Sessional_Paper_1905 — Page 272

and state its case.

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But there is enough in the presumption that such a basis of general application as that afforded by Appendix F. to make me hesitate to say that the United Kingdom should bear the whole loss, which it would have to bear if this contention of the Colonial Office were given cffect to.

18. The figure suggested for Ceylon by the Post Office is £6,633, as against £2,940, so that it that case the difference is £3,693.

In the case of the Straits Settlements the figure suggested is £7,611, as against £5,550, the difference being £2,061.

In the case of Hongkong the figure suggested is £13,131, as against £11,010, the difference being £2,121.

19. I am afraid I am not able to suggest auy principle which would be thoroughly logical, having regard to all difficulties of the case, and I am, therefore, reduced to suggesting that an arbitrary figure should be taken as a basis for settle-

ment.

20. It will be seen that the difference between the two suggestions is greater in the case of Ceylon than in that of either of the other Colonies; relatively to the respective amounts involved it is very much greater, but there is a special point in connection with Ceylon which is mentioned at the conclusion of the rejoinder of the Post Office.

21. The figures which I suggest should be taken:-

That Ceylon should pay an annual sum of £4,700, The Straits Settlements an annual sum of £6,600, Hongkong an annual sum of £11,500,

in respect of the cost of sections, and that the principles laid down in Lord Mor- ley's award as to sea sorting and incidental expenses should be applied as at pre- sent, but under deduction of the respective shares of extra receipts on Foreign Closed Mails and one half excess collected in the United Kingdom.

In order that the precise financial effect of this might be actually shown, and with the object of securing that there shall not be any room for difference of opi- nion hereafter on minor points, I append a statement showing in figures how effect should be given to my award.

This statement has been compiled for me by Mr. Johnson and Mr. King, and it is my intention that it should be taken as my award, and that the detailed figures should be shown to the Colonial Office if they desire.

The only matter not dealt with in this statement is that of the parcels which should be accounted for in detail, and should be dealt with as shown in Appendix D. of the Colonial Office case.

22. I think the sum of £10,000 by which the subsidy will be increased on the commencement of the new contract should, after deducting the proportion payable by India, be met by an apportionment on similar principles.

I think it right to say I owe much to the ability and care with which Mr. Johnson and Mr. King have put the cases of their offices before me, and to add that I have greatly appreciated the trouble they have taken to make my duty as little difficult as was possible.

To the Secretary

of the Treasury.

I am &c.,

BALFOUR OF BURLEIGH.