Chapter 38 - China 1842-1844

Canton Register Vol 15, No 31 – 2nd August 1842

The London season has been very gay this year and a grand fancy dress ball for 1,500 guests was attended by the Queen (as Queen Philippa) and Prince Albert (as the Black Prince). Capt Elliot appeared in a superb Chinese costume as Commissioner Lin.

Vol 15, No 31 – 2nd August 1842

Sir George G de H Larpent, the East India trader, has ‘retired’ from the representation (MP) of Nottingham

Vol 15, No 31 – 2nd August 1842

1.2 million lbs of tea has been offered at the tea auctions in London and has depressed prices. Only 600,000 lbs was sold. Over 28 million pounds remains in stock.

Vol 15, No 31 – 2nd August 1842

Proclamation issued by the inhabitants of the 36 villages of Ting Hae (posted on the city walls 28th May 1842):

Yesterday a French frigate arrived. The French are simple, diligent and faithful people. We told them the English spread opium all over the country for profit. The French said they had withheld their assistance from the English because their cause was unjust.

This proclamation is to inform all inhabitants not to injure Frenchmen or damage their ships. Disobedience will merit the punishment decreed for those who unjustly ill-treat an innocent. But the English should not be permitted to stay and a day must be fixed for their removal from land and sea

Vol 15, No 31 – 2nd August 1842

Notice of Cecille, Chevalier d’Honneur, etc., dated 21st June on board French frigate L’Erigone at Chusan:

The proclamation posted at Ting Hae may induce Chinese into believing France will assist China against the English. Do not be misled. French purposes in the China Seas are pacific. We are here to observe the conflict and protect French interests. France is at peace with both England and China. We will not be involved in the war.

We hope the Emperor, learning more correctly the friendship and power of the European nations, will consent to bring China into the great family of nations.

Vol 15, No 31 – 2nd August 1842

Mr Laurence Peel, Chief Justice of Calcutta, has been knighted.

Friend of China 4.8.42 edition

Extracts from the Peking Gazettes:

Friend of China 4.8.42 edition

The recent typhoon at Calcutta caused 6 million rupees of damage. 41 pukka and 367 tiled buildings were destroyed. 625 boats are lost. Of the trading ships 3 are lost, 10 blown ashore and 28 seriously damaged.

Friend of China 4.8.42 edition

Repair of the foreign factories has commenced in Canton.

Friend of China 4.8.42 edition

Howqua and his son Samqua are ordered North by the officials to assist in negotiations with Pottinger

Friend of China 4.8.42 edition

Chusan Island is very beautiful but Tinghai is not. It is about a mile inland surrounded by a strong bastioned wall. The filth and squalor contrast with the usual Chinese town. Although we have possessed the town for 12 months all of us still necessarily go about armed to the teeth.

Friend of China 4.8.42 edition

Peel says Capt Elliot is to be British Consul to Texas, which country has just been re-invaded by Mexico. He left England on 1st June. Peel told the house ‘without giving any opinion on the conduct or character of Capt Elliot during the occupancy of his difficult and embarrassing position at Canton’, he nevertheless was disposed from his intercourse with him since he returned home, ‘to repose the highest confidence in his integrity and ability.’

However the determination of the UK government to keep Hong Kong is nothing to do with Elliot. It has been settled upon for some months and only war prevents it being announced.

Vol 15, No 32 – 9th August 1842

London Post - Sir Robert Peel has made a statement to the Commons about Elliot. “I place every confidence in his integrity and his ability to perform his functions …. There is nothing, either in his conduct or his correspondence, to make me doubt that full confidence might be placed in his integrity and efficiency.”

Editor – then why did Lords John Russell, Palmerston and his own relative Minto recall him?

Friend of China 4.8.42 edition

40,000 emigrants were sent to New South Wales from United Kingdom last year (£900,000 in passages to the India Company if it maintained the former rate for transport of prisoners)

Friend of China 4.8.42 edition

12 flat-bottomed boats are being fitted out for our expedition in China.

Vol 15, No 32 – 9th August 1842

Bombay Courier, 4th June 1842 - Friends and constituents of James Matheson held a meeting at Sir Jamsetjee Jeejeebhoy’s house within Bombay fort where Bomanjee Hormusjee read the following address to Matheson during his brief visit:

“Whether we regard him in a commercial or philanthropic light, he merits our esteem and admiration. It is upon such characters that our commercial greatness is based. His liberality and munificence first originated the epithet ‘merchant prince’. We wish him a full recovery of his health and happiness in his native land.

You have been a firm friend of the merchants of Bombay through dangerous and difficult times. It is nearly three years since the regular trade at Canton was disrupted. Your firmness, skill and perseverance has maintained our imports and exports. When £2 millions was withdrawn from Indian capital by the surrender of the opium to Elliot we were paralysed until you generously provided advances for both the relief of your constituents in India and for us to carry on our China trade under foreign flags which you arranged at your own great risk and responsibility. We could not ourselves have conceived of such a plan and our ships would have remained outside with their cotton cargoes rotting and with them our fortunes.

We want you to know how much we admire your judgment and determination. To remember your Bombay friends we have asked Magniac Jardine & Co to present you on arrival in England with a valuable service of plate.”

Matheson replied:

My services were nothing more than what a commercial agent should do for his constituents. That you consider them worthy of distinction reveals your own kindness and generosity. It was your liberal confidence in our firm when things did not always go perfectly that strengthened our hand as Agents. From our long experience of your style we were able to act as we did when Capt Elliot suspended British trade in 1839. I think you have over-rated the value of those services – we simply did for you what we would have done for ourselves. As the emergency was extraordinary, we adopted extraordinary remedies.

80 Parsee merchants subscribed to the silver plate. Its worth 15,469 Rupees.

Canton Register Editor – We credited Matheson as the first Englishman to act with enterprise and determination during the crisis of 1839-40. He sustained English and Indian trade through that difficult time. The use of foreign flags was opposed by part of the Bombay press but Matheson pressed ahead. The benefits to Matheson since March 1839 have been immense. He worked under the political mismanagement of Elliot and under the difficulties of war with China. J M & Co have provided the British government with almost its entire revenue from tea. It is a distinct pleasure to see that Matheson’s worth is finally recognised elsewhere. He founded this newspaper in November 1827. In March 1842 we honoured his career here.

Vol 15, No 32 – 9th August 1842

A high official at Peking, who is a Christian, has written to a priest in Macau reporting that the capital has been surrounded by Manchu troops for the last two years. Their pay is long in arrears, the Treasury is empty and they have been deserting in their hundreds to return to their fields and sow. He says if the English were to march on Peking now, they could take the capital without a shot.

Vol 15, No 32 – 9th August 1842

A service of silver plate has been presented to both Commander William Warren of HMS Hyacinth and Captain Henry Smith, now of HMS Druid, by young Jardine, Inglis and others on behalf of all the China merchants for their assistance during events in the 1839/40 season.

Vol 15, No 32 – 9th August 1842

An Imperial Edict of 4th June lists honours for various Hong merchants.

Friend of China 11.8.42 edition

Extracts of the Peking Gazettes:

Friend of China 11.8.42 edition

The final opium auction of the year occurred on 27th June at Calcutta. 2,921 chests of Patna and 1,138 of Benares were sold for an average R881 and R831 per chest respectively (3.5 million Rupees).

Stock remaining in the godown at Calcutta is new Patna 4,249 chests, Benares 2,058. Old Patna 20, Old Benares none.

Vol 15, No 33, 16th August 1842

The Viceroy of the Two Kwangs, the Governor of Kwangtung and other high officials have all been degraded but retained in office. We have not yet seen the Edict but our informant is reliable. Its a strange reward for their diligent collection of Customs revenues which must have increased this year.

Some foreigners asked the Imperial Commissioners to permit Europeans to live in Canton and were refused. It was foolish to ask the General of defeated troops and the Governor of a ransomed city for such permission.

How Qua’s grandson and Sam Qua have returned from Soo Chow. We did not ask for a ransom of that city and Ilipu found them of no use for any other purpose. He was reprimanded for asking for them in the first place.

Friend of China 18.8.42 edition

Extracts from the Peking Gazettes:

Editor Shuck - it is well known amongst British soldiers that the first to flee were boatloads of officers who have now successfully manipulated the enquiry so as to implicate a few of their men.

The Emperor has learned that Yishan the Manchu General, Kekung the Viceroy and Leung the Governor did not report fully on events in Canton. He has ordered that any delinquency should be rigorously investigated by the Board of Punishments.

Friend of China 18.8.42 edition

Letter to the Editor concerning Chinese and Sikhs in Tibet:

Chinese troops are in Heoondes. They were sent from Lhasa to drive out the Sikhs. They have moved on to Gartok and are invading Ladakh just beyond the Kumaon (now Ishkuman) frontier. They have garrisoned Tuklakoth (which controls one of the Beeaus passes), Gartok and Dapa. The Sikhs are holding out within their forts but the general countryside is controlled by the Tibetan force. The Chinese government has promised support and a contingent of Imperial troops is now at Guinak and at Yarkand. If they continue towards the frontier there will be a protracted struggle. The Nepalese are maintaining a strict neutrality. The Sikhs have sent a force under Bustee Ram to relieve the Ladakh forts. Once the Chinese are out of their own territory it is thought they will probably not do well and might be defeated.

The Sikhs regret invading Tibet and are now ready to guarantee its independence and to confine themselves within Ladakh. Indeed the Rajah of Ladakh may already be a Chinese prisoner or ally. There are five passes through the Himalayas at this area - two in Gurhwal and three in Kumaon which all lead steeply up to the crest then gently descend into Tartary. The passes from Simla are useless - one has to cross pass after pass before reaching the rugged tableland. The passes at Kumaon are the grandest of all along the Himalayas. The Kali River is more magnificent than the Ganges or Sutlej and where it debouches from the hills at Burm Deo it is majestic. The Nynee Tal (lake) in Kumaon is very beautiful. In April and May every shrub in the valley is in flower and the hillsides are crimson with rhododendrons.

I am mentioning all this because the determination of the dispute will conceivably be in English hands. Either the Sikhs will ask us to help them or, when we make peace with China, we might ask them to withdraw.

Friend of China 18.8.42 edition

London newspapers report that railways are being considered for India. A circular line Calcutta - Madras - Bombay - Agra - Calcutta is estimated to cost £6,000,000.

Friend of China 18.8.42 edition

The Peruvian will depart shortly for England. This is interesting because 150 tons of her tea cargo was loaded along the coast and hence is being shipped free of Canton export duty. The precise saving has not been revealed but the shipper indicates his future purchases will not be made in Canton.

Friend of China 18.8.42 edition

A joint petition of sundry British merchants to the Canton Viceroy requesting to bring their wives to Canton has been summarily rejected.

With Ilipu's dismissal, the two Hong Merchants who were sent North are now returning to the South.

Canton Register Vol 15 No 34 – 23rd August 1842

Sir Robert Peel has asked for an income tax because of the costs of war in Afghanistan and China. The deficit due to tariff reform is not his only reason.

Concerning the China war it is a just war, because the Queen’s representative was imprisoned with the merchants, £2 millions of opium was confiscated, and the imprisonment and confiscation was done in a treacherous manner. England does not make war frivolously.

The Tory wars against the liberties of France and America cost us £700 millions and have given us an inheritance of £25 millions in taxes each year merely to pay interest on the loans. Whether war with China is just or unjust, it is the policy of both parties. It is true that a cabinet minister (James Graham) harangued against it whilst in opposition but he was snubbed by the highest authority in his own party and kept quiet thereafter.

The Tory party has since made the Chinese war its own. They continue the same people in authority in China and leave them with the same instructions. If they are right, now they are in power, they must have been merely factious when in opposition. That is their predicament.

What is this war that calls for fresh pecuniary sacrifice? According to Sir Robert, the charge is $400,000 for each of the three years – about three days expenditure in the years at the end of the French war.

Vol 15 No 34 – 23rd August 1842

Sir Robert Peel has expressed his confidence in Capt Elliot and deemed him suitable as our national representative to the Republic of Texas. We wish to review his activities leading the opium surrender to China to illustrate the factual background to Sir Robert’s decision. Our information is from the Blue Book:

On 22nd March Elliot petitioned Lin from Macau and apologised for the written translation of his wishes if it did not comply with Chinese usages – a complete dereliction of his instructions from the Foreign Office. (The translator was Gutzlaff)

On 23rd March he issued a public notice at Macau referring to ‘the immediate and inevitable preliminary act of declared war’.

Elliot arrived at Canton at about 6 pm on 24th March 1839. He told Pam in his letter of 6th April that his arrival was ‘at the risk of his life’. Capt Elliot is a post captain and implicit in that rank is the fact that his life is devoted to the service of his Sovereign. It is unique for Capt Elliot to adduce this ‘risk’ in his formal correspondence. In point of fact his life was at no greater risk that the sailors manning HMS Larne’s jolly-boat, or the Netherlands Consul Senn van Basel or young Adam Elmslie, a youth in his teens.

The next day Elliot wrote the Governor of Canton for passports. That same day, before he got an answer, and before he had spoken with the English community at Canton, he wrote again to the Governor requesting an officer be deputed to negotiate with him for the peaceful conclusion of all matters in dispute. He offered to submit to the restraints then in effect on the foreign community at Canton and would not call-up the boats from Whampoa in defence of the foreigners. He said he always desired to fulfil the pleasure of the Viceroy, which desire appears to have been in total opposition to the desires of the trading community at Canton. He offered his sincere efforts to fulfil the pleasure of the Emperor in so far as it was in his power to do so as soon as it was made known to him. Finally he asks that his earlier application for passports be returned, presumably to conceal its existence from his masters.

Thus Elliot formally requested for Imperial and Provincial commands without a word to his countrymen and without a hint of demur at Lin’s request for surrender of the opium, which Elliot later called ‘public robbery’ and ‘wanton violence.’ Commissioner Lin replied that a reiteration of his commands of 18th March was unnecessary. This Edict was to the Hong merchants for the instruction of the foreigners and the foreign merchants had replied before Elliot arrived at Canton. Lin added that, in light of Elliot’s offer, he had merely to lay the commands on Elliot to arrange the surrender of opium and provision of bonds. Lin recognised the confrontational possibilities of his commands and wrote that ‘if Elliot has anything to offer in entreaty or mitigation, provided it is reasonable, I will grant it.’

This is the man who the evening before (on 24th March) made that well-known public address to the community at Canton.

All this was hidden from the foreign community which assumed, when the notice of 27th March was published, that Lin had made an awful threat to Elliot in response to his request for passports; that he was prepared to act unless the opium was instantly surrendered. Well, now we know that Elliot was never under any such threat. He was never coerced into exceeding his powers. On 2nd April Lin prescribed the terms for the opium surrender. If any delay, after three days the water supply to the factories will be stopped, three more days and the food supply will be halted, three more days and the law will be enforced unilaterally. This last threat Elliot understood as personal to him for next day (3rd April) in his public notice he implied that the Commissioner would execute him after such delay.

We have previously criticised Commissioner Lin for reporting to the Emperor that the opium surrender was voluntary. It now transpires that it was. On 21st March the merchants had themselves surrendered 1,000 chests. Then Elliot says he is ‘sincerely anxious to fulfil the pleasure of the Emperor, as far as it may be in my power, and as soon as it is authentically made known to me’ and ‘I have the honour to receive for the first time Your Excellency’s commands, issued for the Emperor, to deliver the opium in the possession of British subjects’.

When we complained of the attack on the Black Joke, Elliot acquitted the officials of complicity and wondered who the real culprits were. We now have a Chinese report on the event. It says ‘an English barbarian boat was seen spying about the Tiger’s Mouth1 and was fired upon by Wang Chung, who killed more than ten men ….’ Elliot said one thing to Pam and another to Commissioner Lin, despite having a statement of facts from Alex Jardine.

On 27th March Lin replied to Elliot ‘in obedience to the commands, you agree to deliver the opium. This manifests a respectful sense of duty.’

Elliot wrote on 26th March ‘I received your letter between 5 – 7 am. You say:

I came to Canton on 24th March and presented an address at 1 am on 25th March and a clear reply was given to me. Then between 1 – 3 pm I presented another address requesting indulgences that are difficult to grant yet. I sent you a copy of the foreign address which you have considered. I asked that an intermediary be appointed for discussions. You sent four legal officers – Choo, Lu, Fu and Chang – to the Consoo House to meet with me. Then you sent the three heads of department – territorial, judicial and fiscal – to the new city (the extension south of the old city wall – between it and the river) to await information on developments in the discussions. But no foreigner came to attend the meeting. You ask “What sort of conduct is this?”

‘You say I have presented two addresses in one day, neither of which refers to the prevention of opium importing or to the progress of its surrender, as though our detention was unrelated to it. You say ‘Had you been ready to instruct the foreigners to surrender their opium, I (Lin) should have praised you extravagantly. Even had you not instructed them to surrender etc., it might have been understandable, but you have contrarily sought to induce the foreigners to escape from Canton. Would I not be acting reasonably if I withdrew the compradors and launched an enquiry as to how you came to Canton? The offence of resistance to our law is now deflected from Dent towards Elliot. Even if I indulge you, I can still stop your country’s trade. Your merchants have profited from China for two centuries. If they find their profits stopped as a result of your acts, will your people indulge you as I am willing to do? In former times, when officers were sent to command your people, they several times inflicted the ultimate punishment on them. Have you not heard about that?’

Continued in Vol 15 No 35, 30th August 1842 with evidence of a parliamentary Select Committee.

Evidence of Mr Inglis

– illegible … He (Elliot) called for Mr Elmslie to copy his demand on the merchants to deliver their opium. I begged him not to commit himself until he had slept on it. He agreed and it was not copied out until early the next morning. Then it was distributed very early. It required the merchants to surrender their stock by 6 pm that day (26th March). It has been said that the merchants and Elliot together concocted this order. That is why I have detailed the only part of the transaction that I was privy to. I do not know about any thing else.

Examination:

Q. Do you think Elliot consulted others?

A. I am sure he consulted Matheson because he was the most involved.

Q. (Lord Sandon) – You say Elliot had decided on the surrender before he left Macau?

A. Yes.

Q. (chairman) – Did you talk with anyone else about the surrender on 26th?

A. No.

Q. (Buller) If Elliot had asked for the opium w/o offering a guarantee, would it have been surrendered.

A. No.

Evidence of A Matheson –

Q. (Buller) – Was James Matheson consulted by Elliot about the surrender.

A. No.

Q. Did you think Elliot was empowered to receive the opium?

A. He said he had powers which could not be revealed.

Q. (G Staunton) From your knowledge of Elliot, would he assert a power he did not possess.

A. No.

Q. (G Grey) Were you apprehensive of what the Chinese might do to enforce the surrender?

A. There’s no saying what they might have done but I was not apprehensive of violence being used.

Q. Do you still hold that view?

A. I doubt the Chinese would have killed anyone, but had they done so, it would have been Elliot.

Q. (Buller) Could the English have resisted the Chinese demand?

A. We could send the opium away. What could the Chinese do to stop it?

Q. (Staunton) Do you think better terms were possible.

A. We might have got away with surrendering 2,000 – 3,000 chests not 20,000.

Evidence of Capt John Thackerey:

Elliot arrived Canton in the evening of Sunday 24th March. He assembled the community in the Company’s Hall and read them the Proclamation he had made in Macau a few days previously. He said he had prepared it a month or two previously.

Illegible

Evidence of W Jardine 14th May

Q In your experience was there any danger to life or property arising from Lin’s Edict demanding the opium?

A. Certainly not. If there had been more resistance then, the subsequent British response need not have been so severe.

Q You think they would have continued the policy of treating the foreigners with fairness?

A. I had no fear they would take my property from me without payment. It would have been difficult to fix the price. But I had no doubt they would have paid for anything they made me surrender to them.

Q (G Grey) Do you mean to say Lin did not earnestly wish to put down the opium trade?

A. He was earnest but he would not have adopted the means he did if he had not found us yielding. Elliot had required Britons to prepare to move their property into ships (Reliance, Orwell & George IV etc) at Whampoa to move it to Macau and give him a list of all our claims on Chinese subjects and claims for damage resulting from Chinese actions. He had given notice that Macau had pledged to protect Britons so long as they obeyed Chinese laws. Most especially he had warned Britons that any violent measures taken by Britain could not be prejudiced by Britons continuing to live at Canton, which was on their own responsibility. Finally he gave notice that if the requested passports were delayed beyond the three days after his application was delivered to Lin, he would conclude they were being detained to force them to unsuitable concessions and terms (by the restraint of their persons, the violent seizure of their property or the execution of those Chinese associated with the foreigners, etc).

When Elliot finished reading this notice, he said he had always been prepared to act in concert with China so long as their proposals were moderate and just. It was with these views that he had interfered with the opium smuggling at Whampoa. He had been expecting a crisis for some months past since the Chinese government attempted the execution of a Chinese in the square on 12th December and actually carried out another on 25th February. Those events had shaken his confidence and caused him to determine on a course of action. He said “thank God we have a British warship outside commanded by a British captain” He considered he was only doing his duty to protect British subjects. (remainder illegible)

Vol 15 No 36 – 6th September 1842

Editorial - Goulburn had the audacity to tell the House of Commons that Elliot was persuaded by the urgency of the merchants to give the assurance now relied upon. It was patently untrue for what body of men could suppose that a British representative had the power to give that assurance (of compensation). What is more shocking is that Lindsay, Staunton, Jardine and Larpent, all MPs and present in the House, did not contradict Goulburn.

Peel spoke of Elliot’s ability, efficiency and integrity. Well, where could those qualities have been evinced except as Superintendent of Trade in China? Is it possible that Elliot bamboozled Peel? No doubt Elliot told him, as he told us (and we all laughed at him), that it was to his (Elliot’s) credit alone that the tea was sent home in 1839/40 and 1840/41.

Peel should have recalled Elliot’s opposition to the opium trade. His absurd interference in opium trading in the river in Dec 1838. That opium was made by the Company who were paying 2/3rds of Elliot’s enormous salary. While this war in China continues, Peel should realise that Elliot has been the curse of his country. He lied to Lord Aberdeen in his letter of 25th January 1842 when he said ‘by 18th May the trade of the season was fairly off’ and ‘…though the trade of the season had been sent home’ when on that day a total of 36 English ships remained at Whampoa and Hong Kong.

Elliot also told ministers, who should have known better, that the trading season commenced in Nov or Dec. He must have been referring to trade at the time of the Company. At that time actually, the arrival of the direct ships was always looked for after 12th August. In fact since commencement of free-trade in 1834, business continues throughout the year and teas arrive in Britain much earlier than before. Elliot also informed Lin that Queen Victoria knew only of the legal trade. The Duke revealed this untruth as we published in our issue of 8th September 1840.

Friend of China 25.8.42 edition

Extracts from the Peking Gazettes:

Friend of China 25.8.42 edition

The Straits Messenger has an article saying Ningpo has been evacuated, Ting Hai deserted, and the Chinese permitted back into both places. Previously Pottinger said he would retain Chusan (the paper has confused Chin Hae with Ting Hai). British merchants at Canton are appalled that resources are being frittered away. If this is the way we fight it will take 10 years to conclude the war. Now reinforcements have arrived in China we hope something effective will be done.

Friend of China 25.8.42 edition

Letter from American missionaries following the troops in China:

The English General left Ningpo on 7th May with a small detachment remaining at Chin Hae. Pottinger went to Hong Kong and stayed there from 1st Feb 42 until mid June when sufficient reinforcements had arrived to contemplate the continuance of hostilities.

We missionaries will watch this third campaign with interest. We will be the great beneficiaries of China’s conquest.

The Revs Abeel and Boone went to Kulangsu Island (Amoy) in February and are making good contacts although they would probably not be welcome if the English forces left. Boone came back in April to collect his wife and children. He was accompanied on his return by McBryde and his family and Dr Cumming of Georgia. Abeel does a Sunday service in Chinese and gets an average 25 people in his congregation. Cumming uses medicine to make contacts (like the Jesuits) and encourages his patients to attend service.

Milne left for Chusan in February. Dr Lockhart might join him later.

Shuck is living in Hong Kong and Roberts is at Stanley. Roberts conducts service on Sunday in Chinese. He recently baptised his first convert. Before the English arrived, Stanley was the biggest Hong Kong village but now it has greatly reduced to only about 1,200 people.2

Bridgman has returned to Hong Kong. In April he went with Commodore Kearney to Whampoa in USS Constellation for 2 months (they awaited an Imperial response). The Commodore's mission was to settle differences with the Chinese and the impression he made should be beneficial.

Rev Lowrie from New York arrived in May. Rev Dean and family arrived from Bangkok having found the weather there too hot for them.

Friend of China 25.8.42 edition

We previously reported the Peruvian had loaded 150 tons of tea from the coast. An influential subscriber says several tea cargoes from the coast have already been exported to Britain. The balance of the Peruvian's cargo was teas transhipped from a British ship at Amoy, that great emporium of the black tea district, and this was the first black tea imported other than from Canton.

Friend of China 25.8.42 edition

All the analyses of tea so far have been unsatisfactory. Dr Ure says the most dependable researcher is Sir Humphrey Davy but he says 'chemical analysis has not yet identified that principle in tea, to which its exciting property is due' We hope this point will be elucidated soon

Vol 15 No 35 – 30th August 1842

Friend of China 25th Aug – extract from Peking Gazettes:

Yih Shan has asked for rewards for the gentry of Canton who have donated money for the war. The Emperor asks for a list of names and amounts and will give favours and honours to each.

Vol 15 No 35 – 30th August 1842

The interest in this firm of the late James Innes ceased on 30th June 1841. John Henry Larkins was admitted to the partnership on 1st July 1842. Our firm will in future be called Fletcher Larkins & Co. Sgd Innes Fletcher & Co.

Hereafter, all entries are from the Friend of China.

Friend of China 1.9.42 edition

Extracts from the Peking Gazettes:

Friend of China 1.9.42 edition

Although Yishan and his colleagues made an agreement with Elliot last year not to rebuild the defences on the Canton River they were contrarily ordered by the Emperor to do so and necessarily had to resile from their agreement with us. Now from Canton to the Bogue the defences are stronger than before. We should have destroyed the new forts as soon as we knew of them. The foreign merchants who have gone up to Canton are truly in the hands of the Chinese.

Friend of China 1.9.42 edition

From the Friend of India - 4,052 chests were sold at yesterday's opium auction averaging 860 Rupees per chest and producing totally 3,500,000 Rupees. No doubt the war in China will procure an indemnity to the traders for the opium confiscated by Lin but its value has already been more than recovered in the higher prices pertaining as a result of the temporary shortage. Add to that the windfall profits during the war (auction cost + freight has been less than 50% of sale price) and it becomes quite likely that the Chinese have already paid all the costs of this war in the opium they have bought during its continuance.

Friend of China 1.9.42 edition

It recently become public knowledge that part of the $6,000,000 ransom of Canton was paid out of money due to the Emperor. $4,000,000 was already packed in chests labelled Land Tax and addressed to the Imperial Treasury but was delivered piecemeal to us instead. The reduced Canton revenue from trade has provoked enquiry (the supposed loans by the Canton treasurer to the Hong merchants mentioned above). The Canton officials are concealing the fact of the ransom from the Emperor. They are now consequently in disgrace for not remitting the revenue. The costs of war are obliging the Emperor to collect his receivables everywhere.

Friend of China 1.9.42 edition

Many of the English traders, who have been doing business through the intermediary of American firms as their nominees, are finally coming out to trade on their own account again.

Several factories are being repaired. J M & Co are moving into one of the largest. The smuggling of all sorts of imports and exports has become commonplace and the opium fleet at Whampoa is now in danger of being out-numbered by the ships smuggling other dutiable goods.

This must lead to a collision with the provincial authorities eventually but no doubt only after the English forces have been withdrawn and disbanded.

Friend of China 1.9.42 edition

Friend of China 1.9.42 edition

The great Ningpo bell that was looted from Ningpo and sent to Calcutta on the Marian has been found abandoned in the yards at Kiddapore. The government is said to intend to melt it down. That would be quintessentially barbarous and we protest its destruction. Its dates, devices and inscriptions are important and should be preserved. It should be in a museum not a scrapyard.

Friend of China 1.9.42 edition

Letter from Chusan - Three Chinese have been hanged for attempted kidnapping of Sepoys. The on-lookers showed no emotion but the executions were poorly done - one fellow was struggling and jerking for over 20 minutes.

The Ariadne appears to be not salvageable. The surveyor had a look at her in the long boat where she lay but suspects she will fall to pieces if he brings her up.

Friend of China 8.9.42 edition

Extracts from the Peking Gazettes:

Friend of China 8.9.42 edition

Last week we mentioned the Friend of India's comments on our war. We agree. Nothing short of a demonstration of power in front of Peking will bring the Son of Heaven to terms. The lack of information from the war is disturbing. It is rumoured the operations are directed by Downing Street hence the delays.

Friend of China 8.9.42 edition

Notice, 10th June 1842 - Mr William Wardorf Shaw has retired from the partnership of Dunnett Shaw and Company of Penang and Moulmein and of Buchanan and Co of Glasgow.

Friend of China 8.9.42 edition

British traders are all following J M & Co back to Canton although this is dangerous for them and against the express wish of the Plenipotentiary. The river forts are being re-armed and, whilst trade is active at Canton, we are at war in the north. We think the traders should continue to entrust their trade to a neutral power like Portugal for a little longer. If they are kidnapped for ransom they have no one to blame but themselves.

Friend of China 8.9.42 edition

Editorial - Canton officials have agreed to issue chops for foreigners travelling to the shipping at Whampoa. There is no restriction on the kind of boat used for ferry. This is a great concession which will benefit the smuggling trade. It might cause difficulty later. At present Chinese officials boats carry opium from Whampoa to Canton at $15 per chest (about 3% of value). This monopoly will be broken by the new arrangements.

The payment of most Port Entry fees and Customs duty has ceased and everything is being smuggled these days. All the cassia and Canton raw silk exports are coming out duty-free. To make up for the shortfall the Hoppo has increased duty on tea to 4½d per lb. This has consequently pushed the demand for tea-trade on the East Coast.

We do hope that English traders will exhibit a determination not to return to Canton but will continue to develop their trade here.

Friend of China 8.9.42 edition

A visitor travelling up the river would be astonished at the size of the smuggling fleet at Whampoa. It is the result of vicious commercial regulation. It does not signify depravity of the traders but folly of the legislators. Every country has some traders smuggling goods to others.

France, Belgium and Holland permit their smugglers to England to hold tobacco, spirits and silks in bond so they do not commit part of their capital in import duty. The English Customs estimate they spend £500,000 on preventive work and still lose £1,500,000 in duty each year due to these activities of continental neighbours. In return English traders smuggle yarns and other things to Europe in even greater quantities. We have endless examples from history that cheap goods will always get a market whatever penalties or prohibitions exist. The Spanish attempted to control the markets of South America and made smuggling a capital offence but even that failed.

The Americans now seem to think that England should agree with China not to smuggle. This will never happen. If we did so the trade would immediately be lost to other countries. Gibraltar is a base for smuggling cottons and cigars into Spain. Hong Kong will perform a similar role in respect of China.3

Governments need to recognise that there is an upper limit on duties. Exceed it and it becomes commercially preferable to smuggle. The way to get more revenue out of trade is to increase it, not increase the taxes on it. As Adam Smith said:

“to pretend to have any scruples about buying smuggled goods would be regarded as one of those pedantic pieces of hypocrisy which instead of gaining credit with anybody seems only to expose the person who affects to practise them to the suspicion of his being a greater knave than most of his neighbours.”

The popular feeling is that the smuggler promotes social advancement and happiness of mankind at large.

Friend of China 8.9.42 edition

There have been several local marine casualties recently. The Chusan ran onto submerged rocks three times and lost part of her false keel; the Brig Brigand went aground at Taipa, the opium schooner Mavis was destroyed by fire after a lightning strike.

Friend of China, 8th Sept 1842

Editorial - Although Yihshan and his colleagues made an agreement with Elliot last year not to rebuild the defences on the Canton River they have since been ordered by the Emperor to do so. The defences from Canton to the Bogue are stronger than before. We should have destroyed the new forts as soon as we knew of them. Now the foreign residents at Canton are in the hands of the Chinese as Pottinger foresaw and warned against.

