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In the National flags of China should be proved to the Supreme Authorities at Peking, the Commander-in-Chief from Vice Admiral has nevertheless signified his intention, pending a definite settlement of the question by the Prince of China, of recognizing a National Design consistent with European ideas of what a National Ensign should be. It is also the Governor's opinion that some distinction should be established where Provincial and Imperial Squadrons are maintained.
With this view His Excellency further suggests that you should invite the Viceroy's attention, and that of Her Majesty's Minister to the desirability of an issue by the Chinese Government of an annual list of Imperial War Vessels, with the names of the Commanders distinguished from Provincial Craft.
The privileges conferred by International Law on such vessels renders it desirable, that every facility should be afforded for their recognition to claim such privileges to which they are entitled.
(Signed) W. G. Austin, Colonial Secretary.
(Three Copies)
I send to Colonial Secretary.