Of course I knew that neither he nor the local Authorities would venture upon such a step, but if possible rather shift the responsibility upon me.

I pointed out what the course to be followed was, but advised that he should at once send orders to the Hainan authorities to give them notice to quit the place & above all to arrest & bring away the Chinese, Lin Teng han who in collusion with them & had obtained the license at their instigation & this he said he would do.

Mines of all kinds are Imperial property subject to the Emperor's control, when found, it being immaterial whether of gold, silver, copper, tin, iron or lead. Indeed the restrictions concerning copper are more stringent.

This is evident from the fact that although licenses to work it are given by the Coinage Department under certain conditions, there can be no question that they are not transferable to foreigners without the sanction of the Emperor. Tepr. Caldwell & Co. may not have such transfer, but I am under the impression they have, from what I have heard privately of their proceedings. If they have, it is null and void without the Imperial authority being a party to it; as if they have not, they are acting illegally in working the mine, under any circumstances by resorting to the place called Hai Tow in the Chang hwa district. They are a breach of the Treaty.

I have every reason for believing that vessels are cleared from the Harbour Master's Office at Songhong for the West Coast, as that part of the seaboard south of the cap is called; & I do not clearly see on what grounds the authorities of the Colony of Koushous sanctions that which looks very like a breach of Treaty Provisions. I have sent a copy of the Cadis desp. to the acting Governor, but it is a matter of too much importance for J. E. Mr Quercer to judge how far the Colonial authorities are bound to take measures to prevent Brit: subjects residing within its jurisdiction from committing illegal acts in the territory of the Semperance of China.

In connexion with the above, I have the honour to inclose copy of a letter from the Firm Adam Scott & Co of Hongkong & my reply on the subject of an order which has been sent by the authorities to the Hainan Authorities forbidding trade by foreigners at King (how in Hainan, one of the ports stipulated to be open by treaty. At an interview I had with the superintendent of Customs, he informed me that without instructions from Peking, he had no power to acknowledge that Port as open to foreign trade by sending a Custom House Establishment there to collect the duties. In reply, I observed that neither had...

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