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37. A scheme for the prepayment of replies to letters has been started, by the issuing of coupons, which may not be sold at a less value than 28 centimes, and which are exchangeable in countries which have adopted this scheme for a stamp of the value of 25 centimes or its equivalent. These coupons have not found favour in Hongkong only 92 having been sold up to December 31st. The reason being that most correspondence is addressed to British Possessions that have adopted the penny post.

38. It is unnecessary for cards to bear the heading "Post Card" in order to receive treatment as post cards, and the fact that a card is labelled Post Card" does not prevent it passing through the mails as printed matter, if it coutain no unallowable writing.

39. The rule absolutely excluding all merchandise, as distinct from samples, has been relaxed and widened to include specifically mentioned articles-single keys, fresh cut flowers, tube of serum and pathological specimens which have been rendered inoffensive.

TORN COVERS.

40. The number of articles received with covers torn off amounted to 1,728, of which 399 were afterwards forwarded to destination.

PROSECUTIONS.

41. During the year there were 13 prosecutions under the Post Office Ordinance, 11 for unlawfully infringing the exclusive privilege of the Postmaster General. Fines to the amount of $1,200 were paid. There were two cases of fraudulently obtaining registered letters by means of forged signature and chop.

28th March, 1908.

C. McI. MESSER,

Postmaster General.

Table I.

MAILS DESPATCHED AND RECEIVED FOR 1907.

For H. M.

For Foreign Ships of

War.

To and from Hongkong. | Ships.

Sent in Transit through Hongkong.

Steamer carrying Mail:.

Loose

Bags. Packets.

Packets.

Letter

Bags.

Bags,

Bags and l'ackers.

Boxes.

Arrivals, Departures.

Boxes.

Received 1907,

Received 1906.

80,317 8.114 83.243 3,000 1,961 7,842

2,065

7.630

6.3819 8,001

13,650 12.891

Increase.

- 2,926

Shanghai and British Postal Agencies other than through Hougkong.

14.051

IS

487

101

288

918

759

Despatched 1907,

Despatched 1906,

Increase.

Shanghai and British Postal Agencies other than through Hongkong,

74.379

7,831 1,486 67,190 7,802 1,395

6,994 0,785

6,597

55.395 5,394 49.411

7,830

7,433

14270 13.977

7.189

-

61

91

209

1,203

5.984

401

293

11,132 1,879

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