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on the subject. I had noted in a draft despatch which he
had been so good as to allow me to read that he had made
use of the phrases "Hongkong has for some years past
practically disassociated itself from the general interests
of Far Eastern Trade* (or words to that effect) and again
in alluding to the question of registration in Hongkong he
had remarked that the interest of Hongkong in the question
was a purely fiscal one. I told Sir Havilland that in my
opinion Hongkong so far from disassociating itself from the
trade interests of Shanghai and other centres of British
trade in the Far East should endeavour to make itself the
focus and centre of those interests and to identify itself
in every way with them, as it should be well able to do
being the only British Colony close to China, and the dis-
-tributing centre of a vast carrying trade. He replied
that in that case the whole situation would be changed".
I said that in the abortive attempt to establish an Appeal
Court with his assistance, in the present question of
reciprocal action in regard to registration of Companies,
and control over them, and possibly also in matters of
Bankruptcy I saw openings for the co-operation and recipro-
-city
which I desired to foster. He most cordially
agreed, and after considerable discussion he has formed
the