Postal News Reported During July 2002

July 31, 2002 -- In a letter written to the editor of the Washington Post, Postal Watch exec Rick Merritt said: "Stephen Barr's column "Postal Service Scraps Criticized Bonus Program for Upper-Level Employees" [Federal Page, July 22] left the impression that the U.S. Postal Service is cutting back on lavish "pay-for-performance" bonuses to managers and executives. Nothing could be further from the truth. The postmaster general indicated he would terminate the controversial "economic value added" (EVA) program and pay out a lump sum $300 million supposedly earned in EVA reserve accounts to managers and executives. According to the original formula used to calculate these awards, the EVA reserve accounts should be in the red by nearly $1 billion. The $300 million about to be distributed comes from an Enron/WorldCom-style cooking of the books."

July 31, 2002 -- According to the Washington Post, "The Government Printing Office (GPO) is a quiet but historic institution with a heritage dating back to Benjamin Franklin. It is responsible for printing the multitude of documents produced by the federal government, including passports, bills passed in Congress, Supreme Court rulings and the annual U.S. budget. These, along with a host of government pamphlets, are all managed by the 141-year-old GPO, which is legally mandated as the sole clearinghouse for most federal documents -- 70 percent of the work is then contracted out to private printers. But soon one of the nation's biggest publishing operations may be printing news of its own demise. All 130 federal departments and agencies using the GPO have been ordered by the White House's Office of Management and Budget (OMB) to arrange their own printing beginning Sept. 1. Can you imagine telling them to find their own mail delivery service too?

July 31, 2002 -- AFX (Europe) has reported that "Deutsche Post World Net AG warned that its full year 2002 EBITA profit will be down 10-15 pct from the year earlier and will not reach its original sales targets, after it swung into a second quarter net loss. Previously, Deutsche Post had only said it would be a major 'challenge' to meet last year's EBITA result of 2.553 bln eur, and was hoping to reach total sales of over 41 bln eur for the year as a whole. Speaking at the results conference here, management board chairman Klaus Zumwinkel said that 'we expect the EBITA to be down about 10-15 pct' from last year's 2.553 bln eur due to the weak economy. Meanwhile, sales are now seen coming in at almost 40 bln eur, compared with the previous target of over 41 bln eur. Net profit for the full year is also seen lower. The warnings come after Deutsche Post said its second quarter net profit plunged into a loss of 257 mln eur in the second quarter from a 505 mln eur profit the year earlier, due to a one-time provision to cover a 850 mln eur fine imposed by the EU commission." See also the story in the Financial Times and the Journal of Commerce.

July 31, 2002 -- Dow Jones has reported that "First Data Corp.'s (FDC) unit Western Union Financial Services Inc. doesn't believe a recent agreement between China Post and Germany's Deutsche Bank AG (DBK) poses a threat to its money transfer business in China. An agreement signed last week will connect the state-run postal service in China to the Eurogiro network using Deutsche Bank to process incoming and outgoing U.S. dollar and euro payments.

July 31, 2002 -- And more on the USPS bicycle team sponsorship from SportsBusinessNews.com

July 30, 2002 --Traffic World has reported that "the second quarter's revenue figures didn't show it but cargo divisions at the U.S. majors are showing some signs of life. While all the carriers with the exception of Northwest Airlines posted double-digit revenue declines compared with 2001, most are optimistic about the remainder of the year thanks to the ongoing turnaround in the global markets and a hint of recovery in the United States." See also Air Cargo World.

July 30, 2002 -- According to the Associated Press, "German regulators said Monday they will go ahead with price cuts in the postal service that Deutsche Post says may force it to cut 10,000 jobs and shutter 1,000 post offices. Post and telecoms regulator RegTP confirmed the plans after allowing a little more than two weeks for consultations with affected parties. The price cap covers the period running up to the end of Deutsche Post's monopoly on letter delivery in 2007."

July 30, 2002 -- The Hindu (India) has reported that "with the postal deficit rising sixteen-fold in less than a decade, the [Indian] Planning Commission has worked out an elaborate strategy to control the mounting non-developmental expenditure. Among other things, the strategy calls for fixing the prices of select postal services on a commercial basis and a freeze on fresh recruitment by the postal department."

July 30, 2002 -- The Taipei Times has reported that Taiwanese "postal rates for international letters and parcels will be higher beginning on Thursday, the Directorate General of Posts said yesterday. Postal rates for international parcels to 35 nations will be adjusted. But the rate of the increase will vary according to destination."

July 30, 2002 -- NewsInteractive.Com.Au (Australia) has reported that "an overweight postal worker had been forced on to sick leave by Australia Post despite being able to perform his duties, a union has said. The Communications, Electrical and Plumbing Union (CEPU) said the case of Richard O'Brien, 53, who weighed 177kg when he was ordered to see a doctor, showed Australia Post had appalling relationships with its employees." See also the Sydney Morning Herald.

July 30, 2002 -- The Mailers Council, a coalition of mailers and mailing associations, has urged the Senate to pass S 2754, a bill that calls on the White House to create a presidential commission to evaluate the financially-ailing United States Postal Service (USPS). Introduced by Senator Susan M. Collins (R-ME), S 2754 calls for the president to create an 11-member commission. To ensure the commission's independence, the bill would prohibit any postal stakeholders--employees, managers or competitors--from being commission members.

July 30, 2002 -- According to the Globe And Mail (Canada), "Purolator Courier Ltd., the dominant Canadian overnight courier company, is setting its sights on becoming a much bigger player in the United States, says president and chief executive officer Robert Johnson. Purolator, almost entirely owned by Canada Post, is in the process of plotting a growth strategy that would carry it far beyond its current $50-million in annual U.S. revenue, Mr. Johnson says. By pursuing niche businesses in the U.S. market, it will avoid butting heads directly with archrivals United Parcel Service of America Inc. and FedEx Corp., which have often complained about the role of Canada Post, a Crown corporation, in the courier business in Canada."

July 30, 2002 -- The Financial Times has reported that "Deutsche Post is due to deliver its second quarter numbers on Wednesday while TPG, its Dutch rival, arrives the following Monday. The two sets of numbers will emphasise the sharp differences between the two companies....TPG is expected to achieve a double digit increase in second quarter net income, while consolidation of DHL's losses and a first time tax charge will reduce Deutsche Post's profit."

July 30, 2002 -- Ananova (U.K.) has reported that "Consignia, the UK postal service, said it is not selling its overseas businesses, including the General Logistics Services (GLS) division. 'We have no plan to sell our international operations at the moment. They're not for sale,' a spokesman at Consignia said. The Observer on Sunday reported that Allan Leighton, the company's chairman, is planning to sell its business abroad in a deal that could raise about £500 million."

July 30, 2002 -- Expansion (Spain) has reported that "Correos, the Spanish postal group, yesterday announced the purchase of 100 per cent of Servipack, the express parcels company, from Vista Capital, the venture capital company in which Royal Bank of Scotland and SCH, the British and Spanish banks respectively, have stakes. Chronoexpres, the express delivery division of Correos, will absorb the acquisition. Following the operation, Correos will increase its stake in Chronoexpres from 57 to 74.23 per cent. The French post office will hold the remaining shares."

July 30, 2002 -- Advertising Age has reported that "the U.S. Postal Service decision to consolidate its ad accounts at two Interpublic Group of Cos. agencies may be challenged by two incumbent ad agencies that failed to win the consolidated business. An executive who asked not to be identified but was closely involved with the losing bidding team of Interpublic's Foote, Cone & Belding Worldwide, New York, and Publicis Groupe's Frankel, Chicago, said the agencies were planning a formal protest."

July 30, 2002 -- On Tuesday, August 6, 2002, the U.S. General Services Administration (GSA) will host a "Special Meeting on Equipment for Anthrax Detection" at the United States Department of Agriculture (USDA) in the Jefferson Auditorium. The Jefferson Auditorium is located at the USDA South Building, Independence Avenue, SW and is between 12th and 14th Street in Washington D.C. The times for the meeting are 9:00 to 11:30 AM. Please enter through the Wing 5 entrance on Independence Ave., and please help allow sufficient time to process all attendees by arriving early. Reservations are necessary -- please e-mail the names of all attendees to federal.mail@gsa.gov or call 202-208-7663.

July 30, 2002 -- The Journal of Commerce has reported that "the Customs Service may require shippers, carriers or intermediaries to transmit information on cargo electronically, according to legislative language that was included in the final version of the omnibus trade bill (H.R. 3009) that the House approved on Friday. The House approved the conference report for the bill before recessing for the summer. The Senate is expected to approve the report this week. The bill authorizes Customs through the rule-making process to require electronic information, but rather than relying on a cargo manifest, pertinent information will be transmitted by 'the party most likely to have direct knowledge of that information.'"

July 29, 2002 -- The Postal Rate Commission has issued its recommended decision approving the stipulated agreement concerning fees for the Postal Service's Confirm service (Docket No. MC2002-1).

July 29, 2002 -- According to David Rupert, vice president of the Wyoming League of Postmasters and editor of Postmasters Online, writing in Federal Times, "Mr. Potter must no longer wait for a congressional fix.  He needs to take unilateral action and take the tough public relations lumps." 

July 29, 2002 -- Unfunded pension liabilities for private companies surged to $111 billion at the end of 2001 from $26 billion in 2000, as the economy and financial markets continued to struggle, the Pension Benefit Guarantee Corp. said. The Wall Street Journal reported that "some critics said the increase underscored the need for greater scrutiny of the pension system. In a letter to Treasury Secretary Paul O'Neill on Thursday, Rep. George Miller of California, the ranking Democrat on the House Education and Workforce Committee, said the 'implications of such massive shortfalls in pension funds are staggering -- for pensioners, taxpayers and for the private companies themselves.' He urged the agency to ensure that private pension funds remain adequately funded and to make sure that the administration is properly overseeing the management of these funds and to take steps to improve oversight." And what of the Postal Service's retirement obligations?

