Excellency on the 15th instant. The establishment of an Office in Hongkong where lekin duty is undoubtedly collected, without the knowledge of the Commissioner of Customs (Mr Morgan), and in violation of the understanding with this Government, is not calculated to dispose the Mercantile Community in favour of the Agreement arrived at by the Commission last year. It may turn into strife if such collection is repudiated by the Viceroy and that no disability is attached to the non-purchase of receipts here, but Mr Frederick Alabaster is evidently of opinion that the levy is authorized by the Chinese authorities.
3. In communicating to me the approval of Her Majesty's Government of the course taken by me with regard to the Commission, the Secretary of State sanctioned the introduction of the revised Draft Ordinance "as soon as you learn that arrangements with Macau are concluded, unless any action on the part of the Chinese Authorities in connection with the Junk Trade such as is referred to in your cipher telegram of the 12th instant (January) should in your opinion render desirable a postponement of the proposed legislation."
4. I have already informed Your Excellency that this Government did everything in its power to forward the legislation promised, in the faith that the Chinese authorities would carry into effect loyally the undertakings given as to the proper levy of taxes, but notwithstanding the fact that the Foreign Commissioner took charge of the Stations on the 24th April, and is supposed to collect all proper duties, the lekin duty receipts were purchased in Queen's Road without which it is believed...