246

in China and not Hongkong Merchants. I saw Mr. Cowan in the

matter on the 27th instant, but did not see my way to interfere in it.

33620

7.

A further difficulty in connection with

the proposed depôt at Canton has now arisen. It was, as

stated in my telegram of the 27th September, intended by the

Agent of the Transvaal Mining Companies and Transvaal Emigration Agent that Canton should be treated on the Wuchow plan

as an intermediate Port with Hongkong as the final Port of

shipment and as long ago as the 27th August last the Viceroy

had signified that he had no objection to this except that he

would not allow recruiting. On the 21st October, however,

the Consul-General reported that the Chinese Minister in London had telegraphed to the Viceroy to say that transshipment

at Hongkong was not permissible and that if the emigrant ships

could not go to Canton the labourers must go to a port which

could be reached by the ships. He further reported on the

22nd that the local officials were prepared to agree to

transshipment at Hongkong on the Wuchow plan if no objection

were offered by the Wai-wu-pu and on the 27th that the Wai-wu-pu had objected and that he had communicated to the British

Minister in Peking that the only alternative arrangement would be the establishment of an Emigration Depôt at Whampoa.

He suggested that I should express my views on this subject

direct to Sir E. Satow and accordingly after consultation

with Mr. May and with the two Unofficial Members of the Executive Council Sir Paul C. Chater, and Mr. W. J. Gresson

as to the possible effect on Hongkong that would result from

the transfer of Emigration business from this Colony to Whampoa

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