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The post office has been rocked by declining mail volume as people and businesses continue switching to the Internet in place of letters and paper bills.

“Given current trends, we will not be able to pay all 2011 obligations,” Joseph R. Corbett, the Postal Service’s chief financial officer, said in a statement.

“Despite ongoing aggressive cost reductions totaling over $10 billion in the last three years, it is clear that a liquidity problem is looming and must be addressed through fundamental changes requiring legislation and changes to contracts,” he said.

The Affordable Mail Alliance challenged the statement and contended that the post office will finish the fiscal year with $1.3 billion in cash.

“We’re saddened to see these dubious claims by the Postal Service and would hope for a more constructive dialogue with customers,” said Tony Conway, head of the coalition of high-volume mailers that is fighting the post office’s plan to raise rates in January.

To stem the losses, postal officials have proposed raising rates, cutting out Saturday mail delivery and eliminating advance payments for retiree health benefits.

WHITE HOUSE

Officials wade into BlackBerry disputes

The Obama administration is wading into the growing international dispute over the banning of BlackBerry services, seeking to broker compromises between the company that makes the popular devices and foreign governments that say they pose a security risk.

Worried that such bans will hurt the work of American diplomats and businessmen overseas, the State Department said Thursday it had been in touch with manufacturer Research in Motion and officials from several nations, including the United Arab Emirates, Saudi Arabia and Indonesia, which have announced or are contemplating bans on some BlackBerry features.

Department officials said they were hoping to find a compromise between the legitimate security concerns of some governments and ensuring that the free flow of information and communication is not compromised.

VICE PRESIDENCY

NYPD cycles in crash while escorting Biden

NEW YORK | Two New York City police motorcycles got into a minor accident while escorting Vice President Joseph R. Biden Jr. to John F. Kennedy Airport.

Mr. Biden’s vehicle was not involved, and no one was seriously hurt.

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