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the Viceroy expressed much dissatisfaction.
In the meantime the Viceroy had
taken possession of Chou's property in Canton and on the
7th. October had seized the coal at Tati which he claimed
to belong to Chou. There were at the time about 33,000
tons
in the store valued at $264,000 and $165,000 of the
mortgage to the Bank remained unpaid.
3.
Then ensued the correspondence of
which a copy is enclosed.
4.
The position taken up by the Vice-
-roy is that Fung instead of being the owner of the coal
at the date of the seizure was indebted to Chou in the sum
of some $70,000 odd on account of it, that the coal was
then the property of Chou and so forfeit to make good
public money he had embezzled and that the Bank's remody
is to proceed against Fung for the amount of their loan to
him that has not been repaid.
The position taken up by this
Government is that Chou's interest in the coal ceased be-
-fore it was mortgaged to the Bank but that even if it
did not and the partnership between Chou and Fung still
existed the mortgage was a valid one entered into by
the