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would not appear that the attitude of the Tutu and the Civil Governor, as manifested in the above unsatisfactory messages, has changed for the better. In view of the recent instructions of the inister of Foreign Affairs, however, I have arranged for a joint interview on londay, the 6th. instant.
In my despatch of the 23rd. ultimo on this subject I mentioned that the Tai Tong contractors stated that they sold their limestone to the Green Island Company in ongkong at $2.30 per ton, Hongkong Currency: that the Ying Tek and Kei Koon Shan stone, owing to the remoteness of the querries, was still dearer and that the Comnt Works could pat stone on the Hongkong market at 82.30 per ton. I have since learned that owing to peculier circumstances of the Government monopoly, the Cement Works are in an even more favourable position, vis a vis the rival foreign Company, than previously supposed. The normal cost of stone from the Government quarries delivered in Canton, includ- -ing cost of quarrying, likin, freight etc., is 81.30 per ton. The contractors well it to the Cement Works at a loss, at $1.00 or even considerably less per ten; but they more than woke up for tuis loss by illicit sales to outsiders who require lie: sales wich are winked at by the authorities in their case for the sake of the reduction in price to themselves, but very strictly prohibited in the case of all other contractors. The Cement Works thus obtain their stone below cost price, while the British company has of course to add to it the con- -tractors' profits. I aw unble in the circumstances to furnish proof of this unfair de-ling but nave no doubt that the facts are as alleged.
I have etc.. (3d.) J. W. Jardeś un,
Consul-General.
P.S. Since the foreping was typed I have had an interview with the Tutu, the result of which I had the honour to report by telegram
today, December &. When I leam what the deputy has been able to
effect, I will asin súdress you, General Lung's attitude was all that
could be desired.
John Jordan,
F.C.J.E., K.C.B., K.cu . H. M. Ministe
Peking
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