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bunkering harbour in the East, and the necessity of

reducing charges to promote this trade and supply the

33

demand of local industries. They point out that by obtain-

-ing a deep-sea wharf the delay and lighterage fees

incident to the use of colliers would be avoided, as well

as loss by coal falling into the sea and by theft.

11.

I am not aware of the principles

which have guided His Majesty's Government in the question

of facilities to be granted to foreign firms for storing

coal in British Ports, and I have therefore considered it

advisable to inform you of the present negotiations. It is

of course manifest that in a great port like Hongkong,

every facility must necessarily be given for the mainte-

-nance of a large and cheap supply of bunker coal for

Merchant vessels, and the coast-wise trade by launches *.,

as well as for the needs of the extensive industries of the

Colony

Cement Works, Sugar Refineries,

&c. which con-

-sume large quantities of fuel.

The Japanese coal stored by the

Mitsui Bussan Kaisha is universally used in the harbour

and Colony for commercial and domestic purposes, and it is

not I believe suited for use by Men-of-war, though I am

unable to say how far it might be used for Maval purposes in

sudden

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