: the shipping interests were given a reasonable expectation that the Light Dues should be reduced, when the cost of Sap Rock Lighthouse was jointly met. At the same time I concur in your view that moderate harbour dues may properly be levied in Hongkong, provided the proceeds do not in ordinary times exceed the total expenditure of the Harbour Dept, including Police &c.

3. I am however of the opinion that in calculating the proceeds of the harbour dues, the charges for native shipping must be included, as well as for ocean steamers. It happens therefore as suggested in the enclosed letter from the P.A.O. 4, 6.

4. I am not therefore prepared to sanction any proposal to make permanent the charge of 2½ cents per ton on general shipping, although that charge must be continued for the time being.

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