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Hotes of Commor Admire is manifestly embarrassed by the very responsibility, and from the way in which he has been speaking to Mr Hughes discloses a doubtfulness as to the course he is to pursue. Under these circumstances, I have thought it advisable to instruct Mr Hughes to put himself in communication with the Colonial Government, to report confidentially whatever may seem to him deserving of attention in the matter before him, and on the other hand to submit to the Governor General in Council any proposition in connection with it that Your Excellency may desire to have advocated.
Mr Hughes is a very discreet and competent Agent. What appears to me practically the danger to be apprehended is this, that the close surveillance of the waters surrounding Hong Kong by a Chinese Executive (unconnected with the Foreign Customs Establishment) will do much to frighten away the junks, the trade of which is so important to the Colony, and must rest chiefly with the Colonial Government to decide whether the measures proposed are worth consideration.