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with no sucontw. tered during the negotiation of the lanton-Kowloon H»!lway agreement was the anxiety which the Chinese showed to pro-
their long the "ankos-uanton line to hampos ari ghédraversion to pisoing ilongkong in direct comunication with central China. That some such iñes still lingers in their mindr is shown by the fact that all our efforts to link up the bankow-canton and Canton-Fowloon lines have so far proved unsuccessful although we have reportedly offered to advance the camil aus required to form the connecting link of move 4 milan round the city of Canton. The Sermane xould there- fore probably find the Chinese disponed to entartain their proposal and in times so unrettled me the present, circum- *tances might conceivably occur which would favour ite adoption. The Cermane have lost their great contre of trade and Influence at 'ringtao in orth China and their expulsion from Hongkong has dealt a "avere blow to their comerce in South China. After the War they will be the only lover of any standing, except the larrieant, with no territorial footing on the court of thion and this will enable them to pose as mere plousers of trade with no ulterior mbitione. Their recor? during the past 25 years in Louth China has been me of steviy plodding progress and
artificial it is perhaps questionable riether any additional restric- tions which we may be able to impose after the war will effectually restrain a retumption of their activities in the future. However that way be, it would reek wiser to sake use of our prevent o... urtunities and pre-are by a
own strenuous exertions to meet Darwen carpetition with
One of the great difficulties we encoun-
our
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