CO129-562-20 Whompoa Port- development 19-2-1937 - 4-4-1938 — Page 33

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since it was bound to compete with Hong Kong we could not be

expected to favour it or co-operate in its development.

Colonel Li said that in any case the port would be

constructed. Their engineers told them that it would take

vessels of up to 15,000 tons, and they had worked out

figures which showed that a high percentage of the trade

could be diverted from Hong Kong to Whampoa.

It was

naturally the desire of the Chinese authorities so to divert

it, and it was the fact that this diversion would hit Hong

Kong so hard that made the Mayor anxious to discuss the

matter frankly with us and see if some way of minimising

the injury could not be found. Incidentally it should be

noted that in conversation with H.M. Ambassador at Canton

the Mayor had spoken of a much lower tonnage than 15,000

(say 5,000 or 6,000) as the figure aimed at] Colonel Li

also stated that it was intended to create a Chinese shipping

company to carry on the trade resulting from the development

of Whampoa.

The Governor said that, unlike the Ambassador, he

needed to consider only Hong Kong's interests and not the

interests of British trade as a whole. If Whampoa Port

was developed, it would undoubtedly draw trade away from Hong Kong; but he had a lively recollection of what had happened to Prai where a similar development scheme had been commenced but had been abandoned after Straits $2 1,000,000

had been thrown away on it. If, however, the Whampoa Port was developed successfully, the Hong Kong authorities would no doubt always be ready to discuss with the Chinese authori- ties suggestions for mutual adjustment. Nevertheless he thought the Chinese would be wiser in their own interests to develop the present river approaches to Canton and to complete the Canton Hankow Canton Kowloon link instead of

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/embarking