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do not propose to avail ourselves of their "permission" to carry cargo in "Fatshan", nor indeed to make any alteration in present procedure. We realise that this may perhaps be a little galling to British merchant interests at your port, but the question is one which does not admit of compromise, for restrictions agreed to now are only too likely to become permanent.

In that connection, you had better keep in firmly fixed in Mr. Toller's mind that any weakness displayed here may have damaging repercussions on the ultimate settlement of the Yangtsze question, and, although we can hardly tell him his own business, he would be well advised to keep Shanghai closely posted of developments.

We should be rather surprised if the Japanese go ahead with their ideas as regards their own ships before they have come to terms with the Colonial Government, but if they do by any chance load cargo for Hong Kong, please wire at once, and we will endeavour to get discharge prevented.

Yours faithfully,

p.p.BUTTERFIELD & SWIRE

Agents, China Navigation Co.Ltd.

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