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an approximately accurate figure can be arrived at through statistics obtained to show the cargoes which are vital to the life of the Colony; whereby under a process of elimination tonnage now currying non-essentials and semi-essentiale can be definitely set on one side as available for Imperial purposes.

find The Committee themselves unable to supply this information, for the following reasons:-

4.

In the first place the trade of the whole of the China Coast is in question. Hongkong's trade statistics extend over a period of a few months only, and, with trade conditions continually changing, with chips required for one purpose to- -day being diverted for another tomorrow, the Committee regard those statistics as not sufficient for the purpose required. They regard the immensely voluminous figures compiled by the Chinese Customs as equally insufficient for the purposes of any decision on the vital requirements of Hongkong.

5. It is unnecessary to reiterate the point that Hongkong is merely a distributing centre and that her vital requirements do not consist solely in food for the population and material for the docks, The Governor's draft telegram of June last to the Secretary of State for the Colonies, which was concurred in by the Committee, has put their views very clearly. They maintain their opinion, then pressed, that "Hongkong, being only a great trading port and distributing centre for South China, subsists practically on shipping alone, upon which with its connected avocations the native population of Victoria and Kowloon, numbering about 400,000 persons, depend for their living..

They urge strongly that no further ships should|

be requisitioned from Far Eastern waters without first review- -ing the situation and indicating the services for which the vessels are required; and that it is essential to keep alive a nucleus of the British Shipping services trading with Hongkong"j

6.

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