But before introducing so grave and disputable a question to the consideration of the Legislature, I thought it desirable to communicate with the Governments of neighbouring Colonies, in order to ascertain how the matter had been dealt with, especially in reference to the Chinese population, which must be considered as having a character of its own,—not to be judged of by European standard, nor altogether to be dealt with according to the usages of western nations.

I forwarded copy of the enclosed letter to the respective Governors of Macao,—of the Philippines,—of Netherlands India, and of Singapore. In each of these Settlements the Chinese constitute a numerous class.

The case most analogous to that of Hongkong is the Portuguese Settlement of Macao. Independently of the Communication which I have the honour to enclose, I have had several conversations with the Governor, who represents to me that the operation of the system of Licence has been, in every respect, beneficial, and that any reference to the pecuniary benefit resulting to the Treasury, the public morals have benefited, and the public safety has been increased by confining the vice to certain defined and well known localities.

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