3
From subsequent reports of H.M's Consuls in China, however, it would appear that the anticipated danger of the competition of this route to British trade is not a matter of much importance at any rate until there is Railway Communication, and it is unlikely that import duties equivalent to 5% ad valorem by the land frontier compared with 5% ad valorem by sea, and export duties of 3½% by land compared with 5% by sea, will compensate for the greater expense of the transit of the goods through Mongolia. Under these circumstances, the point referred to seems to be mainly important as a matter of principle, and the Board would therefore suggest for His consideration that it might be desirable to cause such advantage to be taken of it as occasion may permit in any negotiations as to the