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Settlement in the Shamoon) because the French Administration subsidizes its own line of steamers for conveyance of mails between Hong Kong and Canton, the use of which affords additional opportunitos for the transmission of correspondence to residents in both places, and also because the French Post Office has accorded certain privileges to Hong Kong in respect of mails carried from Hong Kong to Shanghai by the Contract Steamers of the Compagnio dos Mossageries Maritimos.
On the other hand the German Post Office is in the British Concession in the Shamoon, and the mails from the German Post Office are handed to the British Post Office for conveyance to Hong Kong. A reduction in the rates charged between Hong Kong and the German Post Office at Canton would therefore result in a direct loss of revenue to Hong Kong (or in future to the Imperial Post Office) without any compensating advantage to those Administrations and without any increase of facilities to the general public in either place.
If the Secretary of State for Foreign Affairs should nevertheless be of opinion that for reasons of policy the request of the Gorman Post Office should be granted, the Postmaster General will no doubt have an opportunity of considering the matter further; but it does not at present appear to him that there is any equivalent concession which it is desirable to ask for in return, and in any case he is of opinion that the concession, if made, should be doforred until
the completion of the arrangements now in progress for the transfer of the British Postal Agoncios to the Imperial
Administration.
I am, Sir,
Your obedient Servant,