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the Governor-General of the Canton Province in consequence Petition for bidding the export of limestone from the Province, and this Government addressed His Britannic Majesty's Consul- -General at Canton on the subject. I enclose copy of a lemorandum which Mr. Ja ieson addressed to the Governor-General on the sub- -ject. In reply His Britannic Majesty's Consul-General received a communication, copy enclosed, from the Director of the Bureau for Foreign Affairs to the effect that the prohibition was only against illegal quarrying and export and that Foreign Merchants could obtain limestone for export by complying with certain regulations.

5.

It was thought that the matter was thus settled, the Green Island Cement Company being ready to comply with any reasonable regulations. But under date of the 18th. July the Company wrote to say that one of the partners of the Chinese Firm with which they had a contract for the supply of stone, had been arrested and put in prison in Canton on a charge of having cut stone at the Firm's quarry contrary to the regulations of the Board of Industry. I caused further enquiry to be made of the Firm and as a result I addressed a letter, copy enclosed, to His Britannic Majesty's Consul-General at Canton, under date of the 31st. of July. In reply I received a semi-official letter from Mr. Jamieson from which I extract a passage, copy enclosed, relating to this matter.

6.

On the 9th. of August I received a letter, copy enclosed, from the Green Island Cement Company asking for the assistance of this Government in obtaining relief from the embargo placed on the export of limestone. I addressed His Britannic Majesty's Consul-General again on the 30th. of August on the sub- -ject and authorised him to inform the Tu Tu that this Government would be unable to assist the Canton Government in any applications for its good offices unless this and other claims were listened to

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