Sessional_Paper_1884 — Page 198

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33. These propositions are almost identical with those of 31st May, 1879, and are as follow:

(a.) That Chinese Customs Stations, where duties are now levied, be abolished.

(b.) That Junks trading with Hongkong pay duty at ports of entry or clearance according to usual tariff, except Salt, Opium, and Munitions of War.

(c.) That the Cruisers cease to overhaul junks from or to Hongkong.

(d.) That, as regards, Salt, Opium, or Munitions of War, they are not to be exported in future to the Coast of China in native junks except under a permit from the Chinese Authorities.

34. The foregoing proposals were sent to the Foreign Office and elicited criticisms to the following effect:-

(1o) That the basis presented many difficulties, and it was doubtful if the

Chinese Government would receive it.

(2o) If the Government of Hongkong undertook to prevent Salt, Opium, and Munitions of War from being taken from the Colony without a permit the prestige of the Government would be lowered in the eyes of the native community, and it was doubtful if such an undertaking could be effectively carried out as long as there is free sale in the Colony, without the maintenance of an expensive British Revenue Service, and the establishment of a British instead of a Chinese Blockade.

(3) If the Chinese gave way to the other conditions they would jeopardise the whole of their native revenue. They could not be expected to accede to these propositions, abandoning the right of search and doing away with the three Stations at the entrance of the Harbour, as they would have no means of watching hundreds of miles of Coast.

The Governor is then instructed not to treat with the Viceroy except through the Consul, and, for the present, not at all, as Sir THOMAS WADE is treating at Peking:

Grievances complained of in the Blockade of Hongkong-Basis of Settlement suggested.

35. The Mercantile community complains of the following grievances inter alia; and the Government and Secretary of State consider them well founded:-

(1.) That the Cruisers of the Chinese Authorities and the Officers of the three Native Stations at the Throat Gates of the Colony exact undue and illegal rates from the junk trade of the Colony.

(2.) That goods of Foreign Origin sent to the West Coast of China and to non-treaty places are made to pay much higher rates of duty when shipped in Hongkong Junks than when shipped from Macao; so that it pays the Hongkong Trader to send his goods first by steamer to Macao And thence in junks, instead of sending them direct from Hongkong.

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