I regret I would follow, but on other grounds.

I agree the proposition of the Wade on the grounds that, in the 1st place, Hong Kong is British Territory, and consequently the levy & collection of duties by a foreign power therein is unconstitutional. In the next place, I believe it would be considered an infringement of the right of Sovereignty, and no concessions could compensate for that. Besides, there would be constant series of squabbles, complaints, & perpetual appeals to the Supreme & Magisterial Courts.

I am inclined, therefore, to think that both for political & social reasons, Mr. Wade's project is not tenable.

That the Chinese Govt should feel aggrieved that the Island was ceded to Britain has been a thorn in our side, is but reasonable; any expression of material sympathy from them, you doubtless would lead to improved relations with us. The Chinese Govt has, however, cultivated resources for the establishment of a Chinese Consulate at Hongkong under a Director, and Foreign Customs officers.

I believe that Chinese junks and vessels should be in strict accordance with national law, and in accordance with...

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