Thin action in this respect with the Viceroy, and I add emphatically that I have never in any way directly or indirectly interfered to stop such communication, for I always considered that in matters of Police, the Authorities on the borders had best be left to make such amicable arrangements as seemed convenient to promote the ends of justice. With such a clear and explicit statement from the Governor, the conflicting statement said by M. Smith, the Acting Registrar General, in his Memo (enclosed in Sir Richard MacDonnell's despatch No. of to the Secretary of State for the Colonies) to have been made to him by Colonel Ting, does not, I confess, seem to me worthy of any credence.

As regards the question of the adoption of satisfactory measures to re-establish friendly relations of the nature desired, I found difficulty on the part of the Viceroy in the expediency, though quite agreed in the practicability of the arrangements proposed, and promised me he would give the necessary instructions.

In reference to the interference of Custom House officers with the trade of Hongkong, any complaint that may originally have existed, I

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