4 cents an ounce instead of at so much for each letter

according to weight. This reduced rate was allowed in

405

recognition of the fact that the amount of service rendered

by the official postal system was less than in the case of

ordinary letters.

3.

This system is of ancient standing

and was tolerated because the British Postal Agency at

Canton was unable, and the Imperial Chinese Post Office

made no attempt, to deal with the distribution of Chinese

correspondence in Canton and its vicinity.

4

The operations of the Imperial

Chinese Post Office system have now been extended to such

a degree that it is in a position to effect the delivery

which is now carried out by private agencies, and that

Post Office has now invited this Government to co-operate

in doing away with the "hong system".

5.

With a view therefore to determin-

-ing that system as far as the despatch of letters to

Canton is concerned I have decided to open a Branch Post

Office in a position near the wharves used by the steamers

plying between this Colony and Canton. The expenditure

involved by this branch office is made up as follows:-

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