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It will be observed that the Chinese

Under this arrangement would have to abandon not only their Revenue Stations in the vicinity of Hong Kong, but also the right of their cruisers to overhaul their shipping on the high Seas and in Chinese waters.

They would thus lose all the Custom Revenue derived from the smuggling trade with Hong Kong, in consideration of the hazardous engagement on the part of the Colonial Government to prevent the export of opium, salt, and munition of war from Hong Kong to China in Junks without a Chinese permit.

It must be borne in mind that the Chinese have not the means of watching a seaboard of several hundreds of miles, and of preventing Junks trading with Hong Kong from entering or clearing at any place where there are no local authorities or where the native functionaries may be well disposed towards smuggling.

The proposal therefore that they...

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