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have expended a very large sum in promoting this business,
Trade increased and it was evident that it would in
time prove highly remunerative, benefitting alike the Chinese
and this Colony.
The attack on the S.S. "Sainam" has however seriously
affected the business of the new line and has unquestionably
checked its prosperity. Under these circumstances this Committee
considers the owners are entitled to compensation and that the
amount asked for namely $150,000 is not excessive.
From many years experience of China we hold the opinion,
which has in the past been repeatedly expressed by our predecessors,
that the high Provincial Authorities are quite competent to
maintain order in the provinces of the Two Kwangs should they
seriously desire to do so.
If through their supineness or tacit approval, they allow
attacks to be made on British property or British subjects who
by Treaty are entitled to protection, we are strongly of opinion
that it is the officials who should be held directly responsible
for the mischief caused and that the cutting off of a few heads
and the payment of a small indemnity are not of themselves
sufficient punishment for the outrage.
The