XCR(85)72 (3) The arrangement of the 25th July for utilizing Wuchow as an intermediate port and recruiting there by the Chinese Authorities has only produced about 150 labourers in three months, of whom one-third were criminals who cannot be allowed to embark for South Africa.

(4) The proposal for utilizing Canton as an intermediate port is blocked by the Wai-mu-pu acting on the advice of the Chinese Minister in London.

(5) The Hongkong Government are averse to the utilization of Whampoa as a port of embarkation, believing that this might act to the detriment of Hongkong, if it resulted in any emigration on a large scale from the Treaty Port, but that it would probably not so result and that the notification of the port would therefore be ineffectual.

10. I believe that the main obstacle to the success of emigration to South Africa from South China is the large extent of the vested interests in the existing labour trade, not only to British Colonies but also to Foreign Colonies and States. This trade is in the hands of many powerful Chinese who recruit labourers from the neighbourhood of the Southern Treaty Ports, Canton, Swatow, Amoy, etc., and mostly bring them to Hongkong for shipment abroad. The small extent to which this very profitable business of recruiting — undoubtedly not carried out without serious irregularities which from time to time come to light — is interfered with by the Chinese Local Authorities suggests that some of its profits go to those Authorities. As soon as the South African Trade was started, a strong opposition was entered against it by

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