CO882-(6-8) — Page 349

Printed for the use of the Colonial Office.

Eastern

No. 90.

Confidential.

(81073/04.)

EASTERN MAIL SUBSIDY.

CASE OF THE EASTERN COLONIES.

The cost of the Eastern and Australian Mail Service by the packets of the Peninsular and Oriental Steam Navigation Company is £330,000 a year for seven years from the 1st February, 1898. Towards this cost the Colony of Ceylon has hitherto contributed £1,400 a year, besides paying about £3,300 a year at Postal Union transit rates for all its mails sent over the system. Of this last amount a portion is paid in respect of mails sent over the Singapore-China and Australian sections, and will in any case con- tinue to be paid; and for the purpose of the present argument only the sum paid in respect of the mails sent westwards need be considered, as will appear below, and this sum has been on the average about £2,500 a year. Similarly Hong Kong has contributed £6,000 and about £8,000 for sea postage at transit rates, while the Straits Settlements has made an inclusive con- tribution of £6,000 a year.

In addition each

Colony has paid sea postage for the carriage of parcels, and the amounts paid on this account were in 1901: Ceylon about £125, Straits about £175 and Hong Kong about £480. Thus the total annual contributions from Colonies have amounted to: Ceylon £4,025, Straits £6,175 and Hong Kong £9,480.

these

2. The Treasury and Imperial Post Office having from the first contended that the con- tributions of India and the Eastern Colonies were insufficient, the question as between the Imperial Government and the Government of India was submitted to the arbitration of Lord Morley; India has accepted that award, but the Eastern Colonies, which were not invited to take

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PUBLIC RECORD OFFICE

Reference:

EPERNIC.O. 882

8 PUBLIC RECORD OFFICE, LONDON

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