CONFIDENTIAL.
Hongkong.
Government House.
29956
-288
REG 25 AUG 04)
Hongkong, 25th July, 1904.
Sir,
I have the honour to acknowledge the receipt of your Confidential Despatch of 20th May enclosing copies of correspondence which has passed between the Treasury and General Post Office in connection with the contributions of the Eastern Colonies to the cost of the Mail Service.
I observe with pleasure that it has been decided to submit the matter to arbitration and I concur in your view as to the advisability of briefing Counsel to lay the case for the Colonies before the Arbitrator.
With regard to paragraph 3, I have no amendments to suggest in the draft case. The figures relating to this Colony have been verified and would appear to be correct. The total amount paid by Hongkong for the carriage of parcels despatched from Hongkong to London was £482 14 8.
With reference to paragraph 12 of the draft case, I would observe that mails are transshipped at this port for the Philippine Islands and for Japan, but I am doubtful whether it is necessary to rely on this point in the case.
THE RIGHT HONOURABLE
ALFRED LYTTELTON, K.C., M.P.,
etc.