10.

foreign Government to function in British territory. The "Sovereign rights of China" have been most carefully safeguar- ded, and we have agreed to allow acts by Chinese Officials in British territory to which no corresponding concession has been demanded.

7. I regret to say that the Chinese Government has not met us in a like spirit of compromise and goodwill. A note from Mr. Chao of yesterday's date, places us even further from

the goal of Agreement than we were before.

8. So much in brief for the railway negotiations. I now desire to invite Your Excellency's consideration of some other collateral matters, which have or should have a bearing and influence on these negotiations.

9. You are aware of the serious Revolutionar. Outbreak

which occurred recently in Canton. I have grounds for

belief that the feelings and sympathies of a considerable

part of the Chinese population of this Colony, in common with

the population of South China are largely on the side of the

*reformers". In spite of this the Hongkong Government has

taken most energetic measures to assist the Viceroy of Canton.

In the first place I suggested personally to His Excellency

a number of measures calculated for the suppression of crine,

co-Âgeration in the arrest of criminals, stricter supervision

over the passengers to and from Canton, facilities for extra-

dition, etc. His Excellency naturally grasped at these sug-

gestions with alacrity, and Mr. Wei Han (ax Director General,

Kowloon Canton Railway) accompanied by the Police Tactal ar-

rived on the 23rd instant to consult with the Captain Superin-

tendent of Police as to the steps to be taken to put the mea-

sures into operation forthwith.

10:

But apart from these general measures of co-operation

which are of benefit to both Goverments, a large number of

search warrants have been issued in order to seize if possible

any arms which may be concealed by suspected Revolutionaries,

and I have announced that any recent arrivals who may be shown

to

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