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"by which, if it were adopted, the Tolls which Denmark "is entitled to levy upon Ships and Merchandise passing "the Sound, would be levied not at Elsinor but in the *several Prussian, Russian, and other Ports in the "Baltick, by Danish Agents stationed at those Ports,for "such purpose."

It is obvious, therefore, that China's present request to be allowed to establish additional Customs Offices in Hongkong, is not a request for something previously unknown in international practice, but is based on acknowledged pre- cedents, and also on the actual fact that the Hongkong Authorities at present permit the Chinese Customs to func- tion at the Kowloon Railway Terminus and collect duties there for the convenience of local merchants. That is to say, Hongkong recognises the principle that the Chinese Maritime Customs may function in the Colony, and, this being so, we merely ask for an extension of that principle.

I enclose copies of letters from Lampson and Southorn, together with my answer to the latter.

Yours truly,

(Sgd.) F.W. Maze.

P.S. You ought also to keep in close touch with the Chinese Minister and invoke his aid! In fact, we ought not to act too independently of the Legation in such cases, but the exercise of extreme tact is indispensable, and I am confi- dent that you and others fully realise this!

(Intld.) F.W.M.

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