Considering the exclusive jurisdiction to be exercised by British Officers over British Subjects within the Dominions of the Emperor of China; it is impossible, with any chance of fairness, to deny a similar exclusive jurisdiction on the part of the Chinese for over Chinese Subjects within Hong Kong. It remains to be determined in what way jurisdiction may be conceded to them with least risk of confusion.
2. After most careful consideration, Lord Stanley is led to believe that this may be effected in the least objectionable manner by adopting the last alteration mentioned in my letter of the 27th July, namely by following the practice established in some of the Territories of the East India Company, of continuing, at least for the present, the Native Laws & Institutions where native Chinese are concerned. And resisting the application of the Acts how to British Subjects or other European inhabitants of the Island.
In order to carry out such an arrangement, it would be necessary, as Lord Aberdeen contemplates to apply in the first instance to the Supreme Court, to select one or more individuals, to act as Judge within Hong Kong.