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14.

On the latter point I have had conversations with General Staveley, who is of opinion that the Chinese Government would purchase them, but I have grave doubts of the power of that Government to pay for them, if they reached any considerable quantity, for I am informed by Mr. Medhurst, Consul at Shanghae, that even at that port, where the Customs Revenue is enormous, the Government are unable to meet their liabilities.

It is partly the object of the present despatch, which is likewise intended to place before your Grace a narrative of our present position with reference to the "Proclamation of February 28th".

I have the honour to be My Lord Lake, Your Grace's,

Most Obedient Servant,

Memorandum

15.

I should therefore be glad to receive your Grace's instructions on this head, and to ...

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