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1. E. The Governor replied by telegraph & by post, (15/9/99,) that he would regret greatly if any mistake had been made by which the Chinese Government had been

given to understand that no charge would be made by the Colony for collecting the Duties, (Mr Bax Ironside showed this was not the case in his telegram of 16/9/99,) But pointed out that as, under this new ordinance, the likelyhood of smuggling would be greatly decreased, & hence greater profits might be expected from the Duties, & taking into

consideration also that the Cost of collection should not

be very great, he would not press for the guarantee

demanded. (A Copy of the proposed amendments to the Bill,

embodying the suggestions of the Chamber of Commerce, was enclosed in this (Confidential) Despatch.)

The reply of the Chinese Government was received

in a despatch from the British Legation at Peking, dated

the 17th of October 1899. The Tsung li Yamen enclosed

certain proposals from Sir Robert Hart, which they endorsed,

& asked for a certain estimate as to the cost of collection.

Sir Robert art was favourably inclined to the proposed

changes, but added further suggestions as follows:

(1) The substitution of the words "the

original package as usually imported", for "the package

usually imported" in paragraph 2 of the original Ordinance,

in order to properly guard against the smuggling of

loose opium.

(2) Fishing boats should be included under the definition of ship in paragraph 2 of the original ('87)

Ordinance

(3) The exportation of boiled opium to China

should

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