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PUBLIC RECORD OFFICE

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C.O.

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ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH—NOT TO

PUBLIC RECORD OFFICE, LONDON

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believe, been cajoled by the Chinese authorities, inasmuch as no export duty is payable by Chinese junks clearing from Tamsui or any other ports in Formosa, and no "Grand Chop" is ever granted to any junk clearing from those ports, and the owner of the said junk had not failed in the payment of any duty, nor been in any wise in default. The said junk and her cargo have since been wrongfully sold by the Chinese Authorities, who have possessed themselves of the proceeds, thus plundering the owners under colour of law and justice.

That there are about twelve ports on the south and east coast of China, and about six ports in Formosa, not yet opened to foreign commerce in the same manner as the Treaty ports, the merchants of which carry on a large export and import trade, and that, as the prejudice which was formerly held by most Chinese against foreigners has very much decreased, your Petitioners believe that if such protection from illegal seizure, as promised by Sir Charles Elliott's Proclamation, were still afforded, a very considerable trade would be done in Hong Kong over and above the ordinary trade now being carried on there, to the great advantage of your Petitioners, the owners of the said vessels and the cargoes shipped therein, and the Chinese and foreign community generally, and that therefore it would be much for the benefit of the Imperial Government of China, the Chinese people, and the foreign community of Hong Kong, that the practice of illegally seizing Chinese vessels on their voyage to Hong Kong should be prevented, and legitimate trade with Hong Kong allowed to pursue its regular course.

That Chinese merchants prefer consigning their vessels and goods to Hong Kong rather than to Canton, because the former port offers a better market for their goods, and property there is free from exaction, which is not the case at Canton, and has hitherto been safe from illegal seizure, and also because junks can take from this Colony return cargoes of European goods, which are much sought for at most of the Chinese ports.

That very great injury has been inflicted upon the people of Hong Kong, and in particular upon your Petitioners, both collectively and individually, by the illegal seizure of Chinese vessels as before mentioned, great numbers of Chinese merchants being deterred from consigning their vessels and goods to Hong Kong, owing to their liability to be seized and confiscated as hereinbefore mentioned.

That whilst your Petitioners have complete confidence in the wisdom and justice of his Excellency Sir Arthur Edward Kennedy, who has at all times evinced the deepest interest in their welfare, they believe that, in view of the submissive and forbearing policy adopted of late years by Your Majesty's Government towards the Government of His Majesty the Emperor of China, he cannot adopt effectual means to prevent the illegal seizure of their vessels as hereinbefore mentioned without obtaining from Your Majesty special instructions to meet the exigencies of the case.

Your Petitioners therefore most humbly pray that Your Majesty may be pleased to take their Petition into your favourable consideration, and that Your Majesty may direct such measures to be adopted for obtaining compensation from the Imperial Chinese Government for the illegal seizure of the "Kum-Hop-Sing" and her cargo, and of the various other junks and their cargoes so illegally seized and confiscated as hereinbefore mentioned, and for the prevention of such outrages in future, as to Your Majesty may seem meet.

And your Petitioners will ever pray, Hong Kong, June 24, 1874.

&c.

(Here follow the signatures of eighteen Chinese Hongs.)

No. 2.

October 19.)

Governor Sir Arthur Kennedy, C.B., K.C.M.G., to the Earl of Carnarvon.—(Received

(No. 161.) My Lord,

Government House, Hong Kong, August 25, 1874. ADVERTING to my despatch No. 133, dated July 10, transmitting a Petition from certain Chinese merchants carrying on business in this Colony, I have now the honour to forward the Report of a Commission appointed by me to investigate and report upon complaints made by Chinese traders against the action of the Chinese Maritime Customs Authorities in the neighbourhood of Hong Kong.

2. Two Members of the Commission, namely, the Harbour Master and the Acting Registrar-General, were appointed by me, and the third (on my invitation) was named by the Chamber of Commerce.

• No. 1.

3. A correspondence, resulting from my refusal to publish the Report, will be found

in appendix to this despatch marked No. 2.

4. Having been informed that my refusal to give publicity to the Report would be followed by a Memorial addressed to your Lordship by the Chamber of Commerce, I have waited for that document, which I have now the honour to submit.

5. In addition to these documents I transmit others, which appear to be necessary to an understanding of the case.

6. I trust that it is unnecessary for me to occupy your Lordship's time with any lengthened detail of my reasons for declining to endorse the Report of the Commissioners with official authority by publishing it.

7. The matter was carefully considered by my Executive Council, and an unanimous decision not to do so arrived at.

8. It is obvious that the Commissioners have fallen into errors to which I could not give currency by publication, and their only remedial suggestion of employing armed steam launches at the outlets of the harbour, to protect Chinese trading junks arriving and departing, could not be adopted.

9. It is proper at this point to draw your Lordship's attention to the fact that complaints of undue interference are confined to Chinese coasting junks alone, steamers and all other craft being unmolested.

10. I furnished Sir Brooke Robertson, Her Majesty's Consul at Canton, with a copy of the Report for the information of Her Majesty's Minister at Pekin and for his own.

11. Her Majesty's Consul at Canton and Her Majesty's Minister at Pekin are in possession of all the information I can afford them, and they fully understand the main questions in all their bearings.

12. Their views are doubtless ere now before Her Majesty's Government, and I feel confident will be fairly stated with all the advantage of the accurate local knowledge which both officers possess.

13. Your Lordship will not, I am sure, doubt my earnest desire to afford protection and redress to those trading with this Colony, because I refrain from active measures when convinced that I should still more complicate and embitter wrong and injustice where they do exist by interference in matters beyond my jurisdiction, and which I am not competent to adjust.

14. The whole question impartially considered resolves itself into a narrow compass. 15. It is beyond doubt that a not inconsiderable number of Chinese junk owners are in the habit of consulting their individual interests by violating Chinese customs laws, and making this Colony the basis of smuggling operations, for which its geographical position affords every facility, and the profits, it is to be presumed, exceed the loss and risk, or the practice would not be continued.

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16. The Chinese Customs Officers and Revenue Collectors, with a knowledge of these facts, lose no opportunity of seizing and confiscating every Chinese junk for which they can find a pretext, and the characterless class of persons employed as subordinates in that service makes it too probable that honest and innocent traders are often grievously harassed and plundered. I entertain no doubt that such is the case.

17. It is manifestly impossible to reconcile the interests of smugglers with those of a very low class of revenue officers, who are paid by results, and honest men unfortunately often suffer between them.

18. Your Lordship will observe, from a correspondence between this Government and Sir Brooke Robertson (in the Appendix, marked Nos. 9 to 12), that some amelioration in the so-called blockade of the harbour of Hong Kong has been already effected, but the measures adopted will, in my opinion, afford but partial relief.

19. A full consideration of all the facts of the case leads me to the following sugges- tione, the adoption of all or any part of which will be, I fear, unpopular and unsatisfactory to the Memorialists, namely:-

20. First. The suppression, if possible, of all revenue cruizers, except those under the immediate authority of the Hai Kwan (or Hoppo) at Canton, who is an officer holding appointment direct from the Emperor.

21. Second. A clear understanding of the Tariff and publication of the Chinese Customs' Regulations, together with the ports and stations at which duties are 'leviable and payable.

22. Third. The appointment of a joint Board, to sit at Hong Kong or Chinese Kowloong, to investigate cases of alleged illegal seizure, with publication of the decision in

each case.

23. The adoption of all or any of these suggestions would be palliatives.

24. With a full appreciation of all the unpopularity with which my recommendations

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