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protection of the British Government Hongkong has

become rather a Chinese than a European community:

and the fact that the Chinese have settled in the

Island in such large numbers has not only been one

main element in its prosperity, but also the most practical and irrefutable evidence that the Govern-

ment under which a politically timid race such as

the Chinese have shown every desire to live, must

have at least possessed some measure of strength

and of justice. How far Hongkong is a Chinese

settlement, how far the Chinese have paid the taxes

and contributed to the trade, is touched upon in

Mr Lockhart's excellent memorandum which accompanies

your despatch. He is clearly of opinion also that

the tendency is for the trade of the colony to pass

more and more into Chinese hands.

I cordially welcome what is said in the petition

as to the skill and energy of the British merchants

who have been or still are residents in Hongkong,

and I can testify with pleasure to their public

spirit. But the fact remains that the overwhelming

mass of the community are Chinese, that they have

thriven under a certain form of government and that

in any scheme involving a change of administration

their wishes should be consulted and their interests

carefully watched and guarded.

7. The communities with which Hongkong is in

the Petition unfavourably contrasted, as regards its

mode of government, are Malta, Cyprus, Mauritius

and British Honduras.

Hongkong, it seems to me,

differs

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