Friend of China 10.9.42 special edition

Pottinger's Proclamation of 5th July 42 in Chinese to the Chinese people at the time of his arrival in the Yangtse River:

The English have traded with China for two centuries. Chinese officials have ill-treated us, regarding themselves as powerful and the English as weak. We bore this treatment until 1839 when the To Kwong Emperor acted to prohibit opium import and sent Lin to Canton. He was unable to seize the offenders and, instead of consulting with the representatives of the foreign countries, he imprisoned the British representative Elliot and his people and threatened them with death. Lin wanted to seize what opium the British possessed to gain favour with his Emperor and Elliot recognising the danger of the situation ordered the merchants to give him what he wanted. This was the first great offence.

Because of this and numerous subsequent acts of injustice, the sovereign empowered the two Elliots to settle the matter. Admiral Elliot was empowered to seize an island, obtain an admission of error and agreement to redress. If justice and recompense was not offered then the claims were to be enforced by war. The admiral went to the Pei Ho and gave a letter from the minister of England (Palmerston) to the minister of China (Keshen). Keshen replied that the dispute involved Canton and should be settled at Canton. The English officers, desiring peace, agreed and went to Canton and discussed settlement there with Keshen frequently and arrangements were continuing when ministers at Peking induced the Emperor to have Keshen recalled and Yishan was sent in his place to fight a war. The English then took the defences on the Canton River from Bocca Tigris to Canton to bring Yishan to submission and take a ransom in punishment of bad faith. This was the second great offence.

The High Commissioner Yukien and other High Officers of the several provinces, when they found English people shipwrecked on their coasts, or where English people had been induced by evil men to come onto the shore, they put these people to a tyrannical and cruel death, telling the Emperor they had won a battle and seized these vessels and captured these prisoners.

Thus did:

These multiple false statements misled the Emperor and prevented peace. This was the third great offence.

Concerning trade, the English used to buy and sell everywhere (before 1760) but the officers at Canton sought to keep the profits to themselves and induced the Emperor to restrict trade to that port and further restrict it to 13 Hong merchants forbidding talk with any other but the Hong merchants and the government Linguists. Thus did Provincial officials control the trade, extorting as they pleased and concealing the true state of affairs from the Emperor. This was the fourth great offence.

There are many other grievances that will not be enumerated but which have collectively excited the wrath of the foreigners.

Because of this the English Queen has sent Pottinger to get redress and satisfaction. When this is obtained the former state of friendly relations will be renewed. The English will continue to fight until the Emperor appoints high officers with full powers to negotiate a peace. The ingredients for peace are:

Agreement to these three primary points will permit discussion of the ancillary points. This Notice is published so the Chinese people will know why an English army has come.

Friend of China 10.9.42 special edition

The expedition was detained at Woosung by weather and other things until 6th July 42. It then proceeded up the river. On 14th July it passed a military position on some hills and two batteries of totally 13 guns opened fire. The fire was returned, a force was landed and the guns, batteries and military buildings destroyed. The main fleet was retarded by adverse winds but some ships were assisted up river to Golden Island by the steamers. The fleet assembled there on 20th July and anchored abreast of Chinkiang (130 miles in 14 days from Woosung. The river current was often 5 knots per hour and the fleet had to anchor overnight).

A reconnaissance was done that evening and the troops disembarked the following morning. It was then believed that the majority of the Chinese troops (estimated at 1,500 - 3,000) were in a camp in the hills above the river about 3 miles away. The forces were separated into three brigades. The right (under Major General Lord Saltoun) and centre (under Major General Bartley) cut between the camp and city to prevent soldiers escaping. The left brigade (Major General Scheodde) landed facing the city and was order to escalade the north wall. The centre brigade was to escalade the south wall once it had completed its earlier duty. The Chinese troops fired 3-4 very long range volleys with gingals and matchlocks and then dispersed over the countryside which is jungly. It then became apparent that the Tartar garrison intended to defend the city and opened an incessant fire of cannon, gingals, matchlocks, muskets and wall pieces. The steam frigate Auckland threw some shells amongst the enemy on the works with admirable precision but had to cease fire as the left brigade was advancing on the walls so fast. They escaladed the wall which was defended with great spirit. The Tartars disputed every inch of the ramparts. Their good local knowledge enabled them to gall our troops whilst screening their own. The centre brigade was delayed entering the city due to delay in finding a bridge across the Grand Canal (which flows along the western side of Chinkiang, between the suburbs and the walled city). They then blew-up one of the gates and entered. Even then, with this reinforcement and bodies of marines and sailors, the opposition continued stubborn and the contest continued for hours. It was late afternoon when the Manchu garrison suddenly disappeared. It was surmised they had then thrown away their arms and uniforms and disguised themselves as residents.

Chinkiang is four miles in circumference, walls in excellent repair, parapet thick and solid (only cannon shot could effect it), pierced with narrow embrasures and loopholes, and flanked at a variety of places with transverse walls. The garrison numbers are unknown but estimated by us as at least 3,000. Of these, 40 officers and 1,000 men were killed. The Manchu General retired to his house and had his servants fire it. He sat on his chair and died in the flames. His private secretary was found concealed in a garden the following day and he identified the corpse. We suffered some serious losses in this engagement. A strong garrison will be installed and the remainder of the force will move up to Nanking about 40 miles further on and 3 miles from the river.

Capt Collinson who had done such valuable surveying work over the years was killed in this engagement. Deaths army - 33 (3 officers), navy - 3 (1 officer). Wounded and missing army - 112, navy - 21.

Friend of China 15.9.42 edition

Letter from a participant: All the way up river we met no traffic coming down. All the small vessels had fled into the side streams and canals. This war has providentially shown what steam can accomplish. We can navigate on internal waters and this river goes right up to Kokonor and Tibet, more or less to our Indian possessions. The Manchu at Chinkiang fought well. When they considered they had lost they killed their wives and families and committed suicide. This self-immolation is dreadful. Fifty times the number who killed themselves at Chapu have done so here.

Chinkiang contains 200,000 - 300,000 people and it was looted very thoroughly by our troops. We all got a lot of plunder but not many jewels or valuable ornaments were found. As much of the loot as could be collected off our red coats was accumulated and sold at a public auction.

Scheodde's escalade was said to be the prettiest anyone had seen. Cadell was first on the wall (20-30 feet high) and was wounded. General Bartley's brigade lined the banks of the canal and sniped at every face that showed itself at an embrasure. The Manchu fought tenaciously. The Madras sappers under Capt Pears blew up a gate. He and Lt Rundell fixed the bags and in an instant the entire gate was in pieces. At the same moment the building above it was fired by a rocket.

It was after the town had been taken that our principal losses occurred. It was so hot, hotter even than when we were at Canton, that 2 officers and 20 men of the 98th Regiment died of sunstroke. We fired the public buildings and were preparing to quarter for the night when a hidden party of the enemy emerged and killed 2 men and wounded 8 of the 49th Regiment. In fact desultory shooting continued throughout the night. At 10am the next morning a boat of the Blonde with 2 officers went up the canal to the bridge to the west gate and was fired on and sunk by the enemy.

Golden Island is the prettiest thing we have seen in China. It has a 7 storey gilded pagoda, not in the best condition, but very picturesque and intended as a residence for the priests attached to it.

On 20th Aug the Imperial Commissioners Ilipu, Niu and Kiang with naval and military officers were taken on the Nemesis to visit the Plenipotentiary on the Cornwallis. The envoy and his suite dressed splendidly and greeted the group with a salute from the marine guard. The band played the national anthem. They were taken to the state cabin where a buffet was available which they seemed to enjoy. They asked to inspect the ship and were taken all over. They were astonished at the number of guns

On 24th August the Plenipotentiary and his officers returned their visit. They were received in a joss-house outside the city and given a salute of 3 guns and guard of honour and band. Unarmed Manchu troops aligned the route to the joss-house where we were met at the door by Ilipu, the Manchu General and Provincial governor. A buffet and sam shoo were provided.

On 28th August it was rumoured the Plenipotentiary has received a complimentary letter from the Emperor. The Emperor was satisfied that the agreement has awaited his own assent and signature. He acceded to every demand. He bridled a little at opening Fuk Chow and allowing foreigners to live there but agreed. He acknowledged our claim to equality and directed that the first payment be made. He directed his Commissioners to ensure the treaty is drawn up meticulously to avoid all ambiguities and permit eternal peace.

On 29th August peace was declared. There was a royal salute from Cornwallis with the Chinese Imperial dragon flag flying on the main and our Union flag on the mizzen.

On 30th August we remained anchored off Nanking. We definitely have peace. We are told we will leave the river by 10th September. It seems little time is required to fix all arrangements. Looking forward to roast beef and plum pudding at Christmas.

31st August - what will the world say? We have dictated a peace here at Nanking without going to Peking. We never imagined the Manchu would buckle so quickly. When I left you at Hong Kong you said we would meet again either in 6 months or two years. I thought it would be the latter. Pottinger insisted on a formal ratification of the agreement by the Emperor and notice of its completion arrived on 29th August. Major Malcolm is bringing the actual document back to England and it looks as though it will arrive concurrent with the news of our victory.

The walls of Nanking are 20 miles around and 40 - 70 feet high. The streets are broad and dirty just like the other towns we have seen. The porcelain tower is in good repair. 500 years have not reduced the brightness of its colours which are burned into the tiles.

Our force has lost a good many men to cholera.

The commercial treaty will not be done yet. We hear there is no provision for a bonding system which should have been insisted upon. Perhaps it will yet be conceded if we demand it. We suppose Pottinger will convene a meeting of merchants to get the precise requirements before making the commercial arrangements.

Friend of China 15.9.42 edition

We hear the To Kwong Emperor's objection to Fuk Chow being a treaty port was due to the importunities of those Peking officials representing the Canton merchants. Their concern is for the tea supply, the basis to their tax revenue. The town is on the Min River and provides direct access to the Wu Yi Hills where the best black tea is grown which comprises 80% of the entire tea export every year. This is seen as a threat to the price of congou - the most popular export tea - which we now suppose to come from Wu Yi. Our largest ships can approach along the Min River to within 10 miles of the city. Our best knowledge of Fuk Chow is from the voyage of the Amherst in 1832. Lindsay (now MP for Sandwich) said it has a population of 400,000 and a size about 2/3rds the size of Canton. Hitherto the Wu Yi teas have been carried overland to Canton adding greatly to their cost. The export of tea from Fuk Chow has hitherto been formally contraband to protect the Canton merchants. Tobacco is another large export of this port.

We hear Pottinger convinced the Chinese officials of the impossibility of prohibiting opium. They asked him to have the UK government stop Englishmen trading in it. Pottinger replied that the British government could do so but he supposed that the business would then pass to the Americans and others who could not resist such a valuable trade. This would not help the Emperor at all. It is expected that the import and use of opium will be allowed on payment of a small duty of up to 5%.

Friend of China 22.9.42 edition

Extracts from the Peking Gazettes:

Friend of China 22.9.42 edition

Friend of China 22.9.42 edition

Letter from a participant in the war - This troublesome and inglorious war has at last been brought to a close. The duplicity of the Chinese had suggested it would continue much longer. The last battle at Chinkiang was a great surprise. The garrison exhibited determination and uncommon bravery. As the city was taken by storm, little mercy was shown to property. Looting continued and after two days the town contained nothing of value. It is apparently customary for Manchu troops to commit suicide after losing a battle. They killed their women and children first. Hardly a house was entered that did not contain a body. The ponds, wells and water courses are blocked up with putrid corpses. The smell was terrible and cholera started on the third day of our occupation.

The 98th Regiment suffered badly. 6 men died in the field from sun stroke, 10 more shortly afterwards. In one week 60 men were dead from the sun or the cholera. A large proportion of the 98th casualties was amongst the officers. Lt Gibbons was shot through the lungs.

Friend of China 6.10.42 edition

London Monthly Mail - synopsis of the 6th July 42 edition:

Friend of China 6.10.42 edition

British Chambers of Commerce have belatedly realised they were duped by the China traders. They have addressed Peel to complain that British exports of cottons and woollens to China declined as opium sales increased. They link the two trends and ask that the Company be prohibited both from both growing opium itself and from allowing Malwa from the native states to pass through its territories.

On the other hand, the foreign merchants at Canton cannot get a better return on their capital than with opium, although market fluctuations have ruined many investors. For those few British firms with ‘connections’ in China it has been advantageous but they are a tiny minority.

Other foreigners engaged in honourable commerce are prejudiced by the presence of these people.

Friend of China 6.10.42 edition

The Singapore Free Press says a steamer service will be introduced to Calcutta and back. Our merchants should start a service from Hong Kong to Singapore to connect with it. The home government also needs a monthly service via Bombay to Hong Kong and the new consular ports in China.

J M & Co previously brought out a steamer and have since ordered two more. When the first steamer arrived it threatened to cause a stoppage of trade but times change and we think the Chinese authorities will now permit passage on the river. Having said that J M & Co has not said if the steamers are for the river or the coast.

Friend of China 6.10.42 edition

The announcement of peace is certain to cause a large quantity of English manufactures to be sent here for sale in China. How are the Chinese going to pay for them? In tea of course. But it is our belief that the tea market cannot be increased until the import duty on it in England is reduced. Our present exports to England are almost double the 1800 figures but in consideration of the increased British population over the same period, consumption of our exports from China has actually diminished.

In 1801 the coffee duty was 1/6d per lb and imports to UK were 750,000lbs. In 1830 the duty was 6d per lb and imports were 14,920,000 lbs. Peel has now further reduced the coffee duty to 4d per lb and the market will no doubt grow proportionately. The coffee habit has reduced the market for tea. London coffee shop proprietors in evidence to a House Select Committee reported they sell 1/3rd tea to 2/3rds coffee. Great Britain and Ireland (pop - 27 millions) consume 12,000 tons of coffee.

The USA and Canada (pop - 20 millions) are also great tea drinkers but use 30,000 tons of coffee each year. We must reduce the tea duty.

NB - British Customs duty is keeping tea imports constant. Opium sales in China continually increase. The trade balance is represented by silver exports from China. The tendency of British fiscal policy is to remove silver from China.

Friend of China 6.10.42 edition

The grievous problem in all British colonies is the lack of labour. The West Indians get their labour supply from West Africa. Mauritius has workers from India. Now a Colonial Immigration Bill has been passed. New South Wales and the Cape of Good Hope are suffering. The Cape gave public thanks to the naval officer who delivered the crews of captured slavers there, such is their need for labour.

One of the companies trading in China has offered to supply Mr Brooke with up to 3,000 workers for Borneo if he (Brooke) can obtain permission for their immigration. We could easily provide Australia with Chinese labour at a lower rate than the hill coolies they presently import. Chinese coolies are more clever and diligent than Indians. Singapore attests to what a Chinese community can attain under European direction. The benefits of Chinese emigration to Java are well known. Chinese coolies have many skills and are needed in all European colonies. The intended colonisation of Moreton Bay will need coolies for the sugar cane and other tropical crops. The Chinese are particularly adept in this. Their market gardening skills would be of immense advantage around Sydney to the rest of the residents there. The Cantonese are also skilful fishermen.

The Canadians are just settling the Columbia River valley in Oregon and need men for ‘actual occupancy’.4 We can supply Chinese settlers. The Hudson's Bay Company has two steamers on the west coast which could bring the coolies in. The weather is said to be very comfortable and all our familiar fruits grow better there than at home. It is also the case that it only requires a 50 mile canal to link the Columbia to the Missouri and open a route into central North America. The advantages Great Britain can derive in colonising Oregon are apparent.

London is now planning a colony on the Sandwich (Hawaiian) Islands which will be benefited by the proposed French colony on the nearby Marquesas.

China and Japan will be dominated by one or other of the Anglo Saxon races, England or America, and it just depends which takes the necessary measures first. The Americans are well aware of this as has been stated by General Jackson their incumbent President. We should take note and not permit Oregon to become another Texas.

Friend of China, 6.10.42 edition

Merchants and manufacturers have addressed Peel about the China trade. They say as opium sales increased, British exports of cottons and woollens declined. They link the two trends and ask that the Company be prohibited both from growing opium itself and from allowing Malwa, produced in the native states, to pass through its territories.

The foreign merchants at Canton cannot get a better return on their capital than with opium, although market fluctuations have ruined many investors. For those few British firms with ‘connections’ in China it has been advantageous but they are a minority. The other foreigners engaged in the honourable China commerce are prejudiced by the presence of these people.

Friend of China 13.10.42 edition

Edict of the To Kwong Emperor:

Keying and Tse Chin have reported a battle at Chinkiang. They say the barbarian ships came suddenly. The Chinese great guns killed several tens of barbarians and many more fell into the river. The rebels landed on the northwest coast and Tse Chin met them as they landed. Pao Chu Hung shot 10 great guns and killed a barbarian chief in red clothes. The officers and men unitedly exerted themselves and slew 300 barbarians as they were manually dragging their guns up the river banks. The rebels made a diversionary attack on the north gate but we checked them. The rebels then split their forces and attacked the southwest gate entering the city and setting fires. We tried to extinguish the flames but traitorous natives spread the fire and wounded our troops, blocking the streets so we could not advance. The enemy thus occupied the city. We engaged them for 7 or 8 days and nights but our force became broken-up and could not be reassembled to preserve the city. The whole body of our troops in the city has been lost. Let Keying investigate and make a full report. He who killed the barbarian chief will receive promotion and a button. Those who failed in their duty will be punished.

Friend of China, 13.10.42 edition

The foreign community at Canton is very satisfied with the peace treaty. It is understood that all foreigners will have the same rights and privileges at treaty ports as the British. The Hong merchants are taciturn and well understand and regret the effect of the impending changes. Very little trade is being done. The official Imperial duties on imports have been published and they are surprisingly light. Had the Hoppo only collected the official duty last season we would have paid £36,000 on cotton imports instead of £144,000. On tea exports we would have paid £150,000 instead of £700,000.

If the Plenipotentiary made out an account of the whole foreign trade for the last say seven years showing the real duty and the actually paid duty it might convince even the Emperor in Peking of the impolicy of the present system.

Friend of China 13.10.42 edition

It is widely expected that America will soon send a diplomatic envoy to Canton. It is interesting to know how he will represent himself. 'President' translates as inferior to the common King (the four-stroke wang) in Chinese.

In the translation of Lord Amherst's credentials, the Chinese Emperor was styled as senior brother to our King instead of brother or cousin as would be common in Europe but that term still upset His officials.

Dr Morrison has done well to remind us that names and titles are very important in China. Vigilance will be necessary to secure the 7th article of the treaty agreeing 'perfect equality'.

Friend of China 13.10.42 edition

The Hoppo of Canton complained at end September against the smuggling of woollen clothes and camlets by people he calls Kan Sheung (abandoned merchants). It is said this activity has drastically reduced Customs revenue.

We also report an Edict definitely issued by the Emperor and commanding the release of all English prisoners in Chinese hands.

Friend of China 13.10.42 edition

The $3,400,000 that was abstracted locally from the Imperial land revenue to pay Elliot’s Canton ransom has again been requested by Peking. The balance of $2,600,000 was mainly extorted from the Hong merchants. To preserve Peking's ignorance of the true state of affairs, the provincial Governor told the Emperor that the English rebels had so crippled trade that they had been forced to advance the revenue receipts to the Hong merchants to maintain them in business. Now the Emperor demands his money and the Canton officials can only turn to the Hong merchants again.

This $3,400,000 is in addition to $3,000,000 demanded by Pottinger at Nanking to settle the debts of the old bankrupt Hong merchants. Their monopoly was finally of more benefit to the officials than the Hongs themselves. Such a fate could happen to any trader in this country. It can only be paid by a tax on the foreign trade.

In Canton there are two classes of people - plunderers and plundered. The renewed squeeze on the Hong merchants, who are already substantially indebted to us, reduces their ability to repay. The whole Canton system enhances the costs of exports and diminishes the cash available for imports. These two features have already reimbursed the Canton ransom to China. The new payments of $21,000,000 required under the treaty will no doubt also be fixed on us foreign traders if the present extortion of $3,400,000 is permitted to proceed.

The Consoo fund has already been abolished. The Hong merchants will declare themselves bankrupt and the settlement of the treaty indemnity will become the last, the greatest, the most glorious squeeze of all squeezes.

We had not expected the officials at Canton to derogate from their national agreement so soon after the peace and the treaty obligation to place trade on a sound footing. We hope the Plenipotentiary will frustrate this nefarious scheme of the Canton officials.

Friend of China 13.10.42 edition

Tea export statistics to UK : 1841 31 million pounds; 1842 42 million pounds

Friend of China 20.10.42 edition

A Chinese document is circulating in Canton. It says on 12th Sept 42 information was received about the peace terms agreed by Pottinger. It then recited the terms with accuracy.

Friend of China 20.10.42 edition

All those people who used to oppose the opium trade are now convinced that it is impossible for China to prevent smuggling and they accordingly believe its import and sale should be legalised. They are suggesting an import duty of 15% but we have heard that the costs of smuggling have become so low on the increased volume that anything over 5% would not be effective.

Opium must be legalised before the trading arrangements between China and England can be placed on a firm footing.

The recent enormous increase in the opium trade is attributed to an expectation amongst the Chinese that it will be legalised. The Plenipotentiary is silent which suggests the matter is not yet settled but we hope he will convince the Imperial Commissioners when they arrive in Canton for the commercial negotiations.

Friend of China 20.10.42 edition

The controls on the export of raw silk are absurd. There should not be a 100 picul limit per ship - it is meaningless. The export duty is too high. Traders say it equates with about 1/- to 1/6d per pound or 9% ad valorem. Italian silk exports are very lightly taxed thus disabling us from competing.

For silk piece goods there is an imperial preference tax of 25% in favour of Indian silks that kills the China trade.

Friend of China 20.10.42 edition

The Hoppo has told the Hong Merchants that the Emperor would like to receive a piece of chrysoprase of about $70,000 value. The Cantonese call this Fei Tsui Yuk because it resembles the changeable plumage of a small green parrot. It is highly prized by Chinese and is used to make armlets and rings.

Friend of China 20.10.42 edition

Several chops of new silk have arrived at Canton and the Tsat Lee (best quality) is selling at $470 a bale (picul). This is much higher than expected. About 1,000 bales have been bought and half will be shipped on the Helen Steward. Some inferior Tai Saam has been sold at the previous rates.

The European silk market might be difficult this year as both the French and Italian supplies are said to be abundant. No profit will be had from this trade. The high Canton prices have been set by the Co-Hong cartel as a step towards reducing their immense debts.

Friend of China 20.10.42 edition

No tea business has been done formally since we heard about the peace but smuggling is continuing actively. We suppose the legal trade is waiting for the commercial treaty and the establishment of a new tariff of duties. We doubt it will be possible to bring all the tea we need from the other coastal ports - that will have to await the next season.

The early new season teas are believed to already be on their way to Canton. Congou is expected to cost 15 Taels. There is some expectation that the tea export this year will be very big to maximise funds in Canton for debt relief and to settle the Emperor's requirements.

Friend of China 20.10.42 edition

A muster of Russian woollen cloth has been obtained at Nanking where they are retailed. They are imported over the land frontier at Kyakhta. They would immediately be replaced by British woollens if it was not for the imposition of internal transit dues on our products.5

Friend of China 20.10.42 edition

Imperial Commissioner Yik Shan and the Governor of Canton have issued a proclamation on 3rd Sept listing all the people who donated funds for the war against the English and the honours they have received from the Emperor.

The rich gentry of the Two Kwang are commended to donate more to uphold the dignity of the Dragon throne.

Friend of China 20.10.42 edition

The Commodore of the U S Squadron has sent a note to the Viceroy of Canton requesting he forward a memorial to the Emperor. The memorial is said to request the same privileges for U S citizens as are now enjoyed by Englishmen as a result of the war and the peace treaty terms. We have no doubt that it is the wish of the British government that all countries should be on an equal footing in the China Trade as this is apparent from the establishment of Hong Kong as a free port and the invitation to nationals of all countries to come here. The days of monopoly, exclusion and non-competition are a thing of the past.

Friend of China 20.10.42 edition

Americans have started shipping U S cottons to China and their product is preferred in the Northern ports. Our Indian manufacturers will have to attend more closely to the quality of their products. They are dreaming about replacing America in the British market tomorrow while they are losing the Chinese market today.

Friend of China 27.10.42 edition

Extracts from the Peking Gazettes:

Friend of China 27.10.42 edition

Letter of Sir Henry Pottinger to the commanders of the land and sea forces:

“I have to inform your Excellencies that the Abbot of the Chinese monastery attached to the porcelain tower (about 1 - 2 miles outside the gates of Nanking on the south side) has this morning waited on me to complain that large parties of European officers and sailors yesterday visited the Tower and employed themselves by cutting off portions of the building, including the josses and other figures and carried them away.

“The Abbot states that on one occasion there could not have been less than forty men so employed and that the destruction of the tower caused such excitement amongst the local people that a vast crowd collected who appeared at one time disposed to intervene to prevent this disgraceful dilapidation.

“It is unnecessary for me to dilate on the serious public effect that must result from these outrages to say nothing of the regret that all thoughtful persons must feel at the wanton destruction of a building of such celebrity.”

Editor - the porcelain tower is 10 storeys and 300 feet high. It is composed of white tiles 6" wide and 12" long. The inside walls are gilded with figures upon them. The gilt contains an oil that gives a lustre never seen by westerners before. The tower is octagonal and mainly built of stone. It was constructed 500 years ago in the Ming dynasty for the Yong Lo Emperor.

From the top you can see all of Nanking. The city was clearly once grand but it appears to be already crumbling. The Manchu part of the city is like a citadel.

By the bye, there are many thousands of Muslims in Nanking who openly profess their religion but know very little about it. Any one of them will sell his Koran for a pittance. Only one in a hundred can read the Book.

Friend of China 27.10.42 edition

It is rumoured that some Chuan Chow men in Macau have applied to buy a Spanish brig intending to use her on the opium trade at Amoy. This is an encouraging sign of the times.

Friend of China 27.10.42 edition

The Viceroy has responded to Commodore Kearney’s enquiry. The privileges extended to the English will be available to all foreigners trading with China. This will be formally confirmed after the arrival of the Imperial Commissioners.

Friend of China 27.10.42 edition

Canton officials have obliged Howqua to sign a memorial to the Emperor saying the $6 million ransom was actually a settlement of the old Hong bankruptcy debts. The other Hong merchants had to follow his lead and also sign. They say they are now called upon to pay the balance of the ransom that they did not pay before.

Friend of China 27.10.42 edition

Canton Trade report:

Tea is arriving in Canton but there are no buyers as we expect a material reduction on the export duty of 8 Taels per picul. This year's crop is very big, particularly Congou. Every chop is 600 - 800 chests and 800 chops are expected.

The northern ports are expected to be a source of common tea this year, of the ‘cargo’ type. At 10 -12 Taels these will turn a good profit.

Foreign buyers are also holding back in the silk market. We hear from the north that excellent Tsat Lee silks are selling at one of the treaty ports at $330 and ordinary Tai Saam at $270. This is much less than the prices in Canton. It looks as though Canton will lose its dominance in the silk market.

There are 91,497 bales of Indian cotton overhanging the local market and trade is slow with prices same as last season.

Friend of China 27.10.42 edition

Kidnapping has recommenced at Chusan. Capt Wellesley and Lieutenant Shadwell narrowly escaped being carried off. Unfortunately the Chinese villagers do not apparently know that the war is over. They are curious about everything and need a newspaper.

Friend of China, 3.11.42 edition

The recent Russian commercial report has no information on the trade between Russia and China at Kyakhta beyond the bare assertion that 10 million lbs of Chinese tea is now imported into Russia via this route.

Friend of China 3.11.42 edition

The Imperial Commissioners are negotiating to reduce the reparations to be paid. Pottinger has agreed to reduce it by the amounts paid or promised to be paid at Shanghai and the other towns visited in the war - about $500,000.

There is also $500,000 raised from sale of prize property, mostly guns and copper cash seized at Ningpo.

Friend of China 3.11.42 edition

The Emperor has replied to the memorial of Ilipu, Liu Kin and Keying concerning the agreed terms of peace. The term yee is used to describe us throughout. He objects to barbarians living at Fuk Chow and says he will provide some other town for them to reside. Otherwise he agrees everything.

Friend of China 3.11.42 edition

The Canton Press reports that sales of Patna at Whampoa and Canton are attracting $720 - $730 and sales up the coast are even cheaper. The 25th Oct edition of Prices Current says 'opium - nothing doing, price nominal'.

We suppose the expected arrival of the Imperial Commissioners will cause a brief suspension of the trade to preserve the reputations of the Cantonese authorities.

Friend of China 3.11.42 edition

Imperial Edict, 6th Sept 42 - The objection to Fuk Chow as a port for British merchants to reside at with their families is withdrawn.

The Hong monopoly is ended and any one can trade with any one else, all parties being individually responsible. All the other treaty terms are agreed in this Edict. Whenever referring to the British, the Emperor uses the word 'yee' throughout.

The arrival of a French ‘barbarian eye’ named Jancigny is reported in the Peking Gazettes and Ilipu and others are ordered to discover what he wants.

Friend of China 10.11.42 edition

The identities of the first British Consuls have been announced:

Shanghai

Fuk Chow

Ningpo

Captain Balfour of the Madras Infantry

Rev Gutzlaff

Thom

Friend of China 10.11.42 edition

The residents of Canton have been surprised by the appearance of a group of English women. They are permitted to go there under the new regime.

Friend of China 10.11.42 edition

The Monthly Times says the 49th Regiment looted a stockpile of silver at Ningpo. The soldiers were scarcely able to lift their legs and shambled rather than walked to their quarters due to the weight of the metal.

Friend of China 17.11.42 edition

Canton trade report - Lead is barely saleable at $4.25 per picul since the arrival of a large native shipment at $3.80. What with the native and the American supplies, we will soon be expelled from this market.

All the new silk has been sold at the new high prices and will likely sell at a loss in London. Buyers say they merely needed return cargo. Reports from the South of France reveal 50,000 silk workers are unemployed due to over supply in European markets and consequent decline in silk value. Unless the Americans order more than usual of the raw silk, a lot of this surplus will end up in London and force prices down even more.

Money is scarce at Canton. Three months loans are 1% per month.

Friend of China 17.11.42 edition

Canton news:

Friend of China 17.11.42 edition

For sale or exchange for a smaller vessel, 18.10.42 - the British barque Hygeia, 337 tons. Carries and sails well, in fine order. Well calculated as a receiving ship at one of the northern ports. Copper cladding, spars and rigging all nearly new. Apply to G Nye at Canton or C Fearon at Macau.

Friend of China 17.11.42 edition

The following article appeared in the London Times of 4th August and seems to reflect public opinion in England:

Reports of renewed fighting at Ningpo are coming in. 500 - 700 Chinese are said to have died whilst English losses are 3 killed and 40 wounded. An Imperial Commissioner Yang is said to be bringing an offer of $40,000,000 for expenses and opium indemnity and agreement to the cession of Hong Kong.

'Having forced ourselves onto their shores and our commerce into their ports for our own, and strictly our own advantage; having encouraged the violation of their laws by our subjects, and that on no point of formal or ceremonial enactment, but in a manner affecting closely and deeply the well-being of the people; we proceed to take advantage of the mismanagement of our own people, and their rude way of enforcing substantial justice, to carry on not so much a war as a slaughter of this harmless people.

'We insist on placing ourselves under their law - we quarrel with them because that law, which is thus of our seeking not their imposing. This is not correspondent with European notions of fairness, and we are now about to extract from the comparatively innocent party not only compensation for the arbitrary although substantially just punishment to which our merchants have been subjected, but a locus standi within their dominions from which, if the analogy of our past Indian policy has any significance, we can and probably shall extend first our influence and then our Empire over all such parts of His Celestial Majesty's present dominions as may from time to time appear convenient.'

Friend of China 17.11.42 edition

Straits Messenger - Fifteen MPs and several other interested parties presented a memorial to Peel yesterday concerning the injurious effect of opium smuggling upon the mercantile and manufacturing interests of Great Britain.

Friend of China 17.11.42 edition

It is apparent that English opinion is not favourable to the opium smugglers. It dwells on the uncontested statement of Capt Elliot that within a few months of the opium surrender, the opium dealers had realised a larger amount of profit than the absolute value of the opium surrendered on the date of its confiscation. This allegation will be much fortified by the enormous recent advance in prices, the profit from which will be mostly pocketed by the holders of opium scrip (the merchants who surrendered opium to Elliot last year).

Friend of China 17.11.42 edition

The $21,000,000 extracted from the Emperor will be distributed by parliament. We do not know if any part will be paid to defray the opium scrip or the Hong merchants debts. We recall the amount of merchants' debts is uncertain - the committee of investigation into Hing Tae's debt (which was composed of British merchant creditors) found J M & Co's claim for $2,500,000 overstated by 20% (Blue Book page 308).

