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reward, however, should be divided between our informants and the police. The same remarks apply to the French police.
5. With regard to the local Chinese authorities, the Consul- General considers that in view of the complicated situation here, no offer of additional rewards can be made to them for seizure of arms at present, and in any case it would be of little use.
6.
Concerning paragraph 4 of His Excellency the Governor's letter, it appears there has been some misunderstanding. In November last in reply to a private letter from Lieutenant-Colonel Morgan, I stated I would endeavour to obtain all information possible for the Hongkong authorities but suggested that His Excellency the Governor, Hongkong, should allow me a small sun, say one hundred dollars (8100.00) per month, to be expended if required, as I did not con- -sider that the expenses incurred in obtaining such information
should come out of naval funds. The nature of the information I had in mind when writing this letter was not specially connected with
I had reason to think that the German Consul at Shanghai was using certain persons as messengers between Hongkong and Shanghai and it was chiefly to defray the cost of watching these persons while at Shanghai, and for such similar purposes, that I made this Buggestion.
arma.
7.
It is suggested that either the Consul-General or myself be authorised to offer rewards to informers on the scale laid down by
His Excellency the Governor in his letter, providing that their
information leads to the seizure of arms destined for India, either
at Shanghai or elsewhere. In certain circumstances these regards might be divided between the informant and those making the seizure
of arms.
I have, &c.,
(SD.)
J. W. Seigne
Captain, R.,L.I.
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