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there might have a most prejudicial effect on

the whole situation and place the British communities

in other parts of South China in a dangerous position.

Moreover, it would inevitably lead to the preferment

of claims for compensation from those members of

the community whose whole existence is bound up with

their business and other interests at Swatow.

(2) to authorise His Majesty's Consul at Swatow

to make use, as required, of one of His Majesty's ships

which it is understood is stationed at Swatow, for

the purpose of procuring and bringing to Swatow the

provisions required by the community.

(3) to authorise His Majesty's Consul or the

Hongkong authorities to come to some definite

arrangement with the China Navigation Company whereby

the company would be refunded the bare cost involved

in the diversion of their vessels to that port, pro-

vided that the visit of such vessels was necessary in

the interests of the British community and that no

commercial profit to the firm resulted therefrom.

5.

As already stated, the first of these alternative

courses cannot in present circumstances be adopted. It is there-

fore essential to devise some means of supplying the British

resident community with food and necessary supplies by sea,

they are cut off from all such supplies locally.

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6. It remains a question whether the second or third

alternative course now proposed would be the more practical and

economical. Prima facie, it would seem proper that this

service should be undertaken by one of His Majesty's ships; it

nay.

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