July 29, 2002 -- The Financial Times (U.K.) has reported that "four urban post offices are set to close every working day over the next three years under plans to revamp the ailing network. The sweeping programme will start in January, according to David Mills, chief executive of the Post Office network, who has revealed the rate of closures for the first time. He told the Financial Times that the scheme to close 3,000 urban branches - a third of the urban network - would start next year at a rate of 1,000 closures a year until the end of 2005."

July 29, 2002 -- The New Hampshire Union Leader says: "Let us put aside the question of whether a monopoly like the Postal Service needs such advertising and instead ask whether, at this time of rising stamp prices and falling revenues, the Postal Service can really afford such luxuries. Answer: We don't know, because the Postal Service refuses to tell us how much it spends on the bicycle team. David Plotz of Slate magazine tried to find out, but he was told by Postal Service spokeswoman Monica Hand that this was 'proprietary information.' In other words, taxpayers have no right to know. According to the Dallas Morning News, however, the Postal Service has committed $25 million to the team 'for a three-year contract that expires in 2004.' To the Postal Service, $25 million is nothing. To you and me, it is real money."

July 29, 2002 -- And from the Wall Street Journal: "By sports-marketing standards, the Postal Service's decision in 1996 to put its brand on a start-up U.S. cycling team appears remarkably prescient -- and cost-effective. At the time, the four-year sponsorship cost $4 million. By the time the Postal Service's contract with the team came up for renewal in 2000, Mr. Armstrong had already won two Tour de France titles in his Postal Service jersey. But the new, more-costly cycling deal has been criticized by conservative politicians for being ineffective at selling stamps. (Post office guidelines bar the agency from putting Mr. Armstrong on a stamp; only the deceased get the honor.) This year, the service has begun increasingly to talk of its cycling team in morale-boosting terms. Defending the deal on ABC's '20/20,' Deputy Postmaster General John Nolan said it was an 'uplifting thing' that is 'psychic for our employees.'"

July 29, 2002 -- In India, Business Line has asked: "Has the time come for the Department of Posts to reengi neer itself? It would seem so, going by the declining trend in its scale of operations in recent times. At a time when economic activity in the country is rising, the scale of operations of the government-controlled postal services is actually shrinking. The country's postal department handled about 14,203 million articles of mail in 2000-01. But that is a good 10 per cent less than the volume of traffic it handled the previous year. Unlike the contraction witnessed by nationalised postal service, the private players are reported to have collectively grown 15-20 per cent."

July 29, 2002 -- AFX (Europe) has reported that "Germany's post and telecommunications watchdog RegTP confirmed an earlier decision that Deutsche Post World Net AG must cut postal prices in areas protected by its monopoly by 7.2 pct from 2003."

July 29, 2002 -- DM News has reported that "the U.S. Postal Service will begin a national marketing program aimed at small businesses next month, ThinkDirectMarketing Inc., the direct marketing services provider working with the USPS on the effort, said Friday. The program -- called Real People, Real Success -- involves a contest in which small business marketers submit success stories based on the use of a USPS product or service. The best success stories will win prizes including IBM computers, American Express Open gift certificates, an appearance on the PBS Small Business School television show and direct mail campaigns provided by ThinkDirectMarketing and Zairmail. This program will be featured on posters in more than 20,000 post offices through 2003."

July 29, 2002 -- According to Precision Marketing (U.K.), "Who would of thought Royal Mail would put a tax on creativity? Seemingly via the back door, Royal Mail  is proposing a new charging structure which will categorise mailpacks by size, rather than weight.At a time when direct mail could have done with some support from Royal Mail, the people who back the biggest industry award scheme seem intent on driving out creativity by putting a price on its head and charging our clients a tax for it. Maybe when another media owner steps into the mail delivery arena, we will be able to show Royal Mail the same support it is showing us."

July 29, 2002 -- According to Pro2Net.Com, "amidst Enron, WorldCom, Xerox, and other companies under federal investigation for financial fraud and accounting mismanagement, Citizens Against Government Waste turned the table on the U.S. government, questioning the $13 billion debt of the United States Postal Service....USPS should open its books to independent auditors, so the public can learn why they are headed for $100 billion in debt. Unlike Enron and WorldCom, taxpayers will end up footing the bill for USPS financial defaults. There is no valid reason for Postal officials to oppose real accountability and transparency. The American people are essentially the Postal stockholders and we have a right to find out where our money is going."

July 28, 2002 -- Reuters has reported that "Britain's struggling postal operator Consignia is planning to sell an overseas unit to raise up to 500 million pounds ($783 million) to cut debt, the Observer (Stockholm) newspaper said, citing unnamed sources at the firm. General Logistics Services (GLS), which has a majority stake in the German parcel distribution business and employs 11,000 people across a further 14 countries in Europe, has been given until next March to start generating cash for Consignia. So far it is not doing so, the Observer said. 'I would say the odds are now heavily in favour of them (GLS) going,' it quoted a senior Consignia source as saying." 

July 28, 2002 -- The Independent (U.K.) has reported that "Consignia has offered to delay a £1bn plan to part-privatise its facilities department by three months in an attempt to see off a national postal strike. The proposal was made at a heated meeting with Communication Workers Union (CWU) officials on Thursday, hours before the union was due to ballot its members on industrial action. But it is understood the union has given the postal group a two-week ultimatum to agree to concessions before it asks its 180,000 Consignia members to vote on a series of one-day walkouts."

July 27, 2002 -- The Washington Post has noted that "consumers' confidence in the economy dropped heavily from June to July as expectations about future activity plummeted, according to the University of Michigan's report on consumer sentiment. For the end of July, the consumer sentiment index stood at 88.1, up from 86.5 in the middle of the month, but down from 92.4 at the end of June. Economists had expected the index to fall to 87.0, saying consumer confidence has been recently sapped by drops in the stock market."

July 27, 2002 -- The Financial Times (U.K.) has reported that "a much-trumpeted initiative that saw the Post Office marketing stakeholder pensions throughout its branch network on behalf of Standard Life has spluttered to a halt, with just 2,000 sold in the past 15 months. The figures show the life assurer sold an average of one pension for every nine branches of the Post Office's 18,000-strong network. Most sales took place in the weeks immediately after the launch of stakeholder pensions in April last year. It is understood that new sales throughout the entire UK post office network are now running at barely a dozen or so each week."

July 27, 2002 -- The Federal Times has reported that "though many critics of the U.S. Postal Service’s bonus plan were glad to hear Postmaster General John Potter announce July 19 that it was being scrapped, they say the real challenge now will be coming up with an improved substitute....The Postal Service continues to insist the plan is valid and is being scrapped because Congress and the public misunderstood it. Indeed, Postal Service officials say the Economic Value Added (EVA) component of the plan has resulted in measurable improvements in customer satisfaction, service, productivity and safety....The Postal Service has yet to develop a replacement program to grant raises or reward performance of salaried managers and executives. That will be done over the next year and take effect in October 2003." Of course, the Citizens Against Government Waste have an alternative view of the scrapping of EVA.

July 27, 2002 -- According to the Washington Post, "officials with the U.S. Postal Service and public health agencies told a congressional committee yesterday that they believe the Brentwood postal plant could be safely reopened several months after this summer's planned decontamination, but some postal workers in the audience said they would be wary of returning to the quarantined facility." The Associated Press also has reported that "The huge mail processing center in the nation's capital that was tainted by anthrax last fall probably won't reopen before 2003. Even after the 17 million cubic-foot facility receives a clean bill of health as early as the fall, it will be closed for renovation for several additional months."

July 27, 2002 -- According to the Salt Lake Tribune, "when Lance Armstrong joined the U.S. Postal Service cycling team in January 1998, most people who noticed thought it was another bad move by an agency with a reputation for making them....Many people disagree. Last week, in an Internet straw poll, America Online asked viewers how they felt about the Postal Service sponsoring a cycling team. Of 32,327 responses, 72.5 percent (23,452) favored the alliance with Armstrong, compared with 27.5 percent (8,875) who thought 'the money should be used to help keep the cost of mail down.'" The USPS Postal Service also has vigorously defended its Tour de France sponsorship in letters written to ABC News chief Roone Arledge and to the editor of the Los Angeles Times.

July 27, 2002 -- The Associated Press has reported that "President George W. Bush is nominating James Miller, a former Reagan-era budget director and Federal Trade Commission head, to the board of governors of the U.S. Postal Service. Miller was the head of the Office of Management and Budget under former President Ronald Reagan, from 1985 to 1988. From late 1981 to 1985, he chaired the FTC after a brief stint as associate budget director. He now is affiliated with Citizens for a Sound Economy, a group that advocates lower taxes and less government."

July 27, 2002 -- The International Center on the Hearing of Disputed Claims of the World Bank has announced that the hearing on the objections to jurisdiction filed by the Government of Canada in the UPS v. Canada case is scheduled to take place before a three-member arbitral from 10:00 a. m. on Monday and Tuesday, July 29-30, 2002 (and possibly on Wednesday, July 31, 2002). This case has been initiated under Chapter Eleven of the NAFTA and is governed by the UNCITRAL Arbitration Rules. ICSID has accepted to administer the hearing on jurisdiction. The parties have agreed to make the proceedings open to the public. 

July 26, 2002 -- AdWeek has reported that "the Interpublic Group team of Campbell-Ewald and DraftWorldide has prevailed in the review for the U.S. Postal Service's $100 million account. The selection had been expected. C-E in Warren, Mich., and Chicago-based DraftWorldwide will form 'a single entity' to service the business, according to Larry Speakes, manager of postal advertising." See also the Postal Service's announcement. Congratulations to PostCom member DraftWorldwide!

