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Annum and by the same steamer the Chief Justice caused a letter to be sent by the Registrar of the Court addressed to the King's Minister at Annam. A copy of this letter is enclosed, and of the reply thereto from Jules Covert to the Government of Annam.

Enclosure No.3 Registrar of the Gov of Annam and reply to the Chief Justice.

Schwerer returned in June 1874 without having come to any settlement; and by the same steamer Paulus arrived in the Colony.

Paulus admits in affidavits recently made in the cause that with another Annamese he purchased the "Commodore" from Landstein in 1870 as well as the goods for which the King has been sued, but of which the original invoices were made out to himself personally. (Two of these invoices in the name Paulus sky yuen Que How amounting to $693.00 dated February and May 1870 are now before me, but there has not been any proper opportunity for producing them in Court).

He also states in his affidavits that the King of Annam had seized his property when the suit was commenced and had thrown him into Gaol, whence he was released for the purpose of coming to Hong Kong, his property being still held by the Government.

The plaintiff took no steps to bring his suit to a hearing before the Court, and the year 1874 was consumed in Paulus making offers to Landstein to settle the matter and in Landstein ignoring Paulus and offering to accept payment from the King, and accordingly no terms being agreed upon, the last offer was withdrawn.

In January 1875 Lai Sin being dissatisfied with the Attorneys who had so far conducted the case on behalf of the King consulted another firm who...

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