14 jan

Foreign Office, containing his observations after a personal interview with the Hongkong authorities, on the nointe raised. He states that the Hongkong Government would not agree to the restriction of ownership of west River steamere to white British subjects; he points out that the companies composed of white British subjects have in recent years been entirely eliminated from the general trade between longkong and imehow, and he takes the view that it is accordingly impoed ble to limit ownership to white British subjects. In this view I congur.

3. The reount action taken in Canton and Hongkong which has the full support of the authorities in Hongkong, has as Mr. Brenan observes, all been directed towards restricting the use of the British flae, in the onse of Anglo-Chinese owners, to vessels owned by well established Chinese British subjects who have renounced their Chinese nationality. By doing so, these purtons have become gen. uine British subjects, and as such they must, I think, although of Chinese race, be entitled to as full naval and consular protection for their vessels as would be granted to white British subjecte.

4. If this le admitted the present áifficulties of His Majesty's Naval authorities will disappear, for, when the purging of the registers has been completed, there will

be caly one olate of reasul on these watere flying the British flag.

I have etc.,

(Sgd) Miles M. Lampson.

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