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in China in its internal strifes.

In the course of conversation, the two Chinese members

of Council pointed out to Mr. Lam that since General Li had

been so good as to say that he desired the co-operation of

Hong Kong, he should, in order to demonstrate his friendship in a tangible way, have the picketing against steamers of

the Hong Kong, Canton & Macao Steamboat Co., removed forth-

with. Mr. Lam promised to bring the matter to the notice

of General Li.

Mr. Lam thought that during the past twenty-five months

no real contact had been effected between Kwongtung and Hong

Kong, and he considered it a great pity. He was sure that

the interests of the two places could be best served by

General Li confining his unofficial communications to one

channel, the two Chinese members of Council.

course use the official channel for official communications, but

he considered that better result could be achieved in many

cases if preliminary negotiations were first conducted in an un-

official way through really responsible people in Hong Kong.

He would of

Mr. Li Yau-tsun, on behalf of Mr. Li Yik-mi and himself,

said that General Li could count upon their best efforts in

promoting trade between the two places.

Mr. Kotewall, Mr. Li Yau-tsun and Mr. Li Yik-mui then

invited Mr. Lam to lunch, Sir Shouson Chow being unable to

be present owing to indisposition. During lunch nothing of

a political or business nature was discussed, but when it

was finished, Mr. Lam asked ur. Kotewall to give him an interview alone; and ir. Kotewall accordingly took him to

his private office, where the following conversation took

place.

Hir. Lam prefaced his remarks by saying that what he was

going to say was strictly private and confidential, and was

intended for Sir Shouson Chow and Mr. Kotewall only. He

then

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