of

first instance be clearly and distinctly defined, what is the footing upon which it is proposed to place Hong Kong, as well as the privileges to be conferred upon that settlement, for it is to be particularly observed, that the merely constituting it a free port within the meaning of the Act 3 & 4 Will 4 Cap 59 would confer but limited privileges upon it, compared with those enjoyed by Singapore,

inasmuch as constituting Hong Kong a free port under the provisions of the Act above referred to, would only have the effect of permitting such foreign Countries to whom permission might be granted by an Order in Council to be issued under the 5th Sec: of 3 & 4 Will 4 Cap 59 to trade with Hong Kong, to import Goods the produce of the country to which the Ship belongs, so that the Chinese Junk which may now lawfully import Sugar from the Dutch Island of Java into Singapore, would be precluded from doing so into Hong Kong, unless the Sugar was the produce of the Country to which the ship belonged, and from the enquiries which we have made, it would appear to be doubtful how far the free port system which has been framed under the Act of 3 & 4 Will 4 Cap 59 more immediately for Countries westward of the Cape of Good Hope, would be applicable to the trade of a place, situated like Hong Kong in the Chinese seas, where the Native States and Powers (so different from what we are accustomed to in the Western Hemisphere) have been long accustomed to a comparatively unrestricted intercourse in trade with British India, and it is the opinion of those well informed upon the subject that restrictions and prohibitions at Hong Kong, beyond those which imperative necessity might require, would naturally force the trade down to Singapore, whereas situated as Hong Kong is, near the entrance of the River which leads to Canton, and in the neighbourhood of Amoy &c.

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