July 26, 2002 -- The International Herald Tribune has asked: "How come the U.S. Postal Service (that is, the Post Office) sponsors a pro bicycle racing team? . This is an outfit that lost $1.6 billion last year, that has accumulated debts of $13 billion, that will receive more than $76 million from the U.S. Treasury in 2002 and that expects still greater losses this year despite having just raised the price of a first-class stamp from 34 to 37 cents. And they have the money to sponsor a pro bicycle team?"

July 26, 2002 -- Ananova (U.K.) has reported that "delivery firms granted licences to compete with the Royal Mail have been given permission to increase their business in the event of industrial action by postal workers. Industry regulator Postcomm has modified licences awarded to Hays Commercial Services and TNT. It will allow them to carry out a wider range of activities for existing business customers if there is a strike. Postcomm has also started consulting on whether to issue a short-term licence to TPG Post UK, a subsidiary of Dutch postal operator TPG, to compete with the Royal Mail."

July 26, 2002 -- Reuters has reported that "Dutch postal, express and logistics company TPG NV has said its British unit had applied for an interim licence to deliver bulk mail in the United Kingdom. 'The interim licence will enable TPG Post UK to start a pilot service this year, prior to the launch of activities under a full-term licence in 2003,' TPG said in a statement. TPG, which also operates under brand name TNT, ranks among the world's largest logistics companies. In May, it said it was studying expanding its operations in Britain, Europe's second largest mail market." See also the report by Dow Jones.

July 26, 2002 -- The TimesOnline has reported that "Despite the death of an area woman killed retrieving her mail, the U.S. Postal Service does not plan to move village boxes requiring residents to cross county roads." Wanna make a bet this one is over yet?

July 26, 2002 -- The Warsaw Voice has reported that "the French La Poste and Swedish Posten AB companies will jointly develop the Polish courier company Masterlink Express."

July 26, 2002 -- Business Day (South Africa) has reported that "corruption has been a serious problem for the SA Post Office for decades, leading to the loss of millions, if not billions of rands. It was so prevalent that last year Communications Minister Ivy Matsepe-Casaburri appointed an international investigative and forensic firm, Kroll & Associates, to look into financial irregularities at the division. Management of the SA Post Office also called in the elite Scorpions crime-fighting unit after uncovering widespread financial irregularities and instances of corruption last year. It undertook a review of all contracts with outside suppliers, some of which were found to be fraudulent."

July 26, 2002 -- Le Monde (France) has reported that "French prime minister Jean-Pierre Raffarin announced yesterday that the new government would not allow French national electricity provider EDF to increase its prices on August 1. National postal services group La Poste is also thought to have been refused a price increase this year."

July 26, 2002 -- And...elsewhere on the wires:

• An adviser to Japan's Prime Minister Junichiro Koizumi on Thursday suggested that it would be difficult to fully privatize Japan's gigantic postal services. A planned public postal corporation should eventually be transformed into an entity with part of its equity held by the government. (Asia Intelligence Wire)
• The Japanese Diet has enacted government-sponsored bills to reform the state-run mail services with only minor changes, allowing Prime Minister Junichiro Koizumi, who submitted the legislation without winning a blessing from his Liberal Democratic Party, to avoid losing face. The bills, however, were in effect made toothless before they even reached the parliamentary floor because Koizumi made too many concessions to LDP politicians who work to serve the interests of post office employees resolutely opposed to any major reform. Few now expect the legislation will lead to serious private competition to public mail services as it purports to do. (Nihon Keizai Shimbun)
• The prospective Japanese mail-delivery market will be divided into two categories, one for nationwide delivery of ordinary mail and another for express messenger services in specific areas. Various courier companies with a fleet of motorcycles and bicycles appear to be interested in launching an express mail service. The new legislation requires entrants into the express messenger mail-delivery market to charge a minimum of 1,000 yen per delivery. (Nihon Keizai Shimbun)
• British Royal Mail chiefs yesterday admitted not one Scots household has agreed to shell out for early post. The trial of the pounds 14-a-week early delivery charge was aimed at finding out whether the Royal Mail could rake in extra cash. (Europe Intelligence Wire)
• DHL Airways, Inc., the U.S. all-cargo airline that provides domestic and international air transportation for the DHL Worldwide Express network, announced that Gary Hammes has joined the airline as Director of Maintenance and Engineering. Mr. Hammes will head his organization at DHL Airway's hub in Cincinnati.

July 25, 2002 -- AFX has reported that "Deutsche Post World Net AG's profits derived from its monopoly on stamps may be more than 25 pct of sales and are so high it even subsidizes some activities of its Postbank unit, according to Martin Hellwig, chairman of the independent Monopoly Commission."

July 25, 2002 -- The Straits Times (Singapore) has reported that "history was made in Japan yesterday with the passage of a package of reform Bills by the Upper House that nominally ended 130 years of official control over the country's postal services. But the reforms, much touted by Prime Minister Junichiro Koizumi, will not bring about the sweeping changes that private businesses had hoped for."

July 25, 2002 -- CEP News (Courier- Express- and Postal-Market News) has reported that:

• On 15 November the Belgian post will introduce a new tariff system intended to offer customers lower prices and simpler procedures. The most important changes: in future customers will be able to choose between Prior, i.e. next-day delivery, and Non-Prior, which stands for delivery within three days. Postage rates for standard Prior letters will go up from 42 to 49 cent, while the price for Non-Prior mail drops to 41 cent. Furthermore standard letters may weigh up to 50 grams in future and the 20-50 gram category is abolished. The total number of tariffs will be reduced by more than half from currently 195 to 95.

• The Belgian post intends to achieve a 15% reduction in administrative costs by 2007. Other goals involve the quality of services, which is to be improved e.g. by offering graded letter services and a new tariff structure. The post also intends to use its branch network as a merchandising chain for banking and insurance products as well as for local services to a larger extent than at present.

• The Hungarian national post is getting into the red this year. The company claims the setback in results was caused by payments to the government and minimum wage hikes.

• From 2003 the current approx. 5,200 Hermes parcel shops will be able to collect parcels from the public for delivery in Germany within two days.

Check out the latest issue of CEP News for the details on this and other news items affecting the courier, express, and postal market around the world. PostCom is most grateful for CEP's willingness to share this information.

July 24, 2002 -- According to AdWeek, "the U.S. Postal Service is in negotiations with Campbell-Ewald and DraftWorldwide and is expected to award its $100 million account to the Interpublic Group team following a lengthy review."

July 24, 2002 - Dow Jones has reported that the Japanese "Parliament on Wednesday enacted a set of bills to turn the Japan's Postal Services Agency into a state-run corporation and allow private firms to enter the mail delivery business." See also the Nikkei news service and Bloomberg.

July 24, 2002 -- According to the Journal of Commerce, "United Parcel Service said it expects to regain much of the domestic business it lost to other carriers before settling on a new contract with the Teamsters union." See also Hoovers Online.

July 23, 2002 -- Le Monde (France) has reported that "La Poste is calling for a rise in the price of postage stamps. It argues that the standard stamp price has remained at 46 euro cents for several years, while La Poste's accounts for 2001 and the first half of 2002 have proved disappointing. Furthermore, it argues, the need to build up cash reserves has been increased by the prospect of the liberalisation of the postal services market in 2006. Accordingly, La Poste is alleged to have asked for the price of a basic postage stamp to be raised to 50 euro cents during its talks with the French government on the terms of La Poste's new multi-year plan."

July 23, 2002 -- USPS International Business vice president Jim Wade has appointed Jane Dyer as the manager for global package services. Her responsibilities will include consolidating package growth strategies that were previously focused separately as import or export business opportunities.

July 23, 2002 -- In a letter to the editor of the International Herald Tribune, James P. Wade, Arlington, Virginia, vice president, international business for the United States Postal Service said that "the start-up problems we experienced with General Logistics Systems have now been resolved. We are now providing a more efficient pan-European parcel delivery service than before."

July 23, 2002 -- This Is London has reported that "the chairman of troubled postal group Consignia says the company will continue to make losses of £1.5 million a day for the next three years. Allan Leighton also said he did not believe the service should be privatised, adding that he was 'confident' his business plan would turn the company's fortunes around." See also the Financial Times.

July 23, 2002 -- AFX (Europe) has reported that "Express Dairies PLC's milkmen will start delivering post on their milkrounds after the company was granted a postal licence by the Postal Services Commission. In a statement, the company said the licence is for an initial 12-month period. Express will use its urban delivery network of 106 depots and 3,500 milkrounds to deliver up to 4.6 mln items of bulk mail from business senders to households."

July 23, 2002 -- The Arab News has reported that Saudi "Planning Minister and Acting Minister of Posts, Telegraphs and Telephones Khaled Al-Gosaibi launched a user friendly website of Saudi Posts on the Internet on Sunday."

July 23, 2002 -- The Appeal-Democrat has reported that "seventeen jobs may be eliminated from the Marysville Processing and Distribution Facility under a cost-cutting plan the U.S. Postal Service is considering.The proposed changes would discontinue the facility's outgoing mail services and consolidate them into a postal processing plant in West Sacramento, said Kenneth Haywood, senior plant manager of the Postal Service's Sacramento district."

July 22, 2002 -- CNET.com has reported that "PayPal users will be able to buy and print U.S. postage from their accounts, thanks to a deal the company has signed with Stamps.com. PayPal's main service allows consumers to buy and sell products online without using credit cards or checks. The postage service will be part of PayPal's shipping feature, launched in June. It will allow sellers to calculate the exact amount of postage required and print a shipping label with the buyer's information. Another feature will allow sellers to verify delivery of their shipments online."

July 22, 2002 -- Cleveland's National City Bank has given its customers a great reason to shrug at postal rate increases. That's because starting in September, all non-business customers can use National City online bill pay for free. National City consumer customers can pay virtually anyone in the U.S. anytime, from anywhere there's Internet access free of charge starting Sept. 1 by registering at http://www.nationalcity.com - no stamps, no envelopes, no trips to the post office.

