98
Scheme for
railway development in the
provinces of Szechuan and Yunnan.
losing trade in competition with Shanghai and with industries
carrying on within the tariff wall. Merchants in Hong Kong
were depressed about the future. It seemed to him that the
best ultimate solution of the difficulties of Hong Kong was
to bring it into a Customs union with China, this would,
of course, be possible only if the Chinese Government could
extend their sovereignty over south western China more
effectively than at present. Arrangements would have to be
made for a suitable allocation of revenue from the Customs
to Hong Kong and for facilities for a free port at Hong
Kong. One of the Chinese Ministers (Mr. Sun-Fo) had
suggested an arrangement of this kind but Sir F. Leith-Ross
had not pursued the question as it obviously involved
political issues which required in the first instance to be
considered by His Majesty's Government. He had, however,
discussed it with the G vernor of Hong Kong who thought
that it would be very advantageous to Hong Kong but did not
understand why the Chinese Government should agree to it as
it would give Hong Kong the benefit not only of the Chinesë
tariff, but also of membership of the British Empire. It
was agreed that the Colonial Office should examine the
question.
The Chinese Government had in hand a scheme for the
development of a railway running from the province of
Szechuan to Yunnan which would be linked with the railway
from Canton and Hankow, and they aimed thereafter at
extending the line from Yunnan to Burma.
They were anxious
to interest His Majesty's Government in this project with a
View to linking up the Chinese railway system with Mandalay or
Calcutta. Under this scheme the length of railway line in
British territory would be comparatively small and though
the country was undoubtedly difficult it was alleged to be
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