basis on which to levy
taxation.
Your Consul had stated
initially there was
a distinction
drawn between Hongkong and
Macao.
The Viceroy would be
very frank. How Consul's
information was correct.
283
in acknowledging
it as
foreign territory, and
a
demand for its restoration
was out of the
question. It was,
therefore,
As it was
neither Chinese
nor Foreign territory,
the
question arose
how to treat it.
It must be borne in mind
however that the conditions
there were peculiar.
To tax junks going
to Macao was
as if they were going
to a foreign port.
Strictly speaking Macao
was Chinese territory. On
the other hand it had
been occupied by Portugal
for three centuries. There
arose this difficulty: the Viceroy would not be justified
in treating it as a
foreign port, as this would be a
step towards renouncing
China's claim on Macao.
It had therefore been decided
to treat it as a
China port.
This decision had given rise to
difficulties,
as China had to preserve
rights which she had waived.