8. The increase in expenditure was mainly due to the payment of the air mail subsidy and the additional transit charges payable for the carriage of air mails. Revenue showed a remarkable improvement and reached a new high level. Expansion of Air Mail services with postage at rates necessarily higher than surface transport rates accounted for part of the increase. Other contributory causes were "first flight" and "first day" covers and very large sales of the Coronation Issue postage stamps to dealers and collectors.
9. Tables VII and VIII provide details relating to the sale of postage stamps.
MONEY ORDER OFFICE.
10. The combined totals of the year's transactions in Money Orders and British Postal Orders show a decrease of £14,366 as compared with the figures for 1936.
11. Full details are shown in Tables IX, X and XI.
CHINESE DELIVERY SECTION.
12. During the year this branch handled 7,895,179 ordinary letters and 462,272 other articles as compared with 7,739,427 and 445,782 in 1936.
13. The registered articles delivered totalled 147,585 of which 48,961 were from the United States of America and Canada, and 98,624 from China and other countries showing an increase of 19,220 as compared with 128,365 in 1936.
14. 5,196 insured letters were dealt with as against 5,099 in 1936. The total number of Chinese private boxes was 284, an increase of 23 as compared with 261 in 1936.
(B) WIRELESS.
TRAFFIC.
15. The total paid traffic for the year was 475,089 messages of 5,961,131 words, an increase of 112,233 messages and 2,218,267 words, as compared with the figures for 1936.
16. The increase was due to improved trading conditions and the diversion to the radio service of a considerable amount of cable traffic in consequence of cable breakdown in North China.
17. The total unpaid traffic for the year was 86,694 messages of 3,354,570 words, an increase of 33,638 messages and 1,383,064 words as compared with the figures for 1936.
18. Full details are shown in Tables XII and XIII.