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despatch to the effect that "H. M. Minister at Peking will be directed to call the attention of the Chinese Government to the interference with the Junk Trade of Hong- kong."
12. This Blue-book winds up with a despatch dated 22nd March, 1875, to the Gov- ernor as to the reply to be given to the Chinese Petitioners; to the leaders of the Public Meeting; and to the Chamber of Commerce. The Secretary of State clearly lays down that the Chinese Government had a perfect right to establish the Stations where they had placed them, to overhaul Chinese craft at sea or in Chinese waters in search of Smug- gled opium or other goods; but that representations would be made to the Chinese Government to render these searching operations less vexatious and harassing than they
had been heretofore.
13. Blue-book No. 2, contains forty pages, and is a continuation of the same subject. The Hongkong Government calls attention to further abuses of the Customs Cruisers. This parliamentary paper also shews that the Chinese Native Customs have no fixed tariff, or at all events will not produce it or publish it. It also shews that cotton and other Foreign goods sent from Hongkong to the Southern Prefectures are much more heavily taxed than the same goods sent from Macao, thus placing Hongkong at a dis- advantage with Macao as a port of trade. It is also shewn here that the duty on Sugar entering Hongkong by Junks is much higher than what is levied at ports of China or at Macao, and that goods which had obtained the "Grand Chop" after payment of all duties at one of the local Stations pointed out by the Viceroy and Hoppo, had to pay them over again at the port of entrance. The Colonial Office points out moreover that goods are made, by the Canton Authorities, to pay duty both of export and import, as if Hongkong were a port of China. Against this Lord CARNARVON protests.
14. The unfairness of the taxation, the breach of faith, if not hostile action of the Chinese Customs towards the Hongkong Junk Trade as compared with their treatment of that of Macao, was fully shewn in a paper written by me in October, 1874, and published in Command paper 1628 of 1876. At the request of Governor KENNEDY, in 1876, I investigated at considerable length the question of what duties were payable between Hongkong and the ports in the lower Prefectures, as well as between Hongkong and the ports in the Fo-kien province and Formosa. That document was not published in deference to the request of the Chinese who gave the information, and who made it a condition that their names should not be divulged, for fear of involving them in trouble with the Chinese officials. The enclosures are very instructive, as shewing the Chinese methods of levying dues on their great rivers and at the out-ports. (See C.S.O., 1769 of 1876, and Governor KENNEDY's despatch of 6th August, 1876).
Proceedings after the Chefoo Convention of 1876.
15. The arrangement made by Sir THOMAS WADE in the Chefoo Convention, Septem- ber 13th, 1876, marks a new departure in the history of the Blockade question. By that Convention it was agreed (Section III, Article 7,) "to appoint a commission to consist "of a British Consul, an Officer of the Hongkong Government, and a Chinese official of "equal rank in order to the establishment of some system that shall enable the Chinese "Government to protect its revenue without prejudice to the interests of the Colony."