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COPY.
Enclosure 3.
225526
RE
Memorandum on Chinese Post Office. O MAY 15)
Chinose "Contract" Mail Stemmers.
1. The Hongkong Administration cannot recognise the so-called Chinese Contract Mail Steamers in the sense employed by the Chinese Administration.
2.
3.
Contract Packets as recognised by the Union are:-
(1) maintained by the Administration concerned by means of a
subsidy.
(2) in return for the subsidy the vessels of the contracting Company have to perform certain well-defined services; certain ports have to be called at, and the movements of the vessels are regulated by a fixed time table.
(3) the vessels of the contracting Company fly the national
flag of the Administration, which maintains them. As far as this Administration is aware none of the so-called Chinese Contract Mail Steamers are subsidised by the Chinese Government, condition (2) is not carried out by them, and with few exceptions the steamers fly foreign flags.
According to Rule (B) of Chinese Post Office mail contract copy of which is attached. "They (the Companies) undertake to refuse to carry any mail matter, foreign or Chinese other than what has been placed on board by the Chinese Post Office or the ship's om national Post Office.
4.
It is not quite clear to this Administration why the exemption is made, According to Postal Union practice the British, French, German and Japanese Contract packets make no such exemptions; all mails irrespective of origin forwarded by the above mentioned packets have to pay transit charges to the Administrations by which they are maintained.
5. Rule (b) is not carried out equitably by the Chinese Administration as the following case proves:-
e.g. British Nails for Tientsin.
6.
The circumstances of this case are as follows:-
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