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is estimated at $12,536 per annum and the revenue at $5,096

showing a loss of $7,440 which is increased by the Military

Contribution to $8,459. The Tientsin Chamber of Commerce

has undertaken during the coming year to meet the deficit

less the Military Contribution.

4.

One reason for the increased amount

of transit charges, is the increasing use of the Siberian

route for the transmission of mails from Shanghai and the

other Treaty Ports in North China to the United Kingdom.

The transit rates for the Siberian Railway are 15 francs a

kilogramme, while the rate of postage is the Imperial rate

of one penny (4 cents) for 20 grammes. I submit for Your

Lordship's approval that for this route the Union rate of

postage (10 cents for 20 grammes) be charged for articles

posted at Treaty Ports in China instead of the Imperial

penny rate. This rate being the same as that charged by

other Foreign Post Offices in China.

5.

On referring to correspondence of old

date on this subject I observe that in the year 1868 when

it was decided that the Colony should undertake these

Agencies His Majesty's Postmaster General stated that it

would be unfair to throw upon the Colony the cost of their

maintenance in the event of the expenses exceeding the

Revenue

L.S.

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