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22. Before leaving this branch of the subject, we must remind your Lordship that British Merchants have, on the faith that Her Majesty's Government would insist upon the Treaty being honestly carried out by the Chinese Government, sunk an immense amount of capital at the open Ports, in reclaiming the Concession lands, and in building houses and godowns; and have besides expended vast sums of money in making the necessary preparations for the increased trade, which it was naturally anticipated would result from the Treaty; and which would undoubtedly have ensued, but for the misconduct of the Chinese, and the leniency with which their bad faith has been regarded by the British Government,
23. It is also worthy of remark that, under the Order of the Queen in Council, promulgated in March, 1865, for the government of Her Majesty's subjects in China and Japan, severe penalties are imposed on British subjects for violating certain stipulations in the Treaty; moreover, a simple process has been instituted for bringing such offenders to justice; and the Consular Courts have been given great powers in dealing with them. Every safeguard, in fact, is enjoyed by the Chinese, while we are virtually without a remedy for the breaches of the Treaty from which we suffer.
24. The British residents here and at the Treaty Ports had shown singular unanimity in bringing under Sir RUTHERFORD ALCOCK'S notice the grievances of which they complained; and it was therefore with no ordinary anxiety that they awaited the promulgation of the alterations proposed to be effected in the Provisions of the Treaty of Tientsin. These have recently been made public; and great disappointment has been felt by all the foreign Communities in China, at the nature and the amount of change contemplated by the British Government. We had expected that some stringent means would have been devised to put a stop to further evasions or violations by the Chinese of any portion of the Treaty; we had ventured to hope that some weight would have been attached to our just and continued complaints; and had thought that, in a new Convention, more regard would have been shown to our interests and our representations, than to the remonstrances and protestations of the Chinese Government and their urgent demands. All residents in China consider that the proposed Provisions fall as far short of the just requirements of Foreign Trade in the East, as they deal too favorably with the antiquated theories and prejudices of the Chinese. In every respect, we find China treated as a favored nation that deserved well for her former fidelity to obligations, and the honesty of purpose displayed by her in endeavouring to perform her Treaty stipulations; and as far as British merchants are concerned, little, if any, increased benefits are obtained, while additional Duties are imposed without reason, and the Transit difficulty increased by the conspicuous absence of any guarantee for the observance of better faith in the future than has characterized the past. As to Hongkong, this Colony has reason to complain that it, in especial, must be injuriously affected by some of the proposed alterations, to which we now beg respectfully to draw your Lordship's attention.
25. By Article 2, it is proposed to allow the Chinese Government permission to appoint Consuls to all Ports in British dominions.
26. Viewed in the abstract, it appears but fair that China should enjoy such a right; and were she to appoint Consuls in London, Liverpool, Calcutta, Melbourne, or other distant British Ports, no disadvantage would arise; and it is possible that some mutual benefits would accrue to both countries. The case, however, is very different when we have to deal with Hongkong; and strange though it may seem, it is generally understood that this Clause was suggested by the British Minister and inserted mainly with Hongkong in view. This Colony was originally established as an experiment; and the views of its founders have been fully realised by its progress and growth. It is an unproductive Island, but its geographical situation, and its magnificent harbour, marked it out as admirably adapted to become the emporium of foreign Commerce in this portion of the world; and the headquarters, from which the large financial and commercial transactions of British and Foreign merchants in China could best be carried on.
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Its success, however, and the immunity which as a free Port it enjoys from Customs and other dues, have long been regarded with jealous displeasure by the Chinese Government, which has done all in its power to interfere with its trade, especially that carried on by native Merchants settled in Hongkong. Indeed, it has required the vigorous action of our able and energetic Governor to counteract the undisguised attempts which the Canton Officials have made to cripple the trade of this Colony.
27. China can in no sense be considered as a country entitled to all the same rights and privileges as civilized Nations, which are bound by international law; in which the life, the liberty, and the property of all, foreigners as well as natives, are secure and respected; and where a recognized procedure and a regular legal system can be relied on by those who feel themselves aggrieved. All foreign Nations that have entered into diplomatic relations with China, have carefully reserved their exterritorial rights; thereby shewing that in one most important particular, they consider it as outside the pale of modern civilization. Nor can the fact that British Consuls reside in the Treaty Ports in China, be adduced in favor of the proposed clause, because it is manifest that in appointing them, the British Government had two objects in view. First, to protect the lives and property of Englishmen residing within the dominions of the Emperor of China; and in the next place, to secure the Chinese from the injuries they might sustain, if all without distinction who called themselves British subjects, were permitted to resort to China, without any check upon their conduct.
28. In Hongkong, the Chinese residents require no Consular protection; because, though amenable to British law, they can appeal to our Tribunals; with this additional safeguard that they have an important official in the Registrar General, to whom as "Protector of the Chinese," they can always have recourse for advice and assistance.
29. We have no hesitation in saying that if a native be appointed as Consul for China in Hongkong, he will in reality be a spy on the Chinese merchants residing in this Colony—and we have several very wealthy and intelligent men of that class—and his main duty will be to report to the Mandarins of the adjoining Provinces, the amount that can be extorted from them by the nefarious means which our experience shows us the provincial despots know but too well how to use.
30. The 4th Article of the proposed Convention provides that native produce sent to Hongkong from the interior, on which the Inland dues and charges have been levied in excess of the Transit Tariff when sent to a foreign Port, shall be entitled to a refund of such excess, if exported within Twelve months. By the 5th Article, Hongkong appears to be excluded from this stipulation, and we are unable to see why this Colony should labour under so obvious a disadvantage, nor why goods shipped to Hongkong, a British Port, should not have the same refund as native produce sent direct to London, or any other foreign Port. The issue of the ordinary Duty Proofs for native produce shipped from a Treaty Port to Hongkong for re-shipment to another Treaty Port, would be an advantage to the Colony, and the renewal of a valuable concession formerly enjoyed.
31. We hail with pleasure the stipulations contained in Articles 12 and 13 relating to bonded Warehouses, the working of Coal-mines, the opening of Wu-hu as a Port, the exemption from duty of materials used in docks, foreign coal and guano, and the introduction of a steam-tug on the Poyang Lake. All these are steps in the right direction. We cannot but think, however, that if the Chinese Government has consented to provide a Tug for the purpose of towing British-owned vessels of the Chinese type, the British Minister would not have found it insuperably difficult to induce it to permit small steamers to ply under proper restrictions upon the Poyang Lake, and other Inland waters.
32. The proposed alteration in the 8th Article of the Treaty, by which a commutation of all Transit Dues is to be effected by the payment of increased Import and Export Duties, would be willingly accepted as an experiment, were we assured that by it, the local Mandarins will be prevented from levying, as heretofore, any illegal charges. We do not, however, consider that the process contemplated by