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ment vessels must not enter to seize criminals, the search for and arrest of such in the new Settlement should be undertaken by the two Governments conjointly. This is the meaning of the provision agreed upon by the Yamên, that the waters of Mirs Bay and Deep Bay shall be free to Chinese vessels of war, whether neutral or otherwise."

A copy of the despatch which was addressed to the British Consul on the above subject on the 15th July is inclosed, and I have the honour to request the Yamên to examine it and come to an agreement with Sir Claude MacDonald, who should be asked to inform the Foreign Office by telegraph of the terms of the arrangement, and to press

for the immediate appointment of a delimitation Commissioner. The Yamên see no objection to the Viceroy's proposals, and have therefore the honour to communicate them to Sir C. MacDonald that he may act accordingly. The favour of a reply is requested.

A copy of the Viceroy's despatch to the Consul is inclosed.

(Translation.) Sir,

Inclosure 2 in No. 1.

The Viceroy of Canton to Consul Mansfield. of aAAA

''

im

Kuang Hsü, 24th year, 5th moon, 27th day

(July 15, 1898).

(See Sa SOME days ago I had the honour to receive your despatch with regard to the Settlement at Hong Kong, in which you asked me to dispatch an officer to discuss matters with you.

I have accordingly, as a first measure, drawn up Regulations, in eleven clauses, on the lines of the despatch received from the Tsung-li Yamên, and I have intrusted the management of this matter to my Foreign Deputy, Wang Ts un-shan, a Taotai "en disponibilité" for Kuangtung.

I have, therefore, the honour to request you to transmit the Regulations to his Excellency the Governor of Hong Kong.

If, after perusal thereof, he finds he can arrange matters in accordance with these Regulations, I will, at an early date, dispatch an official to Hong Kong to determine the boundaries.

Inclosed is a copy of the Regulations.

I have, &c. (Seal of Viceroy).

Inclosure 3 in No. 1.

Regulations.

(Translation.)

THE boundaries, as shown in the map, are upon the authority of the Tsung-li there map, Yamên's original map, and in delimiting the boundaries according to this will be no need for discussion (as to its authority).

'

Boundary of the new Settlement in extension of Hong Kong."

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7. The population resident in the new Settlement shall all continue in the undisturbed pursuit of their former occupations, and no pressure shall be brought to bear on them to make them remove. Their landed property shall not be confiscated to Government use, and if it is desired [to obtain land for the] crection of public buildings and such like uses, a fair price shall be paid, and no undue pressure shall be brought to bear. !

8. The extradition of criminals from both countries shall be managed as hereto- fore in accordance with the original Agreement and the Ordinances recently drawn up by the Hong Kong [Government].

9. Chinese vessels of war, whether (China be) belligerent or neutral, shall be at liberty to anchor in and have access to the waters of such places at Ta P'êng Bay and Shên Chou Bay, which are within the boundaries of the new Settlement. Piracy being extremely prevalent in Kuantung Province, the war vessels of both countries may co-operate in pursuing and catching pirates whenever necessity arises for such action, with a view to insuring the peace of the locality.

10. Land owned by Chinese subjects within the new Settlement must pay the land-tax to the Chinese authorities. Should British subjects purchase land, the rent* shall be paid in accordance with the Regulations prevailing at Shanghae, the amount being settled in an equitable manner. If it should be Government land, an equitably determined rent* must also be paid.

11. As England has consented to render effective assistance in matters connected with the customs revenue, the existing customs stations shall, as at present, be under the control of the Commissioner of Customs. This is on the same lines as the Regulation applying to Chinese officials within Kowloon city. Should any cases arise, he shall forthwith concert measures with the British officials, so that (the action taken) may be in accordance with England's expressed intention to afford effective assistance.

Inclosure 4 in No. 1.

Sir C. MacDonald to Tsung-li Yamén,

Peking, September 20, 1898. ON the 10th instant I received the Yamên's despatch on the subject of the extension of Hong Kong, quoting a despatch of the Governor-General of Canton, and inclosing Regulations for the loan of the district in question.

I have the honour to observe that on the 9th June last, an Agreement for the extension of the territory of the Colony of Hong Kong was entered into by our respective Governments, in which all relevant matters were included in clear detail.

It is, therefore, out of the question that the Governor-General of Canton should be permitted to draw up Regulations for the loan of his district. His action is quite uncalled for, and his Regulations are unworthy of consideration.

With regard to the definition of the boundary, the Colonial Secretary, Mr. Stewart Lockhart, has already inspected the district, and has returned to England to present his report.

When Her Majesty's Government deputes an officer to define the boundary, the Chinese Government will be requested to send an official to co-operate with him.

CLAUDE M. MACDONALD.

(Signed)

2. After the boundaries have been determined, boundary stones shall be erected,

the Chinese inscription on which shall read:-

The English inscription shall read:--

L

Boundary of the Settlement," and the expression

Boundary of the Colony" must not be used.

3. The officials of the city of Kowloon shall, as heretofore, exercise their several functions within the city, but they must not place any impediments in the way of military works connected with the defences of Hong Kong.

4. Chinese officials and people shall, as usual, make free use of the existing road between Kowloon and the Hsin An district without let or hindrance.

5. Chinese vessels of war, merchant ships, passage boat, and other craft of all kinds shall have free access to, and liberty to, anchor at the landing-stages at Kowloon city, and the officials and people of the city shall make free use of the said landing- stages.

6. Iereafter, when any railway line, constructed by China, approaches the boundary of the territory newly leased to England, each country shall depute officials to deliberate as to what action shall be taken.

This apparently refers to the ground rent paid to the Chinese Government by all landholders in Shaughac. The officials are farnished with particulars of this ground by the various Consulates each year.-(Translator's note.)

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