;
Government of China is at present friendly to a considerable extent defriended
Sir R. Macdonald takes exception to the proclamation of the Viceroy establishing these tax stations and is of opinion that
the Chinese Authorities have exceeded the powers retained by them under the provisions of the Treaty of Tientsin.
He also appears to apprehend that the breach of
some inconvenience and loss will accrue to the commercial community at Hong Kong in consequence of these Regulations.
My Lords would greatly regret any restrictions being placed on the legitimate trade of the Colony,
but as the sole object of these Regulations appears to be the prevention
258 prevention of Smuggling, they trust that the Commercial Community will not suffer in the manner which Sir R. Macdonald fears.
In conclusion My Lords are unable, after careful consideration of the correspondence, and documents forwarded by Sir R. Macdonald, and after reference to the Treaty of Tientsin to concur in the view taken by Sir R. Macdonald as to the illegality of the proceedings of the Viceroy, they do not appear to be at variance with the Treaty and
therefore see no sufficient grounds for urging the Government of China to rescind these regulations,
which are for the protection of the Revenue, and for the suppression