State that they are not prepared to say that such arrangements might not be made, but that they think that they would probably be attended with considerable difficulty.
The penalty at present attaching to this process is nothing more, so far as My Lords are informed, than the loss by such goods of their right to half duty importation into a Treaty port. The Chinese Authorities affirm, with much apparent reason, that if such transhipments were to be treated as shipments from another Treaty Port, the Chinese Revenue would be exposed to much risk - and with the present condition of Chinese administration on the one hand, & the alleged extent of contraband trade carried on from Hong Kong, on the other, it seems difficult to doubt that such would be the case.
Under any circumstances, My Lords apprehend that no arrangement of the nature contemplated could be entertained by the Chinese Authorities, except on the condition of the presence of a Chinese Consular or Custom House Officer at Hong Kong, and My Lords are disposed to infer from the correspondence that such a proposal would be one of doubtful expediency.
I have the honor to be,
Sir,
Your obedient Servant,
Louis Mallet