the time the report dated the 25th February, 1901, on the Revenue and Expenditure of the British Post Offices in China for 1900 was sent in, I was not aware, nor do I think the Treasurer was either, that the Colony would not be called upon to contribute towards the P. and O. subsidy in respect of correspondence for and from the Agencies. As no such apportionment, it would now appear, is required to be considered as accruing, according to the letter of the 5th December, 1901, from the Imperial Postmaster-General to the Colonial Office, the net profit would therefore be $30,467 instead of as given in that report.
The figures given in His Excellency the Governor's Despatch No. 268 of the 18th July, 1901, represent the estimated decrease in Revenue that would result from the reduction of the postage on letters from 10 cents to 5 cents per 1/2 ounce.
Having nothing to guide me, I feel some hesitation in offering any opinion regarding paragraph 3. It strikes me, however, that the Offices at Peking, Tientsin, and Chefoo could be better served from Hongkong than from Wei-Hai-Wei. Although the latter place is very much nearer, yet owing to there being at present no direct mail services existing to and from Wei-Hai-Wei, the Hongkong Office can always send mails to Shanghai for transfer to these Offices without any undue delay being experienced. Of course, in time Wei-Hai-Wei may become a regular Port of Call, and then a transfer of these Agencies could be made to that Office.
14th June, 1902.
(Sgd.) E. C. Lewis.