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6.-CHINESE DELIVERY SECTION.

During the year, this section handled 2,950,547 ordinary letters, 166,777 other articles, and 9,164 postal Hong packets as against 2,654,170 ordinary letters, 130,907 other articles, and 8,922 postal Hong packets in 1925.

The registered articles delivered amounted to 275,556 of which 121,665 originated in the United States and Canada, and 153,891 in China and elsewhere, an increase of 10,859 as compared with 264,697 in 1925.

6,794 insured letters were dealt with as against 4,412 in 1925.

The total number of Chinese private boxes for which licences were issued during the year was 338; a decrease of 13 compared with 1925.

The licences of 28 Chinese Postal Hongs were renewed, as compared with 27 in 1925.

7.-MISCELLANEOUS.

The direct transmission of Parcel Post Mails to Marseilles by Peninsular & Oriental Mail Packets was initiated on 19th March. Parcels for the whole of the Continent of Europe except the near Eastern Countries, unless otherwise directed, are now sent by this route resulting in a saving of at least 10 days in transit, and at lower rates of postage.

An agreement for the exchange of Insured Parcels with Canada was instituted during the year.

With the important exceptions of India, Australia, New Zealand, South Africa, Japan and a few other countries parcels weighing between 11 lbs. and 22 lbs. may now be exchanged with all the important countries in the Postal Union.

In spite of the unsettled conditions throughout South China, the volume of Postal business transacted during 1926 reached a remarkably high level. The revenue realised by the sale of postage stamps has only been exceeded in the record year 1924 and is considerably in excess of the figures for the years 1923 and 1925. The parcel post transactions continue to increase steadily though portion of the abnormal increase during 1926 was due to the temporary suspension of freight Services to South China ports.

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