The government that commenced the war called it a fight for equality. The present government calls it an opium war. On the opium scrip, it seems the country is in better financial state now and there is a possibility of claimants being paid but we think they should not get more than $250 per chest. The anti-opium lobby in parliament is getting stronger daily. George Thompson, the gifted anti-slavery apostle, is standing for the representation of Southampton and if elected will be a formidable protagonist with all his public support.

Friend of China 17.11.42 edition

Letter to the Editor - Temporary buildings have been erected to the East of Canton city reportedly for the Imperial Commissioners to meet with Sir Henry. Will Her Majesty's Plenipotentiary allow himself to be nosed about at the pleasure of the provincials? The time, place and manner of the meeting, it is to be hoped, will be dictated by Sir Henry to suit his own convenience, and he will not fail I trust to open, and to set open forever the gates of the provincial city, for the free ingress and egress of foreigners.

Friend of China 24.11.42 edition

Order of the Plenipotentiary, 14th Nov 42 on Queen, Chusan harbour:

No British merchant vessel may go to any of the ports just opened by treaty except Canton until the tariffs and scales of duties shall have been fixed and the consular officers appointed, at which time due notice will be given.

Friend of China 24.11.42 edition

Extracts from the Peking Gazettes:

Friend of China 24.11.42 edition

Canton trade report:

The Hoppo has announced reductions in the Consoo commission on tea (list provided). The new duty is 6 Taels per chest instead of the 8 Taels last year. The new teas are selling at very high prices - 22 - 28 Taels was paid for 50 chops of congou. This quality of tea has hitherto been available after Lunar New Year at 12 - 13 Taels but has been brought down early this year. Foreign traders note the decrease in duty is more than offset by the increased price. Cotton nankeens are the same. It is supposed the Chinese merchants are endeavouring to recover their losses in funding our ransom of Canton.

Some people are saying that J M & Co is using its great capital to buy more tea to maintain high prices. J M & Co is said to have a huge tea stock in London and wants to ensure the new crop is uncompetitive pricewise. At least the tea purchases should relieve the present high cost of money at Canton.

Opium stock is very large but prices are expected to go higher. Quoted prices are $785 for Patna, $740-750 for Benares and $580 for Malwa (for which there is a brisk demand and the stock has been much reduced). We hear some Patna was sold in both Hong Kong and Whampoa at $800.

Friend of China 24.11.42 edition

The Commissioners Ke Ying and Liu Kin have published the following:

  1. The Chinese government will pay $2,000,000 to fully and finally discharge its liability for the Hong merchants' debts. Thereafter all traders will be responsible for their own debts.

  2. Only foreign merchant ships can visit the five ports not men-of-war.

  3. England has agreed that China can rebuild and re-equip all forts as before.

  4. English troops are requested not to fight with those Chinese who are unaware of the peace.

  5. When the first year's reparations instalment has been paid, the English warships will withdraw from the Yangtse.

  6. Any British officer who levies duties on Chinese shipping will be arrested.

  7. Disputes between Chinese and English at the five ports are to be handled by their respective governments.

  8. Chinese criminals in Hong Kong or on English ships will be surrendered.

Friend of China 24.11.42 edition

Spanish (Carolus – olo head) dollars are at a 12% premium; Mexican dollars are at a 4% discount. Traders say they have equal value and this is merely caprice of the Chinese. We wonder if that is true?

Some of those silver coins remitted to the Bank of England (with Chinese chops on them) have been analysed and Mr MacCulloch reports some Mexican coins were found to contain a base metal core encased in silver. This must involve the Directors of one of the Mexican mints. Dr Hort the US assayer at New Orleans says a large number of depreciated dollars are circulated there and are so well done that only experts can detect them. The inferior coins generally have the letter D embossed on them indicating they come from the Durango mint in Mexico. Of four specimens Hort recently assayed the fineness was 62.22, 72.22, 83.5 and 96.33.

It should not be surprising that the Chinese find Mexican dollars repugnant.

Friend of China 24.11.42 edition

The habit of the new Tory government (which opposed the war for factional reasons) of calling our recent war the Opium War is going to become fixed when they learn that on its cessation, the price we get for our opium doubled.

Friend of China, 24.11.42 edition

Wm Jardine attempted to start a Chartered Bank of Asia in China with headquarters in London. A prospectus requesting subscriptions was issued but those people who actively co-operated with Jardine in that proposal have been financially diminished by the recent commercial failures in Calcutta.

If capitalists in London will not support a local bank because of the uncertainty of political affairs in China, the cession of Hong Kong now provides a guarantee of local security.

J M & Co (of which Jardine was so long the head) is now taking a lively interest in Hong Kong and we hope a bank will soon be established here.

Other banks are proposing to open branches here and one is the London Joint Stock Bank from amongst whose shareholders the new subscriptions for the Hong Kong branch are expected to come. This bank has an opulent body of shareholders, a nominal capital of £3,000,000 (£600,000 paid up). It has a guarantee fund which has now accumulated £100,000.

Editor - this joint-stock bank is operated in a business-like and prudent way.

Friend of China, 24.11.42 edition

At the Select Committee hearings into Russian trade in 1830, Mr Crawfurd said the export of Chinese tea to Russia at Kyakhta was 28 million lbs. He estimated the total value of imports and exports at £6 millions. We have now learned that many of the Shanghai merchants are doing business with the Russians at Kyakhta.

A Chinese at Canton who has been to Moscow and Novgorod has described the trade but his statements are mutually contradictory. The Cantonese says tea shipped at Mai Mai Chun (the Chinese town opposite Kyakhta) is only 14,000 boxes. These caravan teas are said to be of superior flavour. The tea is packed in paper, surrounded with bamboo leaves then inserted in a leaden canister and the whole contained in a wooden box. The Russians pay lower duties than we pay at Canton.

It seems to be purely a barter trade. The Russians bring furs and woollen goods and take away teas. There are no Hong merchants there. Any Chinese can join the caravan going to Kyakhta. The tea for this trade is received at Shanghai from Ningpo and Fukchow by sea and then sent up the Yellow River and Grand Canal to Tartary. The Russian government is said to publish commercial information but we do not have a copy. If any local people have information on this subject please contact the Editor.

Friend of China 1.12.42 edition

Extracts from the Peking Gazettes:

Friend of China, 1.12.42 edition

Although the Russian Tsar has forbidden his traders to sell opium to Chinese at Kyakhta, yet it is coming into Chinese Tartary from Russian traders. Opium prices in North China are much higher than in the south or on the coast.

Opium of high quality is also widely cultivated on the southern foothills of the Himalayas and is introduced from there via Bhamo to Yunnan. Turkey is said to be the best quality but is too strong for smoking and can only be used by those who are habituated.

The popular drug in north China is Malwa because of its lower price. We wonder if the Turkey supply is being blended with Malwa to give it a gentler effect and wider appeal?

If the Russians are bringing in Turkish opium to Tartary they could deliver it from Smyrna to Kyakhta for about 10d per lb. With interest and usual commissions it could be made available at Kyakhta for about half the usual price of Malwa in North China. If it was made milder and used as an ingredient in cakes and biscuits, as Malwa is, it would suit the Chinese taste. This could be done with Persian or Egyptian opium.

Friend of China 1.12.42 edition

A notice to all army units in the Two Kwang (not to be posted on walls) from Leung, chief magistrate of Nam Hoi county and Chang, chief magistrate of Poon Yu county:

‘The English barbarians caused disturbance and troops had to be summoned. Now peace has been established as before. All regular troops should disband and return to their native places. The scholars and elders are to ensure this is done so that trade and crafts can be resumed.’

Friend of China 1.12.42 edition

Local news:

  1. Sir Hugh Gough arrived on Ernaud at Hong Kong on 27th November from Kulangsu.

  2. Yik Shan and Ilipu are expected to arrive in Canton in about a week

  3. Howqua is repairing all the foreign factories. He says he will not rent-out the largest factory in case the Chief Superintendent of British Trade wants it for an office.

  4. Some foreigners have been into the walled city but were jostled and mobbed and did not enjoy the experience. Foreign ladies go up and down the river by boat. Now they can travel in sedan chairs, they are no longer exposed to public view and the consequent vile abuse.

  5. The Viceroy is investigating the authorship of the placards around Canton calling on the people to take vengeance on the barbarians.

Friend of China 1.12.42 edition

Our Chinese Tea and Silk exports for October 42:

Tea = 999,719 lbs (Congou 80%, souchong 10% others 10%)

Silk = 567 bales.

Friend of China 1.12.42 edition

A correspondent has written to the Editor to dispute that Mexican dollars are worth less than Pilar dollars.

He says a famous house at Canton habitually converted tens of thousands of Mexicans into Pilars. We have queried some old Canton traders who confirm this was done to increase the circulating medium. Although a certain house was for years suspected of this activity, it was only independently confirmed when the mob broke into the factories at the beginning of the recent war.

Our informant says he then saw the unremoved heavy parts of the coining press. The floor all round was strewn with empty dollar bags. He says we should not take him at his word but go to that factory near the creek and look for ourselves. As the firm involved ranks with the Barings and Rothschilds of Europe we cannot name it.

Friend of China 1.12.42 edition

Trade staples:

Friend of China 1.12.42 edition

The salt trade in China:

Anyone who has been along the China coast or up a Chinese river is aware of the huge salt junks. The Pei Ho has enormous banks of salt at either side. It is also well known that much of the contraband opium has historically been distributed by salt junks. Right now, looking at the harbour, a fleet of salt junks can be seen moored in front of Jardine’s East Point opium godowns.6

When we note that salt fish and rice is such a popular Cantonese meal we think salt use in China might be higher than in Europe. France also makes a government monopoly of salt. Consumption is said to average 6½kgs per person per year. In England it is 22lbs (10kgs) per person per year.

There is no doubt fossil salt can be found and mined in China but it is not exploited.7 We know there are salt springs in Szechuan that are used to make salt, but the Chinese supply mostly comes from evaporation of seawater. In China salt has always been a government monopoly. The Salt Commissioners are amongst the highest revenue officers in the land. The licensed salt merchants are amongst the richest in China. Chinese duty is about $9 per ton. If consumption in China is the same as France, the Chinese gabelle produces $18 millions in tax revenue each year. The main places for sea salt production are the island of Hainan and the coasts of Canton and Fukien. Tien Pak is one of the places where the salt is collected before shipping. The Chinese salt pans are about 50 feet square and usually paved with small red stones.

Salt smuggling is a popular occupation. In the Tai Tsing Lut Lei (laws of the Ching Dynasty) all the smuggled salt is given to the informer as reward whereas for all other smuggling crimes the informer only gets 30% of the goods. This suggests it must be a chronic offence.

Salt from evaporation of sea water is a big business in Bengal where it costs half rupee to 14 annas for a maund (80lbs). The monopoly that Warren Hastings established for the Company resells this at 6 - 8 times cost. The profit accruing to the Company in 1827 for Bengal only was 18,278,185 Rupees. The latest price for salt we have from Bengal is 14-15 rupees per Rash (400lbs). Three months ago it was 18-20 rupees. In 1840-41 1,498 tons was exported to Singapore and the Straits for 6,316 Rupees.

It seems that Indian salt could be successfully traded to a free port like Hong Kong and we already have the example of coal from Liverpool which is exported and finds a market here in spite of the high freight cost. That shows that high weight/low value cargoes can be profitably freighted around the world. In 1839 11,837,591 bushels (50lbs each) of salt were exported from England (declared value £218,907) of which half went to New England where its too cold to evaporate their own. The average costs of English salt is 14/- to 16/- per ton (that is an average of the three main types - white salt in squares 24/- per ton FOB, common white salt 17/6 and rock salt 10/-). The brown sea salt sold in China costs the equivalent of £1. 7.6d per ton to the wholesaler here whereas the white salt is $3.50 per picul ($59 or c. £15 per ton).

Friend of China 1.12.42 edition

Letter to the Editor from John Ord, master of the late Brig Liverpool:

My ship was wrecked at Chusan and I put the stores up for auction on behalf of the underwriters as is my duty. I invited all 60 ship masters from the fleet in port to attend but only 7 turned up. I offered a 115 fathom length of 1-1/8” chain and received a single bid of $80 from Captain Barratt. It was extremely low but I had to get on with the sale of the other stores and accepted.

Later I learned that Mr Giles Wade, master of H M Store Ship Thomas Coutts, had been bribed by Barratt to not bid for the chain and Wade had induced others not to bid as well knowing Barratt's extreme need of it.

I am publishing this letter so people will know what happened.

Friend of China 6.12.42 extraordinary edition

H M Plenipotentiary reports that on arriving at Amoy he learned than over 100 British subjects on the ship Nerbudda and the brig Ann, which vessels were wrecked on Taiwan in Sept 41 and Mar 42 respectively, were put to death by Chinese officials on the instructions of the To Kwong Emperor. The people executed were not soldiers but camp followers and seamen. The ships are not ships of war and no arms or troops were carried on them. The occupants were individually unarmed. They had no means of defending themselves or attacking others. As distressed seamen they were entitled to protection.

The Plenipotentiary has learned that the representations made by the Taiwan officials on which the Emperor issued the orders for these executions were untrue. The Taiwan officials reported that the ships had gone to the island with hostile intent. They had been defeated in battle and those officials requested for honours for so doing.

The Plenipotentiary has requested the Emperor for the degradation and condign punishment of the involved officials, the forfeiture of their property (which should be used in contribution to compensation due to the next-of-kin). Failing this, the Plenipotentiary believes the matter might become the cause of further misunderstanding or the renewal of hostilities thus involving the Chinese people in misery for the crimes of a few miscreants in power.

On the Nerbudda were 271 people - 29 Europeans, 2 Manilamen and 243 Indians (c. 170 camp followers and 70 seamen). The ship went aground and all these 240 Indians on board were abandoned by the master and officers of the ship and by an officer and his small detachment of soldiers who were proceeding to join the expedition. Thus all the 29 Europeans plus 2 Manilamen and 3 Indians left on the ship's boats. The Indian camp followers and seamen remained on the ship for 5 days. It had worked over the reef and entered the calm waters within Keelung Bay. They then made rafts and went ashore in small groups. The natives were already lining the shore and watching. Some Indians were drowned getting ashore, others were killed by plunderers as soon as they reached shallow water. All who got ashore were stripped naked, made prisoners, placed in heavy irons, separated into small parties and marched to town where they were kept in separate prisons for 11 months. They were then taken in sedan chairs to the plain in front of the main town of Taiwan (Tai Chung) and all except the two leaders were beheaded in the presence of local authorities. After peace was announced, the two leaders were returned to the British settlement at Kulangsu and reported the facts.

On the Ann were 57 people - 14 Europeans/Americans, 4 Portuguese/Malays, 5 Chinese and 34 Indians. The vessel was travelling from Chusan to Macau in March 1842. At midnight she grounded at high tide on the north west coast and was left high and dry. All the occupants left at daybreak the next morning. They stole a Chinese junk nearby intending to escape but the waves and wind were too strong to get off the shore. They were then surrounded by a host of Chinese who had been accumulating around them at a distance all morning. No shooting or resistance was offered to the Chinese. These people were then stripped naked and marched 90 miles to the capital city. 2 died of cold en route. Several others collapsed from exposure and had to be carried by the other prisoners. At the town they were separated into small parties, placed in prisons and chained. After this, there was little opportunity for communication, but it appears on the limited available information that all were given a minimum of food and treated barbarously. After 7 months only 9 remained alive - 6 Euro/Americans, 2 Chinese and 1 Indian plus the two leaders of the Indians from the Nerbudda. The two Chinese were told they would be pardoned if they entered the service of the Taiwan government but were kept with the other prisoners to obtain information. These 11 men learned from the Chinese that the other Ann survivors had been executed on or about 13th August at the place where the Nerbudda survivors had been beheaded.

Eight of the survivors from the Ann were delivered to Kulangsu on board the Calliope after peace was declared. It is unknown why these survivors were spared. The Plenipotentiary assumes they were thought to be the leaders. One of the survivors is Gully, a British merchant who was returning from the north to Macau as a passenger on the Ann. The other survivors are 5 Europeans, 1 Indian and 1 Chinese. The second Chinese is said to have chosen to remain in Taiwan.

Thus 237 people from Nerbudda and 46 from Ann have perished from ill-treatment or starvation or execution. These atrocious and appalling facts are not to be questioned or refuted. The Plenipotentiary trusts that the Emperor will make the atonement required to avert further evils.

Friend of China 8.12.42 edition

Commerce in Shanghai:

Of the coastal marts, Shanghai is said to rank next to Canton in commercial importance. J F Davis says in his book that Fuk Chow and Shanghai are the best ports for British trade.

Shanghai is important for raw silk. This has hardly been traded at Canton in the last three years as it has become too expensive. The export duty on Chinese silk is prohibitive as well but sooner or later this is a commodity that will be shipped. There is also a chance that Bengal raw silk can find a market in China.

As regards processed silk, the manufacturers at Shanghai are more skilful than the Canton weavers and their products are thought superior by the Chinese themselves.

The enormous black tea trade with Russia involves Shanghai. There are also green teas sold there which are like those at Ningpo. Black teas are as good as at Fuk Chow.

The entire dried rhubarb-root import to England in 1839 was 118,469 lbs but Shanghai will permit us access to the Russian rhubarb supply. We first knew of rhubarb from the Russians and they bring it to trade at Kyakhta. Their variety commands double the usual price. The best sort of Russian rhubarb is grown in Tartary.

The expensive furs - sable, ermine, black and silver fox, sea otter and fiery fox - are in demand in China. (fiery fox is caught along the North Eastern coast of Asia and is the standard-of-value in much of that area). Lamb's skin might sell well too. Although the Chinese are great exporters of furs they are also importers of certain types.

Friend of China 15.12.42 edition

Extracts from the Peking Gazettes:

Editor - it is strange that although peace has been declared large sums of money continue to be donated to the war.

Friend of China 15.12.42 edition

Riot at Canton, Nov 1842 - The commander of the ship Fort William, anchored at Whampoa, permitted a large group of Lascar seamen to go to Canton for rest & recreation. His ship is not distributing opium and there should be no connection of this riot to the Drug although she might have some small amounts on board for crew trade.

The Fort William is employed in the transhipment trade for evasion of port charges. Whilst she is only capable of loading 6,000 bales of cotton for an ocean voyage she sometimes delivers 30,000 bales up the river from Lintin. This is hardly smuggling but just the regular form of trade these days. It is neither disgraceful nor disreputable in this part of the world and the Chinese authorities would not cause trouble over such a small thing. The cause of the riot therefore should not be linked to either opium or smuggling.

The Lascars bought some goods for shipment back to the Fort William but had not paid for them and were accordingly refused the chow-chow chop to take them aboard the ferry-boat. As their departure at about 1400 hrs Wednesday (7th December) was delayed by the Customs officers at the factories, one of the Lascars drew a knife and wounded an officer in the shoulder. All the Chinese officials were incensed and unitedly drove-off the Lascars who retreated into the Creek Hong (the Fort William is J M & Co’s ship) for refuge. The numbers of Chinese rapidly increased, considerable anger was expressed and at about 5 pm Creek Hong was set on fire. Some Chinese troops and the municipal authorities responded to the alarm but were sent away by the crowd.

The Americans gallantly defended their adjacent hong (the Dutch Hong) on behalf of their British principals, whose goods were stored inside. They barricaded their doors and windows and had a good supply of fire arms. The major losers will be the British. Perhaps the American commodore will demand satisfaction and indemnity on his next visit and some recompense will become available to British traders.

The obloquy heaped on Elliot for interfering on behalf of foreign merchants should be sufficient warning to Sir Henry not to interfere on this occasion.

Contrarily, this is an ideal opportunity to remind readers of the Plenipotentiary's Macau Notification in which he expressly warned merchants against putting their persons or property in the power of the Chinese authorities until all differences had been settled.

Friend of China 15.12.42 edition

Editorial on Extra-territoriality:

Pottinger must ensure that no European is handed over to the Chinese for examination and trial. If a European is accused of offending against Chinese law he must be tried by Europeans.

In 1815 the President of the Select Committee wrote to the Chairman of the Court of Directors "There is in fact no charge, of whatever nature it might be, whether of treason against the state, or a violation of the laws of the Empire, that Chunqua may not procure to be alleged against any member of this Select Committee; and with the same facility, by means of the bamboo or torture, any number of witness may be brought forward to attest to the truth of the accusation."

If that was the state of affairs when the potent India Company represented British traders, it may be expected that their recent defeat in war will cause the Chinese to feel especial hatred of the British and make the provision of justice in a Chinese tribunal unattainable. The late manifesto of the gentry of Canton is a sure indicator of popular feeling towards us at present.8

The new Consuls must have judicial powers like our consuls in the Levant which system on the whole works well. Urquhart has warned us that consular judicial power has produced much mischief. Allowing for Urquhart's Turkish predilections we think McCulloch has it right when he says "we doubt whether they (the judicial powers) could be dispensed with in a country so peculiarly situated (Turkey)." With much stronger reason we hold them to be absolutely indispensable in China.

James Matheson agrees. We have cited his pamphlet previously and he has always been right. He urges the adoption of a similar plan. He says the representatives of Christian powers in Turkey have long exercised a nearly similar jurisdiction to that recommended here. For very many years he says no such thing as an execution of a ‘Frank’ (ferenghi) under Turkish law had occurred in the Levant, where offenders are passed to their own Consuls to mete-out punishment if the offence be light; or send them home to be tried by the laws of their country, if serious.

Friend of China 15.12.42 edition

The Chinese authorities seem to be sincere in their wish to get along with us everywhere except in Canton. We can rely on their exercising jurisdiction over their own people in respect of offences against the persons and property of foreigners, indeed we will probably be calling for mitigation rather than stricter enforcement.

The most interesting area for Hong Kong people is in offences against the fiscal laws of China. The import and sale of opium in China is a capital offence. Some people even say the Chinese are well within their rights to execute an opium smuggler regardless of his nationality. We deny that assertion as the punishment does not fit the crime.

Matheson cites Vattel (a European authority on international law) in putting the case most forcibly. Lord Mansfield used to say 'There is no magic in words. We must recollect that the Law of Nations is but the just and rational application of the law of nature to the affairs and conduct of nations.'

Friend of China 15.12.42 edition

Letter to the Editor - Heerjeebhoy Rustomjee was so impressed with the services of Dr Anderson of the Foreign Hospital in Macau that on 23rd June 1841 he donated $12,000 to the doctor's philanthropic objects. He deposited the money with Jardine Matheson and Co for the relief of people who were presently dependant on the hospital. The management of the funds is in the hands of three people - Matheson, J Robert Morrison and the doctor - and they are empowered to appropriate the whole amount to the founding of a hospital for foreign seamen at Hong Kong or elsewhere along the China coast.

Anderson reported receipt of the donation to Elliot when he was Chief Superintendent of Trade. Elliot replied on 1st July 41 acknowledging receipt of a copy of Rustomjee's letter. We then awaited government allotting a site for the hospital and this has since been done by Pottinger. The home government donated a further $12,000 to the building costs etc. A public subscription collected about $6,000 more.

Two months ago we started building. We asked J M & Co for the money and they said Heerjeebhoy Rustomjee is indebted to them in respect of his trade and they have appropriated his donation in liquidation of their debt. They assert that Rustomjee recognised his debt and made the donation solely to embarrass J M & Co.

Had James Matheson still been here this dispute would never have arisen. Indeed he probably would have doubled the contribution. The opium trade has never been as prosperous as it is now and the profit on 40 chests would more than cover the expense.9 Sgd., LT, Macau.

Friend of China 15.12.42 edition

The Editor has received new information on the Canton Riot:

The Canton population has been swelled by large numbers of disbanded Provincial troops. Their ringleaders were men who had passed Provincial examinations and had buttons and temporary employment. With the peace, they have lost both their office and appointment. The Kwangtung government is operating under severe financial restraint temporarily.

These men previously had a common purpose and worked together. They talk patriotically, venerate the old ways and despise the English. They object to foreign ladies coming to Canton and to Europeans building houses anywhere in China. There are thought to be about 40,000 of them. They put placards on the walls and importune the Governor to join their meetings which, because of their great numbers, he feels obliged to attend.

The Creek Hong was ruined in the riots before the war and had then been assigned to the serangs of the country ships as their abode and for their personal trade. As it provided a place to stay overnight, it allured the crews of country ships and they have been coming up to Canton in greater numbers this last two months to take advantage of the facility. Their behaviour has usually been poor and Canton residents have been repeatedly annoyed. On Wednesday some 200 of them congregated within Canton city and many were drunk.

The Chinese say the lascars bought chow chow goods. The shipment was sent-off to their ship but some other purchases were not taxable at the chow chow rate and could not be shipped on the same terms. The lascars nevertheless insisted the shopman do so. The Chinese suppose the vast numbers of lascars permitted to come-up that day revealed an intention of their ships’ officers to intimidate them, indeed some of the lascars were dressed in sepoy uniforms and were quarrelsome all morning.

By about 2.30pm the Indians had been sufficiently confrontational to cause Chinese youths to assemble at Hog Lane. The battle that subsequently occurred was between that Lane and the Creek. Neither those European merchants who were present nor their factories were harmed. By 3.30pm the lascars had been defeated and had retreated into the Creek Hong while the Chinese regrouped at the bottom of Hog Lane.

Although hostilities were concluded, the numbers of Chinese continued to increase and soon after Europeans found themselves being pelted with stones. Then the entrance to the Company's garden nearest to Hog Lane was broken down and the crowd used the door-battens to break down the adjacent garden wall. Most foreigners expected it would not go beyond the breaking of a few windows as all the factories in the New British Hong were then being put in order and the hall was being prepared for Sir Henry's visit, so lots of Chinese artisans were working there. However the new target was precisely the British Hong.

A few minutes later a vigorous attack was made on No 1 (ground floor) British Hong which the mob entered by the windows. It was feared they intended to capture the two English ladies residing there but the women had already been removed by the back door as soon as the garden gate was attacked. They had taken refuge in another hong. The attack was so sudden that most residents assumed it had been successful and the ladies captured. Neither residents nor domestics of British Hong had time to save a single article beyond what they wore.

Some foreign residents petitioned the Hong merchants for soldiers but the merchants' appeal to the officials failed as government supposed the force it could quickly assemble was too small to be effective. The official referred the application to the Kwang Heep who in turn applied to the Governor as he believed it would be necessary to take life to restore order and that could only be done with the Governor's consent. The Kwang Heep with the Kwangchow Foo and the Nam Hoi heen and 300 soldiers then arrived and fired in the air. That was sufficient to disperse the crowd although the chairs of the three officials commanding the force were broken and they themselves were pelted. The officials took refuge in the Consoo House guarded by the soldiers.

At about 5pm the mob set fire to the hall in British Hong and commenced attacking the factories east of Hog Lane (the New English [ex-Company], Dutch and Creek Hongs). They were more concerned to destroy than to loot. The No 1 English Hong, next to and in the same row as the Hall, caught fire and the Hong merchants sent their own engines to extinguish the flames but the mob would not permit extinguishment saying all the factories east of Hog Lane (where the British firms were concentrated) must be destroyed. If any other Hongs were fired they would allow them to be extinguished. All three factories were looted except the Dutch which had an immense amount of silver in its treasury. It was accordingly bravely defended until 11pm when falling short of ammunition and surrounded by flames, the residents abandoned it.

The residents of the factories to the west of Hog Lane found the square blocked-off and had to look after themselves. Those between Hog Lane and Old China Street could not go out with the mob frantic before their doors. They took to the roofs intending to climb across to the back streets. Those residents to the east (west?) of these hongs were led by the Hong merchants to the west and left by boat to spend the night in the brothels of Shameen. Some others took refuge in Mingqua's hong. Fortunately the immense fund of dollars under the embers in Dutch Hong diverted the attention of the mob.

The political intentions of the riot were satisfied by the fire but the bad characters who always attend such affairs were there for loot and stayed on until 2am when they started to disperse. As the riot was concluding, the Kwang Heep came back with his unit and dispersed the late leavers.

Some foreigners paid high prices for a boat passage to Whampoa and one says an offer to pay $300 to travel across the river to Honam was refused. Chinese officials prevented the fast boats to Macau from departing that night.

The fire continued to burn through all the next day. On the 9th Dec Sir Hugh Gough arrived off the factories in the Steamer Prosperpine and called-up 2,000 troops from Hong Kong. The square was in the control of Chinese soldiers who have encamped upon it but they offered to co-operate with Sir Hugh. The back streets behind the factories, where the silversmiths are concentrated, are very crowded and foreigners cannot go into them.

Some traders are still shipping off teas.

A petition has been sent to the Governor apparently on behalf of the Cantonese people-at-large saying ‘if he be firm they will support him in the war against the British’. Howqua is aware of the commercial possibilities of the situation. The foreigners have taken a huge amount of his money recently and he has quadrupled the rent on the factories that remain habitable. He has had some horrendous unforeseeable debts thrust upon him. On 8th Dec, before Gough’s arrival, two of the rioters were brought into the square and executed. Some more have been arrested and may share the same fate.

Dated 12.12.42 at Whampoa

Friend of China 22.12.42 edition

Translation of an invitation circulated extensively around Kwangtung:

On 2nd Dec 1842 the gentry, elders and patriots of the whole province, together with patriotic gentlemen from all the 18 provinces, are invited to assemble at the Ming Yun Hall of the Fu Hiu Temple in Canton to consider the proper defences against the English barbarians.

At noon patriotic scholars will assemble at the Kwang Chow Fu Hiu Temple and worship the sages. They will then adjourn to the Ming Yun Hall to deliberate on the regulation of defence against barbarians.

It is requested that each attendee put his views in writing and hand it in at the Ming Yun Hall. Thus we can prepare without anxiety for the future.

Friend of China 22.12.42 edition

Extract from the Peking Gazettes:

Kin Ling Yin has submitted drawings of various ships to the court with recommendations to increase the numbers of efficient fighting ships in the Chinese forces. The Emperor has sent the drawings to Commissioner Yik Shan at Canton to construct such ships if he thinks feasible. Yik Shan has replied that only the foreign types of ship are suitable for fighting. He recalls the information of the officers of the ships USS Constitution and Boston when they visited Whampoa and proposes that those ships be the models for the future Chinese navy.

The Emperor accordingly orders that ships be built of the recommended types using the finest materials. However, the ships are needed immediately and we cannot conveniently wait for them to be built. The Emperor orders the Hong merchants to buy suitable ships from the foreigners. At the same time the Hong merchants should buy the strongest materials for our own subsequent ship building. Yik Shan reports that one ship has been completed at Canton and is able to go out to sea. Two more are on the stocks.

Friend of China 22.12.42 edition

The Following edict was published at Canton immediately before the riots by Ke, Vice President of the Board of War and Viceroy of the Two Kwang:

“The people of Canton dwell in houses close together. The risk of fire is great from lawless incendiaries scheming for opportunities to loot, disregarding the lives of the people. This is in opposition to every principal of Heaven.

“Laws exist and will be enforced. For the information of the literary and military officers, soldiers, people, officials and police runners, they should note that wherever there may be any of those incendiary vagabonds, let them be instantly arrested and handed over to the authorities to be judged, etc.“

Friend of China 22.12.42 edition

Editorial - The Canton Register really went overboard in its reporting of the riots in England. Bristol, Nottingham and Birmingham have all been the scene of popular disturbances recently but no-one imputes the cause to our national character. Had the Canton populace really sought to kill the barbarians they would have succeeded. That they did not permits the inference that they had no such intention. Indeed several Europeans were able to safely walk through the square very soon after the riots and our tea trade was not for an instant interrupted.

Jardine (now the Honourable MP for Ashburton) in his farewell address at the subscription dinner given to him by the British, American and Parsee merchants said "I have been a long time in this country and I have a few words to say in its favour; here we find our persons more efficiently protected by laws than in many other parts of the world; in China a foreigner can go to sleep with his windows open without being in dread either of his life or property which are well guarded by the most watchful and excellent police: but both are periled with little or no protection in many other states.”

We think Jardine was right and the Canton Register wrong. As Matheson has perceptively said 'the grievous humiliations and ruinous exactions to which the English were exposed at Canton were in reality self-imposed.'

Chinese reluctance to see us living in their backyard is understandable given our past conduct towards other residents of Asia, Africa and the Americas. The outraged nationalism and inveterate prejudices of the Chinese do not yet equal the Sacheverell tumults or high church riots of English history.

