Seiance and

confiscation of

goods belonging

jeets by Chinese

illegal

have accumulated at au open port which might have been removed by the British Merchant to a Foreign port with advantage. The prohibition to remove Foreign Grain to ports not in China should be withdrawn, as it has often proved a source of great hardship to Merchants not being able to avail themselves of other markets, when those of China were unfavorable.

(38.)

ARTICLES XLVII and XLVIII-have been superseded by Supplemental Articles agreed to between Mr. WADE and Prince KUNG relative to cases of Customs' seizure. Instances which have called for the exercise of these rules have been few, still, objection may be taken to them, as there is no gradation of penalties to be inflicted in case of any person or persons on board a British vessel being convicted of a breach of the Customs' regulations; ship and cargo are liable to confiscation by the Rules agreed to at Peking under date of 27th October, 1865, and thus the act of an individual, according to the reading of the text of the agreement, is allowed to be sufficient to place in jeopardy property belonging to others. Modification of that portion of Mr. WADE's agreement just considered is almost imperatively required and further alterations may be suggested with respect to the exemption of British vessels from penalty under certain circumstances, such as entering a harbor as a port of refuge when in distress, towing or assisting vessels in distress, if in ballast, for all purposes not being a violation of the law as laid down for the prevention of smuggling in most other countries. In view of the great stringency of this regulation and its unfavorable bearing upon the interests of Merchants, its relaxation and amendment is earnestly sought.

(39.)

The experience gained by the Maritime Customs under the Foreign Inspectorate Le British sub must have dispelled the idea, held at the outset, that attempts to defraud the Customs Cicers. Revenue of just Dues were systematically practised. It is, therefore, surprising that so late as 1865, Mr. WADE should agree to rules stringent as ever, and, while seeking no redress of British grievances well known to him and brought to Her Majesty's Minister's notice by this Chamber, consent to adjudication of cases in a Mixed Court, thereby limiting the judicial functions of British Consuls, and at the same time placing them in juxta position with Chinese Officials, their inferiors in rank.

interference

with the Trade

of Hongkong.

(40.)

That Her Majesty's Consuls would be desirous of avoiding the position appears

to have been foreseen by Mr. WADE, who inserted the clause--

"The Consul and Superintendent may, if they see fit, appoint

"Deputies to meet at the Custom House in their stead in which

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case the order of proceeding will be the same as if they were 'present in person.”

(41.)

Appeals would be made only in cases of moment, the Chamber therefore begs that in all cases the British Consul will be instructed to adjudicate in person and be entitled to call a Court at the British Consulate, and that, at the invitation of the British Consul, the Chinese Officials representing the Customs be invited to assist in the hearing of the case. The Chamber protests emphatically against the introduction of a procedure placing Her Majesty's Consuls in a lower position than formerly accorded to them, which is directly calculated to weaken their power, detract from their influence, and render remonstrances addressed by them to the Chinese Officials of the districts, over which they have jurisdiction, less authoritative than heretofore. This Chamber has from the very first denied the right, claimed by employés of the Chinese Maritime Customs, to adjudicate in cases of contravention of the Revenue laws, and it is anything but desirable that those who are to derive a pecuniary benefit from a confiscation should sit as Judges in the case.

(42.)

The Maritime Customs have recently aimed a blow at the Shipping interests of Hongkong by disallowing the transhipment of cargo in this port under exemption certificate. Until this regulation came into force Hongkong had the same advantages as a Chinese port for the purposes of transhipment, a position simply

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