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From the correspondence received with Str. Stephens letter it appears that while

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Sir H. Pottinger has carried the above Instructions into full effect as regards the Stations temporarily occupied by Her Majesty's Forces, and had directed that all Expenditure which have been incurred at Hong Kong up to the date of Signing the Treaty should be referred to the Military charges of the Expedition, he has considered it necessary under the altered circumstances of the case to retain the Island of Hong Kong under his direct Authority and to take on himself the sole responsibility of paying, from the day the Treaty was signed, the Establishment employed on the Island as well as additions which he expected to have to make to it in furtherance of the measures which he presaw would be required to carry out the provisions of the Treaty.

If any of My Lords are not aware, objection to Sir H. Pottinger's proceedings in this respect being approved by Her Majesty's Government, and they will proceed to take the course which in their opinion it will now be proper to adopt for the regulation of the Civil Expenditure in China.

The Offices of Chief Superintendent of Trade in China and of Governor of Hong Kong are, it is understood, to be united in the same person.

The Salary which will be drawn by this officer as Chief Superintendent of Trade, and the expenses of the Consular Establishment will have to be provided by Parliament on Estimate to be prepared under the directions of Her Majesty's Secretary of State for Foreign Affairs.

And that portion of the Salary of Her Majesty's Representative in China which will be drawn as Governor will be charged to the expense of the Establishment for the Civil administration of Hong Kong which will be provided in like manner on Estimate to be prosecuted by Her Majesty's Secretary of State for the Colonies.

It is possible that sufficient Information may not be obtained during

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