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the Nice Roy to put the relations of Hong Kong and the Chinese Authorities on the footing intended by the Queen's Government, and which it was apparent to common sense, could not be suspended without injury to both parties.

Sir Rutherford Alcock kindly undertook to arrange this, and had two interviews with the Vice Roy on the subject. I enclose a Despatch from his Excellency explanatory of his proceedings on each occasion, and covering a full Narrative of what had passed between himself and the Vice Roy.

I see no objection to the understanding arrived at provided it is not expected that Reports of all the petty transactions between sub-officials of this Government and Kowloon are to be forwarded to Canton.

Such a system would be impracticable and if attempted, would soon lead to complaints of omissions – which it would furnish too ready an excuse for developing any tendency to jealousy.

The Kowloon Authorities will no doubt keep the Vice Roy adequately informed of all such petty occurrences as may arise, but the necessity for this Government to make reports must unavoidably be...

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