774

General Offices in that colony.

The chief shareholders in the launch company are a wealthy Chinese family named Siau, the head of which has for many years been Messrs. Jardine Matheson and Company's compradore at this port, and I have little doubt that it is on his account that the firm are interesting themselves in the matter.

As I pointed out in my despatch to His Majesty's Minister the business of the Company is carried on solely in the inland waters in the neighbourhood of Swatow, the launches plying between the Treaty Port and the towns of Chaoyang, Kityang and other places situated on the estuary of the Han river.

In reply to an enquiry as to the management of the Company in the event of its being recognised as British, Messrs. Jardine's local agent informed me that the launches would be managed by Messrs. Jardine Matheson and Company's branch Office in Swatow, but that the accounts would be periodically submitted to Hong Kong. This arrangement seems to be practically equivalent to the real management remaining, as it is at present, in Swatow and in the hands of Messrs. Jardine Matheson and Company's compradore, Mr. Siau Chu Swan.

Under such conditions I venture to submit that the functions of the Head Office in Hong Kong may be considered merely nominal, and that this Office was in all probability only established with the view of procuring for the launches the protection of the British flag.

(Signed)

I have, &c.

R. Willis,

Acting Consul.

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