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firmer smaller Houses also deal to the detriment of their pecuniary interests, in the Opium trade as lack of resources requires a large ready capital which they do not have.
The smaller Houses, therefore, consign Opium to Agents at the Consular Ports, but it is generally shipped on board the vessels near those Ports, until the Agents settle the Opium sale with some Chinese brokers at Shanghai for shipment, who then receive orders for the delivery of the Opium from the receiving vessels at the entrance of the Yang-tze river.
Wonting there are no native trading junks here from the coast of China; there are none belonging to the Port, and a few fishing and passage boats which form a safe asylum for smugglers and vagabonds of every description constitute the native craft of Hong Kong.
From the Supplemental Treaty (Art. 16) it is understood that national impediments did exist to the establishment of a native coasting trade. The articles could effectually prevent any Chinese junks resorting to Hong Kong. Not only are the junks prevented from proceeding hither from any other places but the five Consular ports, but they must also obtain special passports for a voyage to Hong Kong. When arrived there, the British Government are bound to act as spies for the Chinese Government and to report every vessel, the name of her proprietor, the nature of her cargo, etc., to the authorities at Canton.
It is well understood what was the object of these clauses; no passports will be readily granted, and junks that might proceed to Hong Kong would probably be punished by the Chinese authorities who are accordingly jealous that anything should be done to contravene these regulations.