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question of principle, viz:- the refusal of this Goverment
to accept as meeting the requirements of our Ordinance the
Passenger Certificate issued by the French Consul at Canton.
I annex a copy of a minute dated the 16th. instant by the
Attorney-General.
One losure 2
Enclosure 3.
With regard to what M. Liébert terms the
circumstances and facts of the case, viz:- the allegation as
to subsidised competition, I annex a copy of the Convention
under which the subsidy is given. It does not appear material
that the subsidy amounting to nearly 23,500 per annum for
each of these boats should be termed a postal and not a com-
mercial one and though no doubt the Chinese owned steamers
are largely responsible for the cutting of rates between Canton
and Hongkong, I see no reason to doubt that the competition
of the French line, which would probably not exist but for
the subsidy, materially affects the receipts of the Canton
and Macao Steamboat Company.
6.
I have thought it advisable to bring the
whole matter including the French Consul's Memorandum to your
notice in case reference is made to you by the Foreign Office
with regard to it.
I have the honour to be,
sir.
Your most obedient
Humble servant,
Mr. Water
Governor, &c..
WED