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continuance of the daily service has throughout been

imperative on Imperial grounds, and that it would be

entirely inequitable to charge the cost of this Imperial aervice either to the Companies concerned or to this Government. The matter is essentially one in which the Imperial Goverment is interested and of which the

Imperial Government should meet the cost.

4.

The letter from the Hong Kong, Canton

and Macao Steamboat Co., Ltd., and from the China

Navigation Co., Ltd., sets out the matter in detail and

explains the discrepancy between the claim now submitted

and the claim made in my telegram of 25th March last.

I shall address you shortly on the subject

5.

of the losses for four months subsequent to April 20th

as soon as I receive the certified accounts from the

Companies, and on the question of the arrangements to be

made from August 20th onwards. Meanwhile the daily

service is being continued.

6.

I trust that you will be able to persuade His Majesty's Government to meet the full amount of the losses prior to April 20th, and to reconsider its decision

to bear only a portion of the losses subsequent to that

date.

I have the honour to be,

Sir,

Your most obedient, humble servant,

Governor, &c.

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