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.89 [DIŠTA TO:JO
By this arrangement the Chinese Post Office would
get all it wants done viz.:- facilities for handling outward and inward Union correspondence, reduction in transit rates, saving in cost of extra mail bags and stationery, landing and shipping charges.
7. Chinese Closed Rails exchanged between Chinese Post Offices via Hongkong will be handled solely by the General Post Offices rix and will, if conveyed by non-subsidised vessels from Hongkong pay to this Colony the transit charges as laid down in Article 4 of the Convention of Rome. All Union Countries us well as the United Kingdom are paying Hongkong for the transit of their mails. Only vessels which are dependent on the Chinese Government and fly the Chinese flag will be recognised by this Administration as Chinese contract packets. The subsidised vessels (contract packets) of Union Administrations all fly the national flag.
8. In the event of the Chinese Post Office being un- -able to agree to the above alternatives to the establishment of an Agency here, the Hongkong Administration will be compelled, in order not to suffer financial loss, to refuse to accept transit correspondence & decouvert from Chinese offices to the same extent as at present, on the ground that the transit rates in respect of such correspondence recoverable under the Convention of Rome will not cover cost of onward transit from Hongkong.