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perfectly reasonable. There is no doubt that the Colony does as alleged, deprive the Chinese Government of a considerable portion of the tonnage dues that would otherwise be collected at Canton, and on that ground alone therefore it might be expected that Hongkong will do all that is needed for the improvement of the navigation in its vicinity, and bear the burden of this small share in the expense entailed by the whole scheme for the improvement of Chinese Ports from Haian to Newchwang.

As a matter of national policy there is further motive to be found in the necessity of avoiding an appearance of neglect of an interest, by a British Colony whose Merchants draw much of their wealth from the commerce of the China seas, and can have no difficulty, from their knowledge and experiences, from appliances, and want of Engineering skill. So important indeed do I consider it that no argument for supineness should be furnished by a bad example in a flourishing Colony at their door under British rule, that I have deemed it expedient to send a copy of the Memorandum confidentially to Sir Richard MacDonnell with a covering despatch, copy herewith enclosed, urging the expediency of a friendly and active cooperation, and should any intervention or sanction of the Secretary of State for the Colonies be needed, I would not disregard our obligations, in the general...

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