July 22, 2002 -- The Washington Post has reported that "Postmaster General John E. Potter has abolished a controversial bonus program for Postal Service executives and asked management groups to help him devise a new compensation system in the coming year. Potter announced the end of the bonuses in staff meetings Friday at postal headquarters. The EVA program -- for 'economic value added' -- was part of a pay-for-performance system covering more than 80,000 postmasters, supervisors and management employees."

July 22, 2002 -- The Telegraph (U.K.) has reported that "Consignia is planning a radical management shake-up with the aim of saving the post office group more than £50m a year. Consignia's chairman, Alan Leighton, announced the proposals to senior management last week, but as yet there are no figures on the number of managers to be axed. The plans are for Consignia to slim down its 18 operating divisions to just two subsidiaries, under an umbrella company called Royal Mail Holdings. The group, which plans to change its name back to Royal Mail, is currently losing more than £1m a day. The subsidiaries, Royal Mail and Post Office Limited, will take care of postal and letter services at home and abroad, and counter transactions respectively."

July 21, 2002 -- The Ely Daily Times (NV) has trumpeted that "don't think the downtown Ely Post Office is gone and forgotten. Sen. Harry Reid certainly hasn't forgotten it. On Tuesday, according to Reid's Washington, D.C., office, during the Senate Appropriations Committee's mark-up of the appropriations bill for the Treasury Department, general government and U.S Postal Service, Reid inserted a new proviso which will require the Postal Service to justify -- and reconsider -- its action." Gee, a Member of Congress interfering in what should be a standard business operating decision. What a surprise!

July 21, 2002 -- According to Traffic World, "it's going to cost a unionized freight carrier with 20,000 Teamsters (such as Roadway Corp. units Roadway Express and New Penn Motor Express) an estimated additional $60 million a year to match the increases given UPS Teamsters. That's far more than the Big Four unionized carriers earned in profits all last year."

July 21, 2002 -- The Independent has reported that "workers at Consignia are threatening to stage a national postal strike over a £1bn plan to sell part of its facilities department to construction group Balfour Beatty. The Communication Workers Union (CWU) is this weekend preparing to ballot its 180,000 Consignia members over industrial action that could lead to a series of one- day walkouts next month."

July 20, 2002 -- As ABC's John Stossel has noted, "this month, for the fourth straight year, it looks as if Lance Armstrong could win the world's most prestigious bike race — the Tour de France. If you watch the race, you may notice on his jersey the name of his team's sponsor: the U.S. Postal Service. I'm happy for Armstrong, but why is the post office sponsoring him? It's a monopoly. No one is allowed to directly compete with them. I could go to jail if I tried to put things into private mailboxes or even a newspaper. Why is that?"

July 20, 2002 -- Then, of course, there's the reader of the Los Angeles Times who wants to know what the big deal about the Armstrong sponsorship is all about. He wrote the Times: "Regarding "Check's in the Mail" [July 17], why is [the LA Times] giving press to a man as stupid as...[the complainant]? He is upset that the U.S. Postal Service is spending .04% of its annual budget to sponsor the No. 1 cyclist in the world, Lance Armstrong, and his team. Yes, that's .04% not 4%."

July 20, 2002 -- The U.S. Postal Service has announced several pay and compensation actions affecting more than 80,000 postmasters, supervisors and managers following the conclusion of the pay consultation process with its management associations.

July 20, 2002 -- The Guardian (U.K.) has reported that "headhunters employed by Consignia, the troubled Royal Mail and Post Office group, will this weekend begin the search for the executive needed to fill one of the toughest jobs in British business. The state-owned organisation, which has been losing £1.2m a day, is seeking a new chief executive to replace John Roberts who last month announced his intention to retire later this year."

July 20, 2002 - - Dow Jones has reported that "the privatization of state-owned retail bank Postabank will begin in the spring of 2003, and the bank will be sold as a whole to a strategic investor, most likely a foreign bank, Gyorgy Csaki, chairman of the postal service Magyar Posta, said Friday. The state-owned Magyar Posta owns more than 99% of Postabank."

July 20, 2002 -- The Frontier Post (Pakistan) has reported that Pakistani "Federal Minister for Communications and Railways Lt. Gen. (retd) Javed Ashraf Qazi Friday said that the government was endeavouring to provide latest postal faculties to the people and for this purpose the department is being developed on modern lines.He was speaking at a meeting of the Pakistan Post Department held here, in which matters regarding quick delivery of post and upgradation of the department were discussed in details."

July 19, 2002 -- According to CBS Marketwatch, "in spite of all the conveniences banks provide account holders over the Internet, only 25 percent of U.S. households are clicking online with their checking accounts. But at some point, banking online will be unavoidable. Many institutions -- Citibank, Chase, Bank of America and Wells Fargo -- continue to squeeze administrative costs by coaxing customers to the Net with electronic offerings. Going forward, their persuasion could turn into pushing. Banks are not just trying to gain new customers online. Armed with recent regulations that permit financial companies to provide banking, insurance and investments under one umbrella, they're seeking to move existing customers to the Web and then share household information with affiliated companies that cross-sell additional products to these customers."

July 19, 2002 -- The Irish Times has reported that "the [Irish] Government has entered talks with An Post to increase the '40 million fee paid to the company to deliver social welfare payments, it is understood. With An Post projecting a '37 million deficit this year, it argues the fee should rise because it has not risen since 1996 and that the contract is loss-making. In a report yesterday, a Government-appointed group said a 'realistic' price should be set for the social welfare service."

July 19, 2002 -- The Communications and Information Agency of Uzbekistan is inviting submission of Proposals from interested U.S. firms which are qualified on the basis of experience and capability to conduct a feasibility study to examine modernizing Uzbekistan's postal facilities using Internet and IT technology. The proposed Postal Modernization project is intended to facilitate the provision of postal and financial services and thoroughly modernize Uzbekistan's existing postal facilities. It is anticipated that banking services would be provided by the Uzbek Communications Bank, which would obtain all necessary new banking licenses. In addition, the Project envisages the installation of Internet facilities for the public's use, at nominal charge, at over 3,300 post office locations. During the proposed implementation of the Project, a total of three thousand and forty four post offices and two hundred regional postal centers will be automated. In each facility, postal services based on computer technologies will be established and will become centers of banking and communications for the population including telephone, fax and Internet.

July 19, 2002 -- The Was hington Post has reported that "Don Logan, chairman of Time Inc. and its 140-magazine empire, will head a new Media & Communications Group, which will include America Online, Time Inc., Time Warner Cable, the AOL Time Warner Book Group and Interactive Video unit." Check also the Post's profile on Don Logan.

July 19, 2002 -- CNN has reported that "in a shift from its position 24 hours earlier, the U.S. Postal Service said Thursday it had decided to meet with the Justice Department to discuss Operation TIPS, a government plan to encourage U.S. postal workers to report suspicious activity as part of the government's war on terrorism."

July 19, 2002 -- DM News has reported that "the House Appropriations Committee criticized the U.S. Postal Service yesterday for failing to get its expenses under control, but mailers fired back that Congress is part of the problem."

July 19, 2002 -- Senator Susan Collins (R-ME) has introduced bill S2754 calling for the creation of a Presidential Commission on the United States Postal Service. The 11-member commission would exclude any postal or postal competitor employee, any union  member representing the USPS or its competitors, or any PRC member. The commission would meet not later than 90 days after the date the commission members have been appointed.

July 19, 2002 -- Cargoweb News has reported that "Mail, Express and Logistics company TPG N. V. has announced that through its division TNT Express, it has entered into a 6-year co-operation with Correos de Chile, the Chilean Post Office, to develop new international and domestic express delivery services under shared brands for the Chilean market."

July 19, 2002 -- The Warsaw Business Journal has reported that "the French postal service La Poste, has purchased a 50% stake in Masterlink, a courier company specializing in deliveries to urban areas and Scandinavian countries. So far Masterlink has been owned by the Swedish company Posten AB. This change of ownership means that the company will join Europe’s second largest private postal and logistics group."

July 19, 2002 -- MSN has reported that "ADVO, Inc. has announced, the signing of a new, five-year agreement with the Connecticut Post, a MediaNews Group, Inc. property. The agreement provides for the combined distribution of ADVO's direct mail advertising package with advertisements from the Connecticut Post, to offer clients in Southern Connecticut more efficient and effective distribution of advertising materials. Under terms of the agreement, ADVO will distribute a direct mail package of advertising, including advertisements from the Connecticut Post, to all non-subscribers of the Post in the Southern Connecticut market. The Connecticut Post will distribute a similar package weekly to its subscribers through newspaper delivery. Scheduled to begin in September, the packages will be issued in a co-branded Connecticut Post - ShopWise wrap. MediaNews Group, Inc. and ADVO are also currently partners in a successful program in the Denver market."

July 19, 2002 -- The Perspective has reported that "KLM Dutch Airlines and Ghana Airways have made good on their recent threats to return unforwarded mails and parcels kept in Ghana for the last two months to their Liberian senders in Monrovia if the Liberian government of President Charles Taylor did not pay-off carrier fee arrears to the two airlines totaling some $306,000. Reports from Monrovia say the Liberian Postal Service begun collecting receipts from original senders of parcels and registered letters to them, but it was not clear how persons who mailed unregistered letters or parcels will get their back."

July 19, 2002 -- DeHav illand (U.K.) has reported that "the [British] Communication Workers' Union has welcomed a new venture to be launched by Lord Sawyer in London on 19 July, which aims to allow union representatives to have a say in how managers are trained for the first time. The London initiative follows recent launches in Scotland and the Midlands, which unfortunately came too late for Birmingham postman Jermaine Lee who committed suicide in 1998 after being hounded by Royal Mail bosses."

