the facilities offered to business here.

7. Now it may not be true that Chimera prejudices of ancient standing combined with ignorance of the benefits finally resulting from encouraging trade to such channels into which it naturally flows, may retard results otherwise desirable. It nevertheless does not seem expedient that the satisfactory settlement of such a question should be regarded as hopeless without at least a thorough sifting of the difficulties which are offered to such an arrangement.

8. It is also obvious that if any step is to be taken in the matter the question should be approached in a spirit disposed to view impartially the relative natural advantage of this Colony and other places whilst negotiations connected with the subject should be conducted in a spirit calculated to smooth rather than suggest opposition.

9. His Excellency therefore is inclined to think that he can best serve the interests of the Colony by referring the

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