193

(3)

your Lordship may gather from the annexed communication (2) the state of feeling which they have found to exist. The Junk trade between Hongkong and the mainland is an important distributing medium. if existing arrange- ments have prejudicially affected it, the intensity of the resontuent felt at the promect of further interference bocoges intelligible.

It may be permissible so insist, again, that the Chefoo Convention had two size, although the second was luperfectly attained. Phe Chinese revenus has been safe- zuardod; but the annoyance from the Ounton Customs Revenue cruisers remains; and the renoval of the fustons cordon mus one of the greatest benefits which the Colony hoped to

arive from the Extension which it has so

301 one

ong desired. In is suggested that Oylus affords the key of the situation. The Semptation to singɛle a highly-taxed article which ropresento a large value in a small compasə is great; and a good deal of what the Imperial Paritine Oustoms Authorities call sal¿ling usod, no doubt, to go 02. That is to say that, although the Opium exported from Hongkong to the Mainland contributed measurably, no doubt, to the Provincial Revenue and to the private incomes of the Provincial Officials, it failed to benefit the Imperial Exchequer.

There is not, in costing this $100-light on the situation, any purpose of deprecating the attitude which 4.M.Goverment saw fit to adopt. It is desirable, how-

OVDI,

to throw all the facte of the situation inte relief, When we encounter ulterior demands such as those which the Association is concerned to combat. The practical question is how willingness to assist a Service and s purpose towards which H..Government has naturally been #mpathetic can be reconciled with the desire of the

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