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Alcock and the Consul in connection with that subject.
You will observe that an important question is raised in that correspondence as to the expediency of permitting duty-free goods to be transhipped here under regulations similar to those by which adequate protection is already allowed to the Chinese Revenue in the Treaty Ports, and by which the general convenience of all parties connected with commerce in China has been hitherto greatly promoted.
At present a very great blow has been aimed at the enormous trade conducted with Hong Kong in native bottoms by the establishment of a Cordon of Cruisers round the Colony which, under pretence of searching vessels for contraband goods, are reported to be guilty of the grossest extortion and oppression, so that the most serious effects are naturally being produced on the important and valuable native trade with this Colony.
4. Under these circumstances it becomes especially urgent to secure every advantage which, by facilitating the operations of trade generally, may in some