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whilst at the same time the Austrian Lloyd Co. is receiving a subsidy from the Austrian Government to whom the Hongkong Administration has since the year 1896 been paying transit charges for the carriage of its mails. I have referred this anomalous state of affairs to the Austrian Hungarian Consul- -General at Shanghai. Meanwhile this Administration is continuing to ship its mails by the Austrian Lloyd steamers direct when occasion offers.
13. The foregoing details make it obvious that this Administration is not unnaturally agrieved at the spasmodic efforts of responsible officers of the Chinese Post Office to undermine the existing agreement where so-called "Contract Hail Steamers are concerned, and is satisfied that no lasting agree- -ment can be come to which leaves this wexed question out of account. This Administration must therefore insist that it cannot recognise any vessels claimed as "Contract Mail Stewers" by the Chinese Post Office within the limits of the Colony of Hongkong unless such vessels (or their owners) are actually in receipt of a subsidy from the Chinese Government, that they are further not in receipt of a subsidy from a foreign Government, and that they fly the Chinese flag.
14. All Chinese nails landed at Hongkong and reforwarded by this office by bon-subsidised vessel will be subject to transit charges as laid down in Article 4 of the Convention of Rome.
($d.) E. D.C. Wolfe,
Postmaster-General.
Hongkong, 20th. May, 1914.
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