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Furthermore, the development of the city of Canton is vastly important to the security of the new bondholders. It should be something more than a way station on ■ HONGKONG-Hankow railroad. This depende very largely upon the harbor improvment, a subjøet

upon which I am prepared to enlarge; and the bondholders will b

much interested in the carrying on of that improvement

contemporaneously with the railroad project. If necessary,

would favor including a portion of the cost of such development

in the money loaned for the railroad project; at least the

cost of building tracks to the Canton harbor and wharves for

the proper handling of traffic thereon.

T

(2) As a matter of justice to China at least South China.

The British own the only first class harbor on the entire coast

of China, Hongkong. It thrives off the commerce of Canton

and the vicinity, with their eight or more millions of people, Hongkong is a great brokerage point, adding ne intrinsic value

to the commerce it handles, but, as we shall see, adding to the

cost of transportation. Any other country in the world would long ago have developed th Canton river. There will hever be possible a first class harbor there, like Hongkong, but there can easily be made one of great value. At present all commerce

to and from Canton and vioinity enters China at Hongkong

as British commerce. This applies to hundreds of millions of dollars annually of experts and imports whigh really are from er destined to America or other countries, all deliberately

included in the official figures of British commerce, as published under British direction. Every cargo is now unloaded at Hongkong for reloading to Canton and other points near it

- and (constituting the real producing and consuming area),

a considerable part of the transportation beyond Hongkong is in British vessels. I am told that to move a cargo te Canton

from

#TOKSENIÄ K

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