473

On the whole, I am inclined

to think that Mr Burt's

connection with the scheme

would probably ensure better

terms in relation

to a complete withdrawal

of the Blockade and

to the

observance of all stipulations

entered into by

the Hoppo,

and that it would

generally strengthen the position of the Hong Kong Government.

The Chinese Government having placed in the hands of foreigners the collection of their Customs Revenues under the name of Foreign Inspectorate, it seems to me that there is nothing derogatory in the Government of Hong Kong availing itself of the services of that Establishment to carry out a scheme of which the sole object is to protect the Chinese Revenue.

The proposed arrangement could be placed on such a footing as to obviate any semblance of surrender by the Colonial Government of its supremacy or of the freedom of trade within its territory - for the establishment of a "Special Station" of the Foreign Inspectorate in Hong Kong must of necessity be sanctioned

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