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RATÍ ARIS
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IN
3.
530
that restrictions might perhaps be placed on the contimation ¦ of German trading. Possibly this very va peness is intended to indicate that the Committee realise the difficulties of any such policy, and that, in common with the Goverment, they are searching for the path, rather than pointing out a road already found, It may be mentioned, though further details cannot be given at present, that the question of the failure by certain of the verman firms to observe the strict terms of the trust receipts on which they received much of their cargo has already engaged the attention of the Goverment.
6.
In conclusion, I an to say that it is not the view of His ¿xcellency the Governer that the presence of German merchante in the Colony is essentially necessary to ita prosperity. On the contrary, he is of opinion that if British merchanta can extend their activities so as to cover the fields formerly occupied by the veraan merchants, conducting their operations in those fields on the sounder methods which they have all along employed, the gain to the commercial life of the Colony will be great. It cannot, however, be denied that the future development of this great emporium of trade would be prejudiced by the transfer of any considerable portion of that trade to Canton, or to some other port by a realisation of the aspirations, which still constitute the principal obe- incle to the function of the Canten-:owloon with the Push-ilan imalway, of the people and Gaverzsent of China to create a | rival port in South China,
7.
A copy of this correspondence will be sent to the Secretary of State, but this Government cannot consent to its publication. it will however be sugested that a copý
be sent to the vevernors of the Straits Settlements and Ceylon, with an invitation for any views that they may wish to express.
1 am, šir,
Your obedient servant,”
bland Deveen
Colonial Secretary.
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