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understand that when the Senchui route is taken no objection is raised.

I understand that the objection to steaners under the Regulations proceeding to places beyond Senshui towards Wuchow has to do with the collection of Likin and that the objection may possibly be removed.

The question of the practical working of the Regu- lations is receivingly my carnest attention and it is possi- ble that before long something may be effected towards putting matters on a more definite and satisfactory footing.

In the mean time I would point out that no lers than 141 launches end steamers are registered under the Rogu- lations in Canton, of these 15 are ostensible British ormed. None of them at prosent carry tny cargo, but the carriêge of passengers is very profitable and it is thought that the mum- ber will be greatly increased before long. The business in practice works smoothly enough and no complaints reach me lo- cally.

It is doubtful whether cargo will ever be carried to my large extent, by these steamers, native boats and junks being cheaper and time in Chinese percentile matters,hardly, within wide limits, bring et all considered.

I have etc.,

(SA) B.C.George Scott,

H. M. Consul.

Honourable

J.H.Stewart Lockhart, C.M.G.,

Colonial Secretary,

H OMG K O H G.

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