$19
}
552
7
That the French will do all in their power
to develop the trade of Kwang Chau by harbour
improvements and an extension of their railway
system from Indo-China is I think admitted.
A railway linking Swatow with the great
Chinese systems which before many years will be
ausing vast changes in the Empire may also
affect our prosperity.
It would appear that in view of such
possible competition, our policy should be to
strain every nerve to encourage trade to centre
in Hongkong, rather than to suggest anything
tending to decentralization.
The above will I think be sufficient to
show that our position as the centre of trade
for South China is not impregnable.
Mr. Osborne reß rred to the expenses of
living such as food, rent wages, etc etc as
already being partly based on gold. That a gold
standard in Hong Kong will check the present
tendency of prices to increase I do not believe.
A general and gradual rise in all the necessi-
-ties of life is universal among the foreign
population in the Far East. If we are to take
Japan as an example, the introduction of a gold
standard will if anything tend still further to
increase the cast of living.
I believe myself the same argument applies
with even greater force to the labour question.