CO129-409 - Governor Sir May - 1914 [1-3] — Page 380

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the claim for demurrage on Chinese omed junks is one properly to be preferred by the owners.

·

As regards the monthly claim for loss of profit I do not consider it one which can be prosecuted, because, although the company's business has been seriously hampered and curtailed owing to inability to obtain supplies of limestones from Kuangtung, it is difficult to see on what grounds it can logic: lly be upheld. Since Lay, 1913, and before, the Provincial Covernment have declared that export is free and that the company can purchase from any legally qualified seller. That they mavs placed all sorts of difficulties in the way of those seeking qualification has formed subject of continuous and urgent diplomatic representation, but I venture to think that it can hardly form subject of a claim for damages, because the stone in Chinese, the sellers are Chinese, subject to the laws and regulations of the country, and I au as"ured that there is not, nor will there be, any differential treatment between stone for export and stone for local consumption. Moreover, owing to the protracted negotiations over this question, the Green Island Company and their contractors would sear to consider that no charges of any kind hetsover may be imposed by the Provincial Government on their or subjects. Take the analogous cases of tea and silk. It is no legitimate, although it may be aterial, concern of the foreign buyer for export ist charges the native seller, whom he approaches, may have had previously to disburse. The foreigner takes or leaves what is offered according to his requirements or the state of the market, and the native makes his own arrangements with his own authorities. I submit that the see applies equally to the Creen Island Company, and, in view of the assurances which I have repeatedly received and the instructions which the Central Government have issued, I am at a loss to understand why they still refrain from coming or are unable to come to terus.

In connection bereith and as affording a commentary

on the inclosure in your Despaton No. 1 of January 20, I have the honour to transit copies of correspondence recently exchanged with the

Government of Hongkong. (Su Sir Imag's Conf. drop. of p. 2.

(See hop, 20.2.14:

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„2-14; Inet.

546)

It only remains to remark that the present Provincial

Government

•