13.

55

maintain itself in Kuang-tung against its enemies and to

suppress piracy and brigandage. It cannot be done, because

of the arms embargo. The Canton Government wishes to revise

its customs tariff and abolish likin. It cannot be done,

because His Kajesty's Government will only negotiate with the Government of a reunified China. But the geographical

propinquity of Hong Kong to Canton positively demands that

special diplomatic arrangements should be made for

facilitating administrative and commercial relations between

these two populous centres, from each of which there is a

daily ebb and flow of many thousands of persons to the other. Goodwill is not lacking at present either in Hong Kong or at Canton, and I submit that it is now the highest time to devise means whereby the Hong Kong Government may negotiate with the Canton Government, irrespective of the other regional authorities in China, an agreement which will be helpful both to the Colony and to the Province and will make possible a renewal of real friendship between the two Governments.

17.

Chinese characters for names in this

despatch are given on a separate sheet.

I have the honour to be,

Sir,

Your most obedient, humble servant,

Governor, &c.

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