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EASTERN MAIL SERVICE.

AWARD OF THE ARBITRATOR

IN THE MATTER OF THE

CONTRIBUTIONS OF CEYLON, THE STRAITS

SETTLEMENTS, AND HONG KONG.

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92

SIR,

TREASURY to COLONIAL OFFICE.

(Received January 3, 1905.),

I AM directed by the Lords Commissioners of His Majesty's Treasury to

Treasury Chambers, January 2, 1905. transmit herewith, to be laid before Mr. Secretary Lyttelton, the award given by Lord Balfour of Burleigh as Arbitrator upon the questions which have arisen between the Colonial Office and the Post Office as to the contributions to be made by the Colonies of Ceylon, the Straits Settlements and Hong Kong towards the cost of the Eastern Mail Service.

A signed duplicate has been forwarded to the Postmaster-General.

Enclosure.

I am, &c.,

G. H. MURRAY.

(19123/04.)

SIR,

LORD BALFOUR of BurleigH to TREASURY.

ADVERTING to the letters which I received from the Treasury in March and

December 21, 1904. April of this year, and of date October 27th, with relative enclosures, and to the letter of November 14th, with enclosure, of which the reference number is given above, I have now to say that I have carefully considered all the documents referred to, and on the 21st ultimo, and again on the 19th instant, I had the advantage of having interviews with Mr. Johnson of the Colonial Office, and Mr. King of the Post Office.

2. I note with satisfaction that in no case is the accuracy of the facts and figures laid before me the subject of any difference of opinion.

3. The question submitted to me concerns the division of the subsidy of £330,000 paid to the Peninsular and Oriental Company for the postal service to Australia, India, and the Eastern Colonies. Of this sum £85,000 has been taken as representing the Australian service, the apportionment being based on the fact that the Orient Company offered a corresponding Australian service for £85,000, and that the contract with the Peninsular and Oriental Company for the separate Australian service was also for that amount. The Indian Post Office, however,

100 G 588 Wt 24369 2/05 D & B

& 20185

A 2

PUBLIC RECORD, OFFICE

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Reference :--

C.O. 882

8

PUBLIC RECORD OFFICE, LONDON

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