He will permit the sloops to pass while worth "chase such suspension at that place with much more # the same effect 3. I have already placed before H.M. Government any opinion, allowing the expediency & dangers of the Chinese Custom House or other branch of that corrupt & oppressive Government, a legitimate & unfuged footing on British soil in Hongkong.- In the midst of a native population so excitable & dangerous as many thousands of that now settled in Hongkong are, on which could easily be moved to the Island. If on the other hand the dangers & inconvenience to the Government in Hongkong, have pleaded in & made representations, from the Chinese, intended action of the Commissioner Ch'i-shan it makes me regret that he has not more fully explained its nature, before proceeding to ban such access to Hongkong trade at so vital a point.

4. To my certain knowledge, however, there is scarcely any set of oppression, duplicity or corruption or squeezing which has not been already practiced by the Chinese Customs for the last few years on vessels bound for Hongkong, and many of these deeds have been committed actually in Hongkong waters.- Nevertheless such is the vigour of Hongkong commerce & so great the advantages of the Colony's position, its free trade, & enterprise & capital, that all the injury, which the Chinese Government could inflict, has hitherto failed to affect the trade very seriously.

5. I have long since reported that H.M. Minister at Peking was in communication with the Viceroy of Canton & that Mr. Morrison & H.M. Judge there, were severally arranging with the Viceroy of Canton, a plan for surrounding Kowloon with Custom stations, which according to report were suddenly & adroitly established without the least notice to the Hongkong Executive, for the express purpose of doing the very things with which they seek to terrify & deter the trade. The object was to drive dealers, smugglers, & in fact all kinds of traders which should not proceed direct to Canton instead of Hongkong - which was the great object of the Chinese Government and the trading South China merchants' interest.

6. Lord Kimberley will find on record in the correspondence, which took place then (more than three years ago) all which I have to recall & refer to more...

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