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His Excellency the Officer Administering the Government is doubtless aware that the French are contending that the higher reaches of the Yangtse beyond Hankow are outside the Yangtse Valley and British sphere of influence, and that the American control of the Canton-Hankow Railway has been secured by Belgian capitalists, presumably on behalf of French and Russian interests if any conclusion may be drawn from recent events in Persia and North China where Belgian concessionaires have also had the support of the representatives of France and Russia.
The completion of this line merely to Canton will not satisfy the political aspirations of the Governments just referred to and concessions for a line to the sea coast under the same control are sure to be sought for, especially if the projected Hong Kong-Canton line is not rapidly proceeded with. This might easily take a Southern direction to a port west of Macao or east via Waichow to Bias Bay with the certain result of forming a new and formidable rival to the port of Hongkong.
Sir Ernest Satow informed the Committee at his interview with them in August last that he could not understand the delay in opening the port which had been promised by the Chinese Government long ago, and that he would take up the matter with the Authorities on his return to Peking. He mentioned at the time that he very much questioned whether any merchant steamer had succeeded in getting so far up the river, and it appears probable that this fact is still influencing inaction at Peking coupled with possible unwillingness to establish a Consular establishment on the ground of expense. With regard to meeting this slight objection the actual opening of the port might be delayed until such time as it appears necessary to send a Consular representative there, but it seems to my Committee desirable to obtain the right to do so with as little delay as possible.
With the above-mentioned facts before him,
the