+48

Chins obliged to renew blockade

it agreement

fails.

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be accepted so that her Customs administration be allowed to function on Hongkong territory and in Hongkong waters in the same way as it does in China itself, under conditions, of course, which recognise the existing political rights and jurisdiction of the Colony. In making this proposal China recalls gratefully the sympathetic attitude of many of the Hongkong and the Home authorities in the past, a sympathy which China interprets as showing that her case is based on reason and justice. At the same time China would point out that this proposal is only the logical extension of the principle recognised by the Hongkong Government when, for the convenience of merchants and travellers, it permits the Chinese Customs to examine goods and collect duties at the Kowloon railway terminus. Rejection of the proposal leaves China no option but to revive once more, though on a larger scale, her former policy of blockade, policy which aroused resentment and recrimination in the past, and which to-day can scarcely be pursued without engendering misunderstandings, bad feeling, and ill will. The pursuance of such a policy, carried to its logical extreme, would mean (1) withdrawal to the frontier of the present office of the Chinese Customs from the city of Victoria and of the Kowloon railway terminus office with all members of the staff; (2) carrying out on Chinese soil at the frontier of all Chinese Customs work, which would entail not only very grave inconvenience to traders and others requiring information or documents, but also stoppage at Shumchun of all trains to and from Kowloon until all Customs formalities have been satisfied; (3) creation of well- manned, well-equipped stations at strategic points on the frontier both on sea and land for the control of all trade entering or leaving Chinese territory or waters; (4) enforcement of new and more stringent regulations for the checking of all steamers and their cargoes passing between Hongkong and treaty ports on the West River and its branches, with heavy penalties for evasion of such checking: (5) refusal to allow even Chinese-flag vessels coming from Hongkong to trade to non-open ports anywhere in China; and (6) withdrawal of the privilege of allowing Chinese goods, under Chinese Customs documents, en route from one treaty port to another, to be landed for transhipment at Hongkong without loss of status as Chinese goods. Such a policy, if adopted, will probably and rightly be denounced as retrograde and as destructive of the bonds of harmony between Hongkong and the Chinese Customs which have taken the past 20 years to form. Its enforcement, too, will almost certainly be accompanied by incidents, the settlement of which cannot fail to put a severe strain on the relations of friendship and good will between China and the Colony. China prefers the more statesmanlike course of co-operation and will not adopt such a policy of blockade unless she is forced into it, but if obliged to do so, will adopt and execute it unflinchingly, even though it be with reluctance and regret.

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APPENDIX A.

PROCLAMATION REGARDING TERMS OF TREATY OF CHUENPI

TO HER BRITANNIC MAJESTY'S SUBJECTS.

MACAO, 20th January 1841.

Her Majesty's Plenipotentiary has now to announce the conclusion of preliminary arrange- ments between the Imperial Commissioner and himself involving the following conditious:-

1. The cession of the island and harbour of Hong Kong to the British Crown. All just charges and duties to the Empire upon the commerce carried on there to be paid as if the trade were conducted at Whampoa.

2. An indemnity to the British Government of six millions of dollars, one million payable

at once, and the remainder in equal annual instalments ending in 1846.

3. Direct official intercourse between the countries upon equal footing.

4. The trade of the port of Canton to be opened within ten days after the Chinese New Year, and to be carried on at Whampoa till further arrangements are practicable at the new settlement.

Details remain matter of negotiation. The Plenipotentiary seizes the earliest occasion to declare that Her Majesty's Government has sought for no privilege in China exclusively for the advantage of British ships and merchants, and he is only performing his duty in offering the protection of the British flag to the subjects, citizens, and ships of foreign powers that may resort to Her Majesty's possession. Pending Her Majesty's further pleasure, there will be no port or other charges to the British Government.

The Plenipotentiary now permits himself to make a few general observations. The oblivion of past and redressed injuries will follow naturally from the right feeling of the Queen's subjects:- Indeed it should be remembered that no extent of modification resulting only from political intervention can be efficacious in the steady improvement of our condition, unless it be systematically seconded by conciliatory treatment of the people, and becoming deference for the country, upon the threshold of which we are about to be established. The Plenipotentiary can only presume to advert very briefly to the zeal and wisdom of the commander of the expedition to China: and to that rare union of ardour, patience and forbearance which has distinguished the officers and forces of our arms at all points of occupation and operation. He is well assured the British community will sympathize cordially with him in their sentiments of lasting respect for His Excellency and the whole force, which he is ashamed to express in such inadequate language.

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