fonsible, should be brought up at a payahologiosi nomeart in the discussion - possibly at a stage where a breakdown seems inevad t able owing to disagreement.

From a subsequent consideration of this matter I am disposed to think that whatever the lines of negotiation adopted Jifficulty may arise owing to the attitude of the Chinese whone present desire seems wherever possible to side-treak the fored gyer unless his share of participation oen be taken over at a later date. There has been considerable talk in recent years of the construction of a deep sea port near Canton through widah foreign trade night pass mai, while I gather from lowal Engineers that no such part could be constructed without an enormous and disproporti.coste expenditure, the ides or sout variation thereof is still in mind. schmans have arisen for the formation of Chinese

132

Recently, for instance,

Shipping Companies

ntually to conduct the river and coastal trade. However impractic able at the present tine these projects may be, their considerati:m renders practical proposals in which foreigners are to participate liable to extremely alese scrutiny. Where such proposals are connected with something over which there is permanent foreign control such as the British section of the Canton-Kowloon Railway it seem likely that the basafit nacruing to the Chinese mist appear considerable before an agree- ment can be reached which would have the effect of increasing tende

through the Colony.

I have the honour to be,

sir,

Your most obedient, mmble

Servant,

G C PELHAM

II. li. Trade Commiami.cover and

Commercial Secretary.

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