CO129-421 - Governor Sir May - 1915 [3-4] — Page 264

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distribution for mails exchanged between the Union and the Chinese Provinces south of the Yangtse valley.

259

In accordance with Union regulations, the places concern- -ed on the Chinese coast may enclose their correspondence for the Union in mails addressed to Hongkong, and the Union countries may act similarly as regards correspondence for China; but there would still be two serious objections to such a procedure, viz.;-

The transit charges would be increased thereby.

1.

2.

It would be difficult even for Hongkong to under- -stand the topography and mutual relations of the various Chinese offices so as to satisfy all re- -quirements and avoid errors being committed.

In order to reduce expense for the Union, to avoid a troublesome procedure for Hongkong, and to establish an efficient service for China, a special scheme is wanted, and the plan suggested is the opening of a Chinese Postal Agency at Hongkong. This Chinese would confine ita action to the following:-

1. Landing and shipping of mails.

2. Sorting and closing of mails.

Hongkong's sovereign rights would be fully respected, and any reasonable demand made by Hongkong in that respect would be accept- -ed by the Chinese Post Office. The Chinese Postal Administration does not make the proposal with a view to obtaining any financial advantage for itself and would be willing to make any payment with- ♦in reasonable limits if demanded by Hongkong for the maintenance of the Chinese Agency and the working of mails. Precedents which support China's proposal already exist in the Union. Dutch Postal Agents are maintained at Singapore and Penang for the working of mails exchanged between the Dutch East Indies and the Union. There is at precedent even in China, namely, the Chinese Post Office at Tsingtau which is authorised by the German authorities to work its own mails.

Seeing the close relations between Hongkong and China, which suggest an intimate co-operation between their two Postal Administrations, seeing further that a Chinese Telegraph office