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for a term of years when built provided it is promptly built.

3.

As far as this Colony is concerned it is

of the greatest importance that the Corporation referred to

should either build the railway from Hongkong to Canton or

resign their rights to others to build it.

It is conceivable that if the connecting

railway to Canton is not built, the American Company would be

forced in the interests of the trunk line from Hankow to Canton

to connect it with some point on the Canton River where deep

water would enable Ocean Steamers to lie and load their

freights. If such a scheme were carried out the supremacy of

this Port as an emporium of trade for South China would be

seriously threatened, and the effect on its prosperity and

future expansion might be disastrous.

A.

Apart, however, from that consideration

it is to the interest of this Colony that the railway from

here to Canton should be constructed as soon as possible. Such

a railway would traverse the New Territories and would hasten

the development of that district which, without the assistance

of light railways or other means of rapid communication, will

remain in its present position of an encumbrance rather than

a source of profit to the old Colony.

With the establishment of communication

by railway large areas especially in the portions of the New

Territory contiguous to old Kowloon at present of small value,

would become of great value and the remoter portions of the

New Territories situated on the mainland, which without railway

communication can never be an appreciable source of revenue

to

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