431

DRAFT.

been able to effect this,

hote

hr. at Benny stalls that ... "So I dinkan har moved

the matter back hithert without Tussles

Jaß

most detrimental

able to take active steps to induce the

Chinese Government to reconsider their atti-

tude. I am unable, however, to find that Sir

Torn Jordan has hroved in the matter), and it

is therefore necessary to consider if any

other steps can be taken to safeguard the

interests of the Hong Kong Railway.

3.

The possible dangers which

fore-

see are threefold. In the first place, I

have heard that Chinese merchants and offi-

cials are pressing the idea of making a

Chinese port the terminus of the trunk

line, and have been making speculative pur-

chases of land at Whampoa with that object.

It is obvious that such a policy, if carried

into execution, would be fatal to the inter-

ests of Hong Kong, and as it is opposed to

the terms of the loan agreement His Majesty's

Government would be justified in using

every means at their disposal to resist it.

4.

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