At the same time, say others, the hostility may be exaggerated. The employment of over 100,000 Chinese by foreign residents, many in highly confidential capacities, both in the office and the household, and as many more on board foreign ships, tends to confirm the general verdict that the people, in an individual sense, are civil, obliging, and even hospitable towards the foreigner, and well-disposed especially towards the English trader, who treats them fairly good-humouredly, and without offending their national prejudices. This is supported, even from Wuhu itself, for the last Trade Report says: "The trade in goods classed under Foreign Sundries has increased rapidly during the past two years, and shows a gain of 70 per cent."

Summary of British Position in China.

46.—It remains but to summarize the position of affairs as regards British interests in China, so far as I have been able to grasp it.

(a) That three-fourths of the foreign trade is in British hands, and a still larger proportion of the shipping in Chinese waters.

(b) That British commercial firms and residents are in a large majority among the foreign population.

(c) That the contiguity to China of British India, Burmah, and Hong Kong, and the large numbers of Chinese residents in British territories, give England an especial interest in the welfare of the Empire, and in the gradual opening of the vast markets in the West, South-West, and Centre.

(d) That while British interests outweigh, in their magnitude, variety, and extent, not only those of every other Great Power, but those also of the whole world, Russia upon the North and North-West, and from her adjacent port of Vladivostock; France, her ally, upon the South from Tonquin; and Germany upon the coast, are anxious and watchful competitors.


Policy of Britain.

47.—The course of policy best calculated, under such a condition of things, to maintain and extend British commerce is a matter for the Electorate to decide. Those who share the feeling of the majority in Sheffield, that the undeviating conduct of the foreign affairs of the Empire is essential to the expansion of foreign trade and its wealth of home employment, will probably consider—

(a) That the British Industrial interests at stake in China, and also in Japan, are too great to be necessarily linked to the comparatively trivial concerns of any other nation.

(b) That as they are mainly dependent upon the safety of the resident standard bearers of British trade, Her Majesty's ships in Eastern waters[6] should always be sufficiently numerous and ready at any moment to protect them, unaided, in their persons and property.

(c) That the trade route from Europe to Asia, and its line of defence—Gibraltar, Malta, Cyprus, Egypt, Aden, Ceylon, Singapore, and Hong Kong—should always be kept in British hands, and secure against any possible attack.

(d) That at the same time, no accession of friendly territory being desired, and only mutuality of commerce on equitable terms, the Emperor of China and the Imperial Government should be enabled, by the Queen's representatives, to feel that the support of England will always be forthcoming in any step for the advancement of the Chinese nation, the development of amicable relations, and the security of the Empire against any unwarranted maritime aggression.

MEMORANDUM UPON THE BRITISH TRADE ROAD TO THE FAR EAST.