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nacity to drive us from this colony by a continued repetition of attacks upon life and property through the instrumentality of poison, incendiarism, and any and every other mode of annoyance, overt and clandestine, it has been necessary seriously to increase the colonial expenditure. So universal a panic at one time existed among both the foreign and native communities, that we were even threatened with a general exodus, and a very free expenditure of funds for the purposes of defence and protection was absolutely necessary to maintain order and comparative tranquillity. I have been consequently compelled to place the police force upon a footing which may entail a temporary expense at the rate of very nearly 20,0007. per annum, to say nothing of the various other incidental charges caused by the continuance of the present crisis. It will be, I hope, remembered that the protection thus offered by making this colony secure, extends to a great portion of the foreign community of Canton, and to many Chinese who would suffer at the hands of their own government from friendly feelings exhibited towards us, or useful services rendered. I trust, therefore, that the Imperial Government will not hesitate in applying to Parliament for this additional grant, bearing in mind that, until the outbreak of hostilities at Canton, this colony was in a most flourishing and progressive condition, and that solely in consequence of such hostilities that prosperity and progress could not but receive a serious temporary check, which may long continue to operate. It is some satisfaction to add, that if our police expenditure has been great, it has at any rate been attended with most beneficial results, and that, by a never-sleeping vigilance, the public peace of the colony has, up to the present time, been preserved in a very remarkable manner, considering the unscrupulous enemy we have to deal with; and as I doubt not Her Majesty's Government will insist on and enforce the repayment of all expenses caused by the unwarrantable conduct of the Chinese authorities, I consider the assistance now applied for as a temporary aid, to be refunded hereafter by the Imperial Treasury of China.

As evidence of the character of the hostilities with which we have to deal, I have the honour to forward translation of a proclamation from the authorities of the Hiang-shan district, which is that which supplies the colony with the greater proportion of our most valuable and confidential servants.

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Translation of a Paper forwarded by His Excellency the Governor of

Macao.

(Received, 9 March, 1857.) KEW, acting chief magistrate of the district of Heang-shan, issues the following Proclamation.

The chief magistrate had some time since the honour to receive the instructions recited below from his Excellency the Governor-general:

"The English barbarians having assaulted the provincial city, a large body of troops has been assembled for purposes of defence and seizure; and as it is, of course, expedient that all trade with them should be pro

Enclosure in

No. 3.

hibited, and all commercial dealings put an end to, every Chinese of any district [of the province] who may be in business at Hong Kong, or in barbarian service in houses or on board vessels there, is to be desired to return thence to his native place within a given time. Recusants will be severely dealt with as traitors; all their goods and property confiscated; and such of the gentry or elders as screen them will be held equally responsible."

In accordance with the above it became the duty of the chief magistrate to issue a Proclamation to the effect prescribed, as also to send written instructions to the gentry and elders of the several wards to act as they were therein directed.

Fearing, however, that there may be hamlets and farms here and there to which the injunctions referred to have not penetrated, and being sincerely anxious to prevent the inhabitants thereof from falling into the net of the law, it is the duty of the magistrate now to issue a second Proclamation.

He accordingly notifies to all classes, military and plebeians, that if there be any of their sons or brethren still remaining at Hong Kong, or as employés in barbarian ships or houses, they must call on them to return home within five days,* and to tarry no longer. If they be not forthcoming when the chief magistrate makes his visit, it will be seen that they are still hanging on at Hong Kong; their houses and property will be confiscated, and, as soon as they can be arrested, they will be punished as traitors to China. The gentry and elders [of their wards], as well as their fathers and brothers, will all be proceeded against under the law against collision. Let the good tremble and obey; let them not act so as to have hereafter to repent.

A special Proclamation.

Hien Fung, 7th year, 2d moon, 1st day, 24 February, 1857. Translated by Thomas Wade, Chinese Secretary, 9 March, 1857.

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No. 4.

Copy of Letter from H. MERIVALE, Esq., to Sir CHARLES TREVELYAN.

Downing Street, 8 May, 1857.

SIR, I am directed by Mr. Secretary Labouchere to transmit to you, for the consideration of the Lords Commissioners of the Treasury, the copy of a despatch from the Governor of Hong Kong, applying for a grant of ten thousand pounds to meet the expenses to which the colony has been and will be put on account of measures of defence consequent upon the present state of affairs in China. I am also to enclose the copy of a letter from Mr. Mercer, the Colonial Secretary, now in this country, explaining more fully the grounds on which this application is made.

In laying these papers before their Lordships, I am to request you to state to them, that although, from the nature of the case, the amount *The 1st March. There was a considerable exodus between that date and the 5th March.

applied for by Sir John Bowring must be to a great extent conjectural, Mr. Labouchere has no doubt that a sum of 10,000l. will be required to meet the extraordinary demands of the colony, and he would therefore suggest that a vote of credit to this extent should be taken.

An application for a further grant of 10,000l. on account of future expenditure for the same purposes has been received in a despatch from Sir John Bowring, dated the 12th March; but Mr. Labouchere has not felt himself able to recommend to their Lordships to make this additional application to Parliament without fuller and more accurate information, which Sir J. Bowring has been requested to supply.

No. 5.

I have, &c. (Signed)

H. MERIVALE.

Copy of Letter from JAMES WILSON, Esq., to H. MERIVALE, Esq. Treasury Chambers, 9 May, 1857. SIR,- The Lords Commissioners of Her Majesty's Treasury having had under their consideration your letter of 8th instant, containing a suggestion from Mr. Secretary Labouchere, that a vote of credit should be taken for the sum of 10,000l. to meet the expenses to which the colony of Hong Kong has been and will be put on account of measures of defence consequent upon the present state of affairs in China, I am commanded by their Lordships to acquaint you that, under the peculiar circumstances of the case, they are pleased to sanction the course proposed by Mr. Labouchere.

(No. 63.)

No. 6.

I am, &c.
(Signed) JAMES WILSON.

Copy of Despatch from the Right Honourable H. LABOUCHERE to
Governor Sir JOHN BOWRING.

Downing Street, 9 May, 1857.

No. 5. J. Wilson, Esq., to H. Merivale, Esq.

9 May, 1857. Page 124.

No. 6. Right Hon. H. Labouchere to Governor Sir J. Bowring.

SIR,-I have to acknowledge your despatch of the 28th January, No. 18,* applying for a Parliamentary grant of 10,000l. to meet the expenses Page 124. to which the colony of Hong Kong has been and will be put on account of measures of defence consequent upon the present state of affairs in

China.

I have also received a second despatch + from you, No. 50 of the 12th + Page 122. March, soliciting on the same grounds an additional grant of 10,000l.

I have to inform you that, under the peculiar circumstances of the case, Her Majesty's Government will apply to Parliament for a vote of credit for 10,000l. for Hong Kong; but that the second application which you have made cannot be complied with without some more satisfactory explanation of the precise objects to which it is proposed that this further aid should be applied.

You will bear steadily in mind that any grant of monev made to Hong Kong on grounds arising out of the present hostilities with China must be exclusively applied to that service, and on no account diverted to colonial objects of an ordinary character.

I have, &c.
(Signed) H. LABOUCHERE.

MR. W. F. A. WILSON, M.A. (OXFORD), F.S.A.

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