July 19, 2002 -- The Hindu Business Line (India) has reported that "the formal process of throwing open the country's postal service to competition from the private sector is now well and truly launched. A Bill to amend the Indian Post Office Act, 1898 introduced in the Lok Sabha towards the end of the Budget session last, sows the seeds for this outcome. Far from cementing the Government's monopoly privilege on postal services as the objects clause contends that it does, the Bill actually provides a framework for the exact opposite."

July 19, 2002 -- The Journal of Commerce has reported that "Danzas AEI Intercontinental has named Arthur G. Arway as security director for the Americas. Arway, a 30-year veteran of corporate security and law enforcement, will direct the forwarder's security procedures throughout The Americas. Most recently, he served as senior corporate security and human resource consultant for Imagistics International, a subsidiary of Pitney Bowes."

July 18, 2002 -- The Ass ociated Press has reported that "the Postal Service has decided not to take part in a government program touted as a tip service for authorities concerned with terrorism, but which is being assailed as a scheme to cast ordinary Americans as 'peeping Toms.'"A smart move!

July 18, 2002 -- The Federal Times has reported that "the U.S. Postal Service’s freeze on new construction, ongoing since March 2001 and with no end in sight, is bound to harm the agency’s effort to increase mail volume, postal observers say. The Postal Service imposed the freeze on 800 construction projects said to be worth $1 billion in an effort to close the $2 billion to $3 billion shortfall it said it was facing last year."

July 18, 2002 -- The Guardian (United Kingdom) has reported that "Consignia has angered customers by quietly introducing increases of up to 20% in some charges and giving its outgoing chief executive a 30% rise in his annual pension Entitlement."

July 18, 2002 -- Business Times (Malaysia) has reported that "POS Malaysia Bhd [the Malaysian post office], eager to venture into revenue making businesses that complement its postal services, has emerged with a colourful marketing tool for its corporate clients. Companies can soon advertise their products on full colour utility bills or bank statements, processed by its subsidiary Datapos (M) Sdn Bhd.  Datapos provides bulkmailing services, namely processing of bills and statements for banks, direct selling companies, telecommunication companies and utility providers.

July 18, 2002 -- DM News has noted that "two former U.S. Postal Service executives have started an unnamed company offering delivery services in major cities in Latin America, Mexico and the Caribbean. John Kelly, former president/CEO of the USPS' former expedited and package services division, will be president of the new company. James Grubiak, former USPS vice president, international business, will be vice president of sales and marketing. The company likely will be named SkyPost. LanChile, which is an investor in the company and is Chile's largest passenger and air cargo carrier, is handling air transportation. Sky Net Worldwide Express, LanChile's international distribution and logistics division, is offering a hand-delivery network in the region and eventually will provide fulfillment and call center operations for the company."

July 17, 2002 -- Stamps. com has announced that it has received commercial approval from the U.S. Postal Service for NetStamps(TM), a new form of PC Postage(R) that can be used just like regular stamps. Stamps.com is the first and only PC Postage vendor to receive approval by the Postal Service to offer this new form of postage. Approval for NetStamps follows years of development effort, including a six-month beta field test. Available immediately as a feature of the Stamps.com service, NetStamps gives customers the flexibility to print sheets of postage in any denomination and for any mail class. In addition, NetStamps postage is not tied to either a destination address or a mail date, allowing the postage to be printed now and saved for later use.

July 17, 2002 -- Reuters has reported that "the emerging market for homeland security looks like a gold mine for defense companies and other contractors, but industry is reluctant to rush in unless government protects it from multi-billion-dollar lawsuits that could follow another terror attack. Northrop Grumman Corp. President Ron Sugar last month told lawmakers his company would be wary of bidding for new homeland security contracts unless the government was willing to cover potential losses not covered by insurance. Northrop did a pilot program to modernize mail handling by the U.S. Postal Service, but is holding off on a second phase to install biohazard detection equipment, unless the government agrees to indemnify it."

July 17, 2002 -- The Copenhagen Post has reported that "if you can't beat 'em, join 'em: Post Danmark has made a decisive investment that may, in large part, determine the future of the ubiquitous red post box and uniformed deliverer. With a DKK 70 million investment in 'E-box,' the national postal service has taken its final step in the direction of regular electronic-post delivery. As business daily B rsen reported last Friday, Post Danmark has sat in the proverbial wings and watched as internet and email communication avenues ate a substantial part of the postal service's core customer base. With its investment in E-box, Post Danmark hopes to defeat its potential enemy by becoming an ally. By the beginning of 2003, Post Danmark will offer its customers the possibility of sending electronic letters rather than traditional letters via post."

July 17, 2002 -- Reuters has reported that "the Teamsters Union and United Parcel Service (NYSE:UPS - News) on Tuesday announced a tentative contract that would raise pay by $5 an hour over six years, averting a repeat of the crippling 1997 strike at the delivery giant. The deal will also add 10,000 union positions over the life of the contract and provide for further wage increases if inflation runs above 3 percent annually." See also the report by Bloomberg and the Journal of Commerce.

July 17, 2002 -- Handelsblatt (Germany) has reported that "Deutsche Post AG will not be allowed to make a compromise solution to the repayment of 572 million euros in what the European Union Commission has judged to be illegal subsidies."

July 17, 2002 -- The International Herald Tribune has reported that "American e-commerce companies that believed the World Wide Web translated into a planet full of potential customers are finding their businesses to be much more provincial these days. Online merchants have been quietly cutting back on sales to foreign customers rather than expose themselves further to credit card and shipping fraud."

July 17, 2002 -- According to Jane' s, "there are growing concerns in Europe that the US government's support of its airline industry, following 11 September, could soon be putting European carriers at a competitive disadvantage."

July 17, 2002 -- The Associated Press has reported that "millions of Americans -- from utility workers to ship captains -- would be asked to watch for suspicious activity and report it to the government under a program being organized by the Justice Department. Operation TIPS -- Terrorism Information and Prevention System -- drew prompt criticism from civil rights advocates, forcing government officials to deny that it would result in Americans spying on each other." Beware the postal Stasi. 

July 17, 2002 -- U.S. Postmaster General Jack Potter has announced the selection of two new officers, Lee Heath as Chief Postal Inspector and Sylvester Black, as vice president, Area Operations, Western Area. Heath served most recently as deputy chief inspector, Field Operations, East. Black's last assignment was manager, Capital Metro Operations.

July 16, 2002 -- The Australian has reported that "an Australian Post worker penalised $3000 in wage rises for refusing to remove personal photos from her desk can appeal against the decision before an independent arbitrator. Australia Post spokesman Gary Highland said under a union-negotiated workplace agreement, employees could appeal penalties before arbitrators nominated by the Australian Industrial Relations Commission (AIRC)."

July 16, 2002 -- The Journal of Commerce has reported that "international airfreight tumbled nearly 7 percent in 2001, according to World Air Transport Statistics 2002, the annual review published by the International Air Transport Association. IATA described 2001 as the worst year in the history of air transport."

July 16, 2002 -- Les Echos (France) has reported that "the French post office (La Poste) saw the number of wildcat strikes by its employees fall ten-fold in 2001, while the incidence of local industrial disputes fell by 60 per cent. La Poste has hailed these results as its best in a decade."

July 16, 2002 -- The Swedish postal service, Posten, "welcomed 7-Eleven as the latest company to join its service network. A partnership agreement has been reached enabling 7-Eleven customers to perform routine postal transactions at all of the chain's 62 locations. 7-Eleven will offer domestic and international stamps, various types of postage-paid envelopes, as well as access to postal collection boxes."

July 16, 2002 -- The Jap an Times has reported that "Japan's mail and postal savings services in fiscal 2001 recorded profits for the first time in four years, the Public Management, Home Affairs, Posts and Telecommunications Ministry said Friday. Mail services, including door-to-door parcel delivery, registered profits of 8 billion yen in the year that ended March 31, against losses of 10 billion yen the previous year. Revenues from the mail business dipped 1.6 percent to 2.21 trillion yen, while expenses dropped 2.3 percent to 2.19 trillion yen. The Postal Services Agency cut personnel costs by 20 billion yen in the reporting year, more than offsetting a decrease in the number of letters and parcels handled by the agency amid fierce competition from private firms. Mail services are expected to see profits of 1 billion yen in the current fiscal year."

July 16, 2002 -- According to the BBC:

• People living in parts of Plymouth [England] will be getting a reduced postal service as from today, as the Royal Mail goes ahead with controversial cost-cutting measures. Residents living in areas with a PL5 or PL6 postcode, will no longer get a second post. And, if they want a letter to be delivered to their home before 9am, they will face a charge of £14. The alternative for residents is to collect their mail themselves from the delivery office, which would be free of charge.

• Co nsignia, the loss-making UK postal group, has received a £1.9bn cash boost from the government on the day it detailed plans to turn itself around. The company will now have access to £1.8bn in dividends it has paid the government over several decades. The government will also forego its dividend for the 2001-2 financial year - a concession worth a further £64m.

• BB C News Online takes a closer look at Consignia's situation, and assesses its chances of fending off bankrutpcy.

Just watch. When it's the USPS' turn, it'll be "deja vu all over again."

July 16, 2002 -- As The Guardian (U.K.) has noted, "if language is a weapon, Consignia deployed it tactically last week, when it announced that, from today, it is to scrap second deliveries. In reality, what Consignia is scrapping is first deliveries, the pre-9am post that (in another example of newspeak) it has come to call 'early' instead of 'first'. The words 'half' and 'baked' come to mind."

July 15, 2002 -- The Journal of Commerce has reported that:

• Deutsche Post AG and the German government Monday defended current mail prices as questions resurfaced about whether they should be lower. The partially-privatized mail company and the Economics Ministry said Monday postal-price rules extended by the ministry for roughly two years until the end of 2002 were valid. A leading German business group has challenged the extension and demanded repayments for letter costs in an ongoing court case. See also the report by Dow Jones.

