CO129-183 - Public Offices & Others - 1878 — Page 173

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trading to Manila, Saigon, and the Straits Settlements, and that the Canton authorities have doubtless informed the Consul that such is the case. The Colonists, however, represent that the rates do differ, and it is not impossible that the facts have not been correctly represented to Sir Brooke Robertson, or that the collections do not agree with the Tariff. In the absence of any known Tariff, it seems scarcely possible to arrive at any certain conclusion on the subject.

6. I am to state that Lord Carnarvon approves of the proposition suggested by Sir Thomas Wade as a means of settling the difficulty, and is ready to believe that this may be done if it be possible to obtain the removal of the three obnoxious stations, or failing their removal to place them under the control of the forcign Inspectorate, the Chinese revenue would thus be materially benefited, and the Colonists relieved from the causes of their present complaint. His Lordship feels that it will be necessary to entrust the new station with the supervision no less of native cxports into Hong Kong than of foreign imports into China, if any permanent good is to result from the arrangement. The complaints relate to the trade in native goods as much or even more than to the trade in foreign goods; and it appears desirable that the officials who represent British interests on this occasion should be specially directed to keep this part of the case fully before them.

7. I am to take this opportunity of transmitting a copy of a despatch from Sir Arthur Kennedy, dated the 28th February, 1877, forwarding a copy of a Memo- randum (which is no doubt already in the possession of Lord Derby) by Sir Brooke Robertson, apparently founded upon the views expressed by Sir Thomas Wade to that officer on his way home from China, containing a proposed basis for the settlement of the question, and a copy of a similar Memorandum by the Government of the Colony. It will be seen that these documents are not quite the same in their terms; and as Lord Carnarvon presumes that the instructions to the British members of the Con- ference will be sent from the Foreign Office and this Office respectively, and will be identical, his Lordship would be glad to be favoured with the views of Lord Derby upon the relative merits of these two documents as the groundwork of such instruc- tions.

8. I am to state that Lord Carnarvon is disposed to approve of the first two Articles of the Memorandum by Sir Brooke Robertson, and the first paragraph of the third Article on the assumption that the three stations are not to be removed; but in reference to the second paragraph of that Article his Lordship is of opinion that some greater precision would seem to be required in order to make it clear beyond any doubt that our officers are not assenting to anything like import duties into Hong Kong. Lord Carnarvon feels it right specially to allude to this point, for it is some- times alleged that the Hoppo in his collections treats Hong Kong as part of the Province of Kwang Tung, and that the duties now levied partake of the character of imports as well as of unpaid exports. In this respect the 3rd and 4th Articles of the Memorandum of the Colonial Government appear to be judiciously conceived.

9. The 4th article of the Memorandum by Sir Brooke Robertson is, in Lord Carnarvon's opinion, quite proper; and he sees no objection to the admission of the 5th article, but it is not very clear what measures the Governor of Hong Kong is intended, or indeed would be able, to take in pursuance of any such report. The 6th and 7th articles appear to be the same in substance as the 5th and 6th articles of the Colonial Memorandum, except as to the procedure to be followed in case of the officials differing as to the decision upon any given case. It is scarcely to be expected that the Chinese Government would consent to the final decision of an English Judge, and it is clear that an appeal to any given Chinese official would be inadmissible. The Colonial proposition might perhaps be mooted with the view of being withdrawn if necessary, and Sir Brooke Robertson's proposition substituted, unless Lord Derby thinks that any third course would be preferable. For when the members of a divided Court report to their respective superiors, it would seem that the opinion of the Chinese official will in fact prevail. The alleged smuggling craft will necessarily remain under detention at the Customs Station; and previous experience has demonstrated how difficult it is to obtain the release of a junk under such circumstances. In other respects it appears to Lord Carnarvon that the Memoranda appear to contain all the material points upon which instructions are required.

10. With regard to the detention of junks by the Chinese authorities when the smuggling is not established, I am to refer you to the conduct of the Canton officials in the recent case where a junk was seized by the armed crew of a Mandarin boat hauled off the shore of the Island of Hong Kong, and carried forcibly to one of the Customs Stations, upon which subject a letter was addressed to you from this Depart-

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ment this 25th April, and I am to observe that the recurrence of similar acts might, in Lord Carnarvon's opinion,. possibly render it necessary to consider whether the Chinese cruizers can continue to enjoy the privilege of using the harbour of Hong Kong, which has hitherto been accorded to them, in common with the ships of other Governments. His Lordship thinks that it may be desirable, in view of such a possi- bility, to reserve all questions as to the status of these vessels.

I

am, &c.

(Signed)

Inclosure 1 in No. 2.

ROBERT G. W. HERBERT.

Governor Sir A. Kennedy to the Earl of Carnarvon.

My Lord,

Government House, Hong Hong, February 28, 1877. ON the eve of my departure I transmit to your Lordship copy of proposed basis for a conference under conditions of Sir Thomas Wade's Chefoo Convention, relative to the "Hong Kong Blockade question."

Sir Brooke Robertson's serious and protracted illness precluded me from taking any further or final steps.

I am, &c.

(Signed)

Inclosure 2 in No. 2.

A. E. KENNEDY.

Proposed Basis of Settlement by Sir B. Robertson.

1. WITH regard to the collection of duties and war-tax on vessels entering and clearing from Hong Kong, it is proposed that the Viceroy of the Two Kuang should, in conjunction with the Superintendent of Customs, Canton, appoint a fitting person as his deputy to generally superintend this matter. It is further proposed that a Customs Station shall be established, as near as possible to the boundaries of the British territory, somewhere in the neighbourhood of Kowloon, to make the levies and to issue clearances and receipts.

2. That the Viceroy of the Two Kuang shall, in conjunction with the Superinten- dent of Customs, Canton, appoint an Englishman as an officer to assist at the new station.

The collection of duties and war-tax to be under the joint surveillance of the Chinese Wei-Yuan and Foreign Assistant, under the direction of the former.

3. After the establishment of the new station, all junks clearing from Hong Kong with cargo shall hand in manifesto to, and pay duty at the new station, and shall receive clearances; the junk shall then be examined at Kap-si-mun, Fo-tow- chow, or Chang-chow, as the case may be, to see that the cargo corresponds with the manifest.

Junks proceeding to Hong Kong shall also stop at the three stations above mentioned to have their goods examined and to be given clearances, and shall then proceed to the new duty stations to pay such duties as may be due.

4. That all revenue cruizers of every description, whether steamers or sailing- junks, are to be entirely under the jurisdiction of the new duty station. These cruizers shall be supplied with a special flag, and their crews shall be dressed in a special uniform. Any junk they capture must be forwarded to the new duty station to be examined by the Deputy and Foreign Assistant, who will inquire whether she is guilty of smuggling or not.

5. That if any Chinese residing in the Colony is suspected of smuggling, a report of the circumstances shall be made to the Viceroy, who will communicate it to the Hong Kong Government.

6. If after a seizure has been effected by the new station a complaint is lodged with the Hong Kong authorities, it shall be competent for the Colonial Government to appoint an officer to proceed to the station to make inquiries, and, in conjunction with the new duty station, to summon witnesses, jointly to investigate the matter, and settle it on a fair basis. If the British official cannot agree with the officers of the new station, and, therefore, the case cannot be settled, each must report the matter to the Hong Kong Government and the Viceroy respectively.

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