the honor to report that Vattel [Lis.2.ch 7. §P: 89.] this expresses himself, "nothing hinders a nation, or sovereign, by the Laws permit, to have the power of granting privileges in his Territories to another nation, or to strangers; for, in general, every one being able to dispose of his property as he thinks proper.
Thus several Sovereigns in the Indies have granted to the Trading nations of Europe the right of having Factories, Forts, and even Fortresses & Garrisons in places within their Dominions. We may in the same manner give the right of fishing in a River, or on the coast, or that of hunting in the forests; and when once these rights have been validly ceded, they constitute a part of the possessions of him who has acquired them, and ought to be respected in the same manner as his ancient possessions.
Having considered the matter with reference to the Doctrine so laid down, & also with reference to the Treaty entered into with Portugal in 1861, whereby in consideration of the Grants and Privileges conceded to Great Britain, the King did, with the consent and advice of his Privy Council, profess and declare that He would take the Interest of Portugal, and all its
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with his dominions, & heart, defence almost by Sea & Land, I am of opinion that although Macao cannot be considered as any part of the Portuguese Dominions, in as much as the Sovereignty appears to remain in the Emperor of China, yet the Portuguese are possessed of such an interest there as to bring it within the true meaning of the treaty.
I have to
[signed] S. Dodson.
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