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(VIII.) The Hong Kong Government shall pass such legislation as may be necessary to give effect to the above provisions.

proper

The above numbered paragraphs are put forward merely to represent what I consider it should be done at Hong Kong to meet Chinese revenue requirements. I may, however, express the opinion that the system it provides for, and more especially the recognised presence of a fully authorized Chinese Customs at Hong Kong, gives promise of enabling measures to be taken which will make the working of the West River trade, especially at those places of call to seawards of the first port (Samshui), considerably easier than at present; also, of securing arrangements which might facilitate the trade anticipated to grow up under the new Inland steam navigation rules. In both respects, anything which may be possible and without a Custom House I do not see that much will be possible is sure to redound to the commercial advantage of the Colony as well as of the Chinese trade. On this point, however, the occasion does not call upon me to say more at present.

Sir C. M. MacDonald, K.C.B., K.C.M.G.,

&c., &c.,

18729.

SIB,

&c.

I have, &c.,

ROBERT HART,

Inspector General of Customs.

No. 21.

COLONIAL OFFICE to FOREIGN OFFICE.

[Answered by No. 31.]

Downing Street, August 26, 1898. WITH reference to your letter of the 4th ult., respecting the draft Order in Council which it is proposed to submit to the Law Officers of the Crown, for the incorporation in the Colony of Hong Kong of the territory leased from the Chinese Government, I am directed by Mr. Secretary Chamberlain to request that you will inform the Marquess of Salisbury that having carefully considered the text of the Convention, as enclosed in your letter of the 26th ult.,† he is of opinion that it would be desirable, if possible, to avoid any mention in the Order in Council of the reservation of Chinese jurisdiction in Kowloon City.

2. Mr. Chamberlain is strengthened in this opinion by communications which have recently reached him from Hong Kong, and of which copies are enclosed. It will be seen that the letter from the Hong Kong Chamber of Commerce to Lord Salisbury of the 19th ult.,§ which is forwarded in original, is to the same effect as their telegram of the 16th ult., a copy of which was enclosed in your letter of the 18th ult.†

3. Mr. Chamberlain does not attach great importance to these representations in themselves, as the Hong Kong Chamber of Commerce has been necessarily unacquainted with the exact proposals which Her Majesty's Government may have in view for the future administration of the newly-acquired territory, and their apprehensions will in all probability prove to be unfounded both in regard to Kowloon City and in regard to the Customs stations and arrangements; but on general grounds it is desirable not to emphasise the retention of Chinese jurisdiction in Kowloon City, in order that as soon as possible there may be a tacit acceptance of the same conditions as will from the first exist elsewhere in the ceded territory, and, therefore, with the view of avoiding any present misunder- standings or possible future complications, it appears to the Secretary of State that it would be well to make little or no reference to the subject.

4. He would propose, therefore, to invite the opinion of the Law Officers as to whether the stipulation regarding Kowloon City need be mentioned in the Order in Council, or whether, if some formal pronouncement on the subject is necessary, it might not be sufficient to pass a colonial ordinance maintaining Chinese courts for the trial of Chinese subjects for crimes committed against Chinese subjects according to the law of China as it now exists, but on the understanding that no torture shall be inflicted, and that sentences of imprisonment shall be carried out in the colonial prisons and in accordance with the prison law of the Colony.

17

5. Mr. Chamberlain hardly considers it necessary that the boundaries of the leased territory should be specified in the Order in Council now under consideration: if thought advisable, a further Order can be issued hereafter as suggested in your letter of the 4th of July.*

I am, &c.,

18928.

SIE,

No. 22.

COLONIAL OFFICE to FOREIGN OFFICE.

[Answered by No. 32.]

C. P. LUCAS.

Downing Street, August 26, 1898. In continuation of my letters of this day's date,t on the subject of the leased territory at Kowloon, I am to request you to lay before the Marquess of Salisbury the enclosed copy of a despatch ‡ from the Acting-Governor of Hong Kong, forwarding certain so-called regulations which have been drawn up by the Viceroy of Canton.

Mr. Lockhart, on his return, will no doubt be able to give full information and advice on the subject, but I am to point out that certain assumptions in this document are inadmissible, e.g., the prescribing in Clause 2 of a particular form of words for inscription on boundary stones, and the provision in Clause 10 that a land tax within the ceded territory shall be paid to the Chinese authorities.

Mr. Chamberlain is not aware whether any communication as to this document has reached the Foreign Office, or what instructions were given to the British Consul at Canton, but it would probably facilitate the future settlement of matters if an intimation were given to the Chinese Government to the effect that the claims put forward by the Viceroy of Canton in these so-called regulations will require considerable modification,

I am, &c.,

C. P. LUCAS.

19209.

*

No. 23.

COLONIAL OFFICE to FOREIGN OFFICE.

SIB,

Downing Street, August 29, 1898. I AM directed by Mr. Secretary Chamberlain to acknowledge the receipt of your letters of the 23rd and 24th instant,§ enclosing copies of despatches from, Her Majesty's Minister at Pekin, respecting the assistance required by the Chinese Customs authorities from the Government of Hong Kong.

2. It appears to Mr. Chamberlain that the proposals of Sir Robert Hart, as embodied in his letter of 27th June,|| are open to considerable exception in certain points. Before, however, expressing any definite opinion on the subject, Mr. Chamberlain proposes to await the return of Mr. Lockhart, who may be expected in this country on the 8th October, and whose report on his visit to the new territory may be counted upon as likely to afford considerable assistance to Her Majesty's Government in arriving at a decision in the

I am, &c.,

matter.

19827 B.

SIB,

No. 24.

The NAVY LEAGUE to COLONIAL OFFICE.

(Received September 1, 1898.)

C. P. LUCAS.

The Navy League, 18, Victoria Street, S.W., August 31, 1898.

In accordance with the conversation held between us yesterday afternoon, I herewith enclose copies of three letters received from our Branch in Hong Kong.

• No. 10.

Not printed.

Enclosure in No. 16.

No. 12.

No. 15, 16, and 18. See No. 14 and page 33.

• No. 10.

Nos. 19 and 20.

638

No. 21 (one not printed). Enclosure in No. 20.

I No. 17.

PUBLIC RECORD OFFICE

Reference :-

C.O. 882

5 PUBLIC RECORD OFFICE, LONDON

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