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PUBLIC RECORD OFFICE

Reference :-

8855 PUBLIC RECORD OFFICE, LONDON

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Lordships may be furnished with a statement in figures showing the financial effect of the detailed measures set forth in the printed nemorandum which accompanied that letter, as compared with present cost. My Lords wish, at the same time, to observe that the present postal arrangements with Victoria were only completed in February last.

No. 12.

TEXT of Letter from the PoST OFFICE to the TREASURY, dated 25th June 1880.

In conformity with the instructions given by your Lordship's letter of the 7th ultimo, No. 8165, I have the honour to furnish, for your information, a statement, in figures, showing the estimated financial effect upon the Imperial Revenue in the event of the Australasian Colonies entering the Postal Union under the terms of the memorandum which was submitted to you by my predecessor's letter of the 30th of April last.

It will be seen that the present amount of revenue is estimated at 1,6667. a year, while the prospective revenue is calculated at 31,7207.; so that your Lordships, should you see fit, would have a balance of 30,0547. to hand over to the Australian Colonies, in aid of their packet service, for such period as you may wish to compensate them for abolishing the arrangement which you have recently agreed to in their favour.

STATEMENT showing the estimated financial effect upon the IMPERIAL REVENUE in the event of the AUSTRALASIAN COLONIES entering the POSTAL UNION under the terms of the Post OFFICE MEMO- KANDUM of April 1880.

Imperial share of the Postage.

Route,

Under present system.

Under proposed Union system.

Effect upon the Imperial Reveme under proposed Union system.

Gain.

LONS.

Gain.

Gaio.

LOBS.

£

£

£

£

£

Vid Brindisi

8,238

21,322

13,084

Vid San Francisco

9,050*

8,295

17,345

By private ship

2,478

2,103

375

Total

10,716

9,050

31,720

30,429

375

Net gain, 1,6661.

Net gain to Imperial Revenue

30,0541.

This amount represents the present loss sustained by the United Kingdom, in consequence of the payment to the United States for transit services being in excess of the Imperial share of the postage.

No. 13.

TEXT of LETTER from the TREASURY to the POST OFFICE, dated 15th July 1880. The Lords Commissioners of Her Majesty's Treasury having had before them your further letter of the 25th of June 1880, enclosing a statement of the estimated financial effect of the extension of the Postal Union to the Australian Colonies, by which it appears that the net gain to the Imperial Government would be 30,0541. a year instead of 1,666/., I am desired to inform you, with reference to Lord John Manners' letter of 30th April last, that as the interests of the public will be served by the Australian Colonies becoming members of the Postal Union (thereby reducing the postage of a letter of half-an-ounce from (jd, to 2§d.), the Colonial postal authorities should be informed of the financial result, and be invited to say what they would propose in order to provide for their admission to the Postal Union.

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No. 14.

EXTRACT from a LETTER from the POST OFFICE to the TREASURY, dated 25th August

1880.

I have had the honour to receive your letter of the 15th ultimo, No. 11,520, with reference to the memorandum which my predecessor submitted to you on the 30th of April last, showing to what extent the rates of postage on Australian correspondence will require to be altered in the event of the Australian Colonies deciding to become members of the Postal Union.

Your Lordships appear to have misapprehended the extent to which the postage of a letter between this country and Australia would be reduced under the proposed arrange- nients. A reference to the memorandum will show that, upon such letters the rate will he 5d., not 24d. per half ounce. As mentioned in the memorandum, the ordinary Union rate for letters is 25 centimes, or 24d.; but in cases where they are carried over long distances by sea (as in the case in point), a surcharge, not exceeding 25 centimes, may be levied in addition. This would bring the rate upon a letter sent from this country to Australia, or vice versâ, to 50 centimes, or 5d.

I have thought it necessary to make special mention of this error, as your Lordships evidently consider that the interests of the public will be served to a greater extent than is really the case, by the Australian Colonies becoming members of the Postal Union.

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It is understood that the Governinent of Victoria has made a contract for the conveyance of its mails between Melbourne and Point de Galle for eight years, commencing on the 1st of February last, a period co-extensive with the term for which this Department made its contract with the Peninsular and Oriental Steam Navigation Company for its India and China mail service, and I would propose that, for the remainder of such term, your Lordships should offer to make over to the Australian Colonies the sum of 30,000 a year conditionally upon their joining the Postal Union.

This amount might be apportioned among the Colonies providing the packet service, as it is upon them that will fall the loss, inasmuch as they will be obliged to carry the mails of other Colonics for the Union sea rates of 15 francs per kilogramme of letters and post cards, and 1 franc per kilogramme for all other articles. Should this plan be approved of, the proportions in which the 30,000. should be divided would be as follows, viz., 17,000l. to New South Wales and New Zealand on account of the mail service between San Francisco and Sydney; 11,6007, to Victoria on account of the service between Point de Galle and Melbourne; and 1,400%. to Queensland on account of the service between Singapore and Brisbane.

This apportionment will be found to be in agreement with the statement which accom- panied my letter of the 25th of June last. That statement shows that about 17,000/.

is the gain on the San Francisco route, and about 13,000. on the Brindisi route, the latter gain being divisible between Victoria and Queensland, according to the extent of the correspondence.

By this arrangement the Imperial revenue would be no better or worse off than it is now, while the Colonies, on their part, would not be deprived of the advantages lately assured to them, and would, at the same time, profit by the uniformity of postage rates throughout the civilised world, which would result from their adhesion to the Postal Union.

No. 15.

TEXT of LETTER from the TREASURY to the COLONIAL OFFICE, dated 7th September 1880.

I am directed by the Lords Commissioners of Her Majesty's Treasury to transmit to

you herewith, copies of the following correspondence upon the subject of the rates of postage upon Australian correspondence under the Postal Union, viz. :—

1. Post Office Report, dated the 30th April 1880.

2. Treasury Reply thereto (8165), dated 7th May 1880.

3. Post Office Report, dated 25th June 1880.

4. Treasury Reply thereto (11,520), dated 15th July 1880.

5. Post Office Report, dated 25th August 1880.

I am to request that you will move Lord Kimberley to favour my Lords with his opinion thereon.

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$143L.