Friend of China 22.12.42 edition

All the present contracts for teas are being made under Protest as the buyers allege they should not have to pay the 6 Taels duty that is due under the old tariff. They are necessarily unwilling to await the publication of the new tariff.

Friend of China 22.12.42 edition

Editor – We congratulate the Plenipotentiary on resisting the importunate queue of merchants and Hong Kong officials who begged him to send troops to Canton at the time of the recent riots.

Friend of China 22.12.42 edition

Letter to the Editor - It is a shame the peace treaty does not permit a British Minister to reside at Peking. All the Provincial governors have agents in the capital to care for their interests. Provincial officials cannot be relied upon to tell the truth - the reports from Taiwan concerning the Nerbudda and Ann illustrate that as well as anything. All the states of Asia are run from the centre.

The Emperor should be pleased to be able to inform himself properly and avoid sustaining a further blot on his reign. He is reported to have said peace should be established on such a secure footing that the obligations of both parties may be distinctly understood and that no opening be left for a future rupture.

The Plenipotentiary has large discretionary powers and he should use them to advance the interests of Britain. Sgd Observer, Montpelier 23rd Dec 42

Editor - this was considered and rejected previously. The Chinese themselves were appalled at the prospect. The presence of a British Minister would attract French, American and Russian Ministers and indubitably result in intrigue. The integrity of the Chinese Empire might be damaged by a collision of a handful of diplomatists. We can get the real information to the Emperor by gunboat from Hong Kong to Nanking or Tientsin. Nothing has been lost.

Friend of China 22.12.42 edition

Editorial - The opium fleet at Whampoa is reportedly to be ordered out of the river before Pottinger goes up to Canton so he does not have to pass it en route to meet the Imperial Commissioners. This is no good.

Great Britain would never have become Great if it was not for smuggling. The French ‘continental system’ could not have been beaten without smugglers. Was it not English smugglers who broke the power of Spain in South America? Our chaps were always in league with the natives there to overthrow the tyranny of Spanish colonial administration.

If the opium fleet is to be driven out, why not drive out all the other merchant vessels as well? Opium is smuggled openly. The sneaky evasions of port dues which occur by trans-shipping vast quantities of goods at night, in which trade all the other shipping is involved, is also illegal.

The Merchants say they have no choice in the matter of trans-shipment as a leading firm does it and they have to follow its example to compete on price. All this cheating is possible because of the venality of local officials. It has always been so and it cannot be stopped. The only practical remedy is to reduce Customs and port duties to a level at which it would no longer make economic sense to smuggle, i.e. to a level less than the bribes paid to connive at it.

Obviously the home government knows what its doing even if those who deprecate smuggling do not. We recall it singled out Jeejeebhoy from the millions of other Indians to be the sole recipient of a knighthood. His enormous fortune was amassed almost entirely from smuggling.

Friend of China 29.12.42 edition

Extract of the Peking Gazettes:

Editor's note - many of the recent gazettes have been filled with dismissals, promotions, new appointments and changes of officers of various grades throughout the 18 provinces. Most of the promotions appear connected with the late war.

Friend of China 29.12.42 edition

Letter from Canton - Everything is quiet although Chinese soldiers are still encamped in front of the factories. Business has not been effected except opium. Preparations are in hand to again rebuild the factories and the Company's garden wall is already under construction. Some new foreigners have arrived to reside here.

Friend of China 29.12.42 edition

Most of the transports that brought the English regiments to China together with the men-of-war sailed from Hong Kong on 20th December 1842 for Calcutta via Singapore.

Friend of China 29.12.42 edition

Letter of 12th Dec 42 to Sir Hugh Gough for the Plenipotentiary:

We the British merchants of Canton believe the recent riots were supported by Provincial officials at high level and the evidence of our belief is the failure of the authorities to deal with them expeditiously. We want HMS Prosperine to remain anchored in front of the factories until you can assure our security.

Sgd Dent & Co, Turner & Co, Gibb Livingston & Co, Lindsay & Co (pp Wm Fryer), Fox Rawson & Co (pp E A Staple), Dirom & Co (pp W Potter), Bell & Co (pp J Mackrill Smith), C S Compton, Henry Gribble.

Sir Hugh’s reply of 13th Dec 42:

I have been here five days protecting you while an answer comes to my request to the Plenipotentiary for 2,000 troops for your defence. I have to leave now but it seems there will be no more trouble. I will leave HMS Prosperine stationed here. The Kwang Heep told me on 9th Dec that he wants peace. Be on your guard and forbear from provocation while you await Pottinger’s advice.

Merchants' letter of 13th Dec 42 to Pottinger:

The attack was planned and the rioters were organised. It would have occurred sooner or later whether there had been an affray with the lascars or not. The local authorities were unwilling to protect us until after considerable damage and injury had been caused. Part of the populace is hostile to the English and directs the hoi polloi.

We have to stay here or British business will go to the Americans. We need proper protection and the Chinese are reluctant to provide it. Please instruct the naval and military commanders to give us an adequate force.

Sgd Dent & Co, Turner & Co, Gibb Livingston & Co, C S Compton, Wm Fryer, Bell & Co (p Mackrill Smith), E A Staple, D Potter, W C leGeyt, Jas Hulbert, Framjee Jamsetjee, Pestonjee Cowasjee, Hormusjee Framjee, Pestonjee Mervanjee & Co, Jummojee Nasservanjee, Ruttonjee Framjee, Burjorjee Sorabjee.

Pottinger’s reply:

Sir Hugh reports that 170 lascars started the trouble. They went from the Fort William (Captain G B Hogg) to Canton on leave without supervision. They were fighting with the Chinese all day and winning until the evening. Then they fell back into a Hong which was burnt by the mob.

Merchants should look after their crews. Only you merchants say the Canton authorities delayed taking action. All other sources say they were customarily diligent. The hostility of the Cantonese commenced in the recent war and no doubt relates to ill-treatment or mismanagement during that time. What have you merchants done to dissipate and assuage it?

“I will content myself by asking you, collectively and individually, whether, with your admitted knowledge of the hostile feelings of certain classes at Canton, coupled with the influence which you declare you believe those classes to be able to exercise over the people, and bearing in mind your recorded belief that sooner or later an outbreak would take place, you to whom this letter is particularly addressed together with all other foreigners whether subjects of England or not, can stand forward and conscientiously assert that you have studied the complexion of the times, that you have in any single iota or circumstance striven to aid me in my arrangements as the humble and zealous instrument of the government whose protection has been extended to you in an unparalleled degree, and which I may add you are always ready to claim and expect, by endeavouring to dissipate and soothe the very excitement and irritation of which you so loudly complain.

“..... I presume you will now be ready to allow that it would have been better had you gone on as in past time quietly and unobtrusively with your mercantile pursuits until it was announced to you that the provisions of the recent treaty were to be considered in full force. Even in the most civilised parts of the globe, such a course would have been equally advisable and expedient; and how much more so does it appear needed with a jealous, arrogant and unapproachable government like that of China, which we have for ages allowed and almost encouraged to treat us as human beings of a lower grade.”10

Friend of China 29.12.42 edition

Bishop of Calcutta's sermon on peace with China, given at Penang 12th Oct 42:

China is far from England; its rulers are unacquainted with the rules of war we adopt in England; the Emperor was kept unaware of both the Europeans’ complaints and the suffering of his people. China’s attempts to stop the sale of opium caused her to break the conventions of English law and thus the war commenced.

The peace is amazingly good. Not only do we have peace but we have received the island of Hong Kong, extra ports in which to do business and an indemnity for expenses. Now the Chinese feel humiliated and resentful but later they will see the benefits of having a connection with European knowledge.

Friend of China 5.1.43 edition

A long reply has been received from the merchants at Canton to Pottinger’s stinging rebuke (see 29th Dec 1842 edition). They say they are right and he is wrong. They demand their letter be sent to London so the ministry knows their grievance. All the Parsees declined to sign this letter. It is the 10 British merchants who are pressing for a violent remedy.

Friend of China 5.1.43 edition

Canton trade report:

Friend of China 5.1.43 edition

Editorial: Capt Charles Elliot said it was wholly impossible to command the respect or obedience of the British merchants at Canton unless he was armed with an authority to deport and an adequate force to ensure compliance. He said their utter lawlessness was induced by the contraband trade in opium. He urged these opinions on the home government with some slight effect.

The necessity for force against British merchants was illustrated by their causative role in the December 1842 Canton riot and by the many British subjects who are in Canton today in spite of the new Plenipotentiary's repeated advice to the contrary.

But we don't want the Company’s army providing the force. We want to be a Crown Colony like Ceylon so we can avoid the baneful influence of the Company.

Friend of China 12.1.43 edition

Extracts from the Peking Gazettes:

Friend of China 12.1.43 edition

Bengal Opium Sales for 1842, in chests:

Date

2.1.42

6.2.42

17.4.42

22.5.42

30.6.42

Total

Patna

3,500

1,100

2,100

1,200

1,799

9,699

Benares

1,500

700

1,100

800

1,369

5,469

Total Sold

5,000

1,800

3,200

2,000

3,168

15,168

Comparative figures for the 1841 season are 13,014 Patna and 5,348 Benares

Friend of China 12.1.43 edition

Pottinger, in a note to British merchants at Macau dated 28th Dec 42, professes to hold a slight hope that the Emperor might still permit the import of opium by barter. He requests their advice on the tariff to be negotiated with the Imperial Commissioners who are now arriving.

Friend of China 12.1.43 edition

In a letter dated 13th Sept 42 to Pottinger, the Imperial Commissioners have revealed that the Customs duties applicable to imports and exports in China have historically been published in a book which is available at every Customs House and the old foreign traders at Canton know all about it.11 As the items that the English bring are seldom traded in the new ports, they suggest the Canton Customs Tariff be copied at those places.

The Commissioners suppose that all bribes were solicited by underlings - they do not admit the foreigners’ allegation of ships immobilised with sails removed until extra payments are made. They say 'when we create a Customs House it has certain expenses. The clerks and writers employed therein must eat and need a little money to support themselves ... and these expenses will have to be agreed with the Viceroys and Governors of the provinces in which the new ports exist and who are responsible to pay them, but they will not comprise 3 or 4 times the official duty as you (Sir Henry) say was customarily paid at Canton. If extortions and augmentations amount to 3 or 4 times the duty, the case should be referred to the Viceroy or Hoppo to distinguish which charge should be retained and which abolished.

Pottinger says the great evil at Canton was permitting local officers to arbitrarily adjust Customs duties for each individual case. That must be avoided in future.12

Friend of China 12.1.43 edition

The Editor has published a copy of the ‘just discovered’ Chinese Customs tariff. It shows that even after Peel's late modifications in England, that country still does not have as mild a tax regime as the formal Chinese one here. We note rice and other foods carry little or no duty.

The merchants say a 15% ad valorem duty on opium would extinguish the opium smuggling trade as the operators allege the costs of bribes and clandestine transport exceed 15%. If 40,000 chests at $450 were imported under a 15% ad valorem duty a huge new revenue of $2.7 millions would double the Emperor's usual annual receipts from foreign trade.13

Friend of China 19.1.43 edition

Extracts from the Peking Gazettes:

Friend of China 19.1.43 edition

Chinese sugar supply to Bombay which used to be 15-25% of total supply to that place has recently increased to 30% in 1840/41 and 40% in 1841/42.

The supply of sugar candy (Cantonese : bing tong) to Bombay, which is in slightly smaller quantities, is almost exclusively from China.

Friend of China 19.1.43 edition

HMS Prosperine on her return from Canton struck and sunk a salt junk at the Bogue. The Chinese crew were rescued.

Friend of China 19.1.43 edition

The Editor regrets to report that the Plenipotentiary will not publish the terms of the commercial treaty until it has been ratified. This means by the time we learn its detailed terms it will be too late to for us to remove ambiguities and improve details. All we know is from Article 10 of the peace treaty - a fair and regular tariff will be agreed.

We wish to suggest that the Treaty of 1838 with Turkey be used as a template concerning the duties payable by Chinese growers of produce for export. By Article 4 of that treaty it was agreed with the Ottoman Porte that Turkish farmers of opium and silk could export their goods free of all internal duties to a British ship and only pay a 9% ad valorem duty when the cargo was loaded. Experienced assessors have been employed on 14 year terms to fix the values of Turkish produce although the British Treaty has a clause requiring the values be re-assessed after 7 years.

Friend of China 19.1.43 edition

On the subject of opium, we had hoped it would be legalised but the Emperor has decapitated so many opium wholesalers and retailers and repeated his prohibition so frequently that he cannot now resile.

Article 2D of the peace treaty makes the new British consuls responsible to see the British merchant pays the just revenues of the Chinese government. But England has consistently failed to prevent smuggling into its own country - how will it control our expert British smugglers in Chinese ports?

The Plenipotentiary also says laws forbidding the export of some goods must be annulled. He was probably thinking of the proscription on shipping teas from Fuk Chow but what about the proscription on the export of silver or the limit on the export of silk?

We resent being confined to a small area of each treaty port. The Chinese equate us with the lepers in their cities who are similarly restricted. This focuses on our difference and flavours the Chinese attitude to us. They characterise us as immoral and mischievous people.

Friend of China 21.1.43 special edition

We have received copies of the correspondence between the British merchants and the Plenipotentiary (see 26th Jan 43 edition) concerning the terms they require in the commercial treaty:

Pottinger to the Merchants, dated Macau 28.12.42:

Here are copies of articles 2, 5 and 10 of the treaty together with copies of correspondence with the Imperial Commissioners so far. They concern trade. Please give me your written submissions for the new tariff.

The merchants convened a meeting on 31st Dec 42 at Dent and Co's house in Macau. Mr Alexander Matheson proposed they act collectively and ballot a committee. This was elected at Macau on 6th Jan 43 and the members are - A Matheson, George T Braine, Wm Thompson, D. L Burn, W P Livingston.

The merchants then replied on 6.1.43:

May we have a translation of the Imperial Customs tariff? On the system of duty, we prefer to await the arrival of the Chinese negotiators and see what principles they propose to found future trade.

Pottinger replied 7th Jan 43:

Proceed with whatever information you already have and apply your experience to draft a concise report of alterations you require to the present system and the tariff and duties (including anchorage fees) that you want in the future.

If your wants are similar to the Chinese wants (which proposals are also to be based on the present system), I can then conclude the matter in your favour without further help.

Merchants' reply 13.1.43:

We cannot form an opinion without knowing the Imperial Customs duties. We were never able to discover that before. We heard they are very moderate but they are swelled by a variety of additional charges only some of which may be regular. For example the imperial duty on tea is officially said to be 2 mace per picul but this is raised by local charges to 1 Tael, 2 mace and 4 candareens while for several years the actual payment including the Consoo charge has been between 2½ - 8½ Taels per picul.

As the Hong merchants are to be abolished, the entire basis to trade will be changed. Hitherto the Hong merchants did everything for us and we only knew the total amounts to pay. They are the landlords of the factories in which we live and of the warehouses in which our goods are stored. There is accordingly a ‘more fundamental system' to be established before we can talk about Customs duties. If we are to consider this now, we should see the rest of the treaty to see how far the 'system' has to be changed.

Pottinger’s reply 15th Jan 43:

I only want you to give me a statement of the tariff duties you are willing to pay without any reference to what the Chinese may themselves be preparing and I am disappointed to find you reluctant. In offering you the chance to tell me what system of charges would be convivial to you, I though I was giving you what you have always wanted. Concerning trade in Canton after the Hong is abolished it will be as you wish it to be - like trade in other parts of the World. It is improper to make trade at Canton different to trade at the other treaty ports. However, when I have seen Ilipu I will let you know the Chinese position. My present intention is to 'leave the commerce totally unshackled by rules beyond those providing for a tariff and scale of duties, including anchorage fees, etc.'14

Editorial - It is regrettable that the merchants' committee cannot provide anything better than that shown in their correspondence. British government officials have all along said they would act like that. This abrupt expression of mercantile disinterest has left us all wholly unprepared.

In their petition to the King of 9th Dec 31 the merchants asked that the Chief Superintendent of Trade communicate with the merchants in China as they have the experience to direct him.

Matheson's pamphlet says the Hong merchants are illiquid if not bankrupt. He complains of arbitrary duties (for example baled raw cotton is 0.2054 Taels per picul on the published tariff but 1½ Taels in fact). His pamphlet appends memorials from British Chambers of Commerce. Liverpool Chamber complains of arbitrary duties and the Hong merchant restriction. All goods must be passed out of the owner's custody and control to the impoverished Hong merchant. Glasgow Chamber says it is impossible to check what the Hong merchant does with the goods. The Hong merchant is responsible to the Chinese government for payment of many duties and thus it fears the goods in his possession might be forfeit for non-payment although they still belong to the foreigner.

Friend of China 19.1.43 edition

The Bombay Courier has reported the facts of an interesting commercial case before the High Court there.

Capt McIntyre of the Ardaseer verbally agreed to sell 50 chests of opium at $450 per chest COD to Heerjeebhoy Rustomjee. The goods were to be delivered to Capt Lyons of Heerjeebhoy's receiving ship at Tung Ku a few hour's sail from Macau. Heerjeebhoy gave McIntyre a sealed letter for Lyons which he told McIntyre was an instruction to deliver the cash or a like amount of securities on receiving the opium. Lyons however said the letter only mentioned he should receive the opium. McIntyre waited six days at Tung Ku for Lyons to get confirmation from Heerjeebhoy in Macau but no clarification could be obtained. McIntyre then sailed back to Macau and told Heerjeebhoy he had not delivered the cargo because Lyons declined to pay, and he sold his opium to others.

It was said in evidence that it is the custom of the opium trade that goods are paid for at the latest on delivery and frequently earlier. It seems that both custom and the verbal contract support Capt McIntyre.

On McIntyre's next visit to Macau he was seized by soldiers and forced to give bail to appear before the Portuguese judge the following Monday and answer a complaint of Heerjeebhoy. The Judge unilaterally nominated Mr W Sprott Boyd as arbitrator for Heerjeebhoy and required McIntyre to give security to abide by Boyd’s award on pain of punishment. McIntyre protested the court had no jurisdiction and specifically protested the appointment of Boyd, whom he said was Heerjeebhoy’s partner in opium business. Heerjeebhoy told the Court he must have Boyd and no other arbitrator and the Judge then over-ruled McIntyre’s Protests. The Judge ordered McIntyre to name his own arbitrator before he could leave the Court and the Captain did so, again under Protest, paid his bail as security for the award and left both the court and Macau. During his absence from the enclave, the joint arbitrators made an award of $700 ($14 per chest) in favour of Heerjeebhoy for loss of profit and it was paid by MacIntyre's agent.

After judgement was obtained, Heerjeebhoy left Macau and McIntyre did not find him until he sailed his ship to Bombay. Whilst there he heard Heerjeebhoy was in town but would soon return to China as a passenger on the Inglis. He then commenced this action for a Writ of Ne Exeat Regno to prevent Heerjeebhoy from leaving the jurisdiction until the dispute was settled. McIntyre alleges that Heerjeebhoy had no cause of action against him. He alleges the Portuguese Judge, Heerjeebhoy and Sprott-Boyd had conspired to defraud him.

Judgment - The Court must consider if it can deprive a party of the results of a decision reached in a foreign jurisdiction. It might do so, and it notes that the debt was paid by McIntyre’s agent at Macau and not by McIntyre himself who has accordingly as yet sustained no loss. It accepts Capt Elliot's note that Macau has no jurisdiction over Britons and both plaintiff & defendant are British. It then granted McIntyre's application for a Writ on the grounds of ‘want of jurisdiction’ and ‘fraud’.

Friend of China 9.2.43 edition

Edict of High Commissioner Ilipu - Now we have peace with the English we should set aside past enmity and so remove the root of future quarrels. But there was a riot in Canton and lives were lost on both sides. Foolish people became the tools of lawless men to loot and plunder.

The High Commissioner knows the gentry and scholars around Canton have formed a society called the Spirit and Loyalty Society and have presented themselves to him for the purpose of waging war. This is directly opposed to the wish of the Emperor.

The Cantonese are unyielding people, lovers of propriety, valiant in a just cause, their word is their bond even to the extent of giving their lives. They often act without regard to the consequences and are quickly roused to violence.

Lately the patriotic men whom the gentry banded together to burn the foreign factories were used as cover by others. The gentry did not exercise due care nor consider the consequences of their deeds. All rash appeals to arms and to violence are like this. In addition to what I told those gentry who came to me, I will now make the matter lucidly clear and distinct for their warning and admonition.

You must follow the commands of the Emperor and give no cause for further hostilities. You think you act loyally but opposing the Emperor is disloyal. Withstanding the enemy is patriotic but causing renewed war is unpatriotic. You gentry have read the sacred books and understand reason - you should explain to the people that arson and looting are not the acts of righteous men.

We have agreed with the English that in future they will not insult or injure our people and we will not disturb or molest them. Do not frustrate the High Commissioners’ good intentions with strife. Tremble and obey, do not oppose.

Friend of China, 9.2.43 edition

Extract from the Friend of India - It was the British parliament that authorised the Company to monopolise the cultivation of opium well knowing that the success of the monopoly depended on the Drug being successfully, albeit illegally, introduced into China. The Emperor sought to preserve his people from the Drug; we insisted and deemed the confiscation of our smuggling stock an illegal act. The only realistic and honest explanation for the late war is our greed.

Friend of China 9.2.43 edition

A new newspaper is on sale in Macau called Aurora Macaense. Its not very interesting but we learned from it that under the new Portuguese Constitution, Macau and all other Portuguese colonies are represented in the Cortes at Lisbon. France is about to copy this and England should do the same.

The Macao Leal Senado have decided to send a delegation (of the Procurador and two Senators) to Canton to wait on Ilipu and present him with the wishes of the people of Macau for terms of trade with China. Apparently they want their Procurador to hold the same functions as our Chief Superintendent of Trade.

Friend of China 9.2.43 edition

We hear the Count of Patti Menton, late French consul to Damascus, is being transferred to Canton.15 M Challaye is recalled to France.

Friend of China 9.2.43 edition

Letter of Ilipu to Pottinger:

In the recent treaty it was agreed to fixed a reasonable tariff. I find that we already have a reasonable tariff for import/exports but over the years the Hong merchants have added charge upon charge until they amount in some cases to several times the tariff dues. I have asked the Hoppo to prepare a complete return of approved Imperial tariff dues and I also ask the British Plenipotentiary for the same so the two lists can be compared.

Friend of China 16.2.43 edition

Edict of the Imperial Privy Council at Peking to Ilipu, 24th Dec 42:

Pottinger complained to Kiying about the massacre of Britons at Taiwan. The Emperor accepts a responsibility for all people (including foreigners) whether inside or outside China.

He hereby instructs Ilipu to tell Pottinger that the Viceroy of Fukien and Chekiang Provinces has been ordered to Taiwan to make enquiries. If Ta Kung Ah (the Fukien official in charge of Taiwan) beheaded distressed British seamen instead of soldiers, as he reported, he will be punished with rigorous severity.

This Council notes Pottinger’s objection to the Emperor’s unlimited assertion of responsibility for foreigners. He says that Queen Victoria acknowledges no superior but God and that the dignity, the power and the universal benevolence of Her Majesty are known to be second to none on Earth and are only equalled by H M’s good faith and studious anxiety to fulfil her royal promises and engagements.16

Friend of China 16.2.43 edition

Mr Wise of the London newspaper The Sun reports on China. He says the Emperor decided to break with England and opium provided the pretext and opportunity to do so. Mr Wise knows the Russians already have a representative in Peking and thinks England should have one too.17

Friend of China 16.2.43 edition

Report from Canton:

Friend of China 16.2.43 edition

From the Inverness Courier – James Matheson arrived at Achany, Lairg, Sutherlandshire from China on 14th September 1842 (left Hong Kong in March 1842) with his brother Major Matheson of the Company’s army.

On arriving at the River Shin, where his lands meets those of the Duke of Sutherland, he was met by the people of Lairg. He alighted from his carriage and walked the final 3-4 miles to his mansion to the accompaniment of pipes. He there received a welcome address and the procession then circled the green in front of the house. Lunch and dancing ensued. Later a dinner was also provided. The numbers were about 200 people. Fires were lit on 12 peaks surrounding the house, each within about 3 miles of it.

Friend of China 23.2.43 edition

The Governor-General of India has published a report of the Company’s Secret Department dated 14.10.42:

Within two months of the arrival of reinforcements from India and England the war in China has been concluded. This was the third campaign.

The Emperor had to yield to save the internal trade of China from ruin, his Imperial capital from capture and his Empire from dissolution.

A Dragon device wearing Imperial crown is to be added to the appointments of the 2nd and 6th Regiments of Madras Native Infantry, the rifle company of the 36th Regiment of the Madras Native Infantry and any other units that Sir Hugh Gough says should be so recognised.

The 2nd and 6th Regiments will have this golden dragon wearing an Imperial crown on their colours. Every man will receive a silver campaign medal with the Queen’s head and 1842 on one side and the dragon with Imperial crown on the obverse.

Friend of China 23.2.43 edition

Local news:

Friend of China 23.2.43 edition

Letter from Chusan:

Gutzlaff is here, waiting for his port to open to take-up his Consular duties. He has been talking with Chinese residents and says some tell him that the Emperor is again preparing for war.

Friend of China 23.2.43 edition

Madras Spectator reports the average FOB values of opium exported to China:

36/37

37/38

38/39

39/40

16,952,711 Rupees (average for each of the 3 seasons 1836 - 1839)

-

-

10,332,215 Rupees

Friend of China 23.2.43 edition

The Friend of India reports on 26th Nov 42 notwithstanding that the ransom of Canton was said to represent an indemnity for seized opium (and therefore recoverable from the Home Government), forty chests of Capt Elliot’s opium scrip was sold at the Calcutta Exchange yesterday for 440 Rupees per chest.

Friend of China 2.3.43 edition

The Red Rover has just arrived with an account of the first opium sales of this year:

Patna

Benares

1425 – 1525 Rupees

1265 – 1500 Rupees

average 1450 Rupees

average 1283 Rupees

The Ariel and Poppy sailed the same day with part of the auctioned opium and are expected to arrive here by the hour.

Friend of China 2.3.43 edition

The Admiral was on his way to Fuk Chow in the Phlegathon when she struck a submerged rock just outside the port and would have sunk had she not been constructed with watertight compartments. He sent Lt Coverly and Dr Playfair to explain his delay. They report that Fuk Chow is a friendly place - nice food and nice people.

Friend of China 2.3.43 edition

Letter to the editor - The Canton Register Editor has published his remarks on the Co-Hong in an extra. On merits it would normally be ignored except that it represents the view of a famous house. Large parts are lifted verbatim from Morrison’s Chinese Commercial Guide.

For years past the Canton Register has blamed the Hong merchants for everything. Well, now they are finally removed from trade, what is everyone going to think when they read the pet organ of the largest smuggling house in China trade say ‘the old system had a beneficial influence on the foreign trade for the safety and protection of foreigners, civil and commercial, from acts of violence and fraud on the part of the natives; that the debts owing by the Hong merchants have been generally paid in the long run’ and more of the same.

The Canton Register Editor proposes a joint stock company to replace the Hongs! His justification is that the continuance of the Company monopoly was the only adequate response to cope with the extortions of the Hongs.18 Compare this with all his earlier complaints about, and abuse of, the Hongs. Sgd. Mercator

Friend of China 2.3.43 extraordinary edition

This extraordinary edition is solely to publish an embarrassing confusion concerning repayment of the Hong debts of $3,000,000.

Pottinger to the British merchants 26th Feb 43:

I had originally intended to support your plan for the recovery of the Hong debts but when I drafted the treaty I discovered the abolition of the Hong merchants necessarily involved the abolition of the Consoo Fund which those merchants intended to use to discharge their debts. I necessarily included the $3 millions separately.

The first instalment fell due for payment in January 43 but I have not heard from you whether it has been received.

Amongst the letters and papers you have just sent me is a translation of a letter from the Imperial Commissioner which says the Hongs have collectively already paid $500,000 of this debt. You asked me not to acknowledge receipt of this until you told me to do so. On 19 Feb you told me Ilipu was anxious for a reply so I wrote him saying I had been expecting his officer at Macau but will now send a steamer to Whampoa to collect the $500,000 back to Macau or Hong Kong for counting whereafter a receipt will be issued.

I now hear that that the money mentioned as paid by the Imperial Commissioner is the first tranche of the repayment of $3,000,000 and that a sum of $500,000 has been received by you and divided amongst your group, many of which beneficiaries are people whose claims have not previously been intimated, included or approved in the list of claimants.

I hope you have not so divided and distributed the money as it will add to the confusion that pervades the matter of the debts. There must be considerable doubt of the veracity of any debts which have not received prior approval from the British government. It is my intention to not pay anything further until all claims are assessed. We have until mid summer, when the second tranche is due, to sort it out. The Co-Hong’s input is important as they know who has debts and who does not, but perhaps that memory may now be faulty.

My wishes are that

1/ you send me the individual receipts you have taken for the $500,000 (if anyone declines they will be excluded from further dividends)

2/ procure a list of debts from the Co-Hong, which I understand are listed in the Consoo Fund books. This latter need not be detailed – just the amounts of debt, amount already paid and balance.

3/ any new claimants will have to submit claims and should be aware that discrepancies will be investigated.

Finally, I remind you that it is for the claimants to prove their claims. Any undocumented or doubtful claims will be referred back to the Treasury for consideration. Sgd Pottinger.

Friend of China 9.3.43 edition

Recent news from Canton:

Friend of China 9.3.43 edition

The Singapore Free Press opines that Canton officials would be well within their rights to complain of foreign smuggling at Canton and suspend negotiations for a commercial treaty. It is said that, on the documents, one ship lands the cargoes of 6 – 7 ships (to pay for only one measurement fee, one Linguist, etc). British merchants conniving and participating in the practice are disgraceful, the Free Press Editor says "it is a robbery of the Chinese government. We hear the Plenipotentiary has found out and he is said to disapprove."

Friend of China 9.3.43 edition

Chinese Junk trade at Singapore (SGP)

This has now been entirely diverted to Singapore from its former historical destination of Malacca. The freight that the junk masters are charging in Singapore is very high. No doubt we could ship Straits produce to China, particularly the northern ports, at cheaper rates. Singapore’s import/export figures in Spanish Dollars are:

-

1839/40

1840/41

SGP Imports from China

1,109,264

2,149,504

SGP Exports to China

1,499,136

2,892,872

Exports to China are mostly Straits tin, pepper, rattan, betelnut, beche de mer, birds’ nests and trans-shipped western goods, primarily cotton and opium.

This year only 50 Bugis craft reached Singapore owing to heavy weather and 200 put into Surabaya instead where the Dutch made them very welcome by permitting them to land and sell their goods free of duty. The Dutch have already sent a shipment of trepang and other Bugis produce to China.

Friend of China 9.3.43 edition

The Friend of India - Our dispute with China has unexpectedly been brought to an early conclusion. It is rare to achieve a peace treaty after a war so humiliating to one side. We are glad this war, which arose from our own cupidity, has ended. Trade will be re-established on a firmer basis and with the largest, most industrious, Empire under the sun.

The tariff now being negotiated by Pottinger may compensate for the six prohibitive tariffs promulgated against England by European neighbours and America. Warren Hastings, when arraigned at the bar of Parliament, boasted that while the Ministry was losing an Empire in America, he had founded one in India. It should be equally the boast of Pottinger that while our friends and neighbours are excluding our manufactures from their homes, he is opening a boundless market to them amongst the Chinese.

It is gratifying to have China, comprising a third of the human race, brought within the pale of relations …. and the active and ingenious mind of the Chinese placed in intimate contact with the European mind.

Friend of China, 9.3.43 edition

The celebrated French poet and Deputy, de la Martine, has commented on the opium war:

‘You say that England outrages the universe to force her markets? I neither accuse nor excuse England … Yet I may assert that a wide difference exists in the conquests made by the industrial principle – however violent and unjust they be – and those consummated by a brute and military system.

‘Where conquering Rome trod she left a desert. What have Tyre, Carthage and England left? Colonies, people, civilisation, new groupings of consumers and producers.

‘Unjust as the … Opium War may be, if we raise our thoughts to the philosophic height of historic reason, is no justification to be found? Who knows but the first shot fired … hath burst asunder the portals of a new world? Who knows that it has linked in one communion four hundred million active Chinamen with Europe.? If so, how vast a future opens on us gentlemen.’

