CO129-409 - Governor Sir May - 1914 [1-3] — Page 391

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at Ying Tak and Kai Koon Shan (Shiu hing) they would sell at 2.50 and 82.65 respectively. The Fei Shu Yen quarry which supplied the s Canton Cement Works could put limestone on the market at $2.30

per ton.

Some days ago one of the Chinese staff of this Consulate- -General was approached by a contractor who declared that he could get any quantity of stone for the Green Island Company at a price. He wish- -ed to know what the Company were willing to pay. I have since been informed confidentially but on excellent mutuority that the person is an agent of Lung Tutu and that the latter is bent on making money out of limestone in either of two "ys (1) by retaining a monopoly for the Canton Cement Works, or, if that fails through diplomatic pressure (2) sharing with his agent the profits which w uld accrue from obtaining for the agent in question the sole right of quarrying for the Green Island Company.

One of the features of the situation, since the results of Mr. Jamieson's interview of November 1st. pecue public, is the press campaign conducted against the removal of the restrictions on export. I have protested against this verbally and by letter and the Tutu has since agreed to order the suppression of such newspaper criticisms. But there is no doubt in my mind that, notwithstanding their promises to Mr. Jamieson, the Canton Government are as obdurate as ever in their intention to fe vour the local company at the expanse of the Hongkong Company and that only strong pressure from Peking or perhaps retaliatory me cures on the part of the Hongkong Government

will induce them to alter their present attitude.

I have etc.

(sd.) G. A. Combe,

Vice-Consul.

(in the absence of H.L.Consul-General,

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§. Alston, lag. C.B.,

H. M. Chargé d'Affaires, Peking