'

money will be paid as compensation, and the patrol will

26

be withdrawn from successive sections of the river as the

Chinese Admiral is able to organize an effective system

to replace them.

5.

No reparation has, however, been

given for the second serious outrage the piracy of the

"Ki Cheong" on 9th. July concerning which His Majesty's

Minister instructed the Consul-General that he should

insist on full payment of the claim (July 18th). I am

not aware whether the Chinese Government has been or will

be called upon to pay the expenses of the Naval Fatrol as

was proposed by the Minister in a parallel case on

February 18th., 1899.

6.

The "Sainam" incident may,

understand, now be considered as closed and it appears

that the Viceroy is taking very active measures for the

suppression of piracy in the future, while we on our part

propose to reform the abuses which have hitherto existed

in regard to the vessels flying the British Flag and claim-

-ing British protection. On this latter question I am

addressing Your Lordship in a separate Despatch.

the

I have the honour to be, My Lord,

Your Lordship's most obedient,

humble servant,

Hanych

Governor, &c..

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