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4. The question of the provision and distribution of coolies has now been made clear, and the numbers tally in each table.

162

I have, &c.

(Signed)

V. HATTON, Major-General,

Commanding in South China.

Sir,

Enclosure 4.

Mr. E. A. Hewett, Agent P. and O. Company, Hong Kong, to Governor.

August 30, 1904. REFERRING to my conversation with your Excellency this morning regarding the probable effects upon the trade of Hong Kong were the western entrance to the harbour blocked, I have made inquiries of some of the leading British shipping agents on the subject.

I find that we are all practically agreed that considerable inconvenience, to say the least, would be caused to the shipping were such a scheme carried out.

I have seen Mr. Gresson, Mr. Law, Mr. Wheeler (Messrs. Dodwell and Co.), Mr. Wood (Messrs. Gibb, Livingston, and Co.), Mr. Arnold (Canton Steam-Boat Co.), and, finally, Mr. Craddock, of the Canadian Pacific Line, but I find the question is not one which concerns them (i.e., the C.P.R.),

It seems to me as well to give a summary of the various reasons brought forward against the proposal.

As I have already explained to your Excellency, it is a great convenience for large vessels leaving the port to have the choice of either the eastern or western channel,. i.e., to be able on letting go their moorings to proceed straight to sea in the direction in which they happen to be heading at the moment. When there is a stiff breeze blowing, or the currents are running strong, which is frequently the case, it is difficult for a vessel to turn in the harbour, and owing to the often crowded state of the anchorage this manœuvre can only be carried out with considerable risk of collisions.

The Lyemun Pass has its distinct disadvantages, and alone is not sufficient for the traffic. Even in its present state it is at times crowded with fleets of junks tacking in and out, and also at certain times of the year often dangerous to navigation on account of fog.

This Pass, therefore, cannot by itself be considered adequate for the whole traffic of Hong Kong.

It is presumed that the blocking to which your Excellency referred would be by submarine

mines.

If this is the case, in view of the scare which has recently arisen through such mines getting adrift or out of position, the result may be to deter the vessels from visiting the port, while think we may safely count on extra premia for insurance being demanded on ships and their cargoes coming to a mined port. If I am correct in supposing that by "blocking" mines are intended, the western passage will also presumably be closed to junks. The greater part of the enormous junk traffic of Hong Kong passes through this entrance of the harbour.

If this traffic be diverted and forced to go north of Stonecutter Island that passage will probably be so choked as to render the navigation extremely difficult for those small coasting vessels and the whole of the Canton River and Macao service which will have to make use of it.

Further, it would be necessary to have the passage round Stonecutter Island properly lighted. This would be more than ever necessary for inward-bound vessels from Canton or the Western Treaty ports, as in thick weather or at night, unless this were done, they might easily overrun their course and thus enter the dangerous line of the barricade.

Some of the opinions expressed were very adverse to the scheme, as it was feared that were an entrance of the harbour blocked not only would this cause inconvenience to shipping, but also would seriously effect the trade of the Colony.

From a military point of view we cannot express an opinion, but we are agreed that if the proposed blocking of an entrance to the harbour is necessary we must, of course, submit to the loss and inconvenience which such a state of affairs would entail upon our trade.

I have ventured to write at this length as I think it well to let your Excellency know the reasons of our opinions, since you have done us the honour of consulting us.

I need scarcely assure your Excellency that I have explained to those I have consulted that the question is to be considered entirely confidential.

Your obedient servant, (Signed)

EDWARD A. HEWETT.

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