WESTERN BRANCH POST OFFICE.

10. The amount of correspondence sent between this Branch Office and Canton was—Despatched 686,006 letters, 4,741 other articles, and 9,577 registered articles; Received 938,537 letters, 10,163 other articles and 4,642 registered articles. These figures show an increase of 344,954 compared with the figures for the previous year. In addition to the above 10,641 Hong packets were despatched and 14,462 received, these Hong packets are gradually decreasing while the number of ordinary letters increase. The value of stamps sold at this branch amounted to $65,494.90 compared with $105,592.50 during 1909. This decrease was caused by the extraordinary purchase of stamps at the General Post Office with copper coin. Owing to the discount on copper coin it paid coolies to purchase a dollar worth of stamps with 100 cents and resell for silver at various Chinese shops. By the end of the year this copper purchasing had stopped.

MISCELLANEOUS.

11. Owing to the continued financial loss sustained by the Colony of Hongkong on working the postal agencies in China, representations were made through the Government of Hongkong to the Imperial Government with the result that the Imperial Government decided to take over the working of these agencies at the close of the year 1910.

12. During the year 1911, transit charges for correspondence sent during the year 1910, will have to be paid. The Siberian statistics to be taken during November, 1911, will apply for payments for the years 1910-1912 inclusive. The results of these statistics cannot be finally adjusted until 1913, so the full saving by the result of the agencies being no longer paid for by Hongkong will not be evident until the year 1913.

13. Parcel Post Agreements were entered into between Hongkong and the Straits Settlements and between Hongkong and New Zealand. An agreement was also signed for parcel post between Hongkong and the Philippine Islands similar to the Hongkong-Washington Parcel Post Agreement. India agreed to accept the system of payment of compensation, not exceeding 25 francs in the event of the loss of, damage to, or abstraction from, an uninsured parcel passing through the post office of that country.

15th March, 1911.

C. McI. MESSER,

Postmaster General.

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