CO129-519-6 Development of railways proposed by Chinese Government 7-9-1929 - 17-1-1930 — Page 4

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Development of port of Whampoa. for

the use of shallow-draught steamers.

Canton wishes to see this because it would

thereby become less dependent upon Hong Kong. There are reasons too why Hong Kong itself might welcome the scheme, apart from its present aspect as a quid pro quo to obtain the completion of

the loop railway: -

(a) If Canton has a portin Whampoa, the

favourable position of Hong Kong as the natural

and, till Whampoa is developed, the only outlet towards the South > for Canton trade will be less obnoxious: the

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h

+ The loan suggested in 1926 was to amount to $10,000,000. The fir nor is now 20 million,

On the other

demand for the retrocession of the new territories

will be correspondingly weakened. hand Hong Kong has little to fear from the rivalry of Whampoa, which can never be made into a deep sea harbour. (b) The development of Whampoa is

likely to stimulate the trade of Canton and the

fortunes of Hong Kong are so tied up with those of

Canton that any improvement in the trade of the

one is likely to react favourably on the trade

of the other.

The difficulties of the present proposal

are, I think, insuperable. Hong Kong will be in- volved in heavy loan expenditure on its own account in the next few years, its finances are not equal

to any further strain and it simply has not the

the money is to come from this counton it will be necess's to money! If t le sej we dood net new consider the further difficulties which any such loan would

raise in connection with the Consortium.

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