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2. It is understood

Administrations of the Postal Union. The transit charges will be guaranteed by the Hongkong Administration and periodically refunded by the Chinese Administration.

1. That any territorial transit by rail is

free of charge if the Administration concerned is already entitled to claim, on the mail matter thus conveyed by rail, refund for maritime transit;

2. That any transit on the Yangtze-kiang is

considered as maritime transit;

3. That mail matter originating from Foreign

countries, remitted à découvert at the place of landing by Hongkong or the British Postal Agencies to a Chinese Office or vice versa, to be transmitted to inland places, will be exempted from transit charges;

4. That the reductions or exemptions stipulated in Article 4 of the Convention of Washington will also apply to the present Arrangement.

3. Charges for transport of mails by means of services or ships

independent of the Hongkong or Chinese Administration will be

settled under the terms agreed between the interested parties.

Article VI.

Men-of-War Mails.

The closed mails handed in to the Chinese Offices by a British

Postal Agency for transmission to the Commander of a Man-of-

War of whatever nationality, or by the Commander of a Man-of-War

of whatever nationality for transmission to Hongkong or British

Postal Agency will be subjected, in account with the Hongkong

Administration to the transit charges enumerated in the pre-

ceding Article,

Article VII.

Transit Statistics.

The balancing of the transit charges account will necessitate

an

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