principally but renewed promises in detail to do that which, both by the Treaty of Nankin and that of Tientsin, they had already undertaken to do in the spirit, if not in the letter, and these advantages are but small compared with the evil of a Chinese Consul being placed in the Colony, to avoid which Your Memorialists would gladly give up any of the advantages which, erroneously, seem to have been looked upon as an equivalent.

13. The end and aim of British diplomacy in China is, without doubt, the ultimate opening up of the whole of the Empire to commerce, and unrestricted intercourse with its people, and the principal reason why this is not now insisted upon is, that we admit it would be hard to expect a nation to do so against the spirit of her traditional policy until, at least, she has established a Revenue service efficient enough to enable her to collect and protect her Revenue along her sea-board; but Your Memorialists submit that China will never take the necessary steps to create or maintain such a service, if we enable her to place a Consul here, to secure the taxation of the great bulk of the foreign trade of her people, without the necessity, responsibility and expense of such a Revenue Establishment. The opposition shown by Provincial Governors and authorities to any measure which, by strengthening the power of the central Government at Pekin, weakens their own irresponsible power, and menaces their corrupt gains, as the Establishment of a Revenue service along the seaboard would undoubtedly do, is one of the main reasons why it does not already exist, and why the Government grasp at any expedient which may even partially attain their end and secure for the Imperial Exchequer the duties and squeezes now levied by the Provincial Mandarins as their own perquisite. So long as the present want of centralization in the Government, and their consequent inability to carry out Treaty obligations, exists (as they themselves allege) so long will progress be retarded, and, on this ground alone, policy should dictate a refusal to permit a Consul to be placed at Hongkong.

14. Hongkong has always been a free port, and, as such, has attracted a mass of Chinese traders hither, and a consequent expansion and development of trade that, but for this circumstance, would never have existed, and which sound policy would suggest should be maintained secure from that dread of oppression, or subjection of their affairs to the knowledge of their own corrupt officials, which is sure to possess the minds of Chinese residents here.

15. If then there be no right in the Chinese Government to ask this concession, and no reason why they should get anything to which they are not entitled, and, at the same time, sound policy dictates a refusal of such a privilege, it only remains, on this head, for Your Memorialists to assure Your Lordship that it is the unhesitating conviction of the whole community, of all professions, trades and callings, of every nation represented here, and of the Chinese themselves, that it is no mere chimerical dread of unknown consequences that leads them so strenuously to object. As the natural outlet for the exports of the whole of the South and Western portions of China, and as a free port where protection is afforded to property, and where commercial transactions are subject to the requirements of British law, while dealing with merchants of every trading Power in the world, a vast quantity of Chinese produce comes here in native craft which constantly ply between this Port and the coasts East and West of the Colony, which pays such duties or other exactions as the Mandarins along the Coast choose to demand from their own people, and about which traders here know nothing—every commodity having a price here regulated only by the law of supply and demand. The Establishment of a Consul here, surrounded as he would be by a staff of Chinese officials and employés, would subject this trade to a supervision resulting in the levying of taxes or duties for the Imperial Exchequer, in addition to those paid to the local officials, and which the Government never get; and the result would be that Chinese traders would, instead of resorting to this Colony as their Emporium and Mart, go to some other place (such as the neighbouring Colony of Macao as they used to do formerly) where no Chinese officials harass them or their trade, and thus a deadly blow would be struck at the trade and prosperity of this Colony with really no benefit to the Revenue of China, for the goods would still leave China, but not through Hongkong. It is no answer to this to say that duties would not be collected here, as the Chinese officials attached to the Consulate would obtain accurate knowledge of the goods imported or exported by Chinese traders, and on the departure of the host outside of the waters of this Colony, she would be seized and detained for the payment of duties or squeezes, by the Revenue cruisers which, even now, are trying to hem the Colony in:—Chinese enterprise would be crippled here because, through their relatives, family, or property in China, all wealthy residents would be amenable to the inquisitorial powers of the Mandarins; they would not dare to embark in trade, and would soon leave the place. Your Memorialists conclude their statement as to this clause in the hope that Your Lordship will not advise ratification.

16. The 4th clause of the Convention does not in itself exclude Hongkong from being considered as a foreign port, but the regulations agreed to expressly say "Hongkong excepted;" and, as goods under this section only come to Hongkong for the convenience of shipment to foreign ports, this exception is unfair, and seems expressly intended to prevent the forwarding of goods to Hongkong for transhipment. Sir Rutherford Alcock, however, has promised that this shall be favourably represented to Your Lordship.

17. The 5th clause presses unduly on Hongkong, by confining the benefit of transhipment of duty-paid goods for a treaty port to such goods as are shipped by "British Merchants," and Your Memorialists have the assurance of Sir Rutherford Alcock that this was not intended, as the idea was to extend the rights to all duty-paid goods whether shipped by British or Foreign merchants.

18. The 6th clause Your Memorialists also look upon as inflicting a very serious and direct injury upon the trade of Hongkong. The only Treaty Port for the whole of the South and South West of China is Canton, situated about 300 miles up a River, and

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