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17

BOUNDARY LINE.

The boundary line indicated on the map attached to the Convention (Map I.) is the shortest line from sea to sea that could be found, measuring on the map only eleven (11) miles. Following the river from Deep Bay to Sham Chun and the road from the latter place to Starling Inlet, the actual distance is about thirteen (13) miles.

This boundary line is open to great objection. It cuts in two the rich valley of which Sham Chun is the centre, and, while excluding that town, divides the villages in the valley hitherto linked together by family ties and common interests, and at present separated, so far as the river extends, by about 100 feet of a tidal river, and onwards from Sham Chun to Starling Inlet by no boundary whatever. All these villages regard Sham Chun as their central and most important market, where they dispose of their goods and make their purchases, and much difficulty and friction would be certain to arise if the villages on one side of the stream or road come under British jurisdiction whilst those on the other remain under Chinese rule.

Another important reason why Sham Chun should not be excluded from the area to be leased is that it is the seat of the Head Council of the local as opposed to the Imperial Government, represented by the district magistrate, who resides at Namt'au. This Head Council controls all the village and other tribunals throughout the Tung Lò or Eastern Division of the San On district, which is that portion of the district included in the Convention, and exercises great influence in every village.

Again, it must be remembered that the chief industry of the villages in the valleys is the cultivation of rice, for which an ample and constant supply of water is necessary. If the boundary line indicated on the Convention map be followed, endless disputes as to water rights between villages under British and Chinese jurisdiction are certain to ensue; dissatisfaction will be created; and the task of government will be rendered more difficult.

The proposed boundary would also render smuggling an easy matter, which, in view of the pledge given to China, ought to be avoided.

The disadvantages of having a Chinese town just outside British territory have been experienced in the case of Kowloon, which for years has been a source of never- ceasing trouble and constant friction between the Governments of Hong Kong and China. History will certainly repeat itself if Sham Chun be allowed to remain in Chinese territory.

In the opinion of all those acquainted with the country, whether belonging to the naval, military, or civil services, it is essential, in the interests of good government, and in order to maintain friendly relations with China, that the town of Sham Chun should be included in the lease.

From the terms of the Convention it appears that the waters of Mirs Bay and Deep Bay are to be included in the lease. Nothing, however, is said regarding the territory forming the western portion of Deep Bay and the northern and eastern parts of Mirs Bay. Both Commander Horsey and Lieutenant Rundall, R.E., whom I consulted on this point, agree that in order to have undisputed rights over those waters and for pur- poses of naval and military defence, it will be necessary to have control over all the land which surrounds these bays and from which they could be commanded by any unfriendly Power who might be at enmity with Great Britain.

In order, therefore, to secure a boundary which will be satisfactory on civil, mili- tary, and naval grounds, it will be necessary to depart from the line shown on the Con- vention map (I.), which, however, only indicates, generally, subject to future delimita- tion, the area leased.

The boundary between two countries, which leads to least friction, is either a broad and deep river or the ridges of hills forming the watersheds of different valleys. In the San On district there is no broad river such as would form a suitable boundary. But there are ridges of hills which could be utilised for that purpose.

The first ridge is that which divides the district of San On from those of Kwai Shin and Tung Kun, and if it could be arranged to lease the whole of the San On district-a political and geographical division well known to the Chinese-that would undoubtedly be the best solution of the boundary question. But if it is not deemed advisable to lease such a large extent of territory, I recommend that the line sketched on Map X. be adopted, a recommendation which has the strong support of Mr. Ormsby, Commander De Horsey, and Lieutenant Rundall, R.E., all of whom have personally inspected the country.

This proposed line, which includes the important town of Sham Chun and the land to the north and east of Mirs Bay and to the west of Deep Bay, forms a good, natural

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