Sessional_Paper_1884-1885 — Page 119

115

No. 10.

HONGKONG.

Correspondence respecting the Eastern Mail Service.

Presented to the Legislative Council by Command of His Excellency the Governor.

DOWNING STREET,

25th July, 1884.

SIR,

The Lords Commissioners of the Treasury have drawn my attention to the question of the Eastern Mail Service, with a view to the arrangements to be made upon the expiration of the present contract with the Peninsular and Oriental Steam-ship Company.

2. That contract, I would observe, will terminate on the 31st of January, 1888, if two years notice be given, and although this date is comparatively remote, the Lords Commissioners of the Treasury, in concurrence with the Postmaster General, are of opinion that the variety of the interests involved, as well as the inherent difficulties of the question, make its consideration desirable thus far in advance of the date when practical steps will have to be taken, and they have suggested that notice of the termination of the existing contract should be given, and that the subject in the meantime should be thoroughly investigated in all its bearings, paying due regard to all the different interests concerned.

3. The enclosed Extract from a Report by the Postmaster General indicates the most important of the questions which would have to be considered, but before taking any steps in the matter, I should be glad to be favoured with an expression of the views of your Government generally on the subject.

Governor Sir G. F. BOWEN, G.C.M.G.

I have, &c.,

DERBY.

*

Extract from Postmaster General's Report to the Treasury,

dated 30th May, 1884.

*

*

1. In view of the marked development in the Steam shipping trade to India and the Australian Colonies within the last few years, would it be possible to avoid giving a subsidy to any particular Company, by placing the Mail service to the East on a footing similar to that on which the Mail service to the United States will be placed under the new plan about to be brought into operation in Septem- ber next, i.e., of taking up the most efficient vessels available from time to time, and paying only for the weight of the correspondence actually carried?