Opening of the

port of Kiung

chow.

Right of resi-

dance at ether

places than Treaty ports.

Rendition of absconding debtors.

Reduction of Turist on Zu- ports.

(13.)

At Kiungchow a growing Trade with this Colony has been blighted by an almost prohibitory regulation of the Maritime Customs, limiting vessels bound to Hainan to clearance at Canton under pain of confiscation. The Chamber does not presume to question the reason of the action of Her Majesty's Government in not taking advantage of the Treaty right of resort to the port, they would however suggest that from among the Merchants desirous of residing at the port, a British Consular Agent be chosen who would, under the supervision of the Consul at Canton, be able to perform all necessary acts connected with the opening of the port. The protection of a Gun-boat would, for a time, be requisite. The West Coast or seaboard of the Canton Province, extending from Macao to Hainan, affords promise of being connected with the Colony of Hongkong by a traffic which, if fostered, may in course of time attain to considerable proportions. The first step towards securing this would be the opening of a port and the encouragement of trade under British auspices.

(14.)

ARTICLE XII.--Although Her Majesty's Government have not admitted that the insertion of the words "at other places" gives right of residence at places distant from the Treaty ports, it is hoped that the present text will remain intact, though partially in abeyance, so as to be availed of, if needs be, during the period intervening between the present time and the year 1878, before which date difficulties attending residence at places remote from the open ports will probably be lessened.

(15.)

ARTICLES XIX and LIII-are inoperative, or nearly so, as on the part of the Chinese Government there has been little or no provision made to carry out their obligations, and the duty of capturing robbers and pirates has been left to be performed by Her Majesty's Navy.

(16.).

ARTICLE XXIII-has often been the subject of comment, as escape of Chinese criminals from Hongkong has been of frequent occurrence. In the instance of the absconding person being a debtor, application for his arrest has to be made by the. Merchants to the Consuls at Canton, who can only represent the case, and demand, but not always obtain, the appearance of the delinquent. In the event of his surrendering, the prosecuting creditor resident in this Colony has to send, from this place to Canton, Counsel and evidence to prove the debt. Nothing could be more inconvenient.

(17.)

The mutual surrender of criminals is, primarily, a matter for the Executive of this Colony. The rendition of absconding debtors escaping from Hongkong to the mainland is, however, unquestionably a clause which should be added to the article for the protection of the interests of the Mercantile Community, an authori- tative demand, proceeding from the Government of this Colony, might receive more immediate attention than the request of the British Consul that a charge preferred be investigated.

(18.)

ARTICLE XXVII-specially provides for a revision of the Tariff. It has been said that in review of the past and in consideration of the present, England cannot justly require material alterations in the existing Tariff, and the Chinese Government will doubtless demur, in the first instance, to any reductions, but the object of Her Majesty's Government should be to convince them that, by lowering their Tariff rates, they will be gainers in actual revenue, the immense expansion of trade since the introduction of the present Tariff (which is more liberal than the previous one,) leads to the conclusion that fresh reductions would lead to further expansion and to an extent that would actually give more revenue than was collected under the higher scale of Duties. A comparative statement of the value of Imports from Great Britain at the commencement and termination of Ten Years is concisely given in the following table:

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