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so with our eyes open to the issues involved and that our action in raising the matter is in the best interests of the British firms concerned.

3.

First and foremost, we should require to know whether the fires definitely wish the matter taken un with the Chinese Government and whether they think it worth while embarking on a serious controversy with the possible risk of losing their extra-Treaty shipping privileges. In this connection it must be understood that there is now-s- days small prospect of our being able to thrash the matter out to any definite conclusion with the Insœstor-General of Cus- toms, who will no doubt, when seriously reased on the quea- tion, refer us to the Chinese Government and withdraw, leaving us to address our representations to the Wai Chiao Pu.

7.

On the other hand, unofficial representat- ions to Sir F. se on the lines of those already made may serve to keep the seal of his Commissioners within ressonable bounds and lend to the adostion of a more moderate attitude generally on the part of the Customs in the operation of the regulations and the enforcement of fines tereunder.

I desire therefore as the next step to se- ours the dounidered views of the British shipping comanies principally concerned. I should be glad if you would accord- ingly, if songible in collaboration with His Majesty's Comar- cial Counsellor, discuss this question with the representatives of Yesars Jardine Kethenon and Company and Vesars Butterfield and 3wire and of any other firms whom you and it. Reale moy

/ consider

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