The proposition of
J. Seussell was made contingent on the Government of Thacas doing some besting thing of the same nature, lest failing restriction of the Trade here without a corresponding step taken at Macao might injure this Colony. Chinese Commissioners having accepted the proferred arrangement, Sir Perbert Hart went to Macao where he remained about six weeks negociating with the Governo of that Colony. He succeeded in obtaining something more from the Government of Macas than from this Colony, but it must not be forgotten that China has never recognised the right of Portugal & Thacas, and it is understood that the recognition of the Sovereignty of Portugnal has
been promised in exchange for the concessions to be yielded by Macas.
During Sir Robert Hart's absence in Macao further consideration of the subject, and information obtained confidentially about Opium dealings both in this Colony and the Straits Settlements, induced T. Swell to commend a modification of the original proposal which could be effected by assimilating the law of the Colony to that in existence for some years past at Singapore which like Hong Kong is a free port.
I approved of this modification, which was advantageous to China, on condition of certain undertaking being given by Sir Perbert Hart in reference to the Junk Traffic, and the modification was accepted by Lin with satisfaction because it was simpler.