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the Convention, is dated June 19th, 1903, but subsequent correspondence with the Government of Hongkong, of which I have the honour to transmit copies to Your Lordship herewith, shows that the Government of the Colony are now prepared to enter into an arrangement on the lines of the Franco-Chinese Agreement with one small alteration.

In view of the terms of the Colonial Office letter to Your Lordship of February 9th, last, it would seem that they are not yet aware of the change in the attitude of the Government of Hongkong towards Sir Robert Hart's proposals and before writing to the Inspector General of Customs in the sense of the Colonial Office letter, I would venture to suggest that the Colonial Office might be requested to communicate with the Government of Hongkong on the matter.

I have, &c.,

(Signed)
Ernest Satow.

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