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PUBLIC RECORD OFFICE

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PUBLIC RECORD OFFICE, LONDON

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to all ideas of justice, inasmuch as the official above named has no jurisdiction whatever in Formosa, and even the jurisdiction of the Imperial Government of China is so ineffectual, that it has often pleaded its inability to punish the natives of that island, when they have committed outrages.

20. In the case of the "Shing-kut Li" junk which was seized and condemned on the plea that she carried a case of muskets among her other cargo, the members of the Com- mission agree with the Acting Attorney-General in his opinion that the seizure was a great hardship. The Commission, however, go further, and hold that the vessel having legally cleared from this Colony, her capture comes under the second class of grievances detailed in this Report, and that the Chinese had no authority to interfere with her cargo, whether a portion of it consisted of arms or not, until she attempted to land it on Chinese soil.

21. The Commission share in the doubts expressed by the Acting Attorney-General as to the existence of any law which renders the vessel and her entire cargo liable to confiscation, because a package containing arms was found on board, the said law can, in the opinion of the Commission, only mean a "regulation" framed by the Hoppo to furnish pretexts on which to make seizures that would enrich himself and his employés.

22. The last class of cases which the Commission would refer to, is where the regular licensed boats belonging to this Colony engaged in supplying it with provisions are seized, and money extorted from them. An illustration of this class of harassing interference with the trade of the place will be found in the case of the two licensed junks, Nos. S. 33 and S. 197, (vide C. S. Ó. No. 2,775). The following remarks of the then Acting Harbour Master, on this point, are worthy of note, they are as follows:-

"This is the plight our junk people are in. The confines of these waters are so infested with cruizers of every description that they never know when they are safe. They comply with nine demands and then lose all they have in they have in the world, because a tenth springs up from a totally unexpected source."

23. The Commission would urge that so long as the Hoppo's cruizers, augmented as they have been by his purchase of the "Peng-chao Hai," are permitted to make Hong Kong and its waters the basis of their operations for the so-called protection of Chinese revenue, the junk trade of the Colony, hitherto a highly flourishing one, must be seriously injured.

24. Junks inward or outward bound to or from this port, must almost of necessity pass through Chinese waters, the channel between British and Chinese territories being so narrow. The Commission are of opinion that this Government has the undoubted right to demand that any honest vessel carrying cargo to or from Hong Kong, shall be at liberty to do so without paying duties to the Hoppo of Canton, except at the places of shipment or debarkation, should these happen to be within his jurisdiction.

25. The Commission are of opinion that the action of the Hoppo, as disclosed by this inquiry, and which the native traders of the Colony complain of so bitterly, is aggravated by the employment by him of Europeans on board the blockading vessels. The Chinese attribute a great portion of the hardships to which they are subjected to the Europeans, and a feeling of bitterness is engendered in the minds of the trading class against foreigners which it is politic to avoid.

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26. It appears to the Commission, as far as they can ascertain, that no British subject can be legally employed, according to Treaty, by an individual Chinese for the purpose collecting revenue from Chinese traders, and, if their view is found by the Attorney- General to be correct, they would suggest that the matter be at once brought to the notice of the Home Government.

27. That the Hoppo is merely a farmer there can be no doubt, therefore it becomes a most anomalous case, and one not heard of in any other country but China, that a Government Farmer should have the power of punishing defrauders of his revenue, and confiscating their property without a first appeal to the regular Government tribunals.

28. While on the subject, although not strictly within the terms of their Warrant, they would call attention to the Chinese Customs Agencies established within the Colony. The names of these Agencies are known to the Commission, and the proof of their collecting duties is also in their hands. There can be no doubt that these Agencies assist the cruizers and stations outside in their operations against the commerce of the Colony, forming a portion of the meshes of the net with which the unfortunate junk trader is surrounded.

29. With reference to the steps to be taken to obtain redress, the Commission would, in the first place, suggest that Her Majesty's Government should endeavour, by diplomatic

action, to prevail on the Government of China to remove altogether the Customs stations and cruizers from the neighbourhood of this Island, and to arrange that duties be collected only at those ports or places at which there exists an export and import

trade.

30. Junks going to or coming from distant ports, such as Formosa, and clearly shown by their papers to be bound from or to Hong Kong, should not be interfered with or molested at sea; indeed, a Proclamation of the Viceroy, forwarded to the Colonial Secretary by the present British Consul at Canton, in a letter dated February 8th, 1869, strictly forbids the search of vessels by Customs cruizers at sea (vide Chamber of Commerce Report for May 1869, forwarded herewith). How this Proclamation comes to be ignored at present the Commission are unable to understand.

31. Should the Chinese Government refuse to remove the stations and cruizers altogether, it might be urged upon them to remove them to a greater distance than they are at present, say, not nearer, in any case, than ten miles from any of the entrances to the harbour; this would set at rest all the irritating and continually recurring disputes as to jurisdiction.

32. The Commission would regret if amelioration of the present state of affairs could not be obtained by diplomacy, but, failing that, they would suggest to his Excellency the Governor that, as the Chinese urge their right to protect their revenue in the manner they are pursuing, it is equally the right of this Government to protect its trade; and they are of opinion that, in the furtherance of this, armed steam launches stationed at the outlets of the harbour might conveniently be employed, to see that leaving and incoming junks are not molested.

33. When the "Victoria was employed as a cruizer in colonial waters she performed good service against the encroachments of vessels in the employ of the Hoppo and others, who now prey without let or hindrance on the trade of the Colony.

34. The papers and documents supplied to the Commission are forwarded herewith.

P. RYRIE. H. G. THOMSETT.

The Honourable J. Gardiner Austin,

Sir,

Colonial Secretary, Hong Kong.

(Signed)

Inclosure 3 in No. 2,

M. S. TONNOCHY.

Colonial Secretary's Office, Hong Kong,

June 9, 1874.

I AM desired by his Excellency the Governor to acquaint you, in reference to the Report of the Commission of Inquiry as to seizures by Chinese Customs' cruizers in the neighbourhood of the Colony, of which you were lately Chairman, that it has been found necessary to refer it for the consideration of Her Majesty's Secretary of State for the Colonies, and that, consequently, its publication has been postponed pending his Lord- ship's decision upon matters connected therewith.

The Hon. Phineas Ryrie,

&c.

&c.

&c.

I have, &c. (Signed) J. GARDINER AUSTIN,

Colonial Secretary.

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