‘What great effects from trivial causes spring:

‘What results Gentlemen from these three coincident industrial facts occurring in the same age? A second creation of the geographical, political, moral and commercial world. The extremes of the Earth have approached; languages, races, interests, religions have been fused. The result for all humanity has been an increase of force and unity that only God can compute. In short these result from a certain and nigh future, the realisation of that Chimera of all conquerors and all creeds - universal monarchy: but at the time, the monarchy of intellect, commerce, industry and thought.’

Friend of China 16.3.43 edition

The first opium sale of this year at Calcutta has produced a profit of £500,000 to the India Company.

The Aurora Macaense reports Red Rover brought 680 chests, Poppy 330 chests, Ariel 400 chests and Rob Roy (hourly expected) 480. They say the quality is poorer than last year and, although each chest already weighs 5-6 catties less than when shipped, the opium still remains damp.

The high water-content has caused new Patna to be marked-down at $700 – 710 while old is $735-750. Old Benares is $690-700. The total new opium expected (by the middle of the month) is about 1,500-1,600 chests and should not have much effect on the market. No other supply is expected in the near future as the auction was ringed by Calcutta speculators who will not ship to China until prices are firmer. However Holmes & Co’s review of the Calcutta market says some lots have changed hands since the auction at more or less the same prices. They forecast a downward tendency on prices at this stage of the harvest.

Friend of China 16.3.43 edition

Aurora Macaense reports that Sr Brazilho Breduet sued Teresa (a local Macanese Christian) for $17 which he paid her to buy her son. The boy ran off when mistreated a few months after purchase and was found with his mother. In the circumstances, she refused to return him to Breduet.

Award - Teresa to repay $17 to Sr Breduet within 6 months.

Friend of China 23.3.43 edition

Colonial Magazine - Now we have peace in China, the main question is not which is the best port for buying teas and silks but which is the largest market for our excess industrial production and that will doubtless be Shanghai. From there, via rivers and canals, the whole of China is open.

Friend of China, 23.3.43 edition

Free Press 25.2.43 – The joy in London at the good news from Afghanistan and China has not been so great since the French were defeated at Waterloo.

Queen Victoria has awarded KGCB’s for services rendered by Pottinger and Parker in China and Pollock and Nott in Afghanistan. Sir Hugh Gough is made a baronet. Bouchier gets a KCB. The paper has a long list of other awards and promotions.

Friend of China 23.3.43 edition

The South American states have little to export except silver and this is what they mainly use to fund their foreign trade. China also has gold and silver mines in abundance. If the Chinese stimulated production they could rapidly increase trade volume.

Friend of China 23.3.43 edition

The Examiner - Thoughts on the war and the peace. The Opium War is the first war we have fought that has turned a profit. The indemnity of $21 millions plus the Canton ransom of $6 millions produces the equivalent of £7 million at the current exchange rate. China’s annual revenue is £12 millions mostly in goods so this will take time for her to pay. The bulk of repayments will fall on the rich provinces. These contain the coastal towns we trade with.19 She has been at war with us for three years which has reduced her production and income.

The Chinese make unwise and impractical laws and thus encourage smuggling. They must accept the consequences of brisk smuggling, loss of revenue and demoralisation. In England we assess £800 – £1,200 Customs duty per case of brandy or tobacco and that punitive duty creates a considerable smuggling trade in these items. We do not ask the French and American smugglers to desist – they would laugh at us. If we are to run a preventive service for China we will have 1,600 miles of coast to protect and, in the event of our failure, the opium trade would pass to the Americans, French and Dutch.

China excluding Tartary and dependencies had a population of 358 millions in the last census of 1813.

British exports are woollens, cottons, cotton yarn and metals. The trade volume equates with about 20% of our export trade to America. China pays for this in tea and raw silk. They choose not to produce a surplus of rice, sugar, corn, cotton, timber, fruits, wine, coffee for export but pay their trade deficit with specie. This has been the shape of trade ever since opium sales took-off. In some years the specie exports exceed £2 millions. They seem able to produce as much tea and silk as we can take but we cannot sell more of those commodities in England so long as the high import duty remains. We need to enlarge the domestic tea market - that means reducing the duty so ordinary people can partake more. Then we can pay for increased exports from China.

Friend of China, 23.3.43 edition

The Glasgow East India Association has memorialised the Treasury as follows:

British exports to China are £1.2 millions p a. Chinese exports to Britain are £4 millions p a. The balance is the Indian trade in opium £3 millions and cotton £1 million. This produces an adverse balance for the UK that we settle in bullion. Analysing this triangular trade:

We cannot sell any more to China because although it is a huge country with a huge population they don’t have the extra goods to barter for ours.

British tea duty is 200% of CIF cost. The duty falls disproportionately on the poor who are both the largest consumers and the buyers of the cheaper types of tea (the duty is proportionately reduced for higher priced teas). This duty limits our tea imports and consequently our manufactured exports to China. Now we have access to the port nearest the tea growing centre we can expect tea prices to decrease by reduced inland freight and avoidance of Canton squeezes. We should act by decreasing the UK duty thus stimulating demand for British exports.

Friend of China, 30.3.43 edition

The Glasgow East India Association wants the duty on black tea halved. They say it would cause only a brief drop in the revenue and that would be partially offset by the increased consumption of sugar that would accompany increased consumption of tea. It says this is the only way that trade with China can be increased. They say it is England that has opened the market by the valour of her arms and she now stands to lose the advantage to other countries unless she acts quickly.

The Times of London took up the same cry on the basis that the present duty on popular congou is 200% while the duty on the expensive qualities is 50%

Friend of China, 30.3.43 edition

The Great Seal of England was affixed on 31st December 1842 to the treaty made with the Celestial Empire. The seal is enclosed in a handsome silver box and both are contained in an elegant case covered with crimson velvet. It is being brought back to China by Major (now Colonel) Malcolm.

Friend of China 30.3.43 edition

Some British merchants are demanding exorbitant compensation for damages sustained in the December 1842 riots at the factories. We believe the Chinese will pay any amount demanded by the Plenipotentiary but, equitably, our claims should be carefully scrutinised first.

Friend of China 30.3.43 edition

Capt Anderson of HMS Pylades has been awarded £20 per head prize money on the 52 pirates he killed at Chusan roads on 31st July 1842. A similar number escaped.

Friend of China 30.3.43 edition

The Semarang (26) has been commissioned to make a hydrographical survey of the coast of Japan and neighbouring islands under Capt Belcher. Previously the Morrison took shipwrecked Japanese sailors back to Japan but failed to develop this opportunity into opening the country to our trade. Those Japanese had to be brought back to, and still remain in, Macau. We hope they soon get another chance to go home.

The Chinese Repository says 14 Japanese sailors have been rescued during the last seven years. The last ship (from Mazatlan) brought shipwrecked Japanese seamen who were astonished to find countrymen they knew in Macau.

Friend of China 30.3.43 edition

Uncertainty at Canton is reducing. It had been feared the speculators and importers of tea in London, on hearing of the peace, would ruin the market by off-loading excessive stock. Now it seems it is not as bad as anticipated.

Also the foreign merchants at Canton, who have been awaiting the opening of northern ports for trade, now realise it will not happen this season. They are accordingly reconciled to placing their orders in Canton for another year.

Friend of China 30.3.43 edition

The Times of London has expressed its satisfaction at the ending of the war. It says 'the gains are ill-gotten and may share the fate of many similar acquisitions, but on the credit side, we shall no longer be sickened at the sight of the successors-in-arms to those who stemmed the tide of battle at Albuera or Waterloo, sweeping away with cannon shot or bayonet charges, crowds of poor pigtailed people; and read after a day of this slaughter, that a corporal and half a dozen privates, comprise the entire loss of the British army.'

Speaking of our future prospects and improved position in China, the Times says 'something of European law and regularity will be infused into those perplexing and irregular relations to which in part we owe the late contest.'

Friend of China 30.3.43 edition

The Paris newspaper La Presse categorises our China war as unjust but says 'the English are immutable in their policy. In all their arrangements with foreign nations we find the same prevailing principles. They incessantly seize upon the best positions throughout the globe (Gibraltar, Malta, Aden, Cape of Good Hope, Singapore, etc). The island of Hongkong was long coveted by the English. It is the best situation in the Chinese seas; It is an inestimable advanced post in the southern archipelago. For these reasons England takes possession of it.'

With regards to the conditions of peace La Presse adds 'this is a great, a magnificent success - a success which does honour to our civilisation, to the age we live in and particularly to the people who have extorted it from the pusillanimity of the authorities of the Celestial Empire.'

Friend of China, 30.3.43 supplement

The Spectator comments - The French newspapers regard the forced peace with China on broad and abstract principles. They see it as a European matter and claim a right to share-in the ingress to China. Never before has the wealth and intelligence of Europe had such a vast field opened before them. Some of our neighbours seem angered by the energy of the Anglo-Saxon race. Partitioned or 'regenerated' China henceforth enters upon a new existence. It now only awaits the opening of Japan to permit Europeanism to encircle the globe.

Friend of China 30.3.43 supplement

Letter to the Editor from L complaining Pottinger is not settling the Canton riot claims quickly enough. L says he knows ‘the Chinese offered to pay them immediately but Pottinger has done nothing’.

Friend of China, 30.3.43 edition

London news - Five brass cannon seized from the Chinese in the late war have been installed in the Tower of London. Four are very elegant workmanship and large calibre.

Friend of China, 30.3.43 supplement

At a Privy Council held at Windsor on 4.12.42 (or 4.1.43), an order was passed directing the removal of HM's vice admiralty and other courts from Canton to Hongkong.

Friend of China 6.4.43 edition

Pottinger’s letter to the British merchants, dated 30th March 43:

Concerning claimants to Hing Tai Hong’s debts of 1837, an officer of the British government will be deputed to Canton for the purpose of paying a dividend on these debts.

Pottinger’s letter to the merchants of 31st March 43:

Concerning claimants to the debts of King Qua and Mow Qua, claims will be paid proportionately from the money received from the Provincial government of Canton under the treaty. The Hing Tai Hong debts will also be paid.

When the capital element of King Qua's debt is paid-off, arrangements will be made for discharging the interest.

On Mow Qua's debt some creditors have just obtained payment of interest for a year when it should have been only for 8 months. The excess will be written back and deducted from their next instalment. There are additionally debts of $7,820 on Mow Qua's account that are disputed. Balfour (the new consul at Shanghai) is coming to Canton to settle these debts. He will finally adjust them either amicably or by arbitration.

There remain some debts on the Co-Hong that have not been agreed and debts on individual Chinese shopmen that are not the responsibility of the Hong Merchants. These are still under consideration and I merely remind you that, at English Law, it is for the claimant to prove his debt.

Friend of China 6.4.43 edition

Extract from a letter of Gutzlaff to James Matheson in Glasgow, dated Nanking 10th Sept 42:

1/ The French offered their mediation in our dispute with China but peace had already been agreed.

2/ Capt Cecille of the Erigone witnessed the treaty signing at Nanking but it seems he was not able to make anything of it as the Chinese were anxious that no other nation should share in the privileges that England had obtained.

3/ Treasurer Kwang, who will arrange the revision of the tariff, has asked for details of the volumes of trade in each commodity.

Friend of China 6.4.43 edition

There is a notional trade in Irish linen to be done. The junks of the northern ports have cotton cloth sails, not the mat sails of the southern provinces. Unbleached canvas or coarse Irish linen would be suitable for this purpose if dyed with Cutch to preserve it against rotting.20

Friend of China 6.4.43 edition

On news of the agreed peace with China, Turkish opium in London went up from 6/6d to 10/- per lb (c. $270 or 540 Rupees per chest).

When Elliot’s (unratified) peace agreement arrived, the price at Smyrna rose 20% but when that agreement was repudiated the price dropped back 7%.

This year's Turkish crop is estimated at 315,000lbs (c. 2,400 piculs or chests) or rather less than 1/17th of annual Chinese consumption. One third of this crop is already sold in advance. From recent information we have seen, it appears that Turkish opium can now be loaded FOB Suez at between 9/- and 11/4d per lb.

Friend of China, 6.4.43 edition

Russian trade with China:

The figures have historically been unreliable. The Times now says it is worth 4 million Roubles (including contraband). The silver rouble is worth 3/3d, the paper rouble 11d.

The Government Gazette issued at St Petersburg reports the 1841 trade at 8 million silver roubles (£1,250,000), attributing the increase to 'the extraordinary development of trade with China this year'.

Russia now has a large body of expatriate English artisans (encouraged to emigrate from home by our restrictive policy on machinery). They manufacture woollen cloth at prices that well compete with the English supply.

A translation of Dr Pallas and M Muller's work 'The Conquest of Siberia’ contains a detailed account of Russian commerce with China. It started in 17th century when the Russians were spreading east along the Amur and subduing the Tongusian tribes as they went. This eventually brought the two Empires into contact and a regular treaty was signed in 1689. This allowed the Russians permanent trade with China but denied them navigation on the Amur. Considerable disputes arose and in 1728 a new Treaty of Kyakhta was made which delineates the relationship up to today.

The Treaty of Kyakhta allows one Russian caravan to go to Peking every three years. The caravan should have less than 200 people. On arriving at the frontier it should await an escort. Trade is allowed at the frontier towns of Kyakhta and Tuenchaitu. It is entirely a barter trade as the Russians are prohibited to export their silver rouble. The Russians bring their goods to Kyakhta. The Chinese merchants examine and agree a price. The goods are sealed. Both parties go to Mai Mai Chun on the Chinese side of the border where the Chinese goods are stored. The Russian picks what he wants to the agreed value of his export and leaves a confederate to guard his selection. When the Russian goods have been delivered, he returns with the Chinese merchant to Kyakhta.

Furs from Siberia and the North Pacific islands are the most important Russian exports, supplemented by foreign furs imported at St Petersburg. The Russians also export cloth - coarse Russian cloth and finer Prussian, English and French material, mostly camlets, white flannel, coarse linen and velvet. They also trade in leather, glassware, cattle, hunting dogs, tin and talc.

The Chinese supply raw and manufactured silk, cotton, teas, porcelain, furniture and toys, artificial flowers, tiger and panther skins, rubies, canes, tobacco, rhubarb and musk. Furs in Siberia have little value (the cost of their transport back to European Russia is enormous) so Russia is happy to get anything for them. Only the very special furs would be worth transporting but there are few people in Russia who can afford them so, all in all, it makes sense to sell everything taken from Siberia in China. Many of the things they buy from China are much cheaper than the equivalent item from Europe. This year's trade volume, excluding contraband, is calculated at 2,868,333 silver Roubles.

Friend of China, 6.4.43 edition

Colonial Gazette (Another percipient offering from Martin):

The willingness of the Chinese Imperial government to buy peace will create disaffection throughout the Empire.21 The continued occupation of the Chusan Group and Ku Long Su (the island off Amoy) for performance of agreed terms likewise. The mere presence of a British force in Hong Kong will persuade governors of distant provinces to assume a deportment verging upon independence. The spirit of insubordination in China is enlivened by the treaty. Our political residents (to reside in the new ports) will be constantly involved in intrigue. Our relations with China remain as unsettled as ever.

The opium trade is not mentioned in the treaty. China forbids it while India cannot do without it. This peace can only be an armistice. It gives us an opportunity of shaping our course anew and acting more wisely and honestly in time to come. In future continental European and American diplomacy will complicate our relationship. French and American men-of-war have already shown themselves in Chinese waters. These nations will insist on an equal footing with England. History teaches us that interference in domestic affairs of other nations is usually done out of dread at what a neighbour might do if we fail to interfere. For the French and American diplomats, our mere presence in China will be an irresistible inducement to involve themselves in the intrigues of the country and while they are busy in the south, Russia will not be idle in the north. The acquisition of Hong Kong and the entry of Consuls to treaty ports is but the first step in a repeat of the dance of the French and the English in India but it will involve a greater number of contestants this time with greater resources, skill and pride.

China can provide tea, silk, cotton and porcelain. The last two items we have now learned to produce better and cheaper ourselves. Where is the great increase in trade going to come from? Already goods in this country which might find a market in China are increasing in price on the possibility. We may soon return to the position at the time the South American markets were opened to us, when British goods littering the wharves of Rio de Janeiro, were so cheap as to not be worth the cost of warehousing. Is this going to happen again so soon? Great expectations - lavish credit - busy factories - mushrooming profits for banks and companies - dreams of el Dorado - then the crash.

Once hostilities commenced, relations could never be re-established in the old way. Now they will be more complex and on a greater scale. If the China market is well regulated and the treaty terms are performed smoothly, there may be a real extension of trade.

Friend of China 6.4.43 edition

We have a copy of Bombay Prices Current for 11th Feb 43:

Malwa opium is selling at 910 - 950 Rupees per chest. So far this season 400 chests have been sold but most of these were old stock. The Company’s official Bombay opium trading account reveals 27,062 chests were imported from Malwa between 3.11.41 - 7.2.43 and 20,970 chests were exported under pass between 22.10.42 - 7.2.43. The latter figure includes an opening balance of 2,000 chests from last year.

Friend of China 6.4.43 edition

The Colonial Gazette proposes that Sir Henry Pottinger's force in China should proceed to Japan and open that country to our trade as well.

It says the massacre of English sailors shipwrecked on the Japanese coast has been a long-standing insult.

Friend of China 6.4.43 edition

Dr McPherson on the medicinal qualities of opium:

The Chinese affirm that it is preventive against various diseases. The active principle has recently been successfully used in Bengal as a substitute for quinine. It was also noted that whilst our troops were feverish in Hong Kong and elsewhere on the China coast, the Chinese coolie corps serving our army, who are opium smokers to a man, were almost unaffected.

This suggests the habitual use of opium is not unhealthy. But McPherson notes a slave to the Drug, when deprived of his allowance, feels rats gnawing his shoulders, worms devouring his leg muscles and an indescribable craving in the stomach. All this is relieved only by a pipe.

Friend of China, 6.4.43 edition

Court of Common Pleas, reported by the Monthly Times:

In the case of Evans and Another v Hutton, the Plaintiffs claim Elliot had no power to declare war on the Chinese which was the only reason to prevent landing of their goods at Whampoa. Elliot's powers were contained in authorising acts of the 2nd and 3rd of William IV which gave authority to the Superintendent at Canton. No power of declaring war is listed.

The Defendant ship-owner admits he brought a shipment of Plaintiff’s goods to Canton but was prevented from landing them by order of Capt Elliot, the Chief Superintendent of British Trade and British Representative at Canton, who prohibited all off-loading from British ships due to hostile relations with the Chinese authorities at that time. His agreement to ship was frustrated by Elliot and he was not responsible to the plaintiffs.

Judgment for the Plaintiff - Elliot’s action was ultra vires.

Friend of China 6.4.43 edition

John H Larkins a partner in the firm Fletcher Larkins and Company died of smallpox after a few days illness at Macau, 30th March 43.

Friend of China 8.4.43 special edition

The whole edition deals with rates of postage from China to India and beyond to Europe and America.

Friend of China, 11.4.43 edition

Napoleon's opinion on China (from O'Meara's Voice from St Helena)

Napoleon said 'If I had sent an embassy like Lord Amherst’s I should have told the ambassador to follow the custom of the country. For not kow-towing you have lost their friendship and their trade'.

O'Meara said 'we can force them to trade'.

Napoleon replied 'If you war with China it will be the worst thing you have done for many years. At first you will succeed, take their vessels, destroy their cities etc., but you would soon teach them their own strength. They would defend themselves and try to equal you. They will build ships and put guns in them. They will get ship-builders from France and America and, in time, they will beat you’.

Friend of China, 11.4.43 edition

Spectator - Now England has a base in China, the Chinese will be able to see these strange European people up close. They will note their ships are teetotal but some of them bring opium; the ship now bringing missionaries to denounce gambling has a snooker table on board for the 98th regiment in Hong Kong.

Friend of China 13.4.43 edition

Letter to the Editor from a British army officer in the Amoy garrison:

Ku Lang Su Island (Cantonese - Ko Long Tsui) is coming along fine. The old village has been razed and replaced with European dwellings for the officers, barracks for the men and a parade ground. We also have a really good market supplying all the daily vegetables.

These improvements are due to the exertions of Capt H.....ll who has also built a fine road around that side of the island facing Amoy. It is sufficient for three men to ride abreast. A beautiful little theatre has also been completed. A racquets court of stately dimensions is presently under construction.

At Lunar New Year we were all invited over to the mainland by a Chinese businessman for a feast of great magnificence.

Friend of China 13.4.43 edition

Historical China market exports 1830

Editor - In 1830 British free traders had 50% of the China trade and the India Company and the Americans etc had the rest. In tea exports the following statistics should guide:

Ship registry

England

America

Netherlands

Germany

Others

Tea

30 mill lbs

7 mill lbs

2½ mill lbs

2 mill lbs

1 mill lbs

British exports to China in 1830 were 50% woollens, 25% cottons and 25% metals & others. American exports 50% cotton, 25% woollens and 25% others. Indian exports were £2 million of opium plus £1 million of cotton, tin, pepper.

Chinese exports to England, America etc., are insufficient to pay for the imports. Northern Chinese exports into Mongolia and Russia are extensive (5½ million lbs of tea via Kyakhta to Russia annually) but no figure for exports up the Yangtse into Sinkiang is available.

The Russian traveller Timkowski has written recently about his journey from Kyakhta south to Ulan Bator and Kalgan (near Peking) in October and November. At Urgha he met several caravans of some 40 camels each, carrying tea to Ulliasutai. He then met numerous caravans with 200+ cars of fine black tea for Kyakhta. At Kalgan he learned the trade warehouse at Kyakhta has adjacent accommodation for 2,000 camels. On his return journey to the north in July he found the tea caravans were just as frequent.

Timkowski travelled along the one major road north of the great wall but there is another equally good road that is also used for trade. It runs along the course of the Yellow River west to Lanchow and thence to Kashgar in the south and Urumchi and Kuldja (I Ning) in the north. The Russians sell furs but cannot themselves supply enough for Chinese demand and import the balance, mostly from American trade to the Baltic, to get the quantity of tea they need. The Chinese would prefer to take silver for the balance but the Russians are forbidden by law to export it. From trade with the Mongols, the Chinese get cattle from Central Asia, ginseng from Manchuria, rhubarb from the upper Yellow River, some domestic manufactures and re-exports of European goods. Tea exported into Central Asia is said to be an inferior type, commonly tile tea, but is very popular.

There used to be a substantial import of American furs at Petersburg to support the Russian trade but the stock of game in the North West of America (from the Columbia River territory) is reducing. The Americans have been somewhat successful in substituting a thick form of woollen cloth (duffel, a Belgian invention) which is cheaper and acceptable. Game is decreasing in Siberia as well and we English may have a chance to bring our own woollens to the north China market for sale from the new treaty ports.22

Friend of China 20.4.43 edition

Pottinger to Kekung, Viceroy of Canton, 13th April 43:

A very extensive system of smuggling in and out of Canton is practiced by foreign traders with the connivance of the city Customs House. This diminishes legal trade and Chinese revenue. I do not approve of it. Smuggling is at variance with the intentions and wishes of the British government. I shall be happy to provide whatever assistance I can to your Excellency in its suppression.

I have mentioned to the Imperial Commissioners that suppression must involve the co-operation of the Customs House. No British officers or people can be employed in it. Although I deplore smuggling, the remedy is really in your hands not mine.

Public Proclamation of Pottinger, 15.4.43:

Attached is my letter to Viceroy Kekung in Canton. I do not yet know the names and nationalities of the firms and their staff involved in this shameless and disreputable system of wholesale smuggling which, so long as it is overlooked, will sap and destroy the legal trade and nullify all my efforts to place the regular trade on a proper footing.

I hope to soon receive the identities of the people involved and I will certainly publish them so the public can gauge their merit. I hope with the arrival of Ilipu's replacement that a means will be devised to bring all parties to account for their share in the transactions which have obliged me to make this Proclamation.

I advised you beforehand that I will give the fullest extent of aid to the Chinese authorities to eradicate this smuggling trade and to remove British smugglers and their ships from the river and from Hong Kong.

Friend of China 20.4.43 edition

The following claims in Spanish Dollars for compensation due to losses sustained during the attack on the foreign factories at Canton have been assessed by the Hong Kong government, as British representative:

-

Bell & Company

Dirom & Company

Gemmell & Company

Gibb Livingston & Company

Jamieson and How

Jardine Matheson & Company

McVicar & Company

Turner & Company

Mr Barnett

Mr Baynes

Mr Burns

Mr Compton

Mr Hughes

Mr Larkins

Mr Major

Mr McKean

Mr Ponder

Claim

211.30

282.00

79.50

43,207.33

14,198.49

200,917.68

4,692.80

350.00

784.33

671.00

6,441.22

9,429.00

594.00

206.00

2,991.50

152.00

352.00

Admitted

0

0

0

42, 073.99

5,871.60

0

4,692.80

0

751.00

671.00

3,220.61

8,230.00

0

0

1,497.25

92.00

297.00

Rejected

All

All

All

Balance

Balance

All

None

All

Balance

None

Balance

Balance

All

All

Balance

Balance

Balance

Friend of China 20.4.43 edition

We previously mentioned flax from which the beautiful Chinese grass cloth (ma bo) is made. The import of flax and hemp (mainly from Russia) last year into England was worth about double the import of tea.

Flax imports, and the linen trade generally, is increasing (18,000 tons of flax were imported in 1825; 61 million yards of linen were manufactured in 1838) Fukien is famous for its flax – it makes the best linen in China.23

Friend of China 20.4.43 edition

The few steamers that ply between Hong Kong and the treaty ports will ensure that the Chinese keep up their end of the treaty. They transmit mails and official communications as well as carry passengers.

Hong Kong to Amoy is 270 miles (1½ day’s steaming); Amoy to Fuk Chow 150 miles (1 short day's run); Fuk Chow to Ningpo 300 miles (2 short day’s run) and Ningpo to Shanghai 100 miles (½ day’s run). A mail run would take c. 5 days while direct steaming Shanghai/Hong Kong is 4 days.

Friend of China 20.4.43 edition

Canton Prices Current:

Opium

Patna Old

Patna New

Malwa

$680-685 per chest

$660

$535-540

Tea exports from Canton for the 9 months to March 1843:

Black

-

Green

Congou

Others

Twankey

Hyson

22,500,000 lbs

2,000,000 lbs

1,500,000 lbs

1,000,000 lbs

Friend of China 27.4.43 edition

Letter to the Editor from Observer, a British merchant visiting Canton, 10.4.43:

Foreigners are still prohibited from entering Canton city itself but I walked around the suburbs. The children called me fan kwai and when I looked at them they drew their fingers across their necks in a significant way but they were all quite playful. Chinese soldiers and officers pass you without attending to you. The shopkeepers are always friendly and polite. This absence of offensiveness after our harsh demands on the Emperor is surprising. The Cantonese are hard working commercial people devoid of national prejudices. They do not display any trace of the anti-social behaviour of the Hindu or the bigotry of the Muslim. They do display a boundless curiosity and continually crowd round one.

The troops at Canton are all local men, poorly armed with bows and rusty matchlocks. They look inefficient which is a concern. They do not appear capable of preventing the destruction of the British factory as occurred recently.

Whilst the soldiers appear unwarlike, the police are efficient. Although the foreign factories are closely surrounded by Chinese houses, they remain robbery free. The espionage system in despotic states like China permits the police to attain a greater efficiency than in a democracy.

Friend of China 27.4.43 edition

Letter to the Editor - The Peking Government has an indisputable right to prohibit the trade in opium. Our notorious and systematic smuggling defies every just idea of international law. I do not expect Britain to upkeep a preventive fleet but its not enough for our Plenipotentiary to say he does not sympathise with the smugglers. He should make a complaint to the Chinese government to ensure they know the smugglers have no official support and cannot escape punishment.

I am not reproaching those concerned with what has hitherto occurred. China would not admit that national duties are reciprocal as we do, but the treaty puts duties on both sides and provides us with an opportunity to recommence our relationship on a basis of justice. It is impossible for China to prevent smuggling. The demand for opium that has already been created, the length of the coast and the low pay of her officials all ensure it cannot be stopped.

I think we should produce a paper in Chinese that sets out the facts of the case and hopefully the Emperor will be encouraged to legalise opium imports.

Friend of China, 27.4.43 edition

The Times of London, 3.12.42 - The peace treaty with China contains no word about opium. The Chinese wished to include it but the British negotiators declined. No doubt they felt that each nation must enforce its own fiscal arrangements as best it can. It is reasonable for the Chinese Emperor to request that British traders obey the laws of China. Our approach has been to decline responsibility for our merchants on the one hand whilst on the other, we naturally abstain from enforcing the regulations of the country with which we trade on our people.

Friend of China 27.4.43 edition

Excerpt from Cotterell's Recollections of Siberia 1840-41

Mai Mai Chun (on the Chinese side of the frontier facing Kyakhta) is a rectangular hamlet surrounded by a wooden wall with two streets that cross each other at right angles. The four gates are at the compass points. The streets are narrow and two camels can barely pass each other.

The houses are small. Their roofs are very low and made of wood covered with turf. There are no windows on the side facing the street. They each have two rooms - one is the shop where goods are stored and the other is for living. On the side remote from the street, the windows are covered with oiled paper. The houses are clean, the wooden furniture is good. They are heated by stoves like Russian houses. In spite of this they are very cold.

There are about 1,500 male inhabitants. Women are not allowed but a few Mongolian females may occasionally be seen.

Friend of China 27.4.43 edition

The senior British naval officer at Chusan has seized three British ships at Woosung. They were said to be contravening the proclamation of the Plenipotentiary dated 14th November last. (requiring that no British merchant vessel go to any of the ports just opened by treaty except Canton until the tariffs and scales of duties have been fixed and the consular officers appointed - at which time due notice will be given)

Friend of China 27.4.43 edition

Pottinger’s public complaints about smuggling have stung the British merchants. They say they deprecate the system at Whampoa (which the Friend of China reported last week) but they have no choice but to partake in order to remain competitive. They say it was not them but the Americans who started the smuggling system that Sir Henry now condemns. That allegation has been robustly contradicted.

We hope Sir Henry will publish the names of the people and firms involved in the Whampoa smuggling market but this will indubitably be a list of names of all the foreign community trading in China.

Friend of China 27.4.43 edition

The traders have a legitimate grievance - port dues are paid simply for access to trade; the estuary is not buoyed or lighted, neither is the river. Pottinger said in his letter to Ilipu that he thought port dues should be very light.

But the British Government would be wise to demonstrate it does not approve the shenanigans in the river. Pottinger has necessarily objected to the entire mercantile community. As a result, the British component in the Hong Kong community has withdrawn its co-operation from him. This will delay settlement of the commercial treaty.

Pottinger was wrong to say he would deny protection to smugglers in Hong Kong. This island is a free port and there can be no smuggling in it.

If we forbade smuggling at Gibraltar, it would bring all trade there to an end. The same would happen here. Smuggling is not new. The Select Committee reported even cheap and bulky things like saltpetre are smuggled and it has been going on for 20 years since that report. The experts said smuggling would increase and Charles Marjoribanks, a long-time resident of Canton, noted that when the Company’s monopoly was ended there remained only the smuggling trade. He predicted that the legitimate trade would end. All acquainted with the China-trade agreed, owing to the exactions on it at Canton which since that time have greatly increased.24

Friend of China 27.4.43 edition

Trade Report from Canton:

Very little trade is being done. Common teas are still expensive. Opium is not selling much - a few chests of Malwa sold at $530 recently which pushed asking prices up to $580-585 but there was no subsequent trade. Business in the north is also slow. The Compton and Anonyma are expected to depart shortly with opium cargoes for northern ports which will further reduce prices.

Friend of China 4.5.43 edition

Kekung has replied to Pottinger on the Plenipotentiary’s concern at bribery of Customs staff. He says:

“The Hoppo's clerks and followers accept bribes and connive at smuggling. I have told him so. Some example of severity might cleanse this fountain of evil. Some English merchants may be honest but in every ten there are one or two who are given to deceit. The Plenipotentiary does not support them and I never suspected he did. Still it is difficult for a single person to superintend so much. Now we are united in friendship, his diligence will be more stringent and English merchants will not be able to listen to the seductions of the Hoppo's clerks and followers. We are making a new tariff. I hope the Plenipotentiary will give us his proposals for rules to prevent these abuses.”

Friend of China 4.5.43 edition

Editorial - Ke Kung’s letter to Pottinger seems to put the duty to stop smuggling on the Plenipotentiary. As Ke Kung is a senior Chinese official we need to explain our view of this to him immediately and make sure he has no doubt of the western attitude to this situation. One of our interpreters recently told a London audience that he had explained McCulloch's political economy to several Chinese officials. If so, it should be possible to explain where lies the responsibility for enforcement of fiscal law.

