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xecution of our arrangements for ulis happy visit, our guests will leave Hongkong with the same feeling as that with which my wife and I left Canton-a sense of abiding friendship.

And in that hope and trust I ask y

dies and Gentlemen of Hong- kong, to rise and drink to the health of our distinguished visitors, asso- ciating the toast with the names of His Excellency the Chairman of the Provincial Government of Kwang- tung and His Honour the Mayor of Canton.

General Huang Replies Acknowledging the toast, General Huang Mu-sung said:

To-day, in accordance with in- structions from Generalissimo Chiang Kai-shek, we have come to return Your Excellency's visit. I feel much honoured and thankful for the overwhelming welcome accorded to us. It is my great re- gret that owing to pressure of work, the arrangements made for Your Excellency and Lady Caldecott's visit to Canton were rather crude and I feel that we do not deserve the praise Your Excellency has just showered upon us. I am greatly impressed by Your Excellency's re- marks regarding co-operation and mutual understanding and I must say that this entirely coincides with the ideals and principles of Dr. Sun Yat- sen, the late leader of the Kuomin- tang and of our present national leader, Generalissimo Chiang Kai- shek.

I have to thank you further 'for extending to us the privilege of inspecting the imposing edifice which houses the Hongkong and Shanghai Banking Corporation as well as the great Shing Mun Dam project. The progress Hongkong has made in public works, which I must frankly say far surpasses our efforts in Canton, has given us a very good impression and no doubt will serve as a source of inspiration to us, which I regard as one of the important unexpected results of our visit.

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Pages From Sages

Now let me quote a few passages from our Sages to show the Chinese ideals about friendship so that we may have a common foundation and

goal common

for our future efforts. Our Classics say "Making friends with the good and being kind to your neighbour is the precious asset of a nation." Another passage reads "When nations enjoy peace and order, the world is then pacified"--in other words world peace depends on the internal stability of nations.

Another passage says: "Lip ser- vice is not sufficient; you must put words into actions."

Still another passage says "When you ask your friend for a favour you must be prepared to do him one in return." All this represents the spirit of friendship and mutual understanding, which coincides with the sentiments just expressed by our kind host.

Henceforward let us show our friendship by deeds and give prac- tical expression to our spirit of mutual confidence. I believe the Mayor, Mr. Tseng Yang-fu, now wishes to add a few words to what I have just said.

Mayor's Speech

Mr. Tseng Yang-fu said:

It is with the greatest pleasure that I avail myself of this oppor- tunity to say a few words to express my very sincere appreciation and thanks for the warm welcome you have accorded us since our arrival this morning. My wife and I con- sider it a great fortune to have the privilege of paying our first visit to Hongkong since my transfer to South China, and of meeting you and

making your personal acquaintance on an occasion which I believe will have an important bearing on the future relationship between Hong- kong and Canton, and we have been deeply impressed by the wonderful strides Hongkong has made in recon- struction and more so by the warmth which we and friendliness with

have been received.

I need hardly emphasize that we entirely endorse the statement our kind host has just made that the spirit of friendship should form the basis of our relations and I desire to assure you that Canton will not only be prepared to reciprocate your friendship but will work for such mutual co-operation and assistance as would enable our friendly rela- tions to show concrete results.

The Chinese people in their rela- tions and dealings with others have always stressed peace and friend- ship. I believe I am not wrong in saying that love of peace is an out- standing quality of the Chinese character and the spirit of friend- ship is one of our underlying moral principles. Throughout our history of more than 4,000 years our great¦ sages, philosophers and statesmen have favoured peace and harmony among nations.

Love of Peace

The late Dr. Sun Yat-sen, founder of the Chinese Kuomintang and the Chinese Republic, advocated univer- sal brotherhood and believed that in order to realise the ideal of inter- national peace, "we must unify the world upon the foundation

of our ancient morality and love of peace, and bring about a universal rule of equality and fraternity." Our pre- sent efforts to promote friendly relations with other countries based on this principle and we are convinced that it is only through the realisation of this basic principle that peace can ever be made secure and permanent.

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It is to be noted with gratification that in recent years the bonds of Anglo-Chinese friendship have greatly strengthened. The Chinese people appreciate your increasingly friendly spirit as manifested in the material support which the British Government has given to the Chinese currency stabilisation scheme and in its more recent action in extending huge export credits to China. We are appreciative of your country's active interest in our welfare and we know that the assistance we are receiving will stimulate our people to further efforts in the path of national recovery.