• Contract talks between United Parcel Service and the Teamsters union intensified over the weekend as the two sides race to reach agreement before the current pact expires July 31. As worried customers take their business to competing carriers, UPS said it offered the union a new contract proposal that would substantially increase the benefits, pension and wages of its 230,000 Teamsters employees. See also the UPS press release.

July 15, 2002 -- Officials from Federal Express Corp., a subsidiary of FedEx Corp. and Airbus Industrie have signed a definitive purchase agreement for FedEx Express to acquire the A380-800F, the new high-capacity, long-range aircraft.

July 15, 2002 -- Business Week has reported that:

• Just as online retailers are finally starting to make profits, a price war is breaking out that could send them back into the red. Deep discounts and wide-open free shipping offers could harm e-tailers' performance, especially if they drag on for months or become permanent.

• UPS Execs share the kind of gritty life experiences of some workers.

July 15, 2002 -- The Scotsman (U.K.) has reported that "in an astonishing act of corporate honesty, the chairman of Consignia - soon to revert to its old name of Royal Mail - did a 'Ratner' yesterday, admitting his company was a 'chronic failure'. Allan Leighton admitted that 'you cannot imagine a company which is a monopoly, which has £6 billion of sales and manages to lose £1.2 million a day'."

July 15, 2002 -- The Asbury Park Press has reported that "New Jersey's health commissioner is assembling a task force to review the legal transport of deadly pathogens by the post office and commercial carriers."

July 15, 2002 -- According to the Pacif ic Business News, "local businesses are refusing to give the new postal rates their stamp of approval and instead are looking for other ways to move merchandise to and from Hawaii."

July 15, 2002 -- [Editor's Note: We're going to take up a practice we have not done in quite some time, i.e., the welcoming of new members.] The Association for Postal Commerce would like to welcome its two newest members: (1) Siemens Dematic Postal Automation. L.P., 2910 Avenue F East, Arlington, TX 76011-5214, http://www.pa.siemens-dematic.com and (2) Symbol Technologies, One Symbol Plaza, Holtsville, New York 11742-1300, http://www.symbol.com. PostCom...representing those who support a viable, universal mail delivery system. Watch us grow!

July 15, 2002 -- According to postal commentator Gene Del Polito writing for Direct magazine, "it's time our industry behaved as an industry rather than various disparate parts if we expect our views to be transformed into policy."

July 15, 2002 -- WTOP Radio has reported that "U.S. Postal workers from D.C.'s Brentwood facility plan to sue the federal government, accusing the government of not doing enough to protect them from anthrax."

July 15, 2002 -- As the Econo mist has noted, "at the centre of [Japanese Prime Minister] Mr Koizumi’s programme, in which much-needed financial reform was to loom large, was privatisation of the post office, which not only delivers the mail but acts as the world’s largest bank and largest insurer, stifling competition in both areas and limiting the development of Japanese finance. However, over the past few weeks the old guard at Mr Koizumi’s Liberal Democratic Party (LDP), which has ruled Japan for decades, has watered down both post-office reform and other financial changes so much as to make them virtually meaningless."

July 15, 2002 -- The International Herald Tribune has reported that "As the scandals on Wall Street rattle world markets, few places are likely to feel the aftershock as sharply as Europe, where a loss of investor confidence threatens to undermine the tenuous development of an American-style "equity culture" and slow a market-driven restructuring of the corporate sector. As a crisis of confidence spreads, analysts worry that the collapsing prices of European shares sold to the public in high-profile privatizations could fuel an even greater reluctance to invest. there are signs that privatization may have bumped up against the limits of acceptance from a wary public and a downbeat market."

July 15, 2002 -- The Daily Telegraph (U.K.) has noted that "it is strange to hear Allan Leighton, the chairman of Consignia, pondering precisely how much he should charge those who want their post delivered on time. Strange, because until 1840 letters were paid for not by the senders but by the recipients - a complicated system that kept postage rates high. Then Rowland Hill, the social reformer, created cheap postage stamps that made the sender pay for post. They were a huge success. Now, after 162 years, the Post Office has an even better idea: charge the sender and the receiver for the post. This is progress, Consignia-style."

July 15, 2002 -- According to the BB C, "the [U.K.'s] second post has been abolished in 14 areas of the UK, as part of a pilot scheme looking at ways to save delivery firm Consignia. From Monday, homes and businesses in the selected postcodes will only get one delivery a day, with no guarantee that it will be before 9am unless a fee of up to £14 is paid. Consignia, which has suffered losses of more than £1bn, believes that it could save £350m a year if the scheme was introduced nationwide."

July 15, 2002 -- At the same time, the Financial Times (U.K.) has reported that "the Royal Mail yesterday staged an embarrassing climbdown over its plan to charge small businesses and householders £14 a week for early delivery of their post after its chairman said he had not been told about the scheme. Allan Leighton, chairman of Consignia, which is to revert to its Royal Mail name by the end of the year, said the postal service would now widen pilot projects to see if it could economically deliver small volumes of mail before 9am at £5 and £10, as well as £14, a week."

July 15, 2002 -- European sources have noted that "the Czech Post Office Ceska posta has ten rivals with permission to provide postal services on the Czech market."

July 15, 2002 -- The Macedonian News Agency has reported that "the activities in the privatization sector in the following years are expected to focus on the smaller OECD member-states, among them Greece. This is the conclusion reached by the organization's economists, which is reflected on the report on the tendencies that will dominate in the international markets and the world economy in 2002 and in the near future. On Greece, the report makes a special reference to the government plans to accelerate procedures. It points out that scheduled for privatization in 2002 is the Greek Postal Service."

July 15, 2002 -- Agence France Presse has noted that "at a time when e-mail threatens to banish the postman to the museum, mail-runners are still the only means of communication in remote regions of the north Indian mountain state of Himachal Pradesh. Called 'Harkara,' the khaki-clad mail-runners armed with a staff, bell and mail bag are a welcome sight in scores of isolated villages of the region bordering Tibet. The runners cover long distances on foot across deep valleys, gushing rivers and snow-smeared mountains, and brave heavy snow and avalanches to keep lines of communication open."

July 15, 2002 -- Asian sources have reported that Taiwan's "Directorate General of Posts, a department under the Ministry of Transportation and Communications, will be transformed into a state-run corporation in 2003."

July 15, 2002 -- On the "almost like postal front," the Was hington Post has reported that "the Bush administration has proposed lending Amtrak up to $170 million to keep the national passenger railroad running through September. The loan would be the second stage of a bailout plan approved two weeks ago by the White House. The bailout averted a threatened shutdown this month of all Amtrak trains and several heavily traveled commuter services in the Northeast and California. Amtrak's banks have denied it access to its credit line because of its horrendous finances and an incomplete audit report for 2001. Amtrak has never made money in its 31-year history and lost $1.2 billion last year."

July 14, 2002 -- Slate has reported that "unless you have been watching the opening stages of the Tour de France on the Outdoor Life Network this week—and the Nielsen ratings say it's 1,000 to 1 that you haven't—you may not know that this is a big month for the U.S. Postal Service—in Paris. USPS is sponsoring the cycling team led by Lance Armstrong, who is favored to win his fourth consecutive Tour title when the race finishes July 28. Now, cycling is not quite as dreary as it seems....But this doesn't explain why the post office—which lost $281 million last quarter and just raised stamp rates again—is paying millions of dollars every year to support a bunch of athletes Americans don't care about. It's worth noting that the millions of Europeans who root for Armstrong and his team can't even use USPS. The post office ships mail from the United States to Europe, but—unlike FedEx—not from Europe to the United States."

July 14, 2002 -- As the Poughkeepsie Journal has noted, "if you haven't yet automated your deposits and bill paying, let the recent postal rate increase serve as a reminder. Each postage increase makes it a bit harder for consumers and investors to ignore the advantages of electronic transfers."

July 14, 2002 -- The Telegraph (U.K.) has reported that "Allan Leighton, the chairman of Consignia, has forced the company's Royal Mail subsidiary to go back to the drawing board on its plans to charge small businesses £750 a year to deliver post before 9am. The controversial head of the Post Office business is also pushing through plans to give the average postal worker between £600 and £1,000 worth of phantom shares this autumn. The Telegraph has learned that a furious Leighton learned of the proposal to charge £14 a week for early deliveries when he heard it in on a radio news programme last Wednesday. He immediately summoned the Royal Mail managers involved in the project - part of trials for scrapping second deliveries - to a meeting on Friday." See also the report by the BB C and The Scotsman..

July 14, 2002 -- The Graphi c Networks Online has noted that "while consumers can protest the latest postage hike by using e-mail and online bill paying options, direct mailers and printers cannot take advantage of these luxuries. Since postage is already the single largest cost component of any direct-mail campaign, this increase has a huge impact on their day-to-day business—and a trickle-down effect on the entire industry."

July 13, 2002 -- The Milwaukee  Journal Sentinel has reported that a "a 10-story storage area of a huge Quad/Graphics printing plant at Lomira, WI  collapsed and burned, killing one person and sending flames high into the sky in a blaze that continued for hours."

July 13, 2002 -- As Traffic World has noted, "United Parcel Service, in its first public disclosure that its current contract talks with the Teamsters union is hurting its bottom line, suffered a $29 million decline in second-quarter earnings compared to 2001 levels.

July 13, 2002 -- Ass ociated Press has reported that "United Parcel Service can stop losing business to competitors by agreeing to a new contract with the Teamsters this weekend, union president James P. Hoffa said Friday."

July 13, 2002 -- The Times (U.K.) has reported that "Germany's postal service joined other parts of the business area yesterday in protesting against government interference in the economy. Hundreds of post offices would have to be closed, thousands of letter boxes sealed and more than 10,000 postal workers made redundant if the Government insisted on price controls on stamps and other postal charges."

