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at the other Ports with the exception of Ningpo.

3.

With regard to the last sentence in the

penultimate paragraph of Sir E. Satow's despatch of the

28th. February, 1906, I would point out that unless the

Postal Agencies in China are conducted by either Consular

Assistants or Consular Constables within the precincts of

the Consular buildings, the expense to this Government of

paying non-Consular Agents and of renting outside premises

will in the majority of cases exceed the profits derived

from the sale of stamps, and I should not be prepared, as

at present advised, to commit this Colony to an increased

expenditure which would be mainly incurred on behalf of

Imperial interests and of the British merchants trading in

the Treaty Ports.

4.

I shall await the communication from His

Majesty's Minister at Peking referred to in the second

paragraph of Mr. Lucas' letter of the 12th. ultimo but have

thought it advisable in the meantime to state my general

views in this matter.

5.

I enclose for Your Lordship's information &

schedule giving particulars of the British Postal Agents in

China.

I have the honour to be,

My Lord,

Your Lordship's most obedient,

humble servant,

Governor, &c .

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