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shipping of any restrictions beyond those that already

affliot it. It is certain that if these Regulations

be enforced British shipping will be shut out from the

Passenger trade between Chinese ports. Competition

with other flags is already very severe, and while we are

convinced that upon equal terms British shipping is quite able to maintain the position it at present occupies, yet, if burdened with the expenses, delays and the necessary inspections, (thoroughly detested by Chinese passengers),

which will be involved in complying with the Regulations,

it is oortain that we cannot contend successfully against

vessels not subject to such vexatious drawbacks. Rates

of passage are low, but earnings from this source form a

valuable portion of the income of steamers trading in

Chinese waters, and their loss would eventually result

in our being driven out of the trade. This would only

be a question of time.

The acceptance by other Governments of such

Regulations would still leave British vessels at a great

disadvantage. We know that if imposed they would be

honestly and strictly enforced by British officials, but we

have reason to fear that they would not be so enforced

by the officials of other nationalities. What chance

would there be of getting penalties imposed on Chinese

and Japanese vessels infringing the rules? The steamers

of both Nations trading here belong to Companies more or

less

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