Brown Sugar pays by the Board of Revenue's Rules a duty of 6 candareens: Enclosure 1.0.0 and the Evidence given in Enclosure 2: is that Hainan Sugar pays 6 candareens and taels. Shall we again have to fall back upon the subterfuge of Macao being Chinese territory to explain this glaring regulation? I beg to call His Excellency's attention to paragraphs 12 and 13 which entirely support the statements made in Enclosure No. 2 in reference to obtaining papers from the Tung Tai Hong. It will be remembered that the West Coast traders said they have nothing to pay at Macao unless the usual Fee to the Tung Tai Hong and the # 4 for the clearance or pass, and that they pay their duties at the "new custom-house" at their Junks. That arrangement was in existence 2 years ago at least, and the regulations for the establishment of the new custom-house have not disturbed it.

35. This letter although merely covering Enclosures has far exceeded its expected limit, yet the importance of the subject must plead my excuse for recapitulating briefly what I conceive to have been shown by this Enquiry;

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