Hongkong Post is a government department of Hong Kong responsible for postal services, though operated as a trading fund. Founded in 1841, it was known as Postal Department or Post Office () before the handover of Hong Kong in 1997. It has been a sub-member of the Universal Postal Union since 1877, and is a separate entity from China Post. History Merchants traded in Hong Kong on the two sides of Victoria Harbour as early as before the British possession in 1842. They complained about the absence of proper postal services and therefore the Postal Department was established. The department was founded on 28 August 1841, but the first post office (known as 書信館 at that time), situated near the current site of St. John's Cathedral, opened on 12 November 1841. At first, its right to operation belonged to the Royal Mail, until its transfer to the Postmaster General on 1 May 1860. On 8 December 1862, the office issued the first set of Hong Kong postal stamps. Before this time, only British troops in Hong Kong could use British stamps, while other local residents did not have access to British stamps. Until the handover of Hong Kong to China in 1997, mail for British forces serving in the then-colony used the British Forces Post Office number, BFPO 1. The office introduced automated mail sorting in 1989, and machines were installed in the General Post Office. There is no post code system in Hong Kong, although one has been under consideration since 2000. Since August 1995, the office has operated as a trading fund and the full title of the head of the Office became "Postmaster General and general manager of the Post Office Trading Fund" (). Postal history During the colonial era, Hong Kong produced postage stamps simply bearing the name Hong Kong, printed alongside the likenesses (in profile) of the reigning monarchs of the United Kingdom, or royal symbols (for example, "EIIR"). Since Hong Kong's transfer of sovereignty to China in 1997, stamps issued have borne the name "Hong Kong, China". British Hong Kong postage stamps are no longer valid for prepayment of postage and cannot be repurchased by the Post Office. Post offices Hongkong Post operates 128 post offices throughout Hong Kong. As of 2007, 34 post offices existed on Hong Kong Island, 42 in Kowloon, 45 in the New Territories and 8 on the Outlying Islands.