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Mr. Sun Fo, the Minister of Railways in the Manking

Government, put before me the following matters.

3. He began by telling me that his government

is very anxious to see the completion of the Canton-

Hankow railway, and that Mr. Sun Fo fully realizes

the necessity of connecting that railway by a loopline

round Canton with the Canton-Kowloon railway.

Kr. Sun Fo is according to r. Choy of opinion that

the construction of this loopline would be of

advantage, and indeed would be necessary, to the

construction of the missing section in the Canton-

Hankow railway, and further that this connection would

be profitable to both the railways.

He know that

But

a deep-sea outlet for the Canton-Hankow line is

essential and can be found only at Hong Kong.

there are certain objections, which Mr. Choy

characterized as "psychological", in the minds of

the Canton populace. Merchants and people in Canton,

said 'r. Choy, who professed in this matter also to be expressing the views of Ir. Sun To, are much afraid

that the construction of the loopline would divert

trade from Canton to Hong Kong, and that Canton would

"be left in the cold". In order, therefore, to

obviate any local opposition in Canton, Ir. Sun Fo is anxious that the Hong Kong Government should assist in the proposed development of the port of Whampoa.

It is pertinent to note at this point that both

Mr. Sun To and Ir. Choy are Cantonese.

4. I asked Ir. Choy whether there were any

approved

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