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Good class Chinese resent being inspected, counted, or interfered with, even by the Ship's Officers, and it is perfectly certain that if the Regulations proposed by the Hong Kong Authorities are brought into force, Chinese will cease to travel by British Steamers.

British Steamers already find it difficult to compete with German and Norwegian Boats, which are in no way restricted and which, further, are manned with fewer and lower paid Seamen, and the imposition of fees under Hong Kong Regulations would be "the last straw".

Before J. M. & Co. and B. & S. developed the trade, there were not more than half a dozen British Steamers - all old and small - employed on the Coast.

That damage will be done to British interests if the proposed Regulations be enacted has been already shown by the loss to British Steamers of the Passenger trade from Swatow to Deli (Sumatra). This is monopolized by German Boats, on which there are no restrictions, while British vessels are handicapped by Hong Kong Acts of 1885 and 1889 and therefore cannot compete. The Hong Kong Acts fixed the length

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