July 13, 2002 -- Dow Jones has reported that "a German plan to narrow the scope of Deutsche Post AG's lucrative letter monopoly cleared the final hurdle Friday when it received upper house approval. The plan won't affect Deutsche Post significantly because letters that account for the vast majority of its mail revenue will remain covered by the monopoly. But it is a reminder of the medium-term threat to the company resulting from postal liberalization. Deutsche Post, which is also active in the parcels, logistics and financial services markets, gets most of its earnings from mail activities."

July 13, 2002 -- Les Echos (France) has reported that "a new range of products was presented at a board meeting at La Poste, the French national postal services group. 'Tempost' is aimed exclusively at the group's major clients, the industrial parcel delivery firms, which generate about 30 per cent of La Poste's total turnover from parcel delivery (10bn euros). La Poste is promising 95 per cent service quality, and has undertaken to pay compensation if it falls below this target. A discount system is also under consideration. There have been objections to the plan from the SUD-PTT union, which says it will create a two-tier, unfair system in which industrial parcel delivery will be given priority at the expense of ordinary users."

July 13, 2002 -- PostalNews.Com has announced that "as part of its ongoing efforts to match service with customer needs, the Postal Service is moving three performance clusters from the Western Area to two other areas. The Arizona and Nevada Performance Clusters will become part of the Pacific Area effective Saturday, July 13, and the New Mexico Performance Cluster will join the Southwest Area on the same day."

July 13, 2002 -- The Lincoln Journal Star has reported that "it's a safe bet that small towns across the area will cast a cautious eye on their antiquated post offices, considering the postal pickle Carleton is in. The small but active Thayer County village of 120 has asked Sen. Ben Nelson's office to help them find a solution with the U.S. Postal Service concerning the future of its post office, which has been uncertain since structural problems forced the closing of the old post office in April 2001. Since then, the village library has housed the post office."

July 13, 2002 -- As DM News has noted, "business-to-business e-mail lists and e-mail prospecting are becoming more like their postal counterparts, said panelists at an e-commerce town hall here yesterday at the third annual MeritDirect Business Mailers Co-op and E-Mail Marketing Conference. The most positive development over the past 6-12 months has been the merging of e-mail and direct mail as one list category."

July 13, 2002 -- Japan Today has reported that "an advisory panel to Financial Services Minister Hakuo Yanagisawa has compiled a report recommending that the government start selling stocks at post offices."

July 12, 2002 -- According to Bloomberg, "United Parcel Service Inc., the world's largest delivery company, said it will remain at the bargaining table with the Teamsters union over the weekend to try to reach a new contract before a July 31 deadline."

July 12, 2002 -- The Guardian {United Kingdom) has reported that "UK mail firm Business Post Group said yesterday that parcel revenues in the three months to end-June were 14% ahead of the same period last year as the impact of a contract with FedEx sank in. The firm is expected to take a chunk of the business letters market once state-owned postal operator Consignia, or the Royal Mail, loses its monopoly." See also Reuters.

July 12, 2002 -- ScanSoft, Inc., a supplier of imaging, speech and language solutions, has announced that Neopost, a leading supplier of mailroom equipment and logistics solutions, has licensed ScanSoft(R) Dragon NaturallySpeaking(R) to add voice-sortinG capabilities to Neopost Soft Sorter. The program enables an operator to control mailroom-sorting systems by using a personal computer. The integration of the highly accurate Dragon NaturallySpeaking speech capabilities with Soft Sorter allows operators to sort postal mail completely by voice.

July 12, 2002 -- Frankfurter Allgemeine Zeitung (Germany) has reported that "the EU Competition Commission, which is headed by the liberal Italian Mario Monti, said it would not speculate on rumors that [Deutsche] Post may lower its letter carrying fees in lieu of repaying the subsidies. But Monti's spokesman Michael Tscherny did say that the EU 'is willing to negotiate with the German government once it has come up with a proposal. The principle is that Deutsche Post has to relinquish an amount of that figure [572 million]. We don't usually accept payment in installments. But I can't completely exclude it.'“

July 12, 2002 -- Dow Jones has reported that "the [Japanese] government's mail delivery service chalked up an Y8 billion profit in fiscal 2001, its first profit in four years, mainly due to a cut in transport and personnel costs."

July 12, 2002 -- The Western Mail (Wales) has reported that "the Royal Mail's decision to abolish the second post to save money will cost hundreds of thousands of pounds in new vans."

July 12, 2002 -- The Glasgow Herald (Scotland) has reported that "angry business leaders in Scotland yesterday delivered a 're-think' plea to Royal Mail on a cost-cutting plan and warned that hundreds of small firms could turn to other providers."

July 12, 2002 -- Handelsblatt (Germany) has reported that "after threatening to cut 10,000 jobs and close post offices across Germany, Deutsche Post AG seems to have reconsidered its response to the regulator’s demand for a cut in postage prices."

July 12, 2002 -- According to the Indianapolis Star, "just days after the latest price increase went into effect, the stamp-buying public learned that the Postal Service spent $25 million, maybe more, to sponsor Lance Armstrong's cycling team in this year's Tour de France. The sponsorship reportedly covers 70 percent of team expenses, including salaries for 45 employees. All this so the agency can plaster its logo on team jerseys and equipment. What rankles is the fact that a quasi-independent government service, whose first duty is to the public, feels free to engage in ventures that have nothing to do with delivering the mail, all the while poor-mouthing about the need for more rate increases."

July 12, 2002 -- The BBC has reported that some in the U.K. have claimed that "reforms to the UK's sub post offices are threatening a local service that is vital to pensioners and vulnerable people."

July 12, 2002 -- The Guardian (U.K.) has reported that British "householders and businesses will have to pay £750 a year if they want to guarantee their post is delivered before 9am."

July 12, 2002 -- According to Reuters, "UBS Warburg said on Thursday that it was cutting its rating on General Motors Corp. (NYSE:GM - News) from "buy" to "hold" because of risks stemming from its large U.S. pension liabilities." My heavens! It's a disease!

July 12, 2002 -- Asia Pulse has reported that "the [Vietnamese] government has renewed a list of businesses that are not allowed to go on strike. Under the new list, employees working for electricity production, supply and transmission companies under the Vietnam Electricity Corporation (EVN), postal and telecommunication businesses under the Vietnam Post and Telecommunication Corporation (VNPT), passenger and cargo transportation businesses under the Vietnam Railway Union are not entitled to go on strike."

July 11, 2002 -- According to The Guardian (U.K.), "small firms could be driven out of business by plans from Consignia to make customers pay for receiving large volumes of mail before nine in the morning, it was claimed last night. The British Chambers of Commerce said charges of about pounds 750 a year could make the difference between survival and going bust but the accusations were hotly disputed by the post office."

July 11, 2002 -- The Budapest Sun (Hungary) has noted that "even if your experiences with Magyar Posta (Hungarian Postal Service) have been good ones, there may be times when the item you wish to send is just too valuable, important, or time-sensitive to hand over a counter. On these occasions you may need to engage the services of an international courier."

July 11, 2002 -- The Korea Times has reported that "South Korea has been asked by 14 economies, including the U.S., the EU and China, to open its services market wider. The EU also called on Korea to allow foreign wire services to run their businesses here, and open its doors for overseas energy and postal companies."

July 11, 2002 -- According to CNN, "China Post, the official postal service for the world's most populous nation, said Thursday it will introduce a new service enabling people to write mail on their computers, send it to the post office over the Internet like email, then have it delivered anywhere in China by human mail carrier."

July 11, 2002 -- Newsday has reported that "Britain's beleaguered postal delivery service said Wednesday it will save 350 million pounds ($539 million) a year by abolishing its twice-a-day mail service and charging customers extra for letters delivered before 9 a.m. The Royal Mail said that beginning Monday 14 parts of the country would receive only one mail delivery a day, instead of two. The service plans to extend that change across the country by October 2003. The company said at present the second post accounts for about 20 percent of delivery costs, but only carries 4 percent of Britain's mail. Slashing the second post would reduce traveling costs and make the struggling service more efficient."

July 11, 2002 -- According to SkyNews, "small businesses and households may have to pay up to £14 a week to get their post before 9am. The charges are being piloted in 14 areas from next Monday said postal group Consignia. Business leaders have reacted furiously to the shock announcement."

July 11, 2002 -- The Asahi Shimbun (Japan) has reported that "the Lower House passed a set of four bills Tuesday to reform the nation's postal system, in the latest step toward Prime Minister Junichiro Koizumi's eventual goal of privatizing the system. The bills now go to the Upper House, where deliberations are expected to begin today, and are likely to become law before the end of the extended ordinary Diet session."

July 11, 2002 -- Handelsblatt has reported that "German postal-services provider Deutsche Post AG said Wednesday that a demand by the industry regulator to cut postage charges from next year will shave some 1.5 billion euros off its earnings by 2007 and could result in the loss of 10,000 jobs and the closure of 1,000 branches nationwide. The RTP telecoms and postal services regulator demanded that Deutsche Post cut the postage for letters and post cards by 4.7%. The demand is part of its program for phasing out the company’s monopoly in letter deliveries by the end of 2007." See also the report in the International Herald Tribune and the Financial Times.

July 11, 2002 -- The Financial Post (U.K.) has reported that "Deutsche Post is beginning to look accident-prone. The risk factors detailed in the German postal group's flotation prospectus in 2000 have started coming home to roost. Earlier this year it took an 850m provision to pay back 'unfair' state subsidies. It now faces a serious bite out of its German mail business - the group's biggest cash generator."

July 11, 2002 -- The Journal of Commerce has reported that:

• United Parcel Service has laid off thousands of Teamsters as customers divert shipments to other carriers ahead of a possible strike at the end of the month, a UPS official said Wednesday.