We expect, as things stand, that the Chinese officials, having experienced the military force at Pottinger’s command, will assume he can stop the smuggling with ease if he wishes to do so. They might think that, as he does not stop it, he condones it.

Smuggling results from the rapaciousness and fatuity of the government rather than impatience of taxation on the part of the governed.

Friend of China 4.5.43 edition

Peking Gazettes - Ke Ying is made Imperial Commissioner. He will go to Canton and manage affairs there. Pi Chang will take acting charge of the Viceroyalty of the Two Kwang. Until he arrives Sun Shen Pao will be in charge.

Friend of China 4.5.43 edition

The annual consumption of tea in England is now reported to have reached 36 million lbs costing £9 millions of which £3½ millions is Customs duty.

Friend of China 4.5.43 edition

The French warship Erigone (Cecille) left Macau on 5 May for Cochin China. The King of that country is at war with Siam over Cambodia and has seized five French missionaries and condemned them to death. Cecille is to procure their release or get satisfaction for their martyrdom.

Friend of China 4.5.43 edition

Editorial - our late war was too brief, our battles too localised to make the Chinese generally aware of their inferiority in fighting. Experience tells us that the pettiest Rajah in India is seldom impressed with the first drubbing he gets from the Company’s army. We expect another war with China will be required sooner or later to demonstrate that the first result was not a fluke. Once the Chinese can accommodate their inferiority they will start to make progress, so another war should be a welcome development.

In hard work, cheerful obedience, tact and courage, the Chinese worker is far better than any other Asiatic. If subjected to European discipline he would rival the Indian sepoy as a soldier. With a small personal supply of rice and salt the Chinese soldier travels the magnificent inland waterways of China and can be made available anywhere in the Empire. If the To Kwong Emperor's successor was concerned to make changes in his country there is nothing he may not do - Europe might again tremble at the approach of Mongol hordes.

Friend of China 4.5.43 edition

Trade report from Canton - Tea stocks are down, prices are up. Unless the Chinese bring a load of rubbish onto the market to make up quantities (like the Portuguese do at Macau), the total tea trade this season will only be about 45 million lbs.

Friend of China 11.4.43 edition

The Augsburgh Gazette says the Pope is considering sending an apostolic vicar to China at the request of Catholic missionaries in Macau.

Friend of China 11.4.43 edition

Glasgow Courier - The James Campbell has sailed from Broomielaw (on the Clyde) for Hong Kong. She is the first ship to sail direct from Scotland and she is completely full of cargo.

Friend of China 11.4.43 edition

Monthly Times - London has asked Pottinger to remain in China and appoint the necessary consuls. He has been told he might go to Peking and promote the benefits of British representation there to the Emperor

Friend of China 11.4.43 edition

According to the London papers, a Mr MacDonald Stephenson has addressed a letter to the Chinese authorities in Peking asking to become the Chinese ambassador in London.25

Friend of China 11.4.43 edition

The U S President has asked Congress for funds to send a Commissioner to China to care for American traders and watch over their interests. He purports to believe that the ports opened to British traders are not opened to Americans (quote "it cannot be but interesting ... to ascertain whether these other ports now open to British commerce are to remain shut nevertheless against the commerce of the United States” unquote)

Friend of China 18.5.43 edition

Report from our correspondent at Ningpo:

This city is situated in the centre of a large valley formed by the confluence of two rivers. The surrounding mountains are often snow covered in winter. The sole pagoda in the town provides a fine view of the valley which is criss-crossed with canals.

The government officers and merchants are kind and hospitable beyond all our expectations. They are as curious about us as we they. The merchants are keen for trade and appear to be doing a considerable business already - the town seems quite prosperous. They have allotted a site on the western river for the British factory and it is a good place.

Most of the traffic on the river brings soft pine logs. No hard wood is available yet.

All the dealers here have large stocks of Russian woollens. The cloth is a weave, 67½ inches wide, costing from 180 cash to $1 per cubit (15"). It is both cheap and durable and available in various qualities.

Castor oil is used as a varnish and sells at $6 per picul - its medical use is unrecognised by the Chinese here.

White lead at $15 per picul is used as a cosmetic.

Principal imports appear to be rice, sugar, timber, pepper, rattan, paper, tobacco, crockery, salt.

There are two Customs Houses - one for likin on goods arriving by land, the other for sea taxes. The local officials say they will waive duty payments by the British until the tariff has been agreed. There is said to be an inland route from here to Canton, mainly by canal, which takes 30 days.

Opium - Malwa is $345 and Patna $750. A large stock is on hand and many suppliers are in this market. There is a slight demand for the more popular Malwa because of its low price.

Trade is said to be slow for the time of year and the merchants blame the Emperor. There is a shortage of silver but He does not permit opening the mines. Gold is often tendered in exchange these days instead of silver.

As Englishmen, we considered the Yangtse was shut to us until the treaty negotiations had been concluded but two months ago two opium ships arrived, one from each of the two leading firms, and the captains presumed they should not be interfered with. They moored under the ruined batteries in full sight of Ning Po town to conduct their business. The civil authorities complained. The senior British naval officer ordered them to leave and reported his action to the Chinese side. At about the same time the steamer HMS Vixon arrived preparatory to a survey up the Yangtse River and both opium ships followed it. It no doubt looked as though the Royal Navy was protecting the opium trade. This is neither wise nor honourable. Sgd Nauticus

Friend of China 18.5.43 edition

Note from St Petersburg:

During England’s war with China, the tea supply to Kyakhta was greatly increased but now peace has been declared it is expected to return to normal quantities. Prices are expected to increase. At the trade fair at Nishny Novogorod (Gorkiy) in 1842 there were 4,500 more chests of tea than in 1841 and half the supply remained unsold at the end. Of the Ziegl Thee type (so-called because of its cake form) which the Siberian & Central Asian nomads and poor European Russians like to drink, 6,000 chests were brought to the fair and all were sold out.

Friend of China 18.5.43 edition

The P&O Shipping Company has offered to provide a steamship ferry from Far East to India if it can monopolise the mail contract. We have discussed this with an expert and we believe there should be two routes - Calcutta/China and Bombay/ Madras/ China.

The steamer from Suez leaves on the 24th of each month. The steamer from Calcutta leaves on the 14th of each month. The Bombay/Suez steamer leaves Suez on 24th and Bombay on the 1st arriving back at Suez on about 8th each month.

P&O propose that the China steamer should leave Bombay on 10th, arrive Colombo on 15th collect the mail left by the direct Suez/Calcutta steamer, leave on 17th for Trincomalee and arrive Madras 19th. Leaving 21st, arrive Penang 28th and Singapore 2nd.

The Calcutta/Suez steamer arrives Calcutta 18th so Calcutta/China steamer should leave Calcutta on about 21st, Maulmein 24th, Penang 28th, Singapore 2nd.

The steamer leaving Vina on 18th - 20th each month arrives Singapore 30th, leaving 2nd, Penang 4th, Maulmein 7th, Calcutta 11th in time to connect with the steamer to Suez on 14th.

The Editor thus works out a complex inter-linking schedule for the service.

If P&O carry cargo they could easily attract some of the opium traffic. Also about £4 millions in treasure is repatriated from the Far East each year - P&O could get most of this. The present freight rate for silver/gold is 1%.

In the winter monsoon the steamers should go via Palawan or Celebes Sea and Manila. In the summer monsoon they should sail down the western side of the China Sea.

Friend of China 25.5.43 edition

When a party is voted into power it should forget partisan issues and take the interests of the whole country as the basis to its policy. This comment is excited by a Tory article in the British press.

It attributes the cause of our war with China to the clamour raised against the Company’s trade monopoly prior to 1834. Palmerston is ridiculed for selecting a bed chamber lord (Napier) to be Chief Superintendent of Trade. Napier is reproached for not living at the Company’s Factory but with an opium smuggler.26

Concerning Elliot, it says he went out with Napier and some other Scotsmen. He won the opposition of the Canton authorities by defying their regulations and then brought on the war.

Both Napier and Elliot are said to have thrown themselves into the arms of the smugglers. Elliot took one of the opium smugglers out of the custody of the Canton authorities and, purportedly to save his life, surrendered the entire supply, pledging the Queen to recompense its owners. The opium traders were ecstatic at Elliot’s agreement to buy their stock in a market that had been totally collapsed by Chinese law enforcement.

The Tory author then examines the course of the war. He alleges a British surgeon collected a crate of minute feet from the deceased Manchu ladies of Chinkiang. A British craniologist beheaded several Chinese corpses and took their heads away as well.27

Friend of China, 25.5.43 edition

Editorial - Opium was smuggled into China under the Company’s reign but the Select Committee took no notice of it, deeming it a Chinese affair. Now under the new system of Consuls, we believe the British government should take no cognisance of the trade either.

In England we receive a river of illicit gin from Holland, illicit brandy from France, illicit tobacco from America and none of those three countries have any duty to England to police the smuggling or try to prevent it - it is solely a duty falling on the English Customs.

Britain maintains a preventive force of 500 naval officers and 25,000 men to prevent smuggling along its coasts.

Friend of China 25.5.43 edition

The unfriendly disposition of the Cantonese towards us is increasing. A few days ago there was a fire in Honam opposite the factories and many people arriving off the ferry took the opportunity of their access into the square to pelt the foreigners.

Trade is slow but much tea has been shipped. The volume will exceed 50 million lbs for the first time this season. Not much silk is coming down.

Friend of China 25.5.43 edition

East India & China Association letter to Peel MP of 3rd December 1842:

There is some things missing from the Plenipotentiary's treaty.

1/ Our members want to own land in China to build their own factories. They want their wives and families to reside with them. They want to deal directly with Chinese people without any intermediary.

2/ Previously our National Representatives (the Select) were honorary and were merchants day-to-day. The Chinese treated them as merchants. Now they will really represent the Crown. The Chinese have always assessed traders as the lowest class of people. The function of Consul and trader should be separated and there should be a chief Consul at Peking. Only thus can the oppressions and infractions on the trade be curtailed. We expect those oppressions and infractions to resume once the impression of recent events wears off.

Sgd George G de H Larpent (Peel said he had forwarded this letter to his Foreign Minister, Lord Aberdeen. Another letter of the East India & China Association on the same subject was sent direct to Aberdeen on 31st December.)

Friend of China 25.5.43 supplement

The opium schooner Ariel (managed by Dent & Co under the American flag) has been seized at Amoy by Commodore Kearney of the USS Constitution, commanding the U S East India Squadron, for breach of American navigation laws.

At the time of arrest the Ariel had $150,000 on board being proceeds of trade and it is expected this will also be liable to confiscation. Commodore Kearney has since published a note at Amoy dated 18th May 1843:

"Persons shipping goods along the China Coast should not patronise any opium ship sailing under the American flag."

Friend of China 1.6.43 edition

A copy of Commodore Kearney's letter to the Ariel’s Captain has been made available to the Editor. He says the schooner Ariel is not privileged to carry the American flag. Her crew are discharged and a U S naval crew has replaced them until 6 am 19th May when her usual captain may resume command but the American flag is not again to be hoisted. The naval officers have seized the papers of the vessel and sealed them in an envelope which will be delivered to the U S Consul at Macau. The ship will be sailed direct to Macau and may leave that port and avoid capture only when it has clear documentation permitting it to fly the American flag.

James P Sturgis, U S honorary Consul at Macau, has publicly declared he is unaware of any deficiency in the Ariel’s papers.

Editor - This appears to be a belated action taken under the advice which Kearney gave last year when he told the community that "the U S Government does not sanction the smuggling of opium on this coast under the American flag, in violation of the laws of China." The employment of American-flag vessels in the opium trade has greatly increased since then, so its not surprising he has at last taken action.

Under the U S Constitution we would have thought the Commodore had no more right to interfere with U S citizens in the opium trade than Pottinger has with British citizens. Consider the recent instruction of the Plenipotentiary to Capt Hope, commanding the British squadron at Chusan who was ordered to release the opium vessels he had arrested for contravening Pottinger’s order not to enter the new treaty ports until the commercial treaty has been concluded.

We wonder if Kearney's action is intended to conciliate Chinese officials now a U S ambassador is on his way. We don't mind if the Americans are going to put down the opium trade. Perhaps it is a quid pro quo for Britain putting down the slave trade.

Friend of China 1.6.43 edition

Extracts from the Peking Gazettes:

Friend of China, 8.6.43 edition

The March overland mail brings news from Europe:

Friend of China 8.6.43 edition

Mr J S Case has opened the British Hotel for families and parties. It is at 2 Po Shan Hong in the Canton factories. European servants are always in attendance.

Friend of China 8.6.43 edition

Extracts from the Peking Gazettes:

  1. The Treasurer of the Privy Council reports that the arrears of taxes up to the 15th year of the To Kwong Emperor's reign (1837) amount to 25,003,000 Taels of silver (£8 millions) of which 19,906,500 Taels accumulated in the 2 years 1836-37. He says he cannot refund the expenses of the war and maintain the army and navy unless Viceroys and Governors pay their back taxes.

  2. Keying and others report the need for a change in military discipline. The Military Board at Peking will immediately inspect all firearms and give directions. It will dispatch the following (named) officers to the Provinces to do the same. All soldiers and sailors will practice with muskets and cannons. Every year there will be four inspections made by the Viceroy or Provincial Governor in 2nd, 5th, 8th and 11th months. Shooting competitions will be held and whoever excels will be sent to the Emperor for reward. The basic cannon of the army is to be the 'eighteen'. Any officers who do not display perfect knowledge will be degraded. These changes are especially to be followed in Shantung, Kiangsu, Chekiang and Kwangtung.

Friend of China 8.6.43 edition

M. Challaye, the French consul (still resident in Hong Kong), has donated several issues of the Annales Maritimes et Coloniales to the Friend of China Editor. In them is an interesting account of the visit of the French corvette Danaide (de Rosamel) to Hong Kong in 1841. Capt de Rosamel was a French observer of the war. Here is an extract from his report:

From the 13th July 1843 edition …..

At Amoy the English flag was flying on Ku Long Su Island when I arrived. Eight days previous the English ships had made a cannonade and the troops disembarked. The Chinese made a feeble defence and lost many soldiers. The troops occupied the town for three days but it is said only public establishments were pillaged and private property was respected. Amoy was supposed by the Chinese to be a redoubt. They had concentrated forces there and the foundry made 30 – 40 brass cannon and some iron ones in less than a year. They had so buried these pieces in protective earthworks that it was impossible to aim them properly. As the English infantry approached, each piece was abandoned after two or three shots. Then there was a slaughter, with the sepoys killing the fleeing unarmed Chinese - the English lost 2 killed; the Chinese 800. As the troops landed, all the senior officers left and they were followed by their juniors and the merchants of the town. This left only the common soldiers and the hoi polloi. There is a great naval base at Amoy and the Chinese Admiral’s yamen contained a large supply of stores. A great fleet of warjunks was captured. After three days of looting the town was abandoned and the island of Ku Long Su garrisoned with 400 – 500 men. Some cannons and mortars were pointed from the island at the town but no further violence was done. The island is well cultivated and contains many good houses. A horrible pillage of the village on the island was done but the English say it was not them but the work of Chinese plunderers. Now there is some trade in provisions but both sides are quite reserved.

The port was blockaded by Capt Smith in the Druid (42) with Pylades (18) and Algerine (10). A large junk fleet was in harbour. These ships have all been numbered and Smith sent patrols amongst them to avoid surprises (he fears fire ships). Capt Smith was very helpful to me and has offered all sorts of stores as well as the use of his charts of the northern waters. I mention this in view of the offence given to the officers of La Danaide at the taking of Chin Hae and afterwards.

Amoy appears to be a first class commercial town. The quay is nearly 2 miles long with a causeway of smooth stones to load/unload goods at low water. It was packed with junks. A rude careening dock was being used for junks up to 300 – 400 tons. A chain of small hills between the town and the anchorage prevents a complete view. There are said to be 70,000 – 80,000 inhabitants.

Manila used to have the honour of free trade with Amoy. A Spanish captain told me they abandoned the trade because there were disasters every year. I wonder how they could have disasters every year unless they anchored outside the port. With proper precautions inside there was hardly a possibility of an accident. I suspect it was Spanish laziness that caused the abandonment of this privilege.29 I have heard the Manila people are frightened to navigate the China coast beyond Macau.

Amoy harbour is large. The entrance is easy and within there is 9 –10 fathoms. I bought 2 oxen and some fowls for $14. Fresh water was difficult to get and tasted bad. The market remains closed but the Fukienese love of trade and the absence of officials makes me expect it will be opened very soon.

Chimmo is a little town with a good port open to the east. It is a distribution centre for opium. The foreign ships here are like floating warehouses. They only trade on the nearby coast and one has been anchored here for 18 months. They are supplied by clippers. The sailors dare not land – all sales are made on board, often at night. The captain of one hulk told me business was slow but I am told everyone who puts capital into opium business makes a fortune. Later when I went north I found every port had some of these opium hulks in it. The captains carefully conceal their knowledge of the beautiful and numerous ports along this coast.

Chusan (Ting Hae Heen) was taken on 29th or 30th September 1841. The fleet sustained a long battery from 45 – 50 guns but they had little to do (i.e. the shooting was ineffective). The troops disembarked and attacked the Chinese positions on a hill. The Chinese were brave but unskilful. One English ensign was killed and some soldiers wounded. When the English got a detachment around the Chinese rear, they threw down their arms and fled. Then the troops scaled the walls of the undefended town and occupied it. This was the hardest battle the English have yet had. They lost 5 (2 killed and 3 died of wounds) plus 20-25 wounded. The Chinese loss was 400 – 500 dead. Abandoned by the English scarcely a year before, the Chinese had secured the place well in the short time available. A cannon foundry had produced 20-30 brass cannons modelled on a fine European gun taken from a wreck. The gun carriages were improved and the garrison only lacked courageous leadership. Unfortunately the chief civil officer, who had sworn to the Emperor to exterminate the barbarians, took flight at the commencement of the affair. The soldiers without leaders waited for the enemy and fired their matchlocks two or three times then turned their backs on the shower of English balls falling on them.

Chusan is not beautiful and the port is difficult to get in and out of. Ting Hae is a walled town encircled by rivers, a mile from the sea. It is very unhealthy as the first occupation proved. The only interesting structure in the town is a pagoda with some grotesque statues within. The English troops are bivouacked in the pagoda and temples where they destroy everything. The most amazing thing, so far as the Chinese were concerned, was to see one temple turned into a magazine and another made the quarters of Sir Hugh Gough!

After taking the town, the English shut the gates and did not permit any Chinese to leave for 3 days. They hoped to force them to communicate and, in the meantime, to show that by paying for everything, there was nothing to fear. When I arrived a few days after the occupation some merchants had resumed trade but not many. The town is poor and appears to be mainly a military post. After its occupation it is only used as a haven for the ships-of-war from whence they could launch an attack on Peh Chih Li (if that is their plan).

The English found a huge store of grain at Ting Hae which they bartered for cattle and other provisions. They also found stores of powder, small arms and iron cannon which they destroyed. They took 20-25 brass cannon for their own use.

There is a story being told about the previous (Elliot’s) occupation. After the English evacuated Chusan, the Chinese disinterred the bodies of some 300 – 350 troops who had died of fever and made trophies of their bones, sending them to the interior as proof of a brilliant victory.

During the evening that I arrived, the Admiral returned from a reconnaissance of Ningpo and its river. The day after tomorrow an attack will be made on Chin Hai, the fortified town commanding the river mouth, and the transports are preparing to quit Chusan tomorrow.

Continued in 20th July edition ….

Chin Hae was defended by 15,000 men and enjoyed huge resources and good fortifications but fell after a few hours fighting to about 1,500 British troops. I cannot explain the apparent cowardice of the Chinese. All animals defend themselves from danger but not these people. The attitudes of submission, of crawling and prostrating are vile to me. Having seen the capture of Chin Hae, I suspect one European regiment could march from Canton to Peking and take all the places in between without losing a man because the army officers fly before them and, once they have gone, the people deal with the enemy as though they are friends. The official responsible for Chin Hae told the Emperor that he would send him a mattress made of the tanned skins of English soldiers. In his house the British found a copy of a memorial he had already written to the Emperor noting the English had appeared and he had driven them off and they had disappeared (this must be an allusion to the steamer that did the reconnaissance a few days before the attack, at which time a few cannon shots were exchanged). This official ran off at the commencement of the attack and later poisoned himself at Ningpo.

Chin Hae is deemed important because it has a cannon foundry and factories for the manufacture of all sorts of arms. The climate is far healthier than Chusan where the English lost so many men to sickness in the first campaign. The Chinese cannon factories are as large as our French ones but they differ in the process of manufacture – the Chinese ream out the bore with a rasp whereas we drill ours. They were also making gun carriages at Chin Hae but these, whilst beautifully made, were useless as there were no wedges. The cannon had to be fixed in position and could not be elevated. The quantity of small arms, arrows, bows, swords and the like that filled the pagoda was astonishing. The English destroyed everything except 20-30 brass cannon which they took on board their own ships. I saw a few English soldiers drunk on sam shoo and out of control but the larger houses on the outskirts of town had nothing left by their owners to loot and generally the soldiers did not do well. The pillaging was not organised and the army police were diverted in preventing the actions of the Chinese mob. The main concern of General Gough before leaving was to destroy all the arms – after all he was leaving 300-400 men in charge of a town of 25,000 residents.

Then a typically English problem arose. The English are cruel in battle and do not spare even those who flee from them but afterwards they are too lenient. Apparently the Plenipotentiary wanted to be tough but Gough and Parker disagreed. Now they have this doubt whether they can hold the town against the residents should they become boisterous.

After Chin Hae, four steamers, the corvette Modeste and two brigs-of-war arrived before Ningpo. The English troops on board, numbering 1,000 – 1,200, were landed and the city, containing 200,000+ men was taken without a blow being struck. The officials of Ningpo had used the three days between the capture of Chin Hae and the arrival of the British at Ningpo to remove everything of value. The merchants had also removed their stock and treasure so the eventual loot from this huge town produced only $100,000 – $200,000. The warehouses were all found to be empty.

To repair this disappointment to the men, Admiral Parker took his steamers straight up the river 40 miles more to the town of Yu Yaou. He entered this without resistance but found only poor and trembling wretches and all the shops and houses had been shut up. It is said to be a rich city of 40,000. A stone bridge across the river prevented the steamers from proceeding any further inland and, after two days search of the vicinity of Yu Yaou, the party returned empty-handed to Ningpo. On the return downstream the local population came out in huge numbers to line the banks of the river and watch as the foreigners passed.

At Ningpo arrangements were made to trade with the bigger merchants but the valuable items from their shops had been removed. Obviously they are not yet confident of British treatment of them. Many insisted that the English not abandon the area saying if they did and the civil servants returned they would certainly be executed. This assurance could not be given and those traders accordingly did not open their shops.

The insurmountable problem for the English is in finding an official who is agreeable to administering the town at their direction – someone who would act for the English but from whom the populace would accept orders. No officials remained in the town and the merchants lack the prestige to take command. By that time, only the houses of the officials had been pillaged by the mob and the merchants had not yet been violated but so many places remained closed that it appeared only a matter of time before order broke down completely.

Could the English soldiery control the situation? Every time a soldier walked down a street all the Chinese bowed down and touched the ground with their heads as he passed. Of the attacking force of 1,200, 400 were sailors and had returned to their ships. The remaining force of 800 seemed too few. The mob was assessed to be 80,000 – 100,000 wretches of the worst type (the town is very large). It was beyond the ability of the soldiers to police it, which had to be done by the Chinese themselves. Pottinger had three interpreters (one for him and one each for the Admiral and the General). They understood the ‘mandarin-speak’ but not the Ningpo dialect. He himself could not be involved as he had determined to speak only to an envoy from Peking, so the other two had to do all the work. As the Emperor had nothing to say to him, Pottinger was pretty free at that time.

It would be valuable to assess the extent of injury that the English were able to effect by their occupation of Amoy, Chusan, Chin Hae and Ningpo. The part of Fukien and Chekiang that they effected contains about 25 - 30 millions. This huge population was inconvenienced by 2,500 – 3,000 foreign troops.

Continued in the 17th Aug edition

To occupy the 500 – 600 troops during the winter it was generally believed that an expedition would go to Hang Chow Foo and ransom it. A steamer had already reconnoitred the river (the Cheng Tang Kong). Hangchow seems to be a very commercial town able to pay a heavy contribution.

Such a victory might have helped to open the eyes of the Emperor and persuaded him to stop the calamities that pressed upon his Provinces wherever the enemy landed. After this expedition the troops would still have to wait for reinforcements before attempting Peking in April or May. Instead of proceeding to Peking an expedition into the Yangtse to Nanking was proposed as the steamers could certainly get there. If they took Nanking they could command the Grand Canal and all the interior commerce of the Empire. That would induce the Emperor to treat. This plan required nothing more than a few additional steamers. The Yangtse is deep and navigation is easy whereas the Gulf of Peh Chih Li is shallow and the Peh Ho is difficult to navigate. Anyway the Emperor would flee on the approach of the troops. It was thought a blow against the commerce of the Empire incidentally providing a threat of famine to Peking might be more effective.

The English officers said they wanted only reparation for past injury and freedom of commerce in a few ports for all. This may have been the original intention but events seem to have made them change the plan. Now no-one knows what the Plenipotentiary will do. He bides his time.

The illusion of Chinese power has been blown away. Perhaps Britain did not intend the permanent conquest of China but when the cabinet learns the facility with which the armies of Amoy, Chusan, Ningpo and Chinhae were dispersed, without considering the other captured towns, and when they learn how many Chinese have asked for British protection, how readily they submit and how easily they are governed, they might consider sending troops and ships to consolidate their power at the centre of this vast nation. It presents so many military and commercial advantages.

Such a conquest would cause a great revolution in China but the people are so fond of wealth that they could not long refuse to join in the trade with their new conquerors. As certainly as opium has burst all the fetters that civil servants and Emperor have placed upon it, so would British woollens, cottons and other manufactures find their way throughout the Empire. For the Chinese, finding a direct opening for their teas and silk etc, without sending them cheaply to Canton, relieved of the despotism and spoliation of the officials, there is little doubt they would soon cast off their aversion to strangers and enter into relations.

It is my private opinion that England will be unable to resist this opportunity.

As regards Chusan, I am sure the English will retain it until the treaties are ratified. The Emperor is a fool. The longer he delays the worse his position becomes. No wonder the Chinese isolate themselves from foreigners. Had the Europeans, particularly the English, known how easy they are to overcome, they would not have endured the humiliations at Canton. It is not astonishing that for all the long time that the Company held the monopoly of trade there was no serious disturbance. Obviously their interest dictated patience and resignation.

The war would not have broken out if China had not acknowledged the representatives of other powers whilst ignoring the official English agent at Canton, the Chief Superintendent of Trade. The English were right not to wait until they had been overwhelmed with humiliation.

Now the first step has been taken. The Emperor will have to submit and open ports. The choice is an interminable war, the loss of his Empire and the ruin of his people. Will our own (French) commerce have to retire from China? It is so trivial, not because of the Chinese system but our own disinterest. The only article we have to compete with England is woollen cloth and that can only be sold in the north. European woollens were unavailable at Ningpo, Chusan and Chinhae but the natives wanted them. They often stopped me and touched my clothes in ecstasy at the texture, apparently desirous of having it. In winter they wear silk and quilted cotton but winter is severe and they have no wool. M Barrot has already reported the qualities, sizes and colours that the Chinese prefer and which the English supply. I do not know if the same taste prevails in the north but as their garments appear the same I suppose the dimensions of cloth should also be the same.

Friend of China 8.6.43 edition

Amoy Trade report - Rice was up to $3 per picul but has since declined to $2 owing to huge shipments arrived from Taiwan. The high prices also induced shipments from Manila and Java which are daily expected. As at Ningpo, the trade custom in Amoy is to sell rice in piculs, not of 100 catties as is usual, but piculs of 135 or 140 catties. This explains the apparent difference between Taiwan rice and British imports.

Sandalwood, rattans, pepper, woollens and cottons are all trading slowly. 3-4 chests of opium are sold a day - new Patna $780, old $760, Benares $740, Malwa $620. The opium depot for Amoy is located in Chimmo Bay.

Friend of China 8.6.43 edition

Captain Hope of the Royal Navy is coming south in HMS Thalia to Hong Kong to be tried (it is said) for being so naive as to have prevented opium vessels from approaching unopened Chinese ports, believing, as the Editor says, 'that Pottinger’s November proclamation was something more than a Chinese Edict.'

Friend of China, 8.6.43 edition

The Friend of India says Capt Warden of the steamer Queen has presented the Bishop of Calcutta with the very large iron bell he looted from Ningpo. The Bishop accepted it for the new cathedral.

Friend of China 15.6.43 edition

Canton Trade Report, from our American correspondent at the factories:

Tea sales for the season until end-May were 47 million lbs and several ships are still waiting to load - the year's total should reach nearly 50 millions.

Silks - no sales.

Opium has been brisk but prices down - Patna $630, Benares $620, Malwa $530. Some people says prices are depressed by Keying's arrival, others that importers are pressing sales while demand remains good.

Our correspondent says 'despite the denunciations of your Plenipotentiary, our systemised system of regular irregularity, which he does not appreciate or understand, is going on as comfortably as could be expected or desired. The greater part of imports and exports do not pay duty, neither do they pay the arbitrary exactions of before. Nor do the ships pay a port charge - how can they afford to at the present low freight rates? We do not think this is smuggling as it has the sanction and connivance of the local authorities and I can tell you that the price of transit from Whampoa to Canton in the best Provincial government boats has fallen to $12 - 15 per opium chest depending on the quantity (i.e. large shipment = lower freight). 3 - 4 government boats come down every morning and lie abreast of the opium fleet. These are the new boats that were recently built to prevent piracy and are all newly painted and look very pretty. Trade is very regular and quiet. The moderate freight rate agreed with the officials is sufficiently low to ensure we do not employ smuggling boats of our own or use our foreign craft so there is no fear of any disturbances.30

Exchange Rates - Mexican dollars are at 7½% discount; Ferdinand dollars are at par, Carolus are 6-7% premium, sycee is 1.8% discount.

The arrival of Keying means the new tariff should be concluded very soon as we hear its terms have already been agreed amongst our merchants and he only has to sign it. Some say it will come into effect perhaps as early as 1st August 43 but I myself think it will have to go to Peking for ratification. The traders are beginning to get edgy over the new tariff - you can imagine how galling it would be to load a cargo of teas liable to 6 Taels duty (today’s rate) only to find it was 2-3 Taels tomorrow.

Friend of China 15.6.43 edition

Under the provisions of the Act to Regulate the Trade to India and China, 1833, the then King-in-Council prohibited British subjects from resorting to Chinese ports other than those opened by treaty or occupied by British forces. Any breach of the Order-in-Council attracts fines of up to £100 or imprisonment for up to 3 months.

Major Malcolm, on his way home with the ratified treaty, told the Indian press that Pottinger had said he intended to confiscate English ships visiting any other than the five ports and he would confiscate opium ships wherever he found them.

When the British merchants in India heard that they thought it incredible and did not repeat it - now it seems to have been true. Later the policy was confirmed in the newspaper The Examiner reputedly by John Crawfurd, the late governor of Singapore and the historian of Eastern seas, but we still could not believe it.

It seems England is now to provide a coast guard service to China!

Editor - this legal provision is likely to transfer a valuable trade to foreign-flag ships but we hear it said that the English smugglers are boasting that they will continue their trade, then sail to Hong Kong, lay an information against themselves before the Magistrate, surrender and admit their offence, pay the fine and do it all over again - such is the profit they are guaranteed. It seems the home government is unaware of the astonishing changes that have occurred in the China-trade since the end of the Company’s monopoly nearly ten years ago.

Friend of China, 15.6.43 Supplement

Article in The Examiner - Major Malcolm, whilst on the Auckland, told fellow passengers that the Emperor sent a message to Pottinger that, to get the treaty ratified more quickly, he should prohibit English ships importing opium to the five ports. He says Pottinger agreed.

In 1814 its import was stimulated by the partial opening in trade between India and Europe and again in 1834 by the abandonment of the Company’s monopoly. It was after this last event that the Chinese government became alarmed.

The Chinese have been using opium, mainly from India, for three centuries and for 250 years it was legal to do so. About 50 years ago it became contraband.

