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REVENUE AND EXPENDITURE.

Table (F) contains the Revenue and Expenditure for the year compared with that of 1899. The total Revenue received in 1900 was $325,603.38, exceeding that of 1899 by $7,693.97, and the total expenditure was $235,263.08, less by $2,639.68 than that of 1899. The net balance to credit of the Hongkong Post Office on the year's transactions, as will be seen, amounted to the large sum of $90,340.25.

MONEY ORDERS.

In Table (G) will be found the Summary of the Money Order business done during the year, compared with that of the previous year. The detailed statement usually forwarded, owing to the Money Order Department, with the small staff, being barely able to keep pace with the greatly increased daily work, could not be completed in time to be attached hereto. The total amount of Orders issued and paid in Hongkong and Shanghai was $1,102,140.62, which was an increase on that of the previous year of $468,742.90. The increase in the number of Indian Regiments stationed at Hongkong will account for the larger number and amount of Indian Orders drawn in 1900.

The sales of Imperial and Local Postal Notes similarly exceeded the sales of 1899. The total of the former amounting to £6,149 178. 2d. and the latter to $6,401.50. The increased sale of Imperial Postal Notes was largely due to such being applied for to a greater extent by the Naval men on this Station, particularly as their number had of late been so much added to by the additional Ships sent out to augment the China Fleet.

GENERAL.

Owing to the troubles in North China, and the consequent despatch there of British Troops, including a large number of Indian Regiments, it can well be understood that the work of this Depart- ment was considerably added to.

The Indian Postal Administration, however, sent out along with the Troops a fully manned and equipped Field Post Office Establishment. After consultation with me, the Chief Superintendent, with my consent, arranged to open a Base Post Office in Hongkong, and to this Office everything received here for the China Field Force was to be sent at once to be dealt with. That Office having more complete knowledge of the location from time to time of the different sections composing the Force, it was also settled that it should make up into Closed Mails addressed to the different Field Post Offices, such mail matter so received, and hand these bags to the Hongkong Post Office to be forwarded to destination by the shortest route possible.

I may also mention that, at the desire of the Imperial Postmaster General, all correspondence received from the London Office addressed to the China Field Force had to be first checked by this Office as regards the sufficiency or not of the postage on each separate article, and the result of same furnished in a monthly return to the London Office. This information was required to enable the London Office to make its claim on the War Department for loss of postage sustained on such corres- pondence as was insufficiently stamped. This work, as can be imagined, took time, and meant one or more Officers having to be detached from the ordinary general work of the Hongkong Post Office to deal with such mails as promptly as possible, so as to admit of their reaching the Base Post Office early enough to allow that Office to sort the same to their proper addresses and to be ready in time to go forward in the same mail in which they reached this Colony.

I regret to state that the Convention for Partial Postal Union between this Colony and China which was sent forward for execution was not completed owing to the unfortunate troubles in China breaking out about the same time. It appears very much as if this Convention will be hung up inde- finitely. One of the Articles of the Convention would have done away with an anomaly, which cer- tainly allowed the Chinese Imperial Post Office an advantage over the British Postal Agencies in China. It was this: The Hongkong rate on letters is for all places in China (exclusive of Canton and Macao) 5 cents for each half ounce, whereas the Chinese rate is 2 cents for each quarter of an ounce or 4 cents per half ounce, I certainly think that this anomaly should cease without delay.

I have the honour to be,

Sir,

Your obedient Servant,

E. CORNEWALL LEWIS,

Acting Postmaster General.

The Honourable

THE COLONIAL SECRETARY,