Generalis-

Our national leader, simo Chiang Kai-shek, believes that national relations must be built on the foundation of genuine friendship and he knows that British friendship is to be much desired. He told a prominent news correspondent in the course of

an interview at Whampoa that it was his lifelong ambition to promote a relationship of true and lasting friendship be- tween Great Britain and China.

Here down in the south we hope that with political stability achieved and with certain obstacles to trade removed, it will be possible to inau- gurate a new era in the relations between Hongkong and Canton. As I explained in a recent speech at a meeting of the Canton Rotary Club, the prosperity of Hongkong and Canton is really interdependent, and that continued economic rivalry be- tween the two centres must react unfavourably upon both.

Big Programme

For the restoration of prosperity of our city we are embarking upon a gigantic programme of economic reconstruction and in this connection we require foreign assistance given in a spirit of absolute friendliness. We shall welcome foreign invest- ments and co-operation, particularly from Hongkong, our close neighbour, Now that our internal stability is reached and factors such as unrest and insecurity arising from civil warfare, banditry and Communist menace, that have been obstructing progress, have diminished, we are able to accord complete protection to investments and industries. With friendly relations which are bound to lead to mutual assistance and with favourable economic conditions re- sulting from the development of

and shipping, railway

air com- munications, I have no doubt that Hongkong and Canton in the next few years or perhaps in the very near future-will prosper and take the premier trade position of the Far East.

Your Excellency and Lady Calde- cott, permit me to assure you again that my wife and I have thoroughly enjoyed our visit and the elaborate banquet you are giving us to-night. I will conclude with the earnest hope that you will honour us with further visits to Canton not in a too distant future and that the personal con- tacts we have made during this visit will be carried to very useful purposes.

Those present_were: His Excel- lency

H.E. and Lady Caldecott, General Huang Mu-sung, H.H. Mr. and Mme. Tseng Yang-fu, H.E. Vice- Admiral Sir Charles Little, K.C.B., H.E. Major General and Mrs. A. W. Bartholomew, Dr. Philip K. C. Tyau, Colonel Li Fong, General Gaston K.; Wong, Mr. H. R. Phillips, C.M.G., O.B.E., Rear-Admiral and Mrs. C. G. Sedgwick, Hon. Mr. R. A. C. and North, Mr. Chang Yuen-nan, Hon. Mr. C. G. and Mrs. Alabaster, Hon. Mr. W. J. and Mrs. Carrie, Hon. Mr. Edwin and Mrs. Taylor, Hon. Mr. R. M. and Mrs. Henderson, Hon. Mr. J. J. and Mrs. Paterson, Hon. Dr. R. H. and Mrs Kotewall, H.H. Mr. Justice J. J. and Mrs. Hayden, Brigadier H. G. and Mrs. Seth-Smith, Hon. Comdr. G. F. Hole, R.N., Hon. Dr. A. R. and Mrs. Wellington, Hon. Dr. S. W. and Mrs. T'so, Hon. Mr. T. N. Chau, Hon. Mr. M. K. and Mrs. Lo, Hon. Mr. S. H. and Mrs. Dod- well, Hon. Mr. M. T. Johnson, Sir W. W. Hornell, Mr. V. M. Grayburn, Mr. J. Brearley, Col. H. C. Harrison, D.S.O., Wing Comdr. A. G. and Mrs. Bishop, Mr. G. R. Sayer, Mr. W. Schofield, Mr. E. W. Hamilton, Major and Mrs. R. D. Walker, Mr. and Mrs. G. C. Pelham, Major V. E. Duclos, Mr. P.. L. Collisson, O.B.E., Col. R. C. B. Anderson, M.C., Mr. and Mrs. H. R. Butters, Mr. and Mrs. A. H. Forbes, Mr. Li Yau-tsun, C.B.E., Mr. and Mrs. Ho Kom-tong, Mr. Li Sing-hui, Mr. J. R. Masson, Mr. and Mrs. Eu Tong-sen, Mr. and Mrs Thomas Tam, Mr. Lo Wing-kit, Mr and Mrs. F. C. Hall, Mr. Tang Shiu. kin, M.B.E., Mr. Ma Tsui-chiu, Mr Wong Man-lam, Mr. C. Champkir MJ Mr. and Mrs. J. H. Taggart, M. F. Key, Mr. A. Morris, Mr. an Mrs. B. C. K. Hawkins, Mr. R. I Todd, Miss Phillips, Comdr. A Sweny, R.N., Mr. P. J. Howorth, I M. B. P. Francklin, R.N., Mr. Ts Tsun-on, Capt. W. J. R. Crag A.D.C., and the Private Secretar Mr. H. J. Crutwell.

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