Other than that the Governor, agreeably to power given him in the despatch of 1 February 1868, has laid down a rule that Art: 134 of the Colonial Regulations shall not be held to apply to the Colonial Officers of Hong Kong.
The cases to which the Governor refers cannot therefore be cited as precedents with respect to his present application.
Lord Granville cannot admit the construction which he sought to put upon Sec: 34 of the Ordinance No 7 of 1862, which appears to his Lordship to have been correctly interpreted by Mr. Pauncefote in his letter of the 18th of March last. (There is a note according to Mr. Holland's Minute of 25.5.65.)
Lord Granville is glad to gather from the despatch (Para: 7) that Mr. Pauncefote's resignation of the Office of Acting Judge of the Summary Court has been withdrawn and that Mr. Smale appears to have been convinced, on reconsideration, that he had taken a wrong view of the Ordinance in question.
If he will, nevertheless, be prepared to consider any proposal which the Governor of Hong Kong may wish to submit to him, either to make the meaning of the Ordinance clearer, or, if necessary, to reconstitute the Courts of the Colony.
In the meantime, it would appear that the Governor was prepared to grant leave of absence to Mr. Smale for 5 months on 1/2 salary, to enable him to proceed to England on the score of ill health, and for other reasons of a personal nature, Lord Granville will not object to his doing so if, in the absence of Mr. Ball, and of Mr. Goodlake, the necessary arrangements can be made.