uestion of reducing the international letter rate
was raised by Sir J. G. Ward, the Australasian delegate. In 1901 New
Zealand had introduced a universal penny rate for letters, and the
financial results of the change had been regarded as satisfactory. The
loss of revenue was some [L]80,000 in the first year, reduced to [L]50,000
in the second. There was an increase of 35 per cent. in the number of
foreign letters posted in the first year, as compared with an increase
of 1.76 per cent. for the last year under the 2-1/2d. rate.[596]

The proposal met with strong opposition and little support. The
opposition was based entirely on financial considerations, many of the
delegates stating that their administrations were unable to face the
sacrifice of revenue involved. In this connection the term "sacrifice of
revenue" means sacrifice of gross revenue, and not necessarily that the
carrying of foreign letters at a penny would on the whole result in
actual loss through the cost of service being greater than a penny,
although it is probable that the cost of a foreign letter weighing as
much as an ounce would be slightly more than a penny.[597] The proposal
was defeated by eighteen votes to three.[598]

(II) INTERNATIONAL PARCEL POST

The Universal Postal Union as at first constituted provided only for the
transmission of what may be regarded in the broad sense as letter post
traffic. It made no provision for the transmission in the international
service of packages of ordinary merchandise. Such packets could in
strictness only be forwarded at the letter rate, which was almost
prohibitive; although frequently they were forwarded at the sample rate,
in which case the weight of the packet was strictly limited. The French
administration proposed, in the project of the Congress of Paris of
1878, to extend in that direction the facilities provided by the Union,
by amplifying the definition of samples to include small parcels of
ordinary goods,[599] a proposal which was rejected by a majority of the
administrations. It was, however, submitted to the Congress under
another form. The German administration proposed, not the extension of
the sample privilege, but the establishment of a new service, which
should provide for the transmission of parcels of general merchandise
not exceeding 3 kilogrammes in weight, the parcels to be charged a rate
of postage sufficient to reimburse the administrations for the expenses
of transmission. Alth