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life without having to made use of the facilities provided by Hong Kong. The profits made, in normal times, out of the handling/goods at Hong Kong constitute in effect a heavy tax on the trade of South China and this might well lead the Chinese to provide the necessary facilities at Canton or Whampoa in order per- manently to cut out Hong Kong. He thought that the difficulties of making and maintaining a deep water channel, at any rate to Whampoa, are not seesly be found to be so great as is generally supposed. If this were done, the lessening of freight charges which would be brought about if ocean going ships were enabled to proceed 90 miles further inland; coupled with the desire of the Chinese to cut out the profits made at Hong Kong to

Groudo

get the trade into their own hands, might, even in normal times, lead to a great deal of the trade of Hong Kong being transferred to a Chinese port. He thought therefore that before any extensive schemes of

of a permanent naturs

development/are undertaken at Hong Kong the possibilities of trade being diverted from Hong Kong to Canton (and also to other South Chinese porta such as Swatow, Foochow and Amoy) should be thoroughly explored. In the meantime, in his view, the existing congestion at Hong Kong could be met by the construction (at a relatively low cost) of steel piers at West Point, with overhead transporters to Godo me behind the existing quays. The life of these piers would give sufficient time for the possibilities referred to, being thoroughly explored.

Sir E. Stubbs and Sir C. Severn dissented from the view that any such development of Canton or

transference

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