A

t 586 falls to the ground with that proposal.

3. I have been in communication with the Consul-General at Canton with regard to his suggestion that this Government and that of Canton might come to some reciprocal arrangement with regard to questions of bankruptcy and I have also had the advantage of a short conversation on the subject with Sir Havilland de Sausmarez. Mr. Mansfield is inclined to believe that the respectable Mercantile community at Canton would welcome a scheme for having an Official Receiver in that port who would work in agreement with the Official Receiver in Hongkong and thinks that he may be able to induce the members of the Commercial Board to take the initiative in proposing this to the Authorities. If he is able to do this Sir H. de Sausmarez is of opinion, in which I entirely concur, that the matter is worth pursuing and that we should give such assistance as we can in drawing up a workable scheme. If, however, the Cantonese cannot be induced to take the initiative in the matter I do not propose, in the face of Sir John Jordan's opinion, as set forth in his Despatch to which reference is made above, to move further in the matter.

I have the honour to be, My Lord,

Your Lordship's most obedient,

humble servant,

I Mather

Governor, &c.

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