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His Excellency the Governor then said that there was one way of preventing piracy which would be more efficacious and more economical than employing the armed forces of both countries, namely, by allowing foreign vessels of all nationalities to ply unrestrictedly on the West River carrying passengers only. Such vessels would carry an arined guard, well able to repel piratical attacks. The pirates would consequently hold aloof from them, and this piracy would gradually cease of itself. The Chinese authorities would be at liberty to take any measures they deemed necessary to protect the Chinese revenues. Viceroy Li promised to give the proposal a favourable consideration after arriving at his post, and added that he saw no reason why it should not be done.
Viceroy Li then asked whether Kowloon city would be handed back to China, as the original Convention made with the Tsung-li Yamên provided that the place should remain under the jurisdiction of the Chinese authorities. His Excellency the Governor replied that this was a matter concerning which he could not decide, as he had taken possession Kowloon was a very of Kowloon solely under instructions from the home Government. small town, containing only a Yamên and barracks, and if Viceroy Li would depute officers of his suite to look at the place, he could easily satisfy himself as to its insignificance. Viceroy Li pointed out that one of the chief reasons for asking for the retrocession of Kowloon was to deprive the Russians of any cause of complaint. Sir Claude MacDonald was acquainted with all the circumstances connected with the retrocession of Chen Chou* by the Russians, That Power having relinquished the place in question, might object to England's retaining possession of Kowloon, and complications might thus easily arise. His Excellency the Governor again insisted upon the insignificance of Kowloon, and pointed out that Viceroy Tan had stationed 600 men there, which necessitated the stationing in the neighbourhood of a corresponding number of General Gascoigne British troops, whose services were thus lost to the Colony. corroborated the statement as to the insignificance of Kowloon and the absence of population.
Viceroy Li then inquired as to the state of the opium question. His Excellency the Governor replied that he was awaiting the reply of Sir Robert Hart, who wished to include boiled opium in the Regulations. While it would be easy enough to exercise control in
the case of the raw article, surveillance over the prepared drug would necessitate a large staff of preventive officers, the cost of which would have to be borne by China, and as the expense would exceed the total revenue from opium passing through Hong Kong, and as, under present arrangements, the revenues of China had materially increased, it would appear advisable to allow things to remain in statu quo for the present. Viceroy Li replied that matters might well be allowed to go on for a year as they were.
Viceroy Li referred to the Governor and himself as being colleagues and associates, and said that all things could be satisfactorily settled by cordial co-operation, and that it He would never be necessary to refer matters to the Yamên or to the British Minister. himself would be prepared to settle all questions locally. His Excellency the Governor replied that he desired nothing better, and mentioned that there were a few armed raids -occurring on the frontier, in which people from the Tungkun district were mostly concerned. The Viceroy replied that he would give the matter his attention, and added that the Tungkun people had always been noted for their turbulence.
(Signed) G. D. PITZIPIOS.
• Kui Chow.
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