6937-9 (2)

62

city had automatically increased from $1,200,000 to over $4,000,000, merely because the people had been at peace, and that the revenue was continuing to expand.

366

On another occasion in the course of Mr.Fletcher's visit to Canton, a high official of the Canton Government told him that Canton was very

prosperous; shipping was increasing daily and a large volume of trade was being successfully diverted from Hong Kong to Canton. For example, the west river trade which used to be entirely in Hong Kong hands was now in the hands of the Canton merchants, and the same

applied to the shipping with Shanghai.

In his covering despatch the Governor observed that the boycott has shown that it is possible

for Canton to make itself to a certain extent

independent of the Colony, and that the longer the

boycott lasts the greater is the probability of a

permanent loss of trade to Hong Kong, for Hong Kong

cannot make itself independent of Canton.

The

Governor observed that the reason for the wonderful

growth of Hong Kong is to be found in the fact that

it is the best deep sea port for the commerce of a

province inhabited by more than four millions of

Chinese.

There are, however, other ports, though

none so good or go conveniently situated, and the

Governor remarked that it is not in the interests of

the Colony that trade should be diverted to them.

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