Although proscribed it has been the most flourishing part of the Empire's foreign trade and was consumed throughout the country. Civil, military, naval and police officers all connived. Even the Viceroys of Canton, either themselves or through their nearest relatives, connived in its smuggled import. The only difference was that the revenue on opium went into the pockets of the Provincial officials while the revenue on other goods went to the Emperor.

Under the new treaty, opium smuggling will continue at five points instead of one. Lintins will develop at each new port.

The India Board (of which Sir Robert Peel, the Chancellor of the Exchequer and the Secretaries of State are members) will encourage the trade as vital to the Indian revenue. One of the members (in his capacity as Foreign Secretary) will denounce it as illegal and immoral. He will write to China asseverating good faith. At the suggestion of the Admiralty, the Foreign Secretary will require the seizure and confiscation of British ships carrying opium in the five ports, and the trade will go on more briskly than ever. The Chinese will say we act out a dishonest charade and try to deceive them. Even the adroit Sir Robert Peel will not know how to handle this.

If Sir Henry really has made the alleged promise to the Chinese government, he is a fool. He should rather have broken off negotiations. The Emperor should have been commended to receive the greater revenue. Britain cannot do coast guard for China.

Friend of China 15.6.43 edition

Lord John Russell has questioned the Chancellor of the Exchequer concerning a Petition he received from the merchants of Bombay querying the delay in payment of indemnity for surrendered opium (Elliot’s opium scrip).

The Chancellor had formerly said that enquiry was being made in India and China as to the value of the surrendered opium. Russell asked if it had been done. The Chancellor said enquiries were still proceeding but, in any event, he could not do anything for the merchants until the ratified treaties are exchanged. Then whatever conditions are contained in the treaty would be fulfilled. (i.e. the ministry will ensure China pays before agreeing to compensate the merchants)

Friend of China 15.6.43 edition

Extracts from the Peking Gazettes:

The tone of many recent issues reveals an unmitigated hatred of the English and a horror of the late war which the Peking papers are communicating to the entire population. All Gazettes are full of warlike recommendations. Last week we mentioned one such notice.

This week there are three Gazettes recommending strengthening the gunpowder formula. There are several officials reports on how to cast guns in the English style. Several officers are disgraced because cannon cast under their supervision burst in testing and injured by-standers.

Editor - It is rumoured locally that Russell and Co have received an order for muskets and heavy guns. Pottinger and others say there is no prospect of renewed fighting but the Emperor is working through all of his naval, army and civil officers who came up against us in the late war and lost. He is punishing them all, even those of the highest rank. Yishan and Niu Kien are both sentenced to death. Yu Poo Yun (a Chinese) has already been beheaded. He was General of the Chekiang Chinese army and defended his Province as best he could. Our own officers noted his bravery during the capture of Chin Hae. His son petitioned the Emperor to be allowed to die in the place of his father and was denied. The Emperor says Yu Poo Yun’s crime was too heavy for mitigation. He urged the boy to repel the barbarians should they again attack the land.

Friend of China 15.6.43 edition

Report from Canton: A fleet of 150 pirate ships has assembled in the Ladrones. They defy the authorities and predate on all the passing native craft. Recently they captured the Lung Mun magistrate. He is the official responsible for security of the Bogue. They confiscated his seals and sent his ears to Canton with a demand for $60,000 ransom. The Canton officials counter-offered $3,000 but this was found to be on the low-side as it is said the Heep is now dead. Foreign ships have not so far been attacked.

Friend of China 15.6.43 edition

The Friend of India says Capt Warden of the steamer Queen has presented the Bishop of Calcutta with a very large iron bell that he looted from Ningpo. The Bishop accepted it for the new Calcutta cathedral.

Friend of China 15.6.43 edition

The Singapore Free Press says it is a wonder that the Plenipotentiary took so long to ‘discover the disgraceful smuggling that has been carried on to such a large extent and in so barefaced a way in China’. He has not retarded or refused to complete the final arrangements under the treaty. That shows the British are anxious to bring it into operation. As he has called smuggling to the attention of the Chinese government it may soon be ended. We expect British merchants involved in this business will be anxious to withdraw, to prevent their names being published to the world as Sir Henry threatens to do.

Friend of China 15.6.43 Supplement

A selection of biographies of army officers who served with distinction in China

Friend of China 15.6.43 Supplement

The opium trade will be an embarrassment in our relations with China.

On the one hand we have the merchant smugglers saying that until opium is legalised they cannot have a good trade relationship with China. They claim to be apprehensive because the Plenipotentiary has not mentioned the trade in the treaty (‘ominous silence’ they call it) and the Hong merchants expect smuggling to continue as before, as indeed it is.

On the other hand the Chambers of Commerce of Lancashire and Yorkshire do not want legalisation as they say it is a greater evil than smuggling. They expect legalisation will entirely exclude British manufactures from China. They suppose British textiles can only be sold in China by forcing them on the market in part payment for teas. If opium is legal, it will substitute for their cloth and be bartered for tea.

We think the British government should let the Chinese deal with opium as best they can and simply try to discourage the traders from dealing in it. Sir Henry had it in his power to dictate treaty terms to the Chinese. His 'ominous silence' must have resulted from official instructions. If so, we hope that the opium traders can be checked and prevented from disturbing the good understanding that is possible between China and Britain.

Friend of China 22.6.43 edition

Canton trade report:

Everything is dull except opium which is improving. The Hong merchants say the new tariff will be promulgated and effective within two months. They say the duty on tea will be 2 Taels.

Friend of China 22.6.43 edition

Extracts from the Peking Gazettes:

The Admiral of Fukien Ching Kee Pin has memorialised the Emperor that now the barbarian quarrel is concluded the people should be trained in war and a new stronger gunpowder formulated. He says the city of Hangchow is famous for its gunpowder and the people everywhere should emulate that formulation. He says the saltpetre must be completely dry and the sulphur pure.

Admiral Ching says the old system of crushing the chemicals with pestle and mortar is inefficient. What is needed is a bullock-powered mill. Then instead of three men producing 15 catties of powder a day as at present, they will each produce 100 catties a day. All that is needed is 1 - 2 prefects to ensure everything is done properly.

Admiral Ching notes that barbarian cannon are too short compared with Chinese cannon. If China buys English powder and uses it in her Chinese cannon it will propel a shot much further than an English cannon (about 250 koongs i.e. c. ½ mile) because of the longer barrel.

(Editor - Dr Ure says there is very little difference between Chinese and English gunpowder. China uses 75 parts saltpetre, 14½ charcoal and 10 sulphur while England uses 65 parts nitre, 15 charcoal and 10 sulphur. The difference lies in the storage - the Chinese gunpowder has an uneven grain and feels wet. When burned it exudes a fouler smell than English powder. The Editor also notes that Admiral Ching at no time mentions charcoal as an ingredient of gunpowder. Finally he notes that Dr Ure has said that reducing the sulphur content makes a more forceful explosion - a powder of 12% charcoal and 12% sulphur threw a shot half the distance of a powder of 9% sulphur and 15% charcoal. By experiment it was found that charcoal makes gunpowder burn best with the least residuum.

The Chinese government routinely pays money to the forts and armies and ships to buy their own gunpowder rather than supplying it itself. This is a likely source of trouble. Also they commonly use pine wood, shan tan, for charcoal but recently have changed to rattan, tung tan)

Friend of China 22.6.43 edition

The Water Witch (Reynell), arrived 18th June 43, and has provided accounts of the latest opium auctions at Calcutta. 2,035 chests of Patna fetched an average 1,247 Rupees while 1,100 chests of Benares produced 1,137 Rupees on average (sale proceeds - c. 3.8 million Rupees). Subsequently the Red Rover arrived from China and rates increased a further R90 per chest. The auctioned opium is being shipped per Pelorus and Marquis of Hastings whilst John Brightman will sail for the Straits.

Editor - A letter from our correspondent at Singapore dated 14.6.43 says opium prices at Calcutta have increased. On 12.5.43 Patna sold at R1,425. At Singapore on 14.6.43 Patna was $660 and Benares $640-645.

Friend of China 29.6.43 edition

The House of Commons debated the opium trade on 4th April 43 on Lord Ashley's motion and we now have a report of proceedings:

Ashley made out a complete case against the Company by citing the much-loved Lt Col Tod (at the time of Hastings’ acquisition of the business) 'No sooner was it promulgated that the Company's Sahib was contractor-general for opium, than Princes and peasants, nay, even the very scavengers, dabbled in the speculation. All Malwa was thrown into a fervent like Dutch tulip mania: the most fraudulent transfers and purchases were effected by men who had not a seed of opium in their possession. In a variety of ways, the local government has extended the cultivation of the Drug. They allowed the District Collectors a percentage of the sale proceeds in Calcutta upon the surplus produced, over and above what was produced by their predecessors'.

Editor - "We hope the noble Lord will never relax in his efforts until the detestable opium monopoly of the company is abolished.

The other part of Ashley’s speech about smuggling opium into China was full of egregious errors

Editor – I have been sending the Lord regular advices which apparently he has not read.

For example Lord Ashley said the Baptist Missionary Society is sending its missionaries to China under American aegis, as England's reputation is irrevocably sullied by opium and he said the Baptist Missionary Society had voted £500 to donate to the Americans to propagate the Baptist faith.

Editor: This is terrible - Commodore Kearney may have repudiated the opium trade but Americans practise domestic slavery to save money! If the profits on opium had gone to replenish the American exchequer, we suspect the Commodore would not have said a word. The amount of American shipping and capital invested in opium trade is huge. Between U S and British opium smugglers, it is six of one and half a dozen of the other.

Mr Bingham Baring told the Commons that the entire Royal Navy with the Emperor's coastguard fleet would be inadequate to prevent the trade. France operates a restrictive trade policy like China and employs 20,000 men on Douane excluding its maritime force, and it is still insufficient. If China did the same, even if the civil servants were not venal, it would be ineffective.

Editor - The way the smuggling works in China is unlike the way of the rest of the world. The ship lies off the coast and it is the Chinese who come on board to pay for the cargo and tally it over the side before smuggling it into their own country. Whenever a foreign ship enters a port or cove along the east coast, natives always row out and ask for opium.

One of the things that annoyed Pottinger when he was en route north for the war was the common occurrence, whenever HMS Queen put in to a bay or port, of his being asked to sell opium.

There can be no doubt that the control of the trade rests with the Chinese. When they take strong measures, as with Commissioner Lin, they can succeed. He made opium unsellable and valueless.

The Friend of China abhors opium and alcohol for the same reason. British fiscal regulation (both excise and the Corn Laws) is immoral.

The report on the Commons debate is then resumed ......

Sir George Staunton said 'should the Emperor seek to legalise the trade he will not sit on his throne another month.' Staunton is quite right. China does not levy a duty on vice like Europe. The Imperial statesmen say a duty on opium is an approval of its use. Chinese government is honourable government – they cannot licence depravity like us.

Mr Hogg has lived long in India and was a Director of the India Company. All that poor man could say in his speech was to apologise for the infamous monopoly.

H H Lindsay's speech (an ex-Company officer, then opium smuggler turned MP) was frequently interrupted and did not get the attention it deserved. He was heard to quote Dr Colledge who says opium smoking is good for you.

Lord Sandon's morality (MP for Liverpool) sickened Peel who rebuked him.

Editor – Sandon’s most active constituency supporters made their money slaving.

The best speech was Peel's. Quote:

“Now with regard to the interdiction of the illegal traffic, that subject has occupied the attention, not only of the present, but of the late government, who gave instructions to Sir Henry Pottinger on the subject which her Majesty's present government have renewed. And who is Sir Henry Pottinger and what is the course he was directed to follow? What was the spirit of the last communication which has been blamed by the noble lord, the MP for Liverpool? What was his feelings and dispositions towards the people of China? Did he not stand almost alone there, and has he not given proof that he is a man in whom the House of Commons may confide?

“He has been instructed to represent to the Chinese government, not, I admit, the attempted impossibility of interdicting altogether the importation of opium into China, but such a respectful representation as may conduce friendly relations and an advantageous understanding upon the subject of revenue; and if the Chinese Government can be persuaded to look at the question in the way in which European Governments regards similar questions, namely, with respect to the means for the prohibition of smuggling, an amicable arrangement may be agreed upon.

“The importance of the subject is my excuse for reading from the last instructions sent out to Sir Henry dated 29th December 1842, to prove that Her Majesty's Government have not been indifferent to these matters, and that they are fully aware of the evils with which it may be pregnant to the honour and character of this country, as well as to the employment and safety of the great capital presently involved in the trade.

“On the date mentioned Lord Aberdeen wrote this dispatch:

“"Whatever may be the result of your endeavours to prevail upon the Chinese Government to legalise the sale of opium, it will be right that her Majesty's servants in China should hold themselves aloof from all connexion with so discreditable a traffic. The British merchant, who may be a smuggler, must receive no protection or support in the prosecution of his illegal sale and he must be made aware that he will have to take the consequences of his own conduct. Her Majesty's Government have not the power to put a stop to this trade on the part of the British smuggler; but they may impede it in some degree by preventing Hong Kong and its waters from being used as a port by the British smuggler, as a starting point for his illegal acts. That is to say, when Hongkong is ceded, until then the smuggling of opium cannot be prevented there; but as soon as it is ceded, you will have power to prevent the importation of opium into Hong Kong for the purpose of its exportation into China."

“Now I think I have proved to the satisfaction of the House that this important subject has not escaped the attention of Her Majesty's Government. Considering the present state of affairs, and the negotiations which are pending, I think it much better that the whole matter be left in the hands of the Government, rather than the House should come to a vote which might defeat the very object of the motion. So much for the illegal traffic.” Unquote.

Editor - The immoralities encouraged in India are balanced by the affectation of virtue in China. The only virtue here derives from Lord Aberdeen's intended prohibition of storing opium on Hong Kong island. Pottinger's practical sagacity will find that measure preposterous in a free port as Hong Kong has been declared to be. J M & Co, who have spent over $250,000 erecting buildings at East Point, say they will remain at Macau if opium cannot be stored in Hong Kong and many other smugglers will follow their example. Everything that A R Johnstone, Caine and Capt Mylius (the three people to whom the success of the colony is attributable, in the opinion of the Editor) have achieved here could have only resulted in getting a few refugees and settlers to supply the garrison and men-of-war. People who have invested heavily in Hong Kong have a reasonable ground for complaint, he concludes.

Friend of China 29.6.43 edition

Canton trade report from our correspondent:

Cotton - dull, cotton twist (in low singles) - good, long-cloth - no stock, only smuggled long-cloth (delivered from 'outside men' in Hong Kong ). Long Ells - slow as many of the smugglers have been caught

(Editor - long cloth is exclusively smuggled these days).

Piecegoods - An enormous stock is in the storeships at Whampoa but the Chuan Chow men and elsewhere up the coast are not buying temporarily in expectation of a direct supply. Prices at Amoy etc. might be better soon.

The sincerity of the Provincial government's attempt to stop smuggling can be gauged by the Hoppo's ability to catch the smugglers of long ells but not of opium although they both use the same type of smuggling craft.

Tea - 70 chops of congou and very little else remain in stock here. Prices are moderate. The new tariff rumoured on tea exports is thought to be 4 Taels a picul. Considering the loss of weight on purchase and the expenses of the Hongs, this is thought by the merchants to not be a sufficient reduction. One house has bought tea and is storing it in the Hongs although they have a half-laden ship at Whampoa that could take it to London - they must expect an early reduction of duty and are delaying export to take advantage of it.

Friend of China 29.6.43 edition

Elliott’s Opium scrip:

Amongst the papers presented to parliament was Pottinger's report on the value of opium at the time of its confiscation. He says it is impossible to arrive at any satisfactory basis on which to value it. Capt Elliott said £45 per chest was enough. Lord Ellenborough said £40 was about right. The government seems persuaded to use the rate adopted by the Supreme Court at Calcutta in da Souza's case of £40 per chest.

Editor - Justice requires that up to $250 (£60) per chest should be awarded.

Friend of China 6.7.43 edition

Extracts from the Peking Gazettes:

“The Cantonese are famous for their hard work and business acumen which is shown in the wealth and population of their province. They have well-treated the foreigners who come here to trade. For 200 years the English have come and brought wealth. Recently we had a war, the Emperor was moved to compassion, and wants to satisfy the foreigners and thus continue the wealth of the Cantonese. “But some troublemakers from Chekiang have been stirring up the people for personal reasons. Chien Kang the leader has been arrested and will be punished. His recommendation to take up arms and expel the barbarians is not what the Emperor wants. You must obey the Emperor and honour your superiors.“The English are now permitted to trade in five ports and you Cantonese fear you will have less business. Are you not on the direct road to all those other ports? The foreigners will still come to Canton first. If you deal honourably with them, why should they spend more time travelling to the north. It costs money to go further. The foreigner comes for profit. He will not leave the ripe for the unripe.“Don't make trouble, trade with the foreigners as you used to. The Emperor sent me to tell you. Be happy, the English will throng to Canton and you will be rich.”

Editor - this gazette is dated ten weeks ago. The Emperor was then still hostile to opium.

There is a rumour that the Emperor has allowed provincial officials to close their eyes to the opium trade at the five ports. This would explain both the immunity of the opium ships moored at Shanghai and the open manner in which opium is landed, sold and smoked in Canton. Both occur in the presence of officials. It is through fear of provoking another war that the Emperor feels unable to enforce his own proscription.

A Cantonese opium smoker now resident in Hong Kong tells me that prior to the arrival of Commissioner Lin, opium was widely grown around Shiu Kwan in the north of Kwangtung and in many other Provinces. There were no large suppliers - just a myriad small farmers each growing a few plants and selling the inspissated juice. Thus the Chinese supply was prepared by the user himself and was always a rather crude affair - inadequately dried, rank, harsh and ill-flavoured. Apparently opium, when smoked new, causes a headache and a disagreeable sensation quite unlike the euphoric experience of the matured product. The Chinese farmer cannot afford to keep his poppy sap twelve months to mature. He cannot afford to keep any of his produce after he harvests it. He sells or barters it straight away for his daily necessaries.

Friend of China 6.7.43 edition

Canton trade report dated 2.7.43

Cotton has dropped in price. It is said the Hong merchants are forcing their Chinese cotton buyers to pay-up in order to settle the official demand for $1,500,000 for the remaining arrears of the land tax. Others say it is due to foreign merchants forcing supplies onto a soft market. Both reasons are likely contributing to the market softness.

Both the Canton ransom and the war indemnity will be paid from exactions on the foreign trade unless we are alert when negotiating the tariff.

All the Hong merchants except Howqua agree to waive the Consoo charge on tea. People say he is opposed because he has just loaded a big consignment on the Paul Jones for Boston on his own account and he wants it sold before any news of a price adjustment can affect the market there. Insiders suppose he might have an even deeper motive.

All merchants at Canton are dissatisfied with the lack of progress in settling the tariff but they generally fear superior Chinese negotiating ability will make the terms less favourable to us than might be expected in the circumstances.

Trans-shipment at Whampoa to avoid port entry charges has temporarily ceased. Likewise all smuggling in ships' boats is being done in native craft.

Friend of China 13.7.43 edition

News from the London papers:

Friend of China 13.7.43 edition

The overland mail arrived in harbour late on Tuesday but we were already set up for printing and can only allude briefly to the latest news:

Friend of China 13.7.43 edition

Editorial - On the one hand the Imperial Commissioners are being very friendly and giving every indication they wish to have good relations with us. On the other the Court at Peking appears hostile.

Now the Chinese Repository has published a list of events from the Peking Gazettes, compiled by our foremost sinologist, that seems to confirm the real feeling towards us is one of hatred.

It cannot be disguised that public opinion is against us in China and few Chinese believe that they have really been beaten. They attribute defeat to the cowardice and venality of the army officers who obliged the Emperor to submit to us and they think it can only be temporary. The people expect the Emperor to abrogate his agreement when the country is strong again.

We should be firm but strictly correct in our dealings with China. By a sedulous policy of conciliation we may avoid further trouble if we are very lucky.

Friend of China 13.7.43 edition

Canton trade report:

Friend of China 13.7.43 edition

Extracts from the Peking Gazettes:

  1. There are long lists of voluntary contributions of money donated to the Emperor to fight the barbarians. These aggregate to huge sums. All the donors are rewarded by the Emperor for their devotion and loyalty. One high officer, in submitting the long list of donors from his Province ‘for the Imperial glance’, asks the Emperor to record his approbation for the scholars and devoted people who have dedicated their lives and property to his service. The Emperor in turn requests a list of the towns and villages contributing, so some special mark of favour can be bestowed on them.

  2. Yiking who was degraded after his previous dealings with the English has again received official employment. Keshen, who lost his wealth and rank in the same way, has also been re-employed. A censor has complained about this:

He says the people love truth and virtue; they hate iniquity and falsehood - Vox populi vox Dei. When the barbarians caused trouble, the civil and military officers ran away. They should fear the Emperor more than the English. Better risk life in battle than death in flight. The barbarians left in Autumn 1842 but the Emperor remains upset. Yu Poo Yun was executed on 24th day of 12th moon, a well merited punishment. But his crime was exceeded by Yiking, Keshen, Woo We and others. The people suspect they have been spared because they are Manchus while Yu Poo Yun was Chinese. Keshen was the first to run away. This example demoralised everyone. He must be degraded to the lowest rank and never again employed. The secret of right governance is knowing when and how to reward and when and how to punish.

  1. Another censor complains that the disbanded armies have in part become bands of robbers. An official was caught by ex-soldiers and his insignia, baggage and money (valued totally at 3,000 Taels) was taken. Other junior officials, on the pretext of searching for opium, disrupt the trade in goods passing likin stations and plunder the shops and warehouses of merchants.

  2. Shansi is permitted to coin some copper as they have not done so for 10 years. The present exchange rate is 1,440 – 1,450 cash per Tael. There are six furnaces at the Shansi mint and each can produce 17,400,000 cash a year. Only four will be needed for a year’s production (the authorised quantity is 60,000,000+ cash) The composition of the cash is a stated mixture of copper, zinc and lead.

Friend of China 13.7.43 edition

The Canton Official Intelligencer says the Viceroy witnessed the testing of a mine at Fah Tei, called ‘the underwater cannon’. After igniting the fuse, it does not explode for a long time. This delay permits it to be placed under the ships of the barbarians.

Editor - It is clear that the Chinese are paying increased attention to warlike activities and they will break with us as soon as they think they can do so successfully.

Friend of China 13.7.43 edition

The Hong merchants at Canton have agreed to contribute $1,560,000 to pay off the old bankrupt Hong debts. Howqua will pay $1,000,000, Poon Ke Qua $130,000, Gow Qua and Sam Qua $100,000 each, Mow Qua, King Qua and Sao Qua $50,000 each; Foo Tae and Poon Hoi Qua $30,000 each and Ming Qua $20,000.

There are many new native brokers and jobbers entering the opium distribution trade who have no idea of prices and buy solely on the extent of credit available to them from the British wholesaler. They all have no doubt we fought the war to permit opium trade. This has allowed prices to increase. Patna is now $690 – $720 and rising. Malwa is also increasing. Red Rover has delivered 13 chests of Patna and 43 of Benares. Her master reports the results of the 4th opium auction as follows:

Patna

Benares

1,160 chests sold for an average price of R1,516

800 chests sold for an average price of R1,360

When news of these auction prices arrived on Saturday, but before the Red Rover officially reported them, 230 chests were bought at $650 - $660 for Patna and $625 – $650 for Benares. Since then the auction prices have been circulated and Patna has risen to $700 and Benares is $675. Now there are enquiries for Malwa but little stock is available and the principal holder is asking $575 per chest. A few piculs (133 lbs) of Turkey have been sold at $460.

Friend of China 20.7.43 edition

Capt Sir J A Douglas, of the Battle of Kowloon Bay celebrity, is now in Fleet Prison for debt.

Friend of China 20.7.43 edition

Teas are being exported from Canton on a reduced duty of 4 Taels that has been set unilaterally by the Hoppo.

Opium is selling well. Patna is $790-800.

An assay has just been done by the British consul at Canton to determine the value of all the different silver dollars and Indian Rupees that are used at that port for exchange. Their value in respect of sycee has to be fixed for the new tariff. Details are published.

Friend of China 27.7.43 edition

The Syed Khan (an opium clipper) which arrived from Amoy on 19.7.43 reports cholera is raging through the town and the English men-of-war have gone cruising to avoid it.

Friend of China, 27.7.43 edition

Editorial on opium: From the thrust of Sir Robert Peel’s speech (quoted briefly above) on Lord Ashley’s motion, it appears the decision concerning storage or importation of opium in Hong Kong rests with the Plenipotentiary. We need an early decision.

Pottinger must know that the evils of opium will be aggravated if it is forbidden here. Six of our influential merchants have decided to stay in Macau in anticipation of government interference in Hong Kong. They all previously spent a lot of money here on land and buildings believing Hong Kong was to be a free port.

The uncertainty has caused new building to stop.31 In the last month rents at Macau have advanced 15%. Now in spite of the wonderful tariff, our outlays in Hong Kong have been devalued by half and our city will become nothing more than a military outpost.

Friend of China 27.7.43 edition

Consular appointments:

G Tradescant Lay

Robert Thom

Thomas T Meadows

Wm Meredith

Canton Consul

Interpreter to Lay

Clerk

Clerk

Pottinger’s instructions to Consul Lay:

Friend of China 31.7.43 extraordinary edition

Translation of Kiying’s proclamation of the tariff agreement, done by J R Morrison.

From the Commissioners - Kiying, Kekung and Ching Yuet Sai:

The purpose of the new arrangements is justice and impartiality. All you foreign and Chinese merchants should note this.

Friend of China 31.7.43 extraordinary edition

The General Regulations of Trade are also published:

Editor: Excellent. Very simple – only 48 items like Prussia’s 43 (England’s tariff has 1,152 items). Chinese contempt for foreign relations has absolved the English government from having to consider any adjustment of its iniquitous duty on tea. Nearly one half of the English trade is in opium which does not appear in the tariff at all - it is like performing Hamlet without the Prince.

It’s a shame there is no bonding system introduced at the ports. Anything unsellable at Canton might have been reshipped to Shanghai but that’s unlikely if a new duty has to be paid on export Canton and again on import Shanghai.

Organzine (one of the listed textiles) is a bad translation of the Chinese term. They mean thrown silk. Coarse silk should have been described as waste silk so it can clearly be seen to be ribbons.

But these objections are mere details and overall the thing is a triumph for Pottinger. The Chief Superintendent’s notice against smuggling seems redundant. With the new tariff there is nothing worth smuggling any more.

Friend of China 31.7.43 extraordinary edition

Keying was pleased with his treatment on HCS Akbar. Hopefully the false impressions about us that dominate the minds of the Court in Peking can be removed.

Friend of China 31.7.43 extraordinary edition

A Canton correspondent says the new system is like the old system but without the responsibility of the Hong merchants for each other. The storing and packing of goods will still be done by Chinese merchants. Under the Company, it was possible to ship off teas at 3 Taels plus cost but now it will cost 4 Taels.

Our correspondent wonders if he can expect permission to build his own house and godown in China.

Friend of China 31.7.43 extraordinary edition

General trade at Amoy is dull but Malwa is getting $800; At Chusan there are 10 merchant ships in harbour and 5 in the Yangtse. Trade is fair and opium is $680 for Patna, $620 for Malwa.

Total tea exports from Canton up to 30th June 43 (one year) = 47,727,746lbs

It is expected that the opium ships under British flag will all depart Whampoa. Some have already arrived Hong Kong.

Friend of China 3.8.43 edition

John Slade, editor of the Canton Register, died 1.8.43

Friend of China 3.8.43 edition

We think China traders should petition London for a reduction on the tea duty on importation to Britain. Pottinger has given us an excellent opportunity. His tariff puts England to shame.

Friend of China 3.8.43 edition

Canton – much embarrassment is reported in the opium trade by the sudden removal of all the wholesalers and retailers from the river.

Friend of China 3.8.43 edition

Macau reports that Lorchas Nos 11, 19 and 37 have been cut loose from their moorings by pirates and are missing.

Friend of China 10.8.43 edition

Report on the Ann and Nerbudda shipwrecks (Translation by W H Medhurst):

Iliang (Viceroy of Fukien and Chekiang) has reported on his investigation into the massacres at Taiwan by Tahunga. Lt Col Woo Pan Fung, Magistrate She Meih and the other officers who were examined all told the same story.

Iliang’s conclusions - one of the foreign ships fell to pieces from the bad weather. The other was driven ashore for the same reason. There was no meeting in battle and no enticing of either ship into port in prospect of battle.

Facts - In September 1841 a three masted foreign ship anchored near Keelung. On the third day she passed by Wan Jin Tui to the back of Tawoolun Island where she ran onto the reef and fell apart. Some of the crew put out a boat, set sail and escaped. The rest landed in confused groups and asked the local people for help. The villagers seized the people and alerted the local officer. They had been promised rewards by Proclamation. The survivors were made captive and taken to the chief city of Taiwan.

On 10th March 42 a foreign vessel was stranded in the roads at Too Te Kung in Tai An and fell to pieces. Some occupants were drowned but most landed and tried to hide themselves. The villagers caught and bound them and kept them in their houses. After three days the civil and military officers arrived and paid rewards. They carried the foreign prisoners away.

The guns, weapons, dress and official documents found on the ship at Tai An were from Ningpo and Chin Hae. These were all deposited in the arsenal where they still remain.

These events occurred during war. Had the General and Intendant murdered these enemy foreigners out of hatred, fortified by the justness of their cause, it might have been understandable but their object was to make a story that would gain them patronage. There is no excuse and they should be punished.

I interrogated Tahunga and Yau Yung. At first they persisted with their lies, then they became silent as the evidence was exposed to them and finally they admitted their wrong and solicited punishment.

The question of any connection between the foreigners and traitorous people to cause an internal rebellion cannot be resolved. No record of the depositions taken by the General and the Intendant during their enquiry has been kept. The foreigner Denham and the other foreigners have been liberated and cannot now be questioned. In any event, if our senior officials cannot report facts correctly they are unworthy of office. I submit the papers for the Imperial decision.

In my instructions the Emperor directed ‘If Iliang practices concealment; if he fails to ignore his regard for the parties concerned, let him ask himself what is the punishment due to him’. Luminous and bright indeed are these divine commands; brilliant as emanations from the stars themselves. Moreover Li Ting Yu and Soo Ting Yuh (Iliang’s assistants) could tell Keying what they have heard

I recommend the rewards to the militia at Taian and Keelung be undisturbed. The people there will make trouble if we try to take it back but the grants of honours and distinctions to the civil and military officers must be annulled.

Friend of China 10.8.43 edition

Extract from the Peking Gazettes:

The Emperor Proclaims:

Tahunga and Yau Yung said they attacked and sank an English vessel in September 1841. In March 42 they enticed another foreign ship into harbour and caught and killed many of its crew. They recaptured Chinese weapons, flags and banners. I rewarded them.

Then after peace was declared the foreigners said Tahunga and Yau Yung treacherously massacred shipwrecked seamen pretending they had been soldiers. Iliang has investigated. The two vessels were shipwrecked. There was no battle, no enticing into danger and the two of you have admitted as much.

You tried to deceive Us to get merit and We hate that. Now you have involved yourselves in the bitter consequences of crime.

You are deprived of rank and handed over to the Board of Punishment. Any other officers, excluding the militia and private persons, who were promoted or commended as a result of your false report are to be identified and stripped of their honours.

We act with even handedness and justice to Chinese and foreigners alike.

Friend of China 10.8.43 edition

The Friend of India on Opium:

The Company’s government is incapable of arresting the consumption of opium. Consumption in China has increased from 4,000 to 40,000 chests. Every inch of the 800 mile coastline has someone willing to smuggle.

Friend of China 10.8.43 edition

5th Calcutta opium auction:

Patna

Benares

1,585 chests

1,369 chests

1,446 Rupees average

1,295 Rupees average

Friend of China 10.8.43 supplement

Editorial - Lord Ashley’s motion to parliament proposed to end the cultivation of opium in India. Sir Robert Peel’s response quoted Lord Aberdeen’s instructions to Sir Henry Pottinger, above. It cannot be reconciled with the India Company’s sale of the Drug:

Lord Aberdeen must have been writing in extreme ignorance of the subject. Either that or he was giving the express orders of government to commit an act of injustice against a body of its own subjects.

