PUBLIC RECORD OFFICE

Reference

PLLC.O. 882

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5. This Government has no intention to abrogate the present law concerning the movement, &c., of opium, and will be prepared to consider any amendments necessary to meet new circumstances which may be submitted.

The second portion of the fifth proposal, giving a Chinese official the right to inspect establishments and shops in British territory and to overhaul their books and accounts, is, I submit, wholly inadmissible.

The

6. There is no idea of relaxing the present enforcement of Colonial laws. question, however, of rewarding its own officers must be left entirely to the discretion of this Government, which cannot be expected to arrange for an equal division of the proceeds of sale of confiscated goods between itself and the Chinese Government.

7. Arms and munitions of war are now by local legislation forbidden to be shipped. As regards other contraband goods, e.g., salt, there seems to be no right on the part of one Government to claim the assistance of another Government in preventing the export of such articles. The suggestion that all permits should be issued or countersigned by the Chinese Customs is not feasible, in view of the previous declaration against tolerating any officer of the Chinese Customs exercising his functions within British jurisdiction.

8. Any legislation that this Government may reasonably be called upon to enact to prevent the freedom of the port being abused to the prejudice of the neighbouring Empire will be introduced; but, I submit, to give effect to the discarded (sic) proposals of Sir Robert Hart would be to hand over this free port to the domination of Chinese Custome.

With reference to the quid pro quo of an easier working of the West River trade, and of that likely to grow up with the new inland steam navigation rules which is suggested in the concluding portion of the Inspector-General's letter, it is not necessary to say more than that the easy working of those regulations is already the duty of China, and cannot be accepted as a reason for granting to China abnormal jurisdiction within this Colony.

I have, &c.,

W. BLACK,

Major-General, Administering the Government.

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Commerce, which embodies, I believe, the views of most of the commercial men in Hong Kong on this subject.

As regards their reference to assisting, for a quid pro quo, the Chinese Government more than at present in the collection of duties on opium, I think it quite possible that steps might be taken in this direction; and as opium is, after all, the chief commodity for which the Chinese Government keeps up its expensive fleet of cruisers and launches round Hong Kong, the Chinese Government might, in exchange for this increased sid, be induced to withdraw these vessels altogether from these waters, and thus decrease its expenditure while increasing its revenue.

somewhat as follows:--

The Chamber of Commerce has not entered sufficiently into detail in this matter, but I venture to suggest for your consideration a workable plan, which may be summarised

(1.) On arrival of ship from India her manifest to be handed to harbour master, supplemented, if need be, by a return from the Calcutta Customs of opium shipped.

All opium to be stored in godowns under Government control.

(3.) No opium to be moved from these godowns without permit from harbour

master..

(4.) Harbour master receives a copy of bill of lading of all opium shipped.

(5.) Harbour master sends every evening to Imperial Chinese Maritime Customs

return of all opium shipped and whither bound.

(6.) Imperial Chinese Maritime Customs can then arrange for the duty on this

amount of opium at the port of destination.

I forward this letter from the Chamber of Commerce without delay, as I consider

it right, should you think its contents worthy of consideration, that the letter should reach you as soon as possible.

I have, &c.

W. BLACK,

Administering the Government.

Major-General,

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH-NOT TO

5 PUBLIC RECORD OFFICE, LONDON

June 27.

SIB,

Enclosure in No. 25.

Peking, July 11, 1898.

I HAVE the honour to enclose, for Your Excellency's consideration, copy of a letter addressed to me by Sir Robert Hart, in which he sets forth the arrangements necessary, in his opinion, for the protection of Chinese revenue under the new circumstances created by the recent extension of Hong Kong territory.

A copy of the letter has also been forwarded to Her Majesty's Secretary of State for Foreign Affairs.

His Excellency

Major-General Wilsone Black, C.B.,

20484.

Administering the Government,

Hong Kong.

No. 26.

I have, &c.,

CLAUDE M. MACDONALD.

ACTING-GOVERNOR BLACK to MB. CHAMBERLAIN.

(Received September 12, 1898.)

(No. 229.) SIR,

Government House, Hong Kong, August 18, 1898. WITH reference to my despatch No. 221 of the 29th ultimo,† forwarding arguments against the acceptance of Sir Robert Hart's proposals for the working of the Imperial Chinese Maritime Customs after we have taken over the newly-leased territory, I have the honour to transmit for your consideration copy of a letter from the local Chamber of

↑ No. 25.

• Se enclosure in No. 20.

STR,

Enclosure in No. 26.

Hong Kong General Chamber of Commerce, Hong Kong, August 12, 1898.

In view of the extension of territory acquired by the Convention of the 9th June, I am instructed by the Committee of this Chamber to lay before the Government their opinion on the question of the Chinese Imperial Maritime Customs vis-à-vis this Colony. The Committee believe that some understanding was given to the effect that the extension of the boundaries should not prove a source of loss to the Chinese revenue, and they quite concur in the desire to assist the Chinese Government in the matter, so long as it can be done without hampering the trade, or impeding the development, of the Colony, the future prospects of which, with enlarged boundaries, on its present basis of absolute freedom, are very promising. To secure their fulfilment, however, it should, in the first place, be laid down that the existing Custom stations must be removed to Chinese territory, outside the Colony's boundaries, and that the harbour be jealously guarded from the intrusion of Chinese revenue craft of any description. The delays and obstructions to the movements of shipping, were the Chinese Customs allowed a free hand in our waters, would constitute a serious interference with that freedom which has mainly contributed to build up the present prosperity of this port. Without such provision, too, it would be impossible to have that free communication and interchange of produce between Victoria and the outlying additions to the Colony which may naturally be expected to develop.

That some advantage might socrue to the Colony by its being placed on the footing of a treaty port, and, therefore, participating in the facilities afforded by the inland steam regulations, is quite possible, but such advantages would be greatly out-weighed by the counterbalancing drawbacks. For the Colony to accept them as an equivalent for the freedom of the port, would be like bartering its birthright for a mess of pottage.

This Chamber, while invincibly opposed to the continuance in the Colony of the Customs Collectorate of a foreign State, have no wish to place any impediment in the way of that State obtaining its rightful revenue, nor do they desire that a single dollar should be made by the Hong Kong Government at the expense of China; but this can,

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