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It is also proposed that an agreement be formulated, (if it be deemed necessary) for the free use of the channels through and to Hong Kong and Whampoa harbors by all vessels which may desire to pass through them, without imposition of extra harbor-dues in addition to those which are now

collected or may in the future equitably be assessed for pilotage, anchorage, wharfage, and to cover other similar

necessary harbor operating costs.

It has been pointed out to us by our Special

Engineering Adviser that this proposal is substantially similar to that which now exists between the United States of America and the Dominion of Canada for the provision of navigation facilities on the Great Lakes, and for the mutual

use of the harbors on them.

Mr. Goodrich is also strongly of the opinion that such a reciprocal understanding will be of mutual commercial ad- vantage to Hong Kong and Whampoa and materially increase the business of both ports.

In connection with the proposal for doing dredging

in Hong Kong harbor, it is apparent from the chart and is stated by pilots, that boats can detour the Kellet Bank shoal by making use of Sulphur Channel between Hong Kong Island

and Tsing Chau or Green Island. It is stated that the

boats of the Messageues Maritime usually, and those of the P. & 0. sometimes make use of this channel.

However, information has been received that Sulphur Channel is not lighted, and that it is not liked by navigators because of the short turns which its use makes

necessary.

The proposal to dredge the shoal between Chu Lu Kok

Bank and Sha Chau is more or less an alternative project

designed primarily for vessels which come up from the South

and might wish to proceed direct to Whampoa to discharge a

part of their cargo before proceeding to Hong Kong. Other-

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