"On the other hand in Shanghai jarly attempt at development on our part is still looked upon by the Chinese with suspicion, as a further encroachment, apd wrecked against the barrier of China's sovereign rights. What the Chinese should realize by this time is that our control of this Settlement has no sinister purpose. Our mission here is a very peaceful one, that is to carry on trade with China. We have no territorial ambitions whatsoever, and what is known as Settlement extension is merely a natural desire for more space to meet the extraordinary expansion of this large and overgrowing city.
"Both Chinese ant foreigners in Shanghai have one interest in common, to see that they possess honest and capable administration, and a well disciplined and efficient force to preserve order. Only on that basis can trade be carried on and the present feeling of, security we enjoy is as much appreciated by- Chinese as by foreigners. Without it both of us would be involved in most serious losses.
"The financial interests of Shanghai are too great to warrant our trying any experiments, and however much we may desire to assist our Chinese friends into the Municipal saddle, our paramount duty is to preserve our common interests by maintaining and developing the present high standard of administration. It must be admitted that China's progress towards good government is slow, and her old system of mal-administration is difficult to eradicate. At the same time we cannot withhold sympathy from those who are honestly striving for a better China, and it is both our desire and our duty to encourage them as long as their endeavours are wisely directed.
"Foreigners in Shanghai must prepare to admit that we are about to enter a transition stage, when the old system of not allowing Chinese to have any voice in the administration of the Settlement will gradually give way to new system when Chinese will share our responsibilities. It will be a difficult stage to go through. as there will be a natural desire on the part of the Chinese to go too fast. It will require great patience and ce-operation between the responsible Chinese and the foreigners, if good progress is to be made £0 as not to prejudice the security we mutually enjoy at present. Confidence' is & difficult thing to establish, but you will
Text read from the printed page and cleaned; old type leaves the occasional error.