69

Que to the reising of the teriff and the introduction on

that account of the new Chinese regulations.

You will have seen fros Kr. Ingram's des-

patah No. 318 of November lat. emelosing a copy of his letter

to dir F. Heze of the same date that this question of customs

fines was taken up semi-officially with the Inspector-Gonoral

at the end or last year,

Copies of Sir P. Kaze's reply and

or further desi-orficial correspondence with him, es marked

in the mergin, are enclosed for your information.

4.

You will note my own views and attitude

from my letter to air P. Mase of to-day's date, which forms

the final enclosure to this despatch. while we cannot admit

that the Customs have any legal Treaty right to fine a Ari-

tish ship or merchant without Consular intervention, we have

hitherto tacitly acquiessed in the system, trusting to its

fair and reasonable operation by the Customs, ss a practiaml

method of dealing with the somewhat commliented position aria-

ing from the Tresties.

5.

If we are mtisfied that this system is

now being seriously abused by the Customs, to the extent of

inflicting real injury on the British interests concerned, and

if our semi-orficial representations to the Inspector-General

prove inadequate, it may be necessary for us, taxing our stand

on the treaties and extraterritoriality, to challenge the

whole theory and practice on which the system is based. Bot

in that case we should went to feel sasured that we are doing

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