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that the Chinese Govermout should be invited to undertake their policing in future. I this course were adopted at Chinking, Kuikiang and Amoy it would assimilate them to the general foreign Settlement at Juhu which has adequately fulfilled the purpose underlying the grant of Settlement and Concoctiona without making any real oncroachment on Olduc's sovereign rights.

With regard to the Concessions at the larger ports, Tientsin, Hankow and Canton, the best line of advance would appear to be to aim at merging these areas into larger municipalities controlled by Sino-Foreign Councils. A Tientsin and Hunkow progress on these lines may be expected in the not distant future, but it is feared that nothing can be done at Cinton so long as that city remains in the hands of the Bolshevika.

18. A caution la necessary in the event of this question being considered. I must be borne in minf that His Majesty's Government have incurred certain liabilities under the leases which they have granted at these conces- sione, so that any arrangement for retrocession would have to include provision to meet those liabilities.

19.

Finally, there are various points of detail which, on the principle of "shortening the front", it might be well that the Commission should consider, with a view to suggesting either remedies for abuses or solutions of difficulties.

These are (1) the irregular registration of Chinese as foreign subjects,

(3) brgietration of Chinese-owned land in

foreign Comeulstes, (5) Company law and Chinese, (4)

Chinese ships flying foreign flags, and (5) missionaries in

the interior.

20./

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