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three years, for which the Siberian statistics to be taken

during November, 1911, will apply, the loss to this

Colony would be at least $36,690 per annum on account of

its own correspondence.

5.

There is a prospect of the

Chinese Members of Council raising the question, on the

occasion of the Estimates, as to whether Government is

justified in continuing a Postal system at a loss, which

system benefits only a small section of the community,

and

I hardly need point out that the foreign communities in

the Treaty Ports are in a less logical position vis à vis

the Chinese rate-payers of this Colony.

6.

I, therefore, urged in my tele-

-gram under reference (a) that Military Contribution at the

Postal Agencies should be entirely remitted: and (b) that

the rate of postage viá Siberia from Hongkong and the

Agencies should be raised to 10 cents per ounce from Hong-

-kong and to 10 cents per 20 grammes from the Agencies. If

this is done, the loss incurred by this Colony will

probably be obviated as the Military Contribution

($24,528) will no longer be paid and the loss of $27,050

will be balanced by the extra receipts for correspondence

sent by the Siberian route.

7.

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