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on the eve of his departure for Ceylon on the 20th ultimo.

After referring to the Sanitary progress of the Colony, His Excellency said: - "But great as "is the importance of the structural improvement of "Hong-Kong, there is a matter of greater and more "pressing moment that I wish to bring forcibly be- "fore you in these last moments before I leave your shores.

"That is the pressing necessity of utilis- "ing the British Concession that has been granted for "a railway from Canton to the borders of our terri- "tory.

"That concession has been granted to a Bri- "tish Syndicate, and it is their duty to utilise it "and to supply the natural seaport terminus to the "great arterial line to Hankow, lest possible develop- "ments be sought inimical to the interests of Hong- "Kong.

"We have not built up our Empire by being "laggards in the race for developments necessary "for the expansion of the trade of the world, and "'letting I dare not wait upon I would' has never "conquered a position nor retained it for either "men or nations".

These sentences were most earnestly endorsed by the assembly addressed, and very real anxiety now prevails in Hong-Kong on this subject. Much discussion has ensued thereon; and it is understood that the engineering difficulties to be encountered on the first ten miles of the route through British territory have potentially contributed to cause the delay in commencing the undertaking, my Committee would like here to suggest a plan which, in their opinion, would assist to ensure the railway proving remunerative.

Instead of following the route which is generally believed to have been selected, it is, in the opinion of those who know the country, desirable that the line should, after passing Shamchun, proceed along that valley towards Kai Kong and Pu-Kak, crossing a small ridge to the west until it strikes a tributary of the East River. From thence, following up this latter valley, the line should run north to Kon Lan, and from there through a fertile country up to Sheklung, a populous town on the Tungkun district. The East River would have to be crossed near Sheklung, and the line

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