• The United States operations of Deutsche Post World Net, including DHL Worldwide Express and Danzas AEI, will not be affected by massive job cuts that may be implemented by the German global mail and logistics group.

July 11, 2002 -- United Parcel Service has reported progress at the bargaining table with the International Brotherhood of Teamsters, but said it was seeing diversion of package volume to competitors.

July 10, 2002 -- The BBC has reported that "the semi-privatised German post office has warned that regulatory demands for cheaper stamps could lead to lower profits, post office closures and thousands of job cuts. Deutsche Post said the loss in earnings would force it to reduce its costs. To do so, it would cut up to 10,000 jobs, close post offices and raise prices for other products." See also AFX.

July 10, 2002 -- As Dow Jones noted in its story on Deutsche Post, the company "suffered its second regulatory blow in as many months Wednesday when it was ordered to cut stamp prices beginning next year. The price cuts, the first in more than 50 years, will reduce Deutsche Post's earnings by EUR300 million a year in 2003-2007, the company said. They could also force the partially privatized company to amend its policy of paying dividends totaling 25% to 30% of net income and put off its further privatization for the foreseeable future. The German government still owns 69% of Deutsche Post, which has a guaranteed domestic mail monopoly and public- service obligations." See also the Financial Times.

July 10, 2002 -- Suddeutsche Zeitung (Germany) has reported that "Deutsche Post, Germany's postal services group, announced yesterday that it would start forwarding letters in the Netherlands. It is the first time that the group, which will compete with the Netherlands' leading postal services operator TNT Post Groep, offers letter forwarding services abroad. In the Netherlands, the market for letters weighing more than 100 grammes has already been deregulated. Next year, the same will happen in Germany. Deutsche Post will found a joint venture with Dutch company Wegener. Van Gend & Loos Selektvracht, the Dutch subsidiary of Deutsche Post, will acquire a majority stake in Interlanden, one of Wegener's subsidiaries. A spokesman for the German postal services group announced that Deutsche Post had similar expansion plans for other European countries." See also Financial Times Deutschland and Frankfurter Allgemeine Zeitung.

July 10, 2002 -- The Guardian has reported that "the companies making new homeland security devices, such as bomb detectors and biological weapon alarms, [and other devices needed by the Postal Service] want the government to pick up the tab if their products fail and they are sued. And in the midst of an aggressive lobbying blitz, they have found a key ally in Congress. Rep. Tom Davis, the fourth ranking Republican in the House and head of a key subcommittee on technology and federal contracting, plans to have the provision attached to the Homeland Security authorization bill making its way through Congress."

July 10, 2002 -- According to the Journal of Commerce, "with the deadline for reaching a new contract just three weeks away, a top Teamsters official told United Parcel Service negotiators Tuesday that now is the time to 'get serious.'"

July 10, 2002 -- One reader of the International Herald Tribune wrote about "the snafus we've experienced with packages sent to us in Paris from the United States using the U.S. Postal Service. Several have arrived months late, often opened and repackaged; at least one, a birthday present for our daughter from my mother-in-law, was completely lost. I also had no idea that the high fees we've paid upon delivery, often more than the value of the contents, included services fees and a VAT on top of that. In contrast, we've had no problems with FedEx, UPS, DHL or Airborne Express; we've learned to tell everyone to use these carriers instead of the U.S. Postal Service."

July 9, 2002 -- According to GovExec.com, "if Congress does not approve some sort of reform proposal before then, lawmakers could find themselves dealing with another Amtrak-like financial train wreck in the near future."

July 9, 2002 -- The Federal Times has reported that "despite the $1 billion in increased revenues the U.S. Postal Service should realize as a result of the June 30 rate increase, it still will finish between $1 billion and $1.5 billion in the red this fiscal year. The loss, while distressing, could have been a great deal worse had the Postal Service not taken aggressive steps to cut costs and accelerated the most recent rate increase, said Richard Strasser, Postal Service chief financial officer and executive vice president."

July 9, 2002 -- What will be next in the American postal reform drama? Take a look at the New York Times story on how telecom deregulation is shaping up in Europe.

July 9, 2002 -- The New Zealand Herald has reported that "a former New Zealand Post executive paid a $208,000 golden handshake last year has been hired as chief executive of Maltapost. NZ Post subsidiary Transend holds a 35 per cent stake in the Maltese postal service." See also the Times of Malta.

July 9, 2002 -- As the Perspective has noted, "if you are a Liberian residing in the U.S. or elsewhere outside Liberia and you rely on postal mail service to communicate with your friends and relatives in Liberia, then the possibility exists that you may no longer be able to do so, at least through direct mail exchange with the Liberian Postal Service."

July 9, 2002 -- According to Reuters, "Deutsche Post (DP) expects to have a double-digit share in the Dutch postal market within the next five years, Deutsche Post's divisional board member Herbert-Michael Zapf told reporters on Monday. DP's share in the Dutch market is currently below five percent, he said."

July 9, 2002 -- In a similar story, Dow Jones has reported that "Germany's Deutsche Post said Monday it will set up a mail distribution joint venture with Dutch publisher Wegener NV (N.WGN), aiming to become the second largest player in the Dutch postal market after former monopolist TPG NV (TP). Although the Dutch mail market is currently only 50% open, Deutsche Post said that within five years it is targeting a double digit market share of the liberalized market and expects its tariffs to be between 10% to 15% lower than those of rival TPG. The Dutch government owns a 35% stake in TPG while the German state still holds 69% of Deutsche Post. Currently, TPG has a monopoly on mail in the Netherlands under 100 grams, though that could change in 2006 when the market under 50 grams will be opened up."

July 9, 2002 -- Handelsblatt has reported that "Germany’s monopoly commission on Monday called for the setting-up of a cross-sector regulatory body, particularly for network-based industries that were once monopolies, e.g. utilities and railways. In its latest report on the state of competition in Germany, entitled “Network Competition Through Regulation”, the commission highlights the continuing lack of competition in many industry sectors, but in particular in network-based industries such as telecommunications, postal services, electricity, gas and railways."

July 9, 2002 -- Hoovers Online has reported that "in its first year flying directly to China from Ontario and Newark, the United Parcel Service doubled its annual China traffic revenues to $200 million."

July 9, 2002 -- AFX Asia has reported that "the lower house of parliament today approved four bills aimed at setting up a public corporation to take over the state-run postal services." See also Dow Jones and Japan Today.

July 8, 2002 -- The Wall Street Journal has reported that "Japanese Prime Minister Junichiro Koizumi, bowing to the powerful interest groups that have plagued him since he came to power a year ago, has agreed to water down a plan to privatize Japan's mammoth postal system, one of his most ambitious economic-reform pledges."

July 8, 2002 -- The Washington Post has reported that "more than eight months after anthrax spores crippled the Capitol Hill mail system, the House is preparing to launch a program that could fundamentally change the way Americans communicate with their representatives in Washington. In the next few weeks, dozens of lawmakers' and committee offices will be selected to participate in a voluntary pilot program in which their incoming mail will be opened by private contractors, scanned into computers and then delivered electronically. Ultimately, the goal is for the digital mail program to replace the current mail distribution system for the House's 700 member, leadership and committee offices."

July 8, 2002 -- As one writer to the Washington Post has suggested, "the Postal Service should create e-mail accounts for every postal address, based on the Zip code system. The Post for example might have the address 1150.15thstreet.nw@20071.zip." Funny....Something very similar was suggested right here quite some time ago...and it's still gone nowhere.

July 8, 2002 -- According to the Korea Times, "online advertising will prove its continued strength in the medium, particularly because of its targetability and measurability."

July 8, 2002 -- As the New York Times has noted, "by all accounts, last week should have been a banner week for the Internet postage industry. With new rates from the Postal Service taking effect, waves of customers trudged to local post offices and stood in lines, waiting to buy 37-cent stamps and other updated postage. The huddled masses would seem to have been prime targets for Internet stamp providers, which allow customers to sit in the air-conditioned comfort of their homes and offices, pumping out new postage from inkjet printers. But executives of the two leading Internet postage companies, Stamps.com and Pitney Bowes, acknowledge that their offerings lack consumer appeal, despite years of research and development, millions spent on marketing and hundreds of millions in capital investments."

July 8, 2002 -- The Augusta Chronicle has reported that "with the price of a first-class stamp up to 37 cents, many consumers are taking a fresh look at reducing their mailing costs by paying their bills electronically."

July 8, 2002 -- Dow Jones has reported that "Germany's Deutsche Post AG will start a postal joint venture in the Netherlands with Dutch publishing company Wegener NV (N.WGN), the Dutch company said Monday. Deutsche Post will also take a majority stake in Wegener's Interland BV unit. Interland distributes free advertising and door-to-door newspapers."

July 8, 2002 -- Le Monde (France) has reported that "the French post office (La Poste) last week unveiled plans to shut five of its eight sorting offices in Paris by April 2005 in order to increase productivity. This initiative will involve replacing the offices in question will one mechanised centre with new machines capable of sorting greater volumes of mail. As a result, the proportion of mail sorted automatically in the French capital will rise from 50-60 per cent at present to 90 per cent."

July 8, 2002 -- The London Free Press (Canada) has reported that "United Parcel Service Canada Ltd. has delivered a new shot at Canada Post, emboldened by a European Commission decision forcing Deutsche Post to repay about $840 million to the German government for using monopoly profits and state aid to subsidize its commercial courier operation. Both Deutsche Post and Canada Post have government-mandated monopolies on letter mail and also compete with private-sector companies in the courier business. UPS contends Canada Post abuses its postal monopoly to support its Purolator and Priority Courier operations."

July 8, 2002 -- You might want to visit the PostInsight web site to see some of the latest postings:

• Presentation by Moussibahou Mazou, Deputy Director General, International Bureau, Universal Postal Union, Berne, Switzerland (from the Pan-Af