Friend of China 10.8.43 supplement

For any reader wishing to be reminded of Lord Nelson being hunted into his ship by Bailiffs or the Duke of Wellington being imprisoned in his tent by duns, here is a cautionary tale from Mr Oastler’s Fleet Papers of 2nd March 1843:

The Cambridge was manned and armed and sailed from Singapore on 21st May 1839 for China under the command of Captain Sir Joseph Abraham Douglas. He arrived Macau 7th June to discover Her Majesty’s Chief Superintendent of Trade had just been released by Commissioner Lin. Capt Elliot considered the arrival of the Cambridge a godsend (she was formerly a frigate) and chartered her for 8 months at £14,000. He appointed Douglas as Marine Magistrate and placed the protection of British lives, property and honour in his hands.

To prepare for conflict Capt Douglas had to clear the Cambridge. He bought a smaller ship Mermaid to which he transferred part of his cargo. For the next three months he commanded the Hong Kong harbour station and upheld British honour. The boats of the Cambridge saw action against Chinese war junks and shore batteries. Capt Douglas was injured twice. In return for his gallantry he was thanked by Elliot, by Capt Smith, naval commander of the force that succeeded him, and by Lord Palmerston. He and the Cambridge were forever proscribed from entering the waters of China and a reward of $7,000 was offered by the Chinese government for his head. Capt Douglas had to cease trading to the Far East. He sold his ship in a dead market at a loss. Later Elliot’s charter agreement was repudiated and the government paid him an adjusted £2,100 in total.

While both Houses of Parliament gave thanks, awards and batta to the soldiers and sailors who fought the Chinese, Capt Douglas lost his fortune and after arrival in London has just been brought a debtor prisoner to the Fleet on 8th February 1843.

Friend of China 10.8.43 supplement

The New York Courier reports on a Committee of Foreign Affairs report to the House of Representatives:

We have appointed consuls to Canton from time to time but they are not allowed in the town and are considered as vassals of the Emperor.

Now our consul Mr Snow says he received an Edict from the Imperial Commissioner and Governor of Canton which he respectfully acknowledged but his reply was returned by the Kwang Chow Foo for correction. It failed to either express gratitude for the Emperor’s favours or to hope for a continuance of trade with China. It was additionally defective because the Ching Dynasty name should be an inch higher than America’s name to indicate its superiority.

As a result of the recent conflict we think it is now opportune to place our relationship on a basis of equality and reciprocity. We have proposed to the President an allocation of $40,000 to select appropriate agents and pay their contingent expenses.

Friend of China 17.8.43 edition

Extract from Sir Henry Pottinger’s note to the Imperial Commissioners:

‘… agree that ship masters can hire their own pilots without referring to the Joint Prefect of Macau. To exclude incompetents I suggest a pilot shall get three ship masters to certify his ability on seeing which, the Consul will licence him. This should reduce accidents and ease the course of insurance claims.’

Ship masters are asked to co-operate with pilots asking for these certificates. Pilotage rules for the passage from Bocca Tigris to Whampoa will shortly be announced.

Friend of China 17.8.43 edition

Rumours:

Friend of China 24.8.43 edition

The Provincial Government of Canton advises that effective the 1st day of the 8th moon (25th August) all shipping entering the river for Whampoa will stop at the Bogue Forts for examination.

Friend of China 24.8.43 edition

A translation of the new Chinese tariff provided by the Imperial Commissioners is published in this edition

Friend of China 24.8.43 edition

The Friend of India says gross receipts from the opium monopoly this year are about £2 millions. It says if sales continue at the same level for three years, the cost of the Afghan Wars will be paid off.

Friend of China 24.8.43 edition

Commentary on smuggling from ‘an established publication’:

The law loses its moral authority when tax is set so high it allures to evasion and then punishes the offence. It is only necessary to examine the tariff of a country to know if smuggling into that country is widespread or not.

Spain enacts high import duties. British exports to Gibraltar exceed £1 millions. This immense trade is mainly comprised of about seven million pounds of tobacco which is instantly smuggled into Spain. France permits its traders to bond goods intended for smuggling so no duty is paid on the contraband en route. British duty evaded by French smugglers in 1831 was estimated at £800,000 exclusive of tobacco (mainly of brandy at £500,000). British duty on tobacco is 90%. Three-quarters of the tobacco duty payable in Ireland is avoided by smuggling. The Board of Trade demonstrated in 1840 that at least 48% of French silks imported to England paid no duty.

On the other hand British goods to the value of about £2 millions are smuggled annually into France across the Belgian frontier and some through the channel ports. The Belgians used dogs to smuggle and in the decade 1820/30 a total of 40,278 smuggling dogs were caught by French Customs and destroyed. In 1822 385 boats and 52 ships were seized by the British preventive service in the act of smuggling. In 1831 the preventive service cost £700,000 – 800,000; 116 smugglers were in British gaols and 64 more were pressed into serving in the Navy. The total cost of the Customs and Excise departments in 1840 was £2,309,611. In 1835 there were 11,600 Customs officers and 6,072 Excise officers.

Friend of China 24.8.43 supplement

Letter from our correspondent in Chusan:

Our relationship with the Chinese here has become friendly. They welcome the honour and integrity of our dealings. The place is also very healthy. The location is perfect for access to the most import marts of China. From Woosung we can see the fortifications on the batteries are being rebuilt (with granite facings instead of mud as before). Some opium ships have gone north looking for new markets.

The number of ports that have really been opened by the late war are not five but every port. The Chinese people want trade and the officials are reluctant to interfere – we get nothing but urbanity and kindness from these dignitaries now. There is an immense amount of native tonnage coming from the north and south into the Yangtse but we do not know what is being carried.

Our own trade is satisfactory - Malwa $610, Patna $710-720 but little stock. Vessels coming here with general cargo should always bring a few chests as it is readily sellable.

Friend of China 24.8.43 supplement

Amoy – This market is saturated with piecegoods from Hong Kong and prices have collapsed but opium is good. Malwa is at $825.

Canton – the former Hong merchants decline to ship teas under the new system and the new Chinese merchants are afraid to begin.

Three ships that were secured under the old system (Eliza, Mary and Bahamian) are being loaded but business is dull. In April/May we shipped 17½ million pounds of tea in 29 ships. In June, July and August we shipped 3 million pounds in five ships. The new congou crop is arriving and looks excellent – 650 chops at 26 Taels.

The British flag was hoisted over the consulate on 14th August. We all think our voluntary offer to the Chinese to collect their duty is a mistake. The Consul here will need fifty clerks. He has forbidden all boats to land at the steps in front of the Old Company’s Garden. The skippers are furious but we residents are delighted.

Friend of China, 24.8.43 edition

Editor - The restrictions on land sales in Hong Kong are unsurprising considering that in the last country to become a British colony (New Zealand) there was such flagrant land jobbing and peculation that almost every member of the colonial government was involved.

Friend of China 31.8.43 edition

Peel and the opium scrip – the merchants may expect to get about a half of what they paid the Company originally. The prescribed form of payment will entail them in a further loss of 20% as the four years they were out of the money will be paid at English not Indian interest rates.

In return the life and liberty of Elliot has been indemnified to the Crown and the Company has continued to sell even more opium to replace that which was destroyed. Effectively Sir Robert has transferred a million pounds from the smugglers to the exchequer.33

Friend of China 31.8.43 edition

American news - Ambassador Cushing leaves for China on 1st July 43 on the Brandywine.

Friend of China 31.8.43 edition

The London Mail carries a report from the Paris paper Constitutionnel which says the Emperor of China has given the French immediate free access into his dominions on the same footing as the English.

In consequence a naval squadron under a Rear Admiral is to be sent out.

Friend of China 31.8.43 edition

Dallas and Co are moving their business from Macau to Canton effective 1.8.43

Friend of China 31.8.43 edition

The Comte de Ratti Menton assumed the administration of the French consulate on 17.8.43. He offers the protection of the King of the French to all nationals resident in China.

Friend of China, 31.8.43 edition

Editorial - M de Lagrené is appointed French Minister to China. The Chinese will be unable to get an adequate idea of France because French influence in this part of the world is less than that of even Holland or Portugal. England has a great entrée because of its tea drinking. No other European country uses so much. England’s relationship with China is like its relationship with Portugal – because we buy so much of the country’s exports we attain an influence in its administration. It is idle for France, which has no China trade, to seek for a share of English influence here. In 1841 Chinese goods imported into France were valued at FF1,391,811 mainly 127,221 Kgs of tea. French exports to China were worth FF61,045 (£2,442). How will the representative of France support the dignity of his nation without either trade or a great fleet of warships?

Usually a Minister Plenipotentiary stays at the court to which he is assigned but the Chinese want nothing of the sort. The Chinese have wisely put our nationals in their country under the charge of our own Consuls. Pottinger was an envoy. His Plenipotentiary powers were only to allow him to fight a war. We have won our war but we have not obtained permission to send a Plenipotentiary to Peking. If our ancient trade and military feats do not allow us to station a minister in Peking how does the French government expect de Lagrené to do so? This appears to be another proof of the old observation that the policies of the French abroad are for the effects they produce at home. Like the last French mission to Persia, this is a political pastime between the closure of this session of the Chamber and the opening of the next.

Friend of China 31.8.43 edition

Trade report from the paper’s correspondent at Chusan:

We only get boats from Ningpo. The other towns do not send. We guess they are either officially prevented or fearful of piracy.

I went to Ningpo and watched the garrison at archery practice. The target was 100 yards off. Each officer was very graceful and prettily clad in silk. Each fired his three arrows slowly and carefully. About half hit the target. Each then knelt and reported his result to the examining officials.

An interesting example of Chinese mercantile independence has occurred here. A soldier pawned his winter clothes but was dissatisfied with the money they produced. He complained to a civil official and the pawn-broker was summarily beaten without trial. The other pawn-brokers have now all closed their shops in solidarity until redress is offered.

Went to Chinhae to watch the troops muster. No uniforms but there were so many of them it could only be the army. They each wore one or two swords. Many had long three-pronged instruments. Some had sword blades inserted in long sticks. A few had matchlocks. They were individually fine looking men but displayed no order – just an armed mob.

The fortifications of both Ningpo and Chinhae have not yet been reinstated. Some bricks and mortar have been added to the Chinhae citadel but there is still no artillery within.

Friend of China 31.8.43 edition

American cotton has become so cheap that much of it could be dumped in China.34

Friend of China 31.8.43 edition

Canton trade report – the Hong merchants decline to allow their packing houses and warehouses to be used for our trade as their own companies are no longer involved. They say they would be squeezed by the officials if they did, on the assumption it was their trade. Their packing houses and godowns are where the cargoes were historically inspected for Customs as there is no real Customs House in the Canton factories.

The outside men still do not dare to commence business.

Opium is very satisfactory - Malwa is $740 and Patna $800. Money is in short supply after payment of the insolvent Hong debts and the many other recent remittances. All other business has stopped and our new Consul is in a state of confusion as to why.

Friend of China 31.8.43 edition

Calcutta opium market - Prices at the latest auction were 1,485 – 1490 Rupees for Patna and 1,360 – 1,380 Rupees for Benares. The Sylph arrived at Calcutta two days ago and reported the China market firm which caused prices here to rise to 1,530 - 1,540 and 1,425 - 1,440 Rupees respectively

Bombay market per the Gentlemen’s Gazette:

Malwa is 1,110 – 1,120 Rupees ex Bombay. Only the brig Pearl is loading here for China. Statement of Bombay Pass opium trade:

Imported from Malwa 3.11.41 – 27.6.43

Exported by sea 22.10.41 – 27.6.43

35,887 chests

28,821 chests

Friend of China 31.8.43 edition

Chusan trade report – woollen and cottons are selling better but at low rates. The missionaries told the buyers there are more ships coming and the rates should fall, so we had to reduce our prices. Nine foreign ships (named) are in the harbour.

Mangrove bark (for tanning) is selling at $3.50 per picul.

Opium is slow as sellers are trying to maintain the strong prices that came up from the south. Holders request Malwa $770, Patna $860 and Benares $830.

Madras cottons are good. Freight from Chusan to Hong Kong/Macau is 4 Rupees per bale and to Whampoa 6½ Rupees per bale (per Bombay Times).

Friend of China 31.8.43 edition

Trade reports from the China ports:

Canton – many of the new congou chops have been taken at the rates indicated in our last notice. 100 bales of new silks have arrived but nothing doing – asking $500 and refusing $460. Total tea exports from Canton in July and August was 2,682,380 lbs.

The traders at Canton have elected a committee of seven to consider the effects of the new commercial regulations. These are English - Livingston and Mackean, American - Lejee and Spooner, Parsee - Merwanjee Jeejeebhoy, Cowasjee Pallanjee and French - Durran.

Trade is very dull and no tea has yet been shipped under the new system. 28½ Taels was said to have been given earlier for a specially fine chop of congou.

Howqua is said to be on his deathbed, mortification having set in to his legs.

Shanghai per Lynx (receiving ship) at Woosung. Opium and Straits produce were marginally up from Chusan. Only two ships in the river - Hellas (opium) and Fortescue (general). The authorities will not let the people trade with us until the port is formally opened. We are allowed to visit the city and are treated kindly and courteously by all classes of people. Only opium trafficking at Woosung is connived at by officials at present.

Friend of China 31.8.43 edition

Manifest of the John Brown (J Thornhill) Bombay to Canton 10.7.43

(This appears typical of the sorts of cargoes traded Bombay to China)

Cargo

410 bales cotton

25 half bales cotton

356 bales cotton

25 half bales cotton

112 bags gum olibanum

38 bags mother of pearl shell

300 bales of cotton

1 parcel of cotton samples

100 bundles mother of pearl shell

4 bundles elephants’ tusks

234 bales cotton

17 half bales cotton

50 chests opium

2,662 iron bars

1 case of guns

6 bundles true pearls

Consignee

Pestonjee Merwanjee and Co

do

Russell and Co

do

Mahomedbhoy Allabhoy

do

to order

do

Samjee Visram

do

do

do

Dent and Co

to order

do

do

Friend of China 31.8.43 edition

Parliamentary documents just received show the Indian government’s income from the opium harvest that was mostly surrendered to Elliot. P&B refers to Patna and Benares; M to Malwa:

Auction dates

160 lb chests

Av Price per chest P&B

Malwa chests

Av Price per chest M

Govt Duty per chest M

4.1.37

6,960

20.2.37

2,490

30.3.37

2,388

12.6.37

5,706

Total

17,545

R1,449

10,627

R1,057

R140

1837 - 38 season totalled 28,172 chests producing 38,143,224 Rupees at auction, equivalent to £4,802,872.

2.1.38

6,870

4.2.38

2,255

23.4.38

3,980

28.5.38

1,975

29.6.38

3,702

Total

18,787

R 752

17,517

R 913

R140

1838 - 39 season totalled 36,304 chests producing 32,573,225 Rupees equivalent to £4,084,91435

Friend of China 31.8.43 edition

The barque Ronaldson, carrying Mrs Gutzlaff as passenger, touched at Anjer on 9.8.43.

Friend of China 14.9.43 edition

Petition of the Linguists to the foreign merchants of Canton dated 20th August 43 - as printed in the Hong Kong Register:

We used to get the tam tau allowance, ‘piculage’, you called it, of 1 candareen 6 cash per picul on all goods landed and 4 candareens 4 cash on each picul of goods shipped. You paid it through your Hong merchant to the Hoppo and he sent it to us quarterly. Since the new system started a month ago we have received a little from the Hoppo but much less than before.

The security merchant used to pay us 100 Taels per ship when discharge commenced, $200 during discharge for handling all the ship’s business and $223.50 when the grand chop (Clearance Certificate) was obtained. The foreign merchant also paid us $15.22 per chop boat on cargo landed but nothing on exports as that expense was included in the tam tau. Now all these fees have been cancelled and are unpaid.

We suspect you foreign merchants never knew what we did as the system provided for you in Canton was an all-embracing one. We will now tell you:

These were the principal trade services of the Linguist in a straightforward case. The new system is however far more onerous than the old system. Formerly we could get help from the Hong merchant’s staff. Now we are entirely alone.

We have considered various ways of charging for our services. Sometimes a big ship gives us no trouble but a small ship takes all our time. Charging per month would equate the efforts of a hard worker with a slacker. Charging per chop appears to be the least objectionable, but the old regulation still requires changing. We used to get $15.22 for each import chop and nothing for exports. If a ship arrives full and leaves empty we were lucky. If it arrives in ballast and leaves full we are substantial losers. After considering all these variables, we have resolved on the following fee scale:

Each chop boat inwards $12

Each chop boat outwards $10

This is in addition to the chop boat charter-hire ($12 per day to the boat-owner) and coolie hire, but everything else is included. As chop boats vary in size the basis to our calculation of the size of one chop is any one of the following:

70 bales Bombay cotton or

80 bales Bengal cotton or

140 bales (6 pcs each) woollens (Spanish stripes) or

140 bales (20 pcs each) long ells or

140 bales (10 pcs each) camlets or

100 bales (50 pcs each) long cloths or

100 bales (c. 30,000 catties gross) cotton yarn or

Rice and Teas 50,000 catties or

Metals and misc articles 30,000 catties

Signed by the 5 Linguists -

Old Tom

Young Tom

Alan Tsai

Young Ah Hin

Pui Qua

(Foon Wo Hong)

(Wo Sheung Hong)

(Ching Wo Hong)

(Shun Wo Hong)

(Tai Wo Hong)

Friend of China 14.9.43 edition

Opinion of R M Martin of the Colonial Gazette concerning Elliot’s opium scrip:

On the morning of 29th March 1839 Capt Elliot, as Chief Superintendent of Trade and agent of the British Government, published a notice ‘enjoining and requiring’ Her Majesty’s subjects in China to surrender to him ‘for the service of Her Majesty’ all the opium under their control. He said ‘failing the surrender of the said opium … before 6 o’clock that day, Her Majesty’s Government would be absolved from all liability in respect to it’ but that ‘it was specially to be understood that the value of all British opium surrendered to the said Superintendent agreeably to that notice would be determined upon principles and in an manner to be thereafter defined by Her Majesty’s Government’. 20,283 chests of opium were then surrendered to Elliot and by him to the Chinese Government

The preponderance of the surrendered opium was held by Agents at Canton for the benefit of principals residing far away. The consignees at Canton were mainly Agents of Indian and other merchants many of whom were small traders. The opium was stored in receiving ships at Macau and Lintin, both of which places were effectively beyond the reach of the Chinese authorities. Two vessels containing 2,400 chests of opium had been sent away from Lintin and Macau by respectively J M & Co and Dent & Co and a further 3,000 – 4,000 chests were concurrently dispatched for sale on the East Coast of China.

The holders of the opium at Canton were under restraint of Commissioner Lin but the opium itself was beyond the reach of the Emperor and the holders had earlier resolved never to surrender it.

To enable Her Majesty’s representative to redeem his pledge to the Cantonese Provincial Government, and to deliver himself and other British subjects, owners and non-owners of opium, missionaries, American and Dutch consuls etc., from a situation of peril, the opium on the East Coast was recalled and contracts then being performed were cancelled. This loss to the opium merchants was not due to war, or embargo or confiscation. The Colonial Gazette classifies it as a loan by the merchants to Elliot to enable him to pay the price of freedom. The Agents brought the opium from places of safety and gave it to the representative trusting in the good faith of the British Government.

Was Elliot authorised to conduct himself thus? By Orders-in-Council he had the powers of the supercargoes of the East India Company. They exercised an absolute control over British subjects trading to China. They could condemn the property and banish the persons of British people disobeying their orders. Thus he had the means of enforcing his orders and the Agent dare not oppose him. The British Government confirmed this analysis when it proposed that one of the objects of the subsequent war was ‘to obtain indemnification for the loss of property sustained by Her Majesty’s subjects’ i.e. the ministry as Principal acknowledges the acts of Elliot, its Agent.

The only remaining question is the amount of compensation to be paid. The British Government has hitherto proposed to act on the basis of ‘invoice cost plus charges’. The statement of losses given to Capt Elliot at Canton contained the invoice value of the surrendered opium plus 17½% for interest and other charges.

The Government has now resolved that the basis of compensation in this case will be the cost price of the opium. This is £1½ millions or about $6,000,000. The British government has in fact received twice this amount in compensation from China – it got $6 millions for opium under the treaty and it got the same from Elliot for the ransom of Canton. Lord Aberdeen in his interview with the committee on behalf of the merchants in 1842 admitted that he believed the Canton ransom represented compensation for opium and Chinese state papers, such as we have seen, also view it in this light.

The merchants of course have a claim on the British Government regardless of whether it received compensation from China or not, but in fact here we have the government offering only half of the compensation it has received.

It appears to be a mean attempt by the Chancellor to use windfall income to adjust the recently published errors between his estimated and actual receipts. Sir Robert Peel should not associate himself with this attempt to get his Chancellor off the hook. He appears to be relying on the obloquy that attaches to the opium trade to reduce the amount due to the traders.

The opium trade is sanctioned and encouraged by the British Government. The Indian Government grows and sells Bengal opium. The native princes in the west of the country grow and sell Malwa opium. The Indian Government derives an annual revenue of c. £1,250,000 from sale of the former and the tax on the latter when shipped through Bombay.

In 1832 after closely investigating the entire trade, the British Government declared it ‘inexpedient to abandon so important a source of revenue as the opium trade’. In fact the Indian government has profited from the destruction of opium at Canton. On 28th November 1839, Capt Elliot wrote to Lord Palmerston ‘I may presume to say that Commissioner Lin has fallen upon the single device which left any hope of supporting the Company’s opium returns of next year. If he had left 20,000 chests … in the hands of the holders, the company must have sacrificed their next year’s supply.’ Bad though the opium trade may be, the British Government has a large stake in it and it will redound little to the credit of a Christian Government if it cheat its Heathen partners who have been worse taught and are therefore less culpable.36

Friend of China 14.9.43 edition

London news from the overland mail up to 6th July:

Friend of China 14.9.43 edition

Obituary - Howqua died on 4th Sept 43. He has been a party to all the important developments in the foreign trade of China for thirty years. He was descended from a respectable Fukien family resident in the principal black tea district (Mo Yi Shan). His grandfather was one of the Amoy Hong of merchants, progenitors of the Canton Hong merchants Poon Ke Qua, Chung Qua and Min Qua who were all ordered by the Emperor to remove from Amoy to Canton at the time He stopped trade with the Dutch and the English at Amoy.

Howqua was 75 years old and had long been wasted and feeble but with unattenuated mental vigour. About a year ago one of his foreign friends estimated his wealth at not less than $25 millions nearly all of which was the result of his own hard work. He had large investments in British and American funds.

Our invasion of Canton in the last war did him considerable damage. The destruction of the packing houses and their contents by fire cost him a million dollars. He himself said the war cost him $2 millions. His portion of the Canton ransom was $800,000. After that payment, he petitioned the Emperor to be allowed to retire from the Hong. He sent 2½ million Taels of silver with his petition saying it comprised his entire wealth and the Emperor might benevolently remit to him whatever part he thought appropriate to maintain his final years. The petition was refused.

Howqua was opposed to the new system and clung to the old one through which his wealth was mainly accumulated.

He was the guardian and controller of the Consoo Fund and he personally was the man who led the Hong merchants and liaised between Chinese and foreigners. He owned a large estate in the Canton suburbs and endowed a Buddhist temple within it. Some people suppose the refusal of his wish to retire was linked to the late war and the claims the government might have to make on his services as a mediator. Actually we suspect it was due to his wealth. The Canton and Peking officials guessed he was worth more than 2½ million Taels and hoped to squeeze him. As long as he was chief Hong merchant they could do so.

The astonishing thing about Howqua’s business is that almost to the last day of his life he directed it entirely alone. His knowledge of international trade was encyclopaedic. Howqua liked Americans. It was an American who gave him at an early stage of his career the information he sought of the English in vain.37 The English traders did not like Howqua. It is also true that the existence of the Company rendered an American association pecuniarily preferable.

Some say he never evaded duties or smuggled goods – that is absurd. He had branch businesses at Soochow, Ningpo, Shanghai and other cities and could hardly maintain trade with competitors who invariably smuggled.

Since the difficulties with opium that manifested with Commissioner Lin, he has absolutely refused to deal in that commodity although these last years have been the most profitable ever. That is a testimony to his patriotism.

Friend of China 14.9.43 supplement

The petition of the Linguists, a typical example of the old system, has been granted by the Consul at Canton and an amount of $200,000 will be set aside each year for the five of them in the new system.

Friend of China 14.9.43 supplement

The new French Consul has used the country house of the Hong merchant Poon Ting Qua to present his credentials to the Viceroy of the Two Kwang. Previously he and Capt Fornier Duplan, the chancellor of his Consulate, received several visits from the Kwongchow Foo and a delegate of the Imperial Commissioner. Two boats from the French corvette Alemene, with crews in full dress and flags flying, left Canton for the merchant’s house at 8 am 6th Sept 43.

At the ceremony, Ratti-Menton handed his credentials from the French Foreign Secretary to the Viceroy who gave them to the Imperial Commissioner. He had a look and returned them. The Chinese officials asked many questions about France and its government for over an hour. The suites of the various officials comprised over 200 men. The French get this honour for no effort of their own but as a result of English feats of arms in the late war.

Friend of China 14.9.43 supplement

Congress has voted $10,000 for the American Embassy to China. It will be led by Caleb Cushing as Grand Commissioner with D F Webster as Grand Secretary and John Tyler Jr as private secretary.

John R Peters will represent the American Institute and several attachés from government departments are also included.38

Friend of China, 14.9.43 supplement

A Manchester Chamber of Commerce circular:

The export of plain cottons to China has increased in value (£) substantially:

1836

1837

1838

1839

1840

1841

1842

1843 6mths

308,624

250,504

680,566

486,050

428,948

714,697

622,770

613,751

(this last six months looks like an effect of the peace news on English traders)

Friend of China 14.9.43 supplement

From the Bombay Prices Current for 8th Aug 43

-

Calcutta sales

-

Bombay sales

-

Patna

Benares

Malwa

-

1,555 Rupees

1,455 Rupees

1225 – 1230 Rupees

Stock in hand

3079 chests

1261 chests

see below

Imported to Bombay with pass 30.11.41 – 1.8.43

Exported

Remaining stock

36,063.5 chests

29,372.5

6,691.0

Friend of China 14.9.43 supplement

Samples of recent Bombay export manifests:

the clipper Philip Dean from Bombay to Singapore and Macau:

130 chests to Dent and Co

112 chests to various Parsees

75 chests to Lindsay and Co

50 chests to Augustine Heard and Co

25 chests to Russell and Co

12 chests to W Henderson

8 chests to Almada and Sons

5 chests to Elia Dawood Sassoon

1 chest to Manuel de Souza

111 bales cotton to various Parsees

1 chest cornelian gemstones to a Parsee

31 bales of pearls to a Parsee

2 cases wine, respectively for A T Gordon and Pottinger.

Corea departing 2.8.43 to Far East:

3,000 bales of cotton to various Parsees

24 chests of Malwa to Parsees

Ceylon departing 5.8.43 for Canton:

2,700 bales of cotton

549 elephant tusks

44 bags of copper plate

Ship Lord Lowther departing 3.8.43:

3,050 bales of cotton to Parsees

1,000 bales of cotton to Dent and Co

80 packages olibanum to a Parsee

47 chests of Malwa to Parsees

Friend of China 21.9.43 edition

The following circular previously issued by HBM Consul at Canton has routinely not been complied with, causing traders considerable delay. The rules in it apply at all the treaty ports. It is accordingly important and is reprinted for general information:

The object is to assign the proper duty to the item. If a few items are mingled together this object is defeated and delay results. Sgd G Tradescant Lay

Friend of China 21.9.43 edition

Chien Kiang, the native of Chekiang referred to by the Imperial Commissioner in his recent Edict as the man deputed to stir up the Cantonese literati and gentry against the British, has been arrested. Pu Ching and other officials of Chekiang have published a memorial disavowing him. They say the simple Cantonese were seduced by Chien to assemble in the Ming Lun Hall and were duped into illegal acts by him and two or three of his colleagues.

Friend of China 21.9.43 edition

The official named Lu Yuen Ho who manages the island of Chusan is levying taxes in the name of the Emperor. This island continues to be held by Britain for performance of the treaty terms.

It is rumoured the payment of taxes to the Emperor secures the residents of Chusan from piracy and robberies. Some local people have told the Friend of China Editor that Hong Kong can never be free of piracy and robberies until it agrees to pay tax to the officials at Kowloon.39

Friend of China 21.9.43 edition

Advertisement copied from the Singapore Free Press of 11th August 43 - We have opened an agency in China called Boustead and Company. Our group companies comprise Sykes Schwabe and Co of Liverpool, Butler Sykes and Co of Manila and Boustead Schwabe and Co of Singapore.

Friend of China 21.9.43 edition

Letter to the Editor - The main complaint of the foreign merchants at Canton against the new tariff is that Customs duty is so low that it is no longer worthwhile to smuggle whereas the administrative and reporting requirements of the Consul appear to suggest that he thinks smuggling is continuing.

Editor - it is! The opium fleet has returned to Whampoa and crowds Blenheim Reach.

This is sublime hypocrisy. In fact British subjects are continuing to smuggle general goods into China using Cantonese middlemen and the costs exceed the tariff but they justify paying more to avoid the delays caused by the Consul’s administrative requirements.

The Chinese must be laughing uncontrollably. We object to the fees they charge and for decades have called them squeezes and cumshaws; then our own representative publishes the rates he charges as fees and we happily pay them. The difference seems to be solely in the fact of publication. Recently the Linguists explained what they have always done and have received sanction to charge a fee. It begins to seem likely that the whole former arrangement at Canton may be upheld and incrementally reappear as published fees. When one considers that the China-trade produced a revenue of £5,500,000 to the home and Indian governments last year, our position starts to look thoroughly contemptible.

The Americans have none of this consular machinery but manage very well. Their Consul at Canton does no more than if he were at Smyrna or Valparaiso and he satisfies both his own countrymen and the Chinese authorities.

Friend of China 21.9.43 edition

The Mahmoudie, Sir Edward Ryan, Lord Amherst and Thalia are all opium clippers but will carry other valuable cargo on inducement. Their speed renders them immune to attack on the high seas.

Friend of China 21.9.43 edition

Amoy trade report - A Spanish brig has arrived at Amoy and is selling Manila rice at $1.50 per picul.

Some Patna opium was sold here at over $1,000 a chest recently.

Friend of China 21.9.43 edition

Report from the New Zealand paper The Spectator, as reprinted in the Bombay Times:

The Chinese buy green stone at up to £1,500 per ton. The south island has a green talc slate which the natives call poonamor. A ship from Wellington named Royal Mail has sailed down the west coast of the south island to Milford Haven to collect a shipment of this green slate. Mr Deans, one of our most enterprising colonists, has just returned from Milford Haven and reported the above facts. He says the Royal Mail has already loaded 10 tons of the green stone.

Editor comments - This report misled many traders. The consignment of New Zealand green stone arrived here and turned out to be almost valueless for carving. New Zealand has many valuable minerals but we doubt it will be commercially expedient to export them – the costs of shipping will be prohibitive. The most valuable New Zealand product for the foreseeable future is flax which will soon be in demand in China.

Friend of China 21.9.43 supplement

Canton trade report:

All foreign merchants in this city are trying to thwart the Plenipotentiary’s new system. A lorcha (Portuguese ship from Macau rigged in the Asian-style) came up to Jackass Point under the British flag recently, and landed a cargo of printed cotton cloth after doing a deal with the Hoppo’s men direct. The Consul considers these prints to be smuggled goods as they were not reported to him and has applied to confiscate them.

The Hong merchants have taken down their lanterns and shingles and have become what used to be called outside men - just ordinary traders.

Friend of China 28.9.43 edition

Bombay exports from an article in the Gentleman’s Gazette:

Manifest of the schooner Pearl to Singapore & Macau, departing 11.8.43

254 chests of opium to Parsee merchants

10 chests to W Henderson

4 boxes cambay stones40 to a Parsee

1 box of pearls to a Parsee

4 casks of hardware to a Parsee

1 cask of liquor to Pestonjee Ruttonjee

Manifest of the ship Chusan to China, 14.8.43

2,070 bales cotton to J M & Co

217 bags of gum to a Parsee

1 box of garden seeds to Pottinger.

Friend of China 28.9.43 edition

The US frigate Brandywine, corvette St Louis, and new steam frigate Missouri are the squadron deputed to escort the new American Commissioner and his suite to China. The delegation includes all sorts of literary and scientific men. Cushing is going to Bombay overland and will join the squadron there.

Friend of China 28.9.43 edition

Notice dated 23rd Sept 43 - S J Cook has succeeded to the management of the British Hotel in the Canton factories. “His unremitting exertions will be on a scale appropriate to the wants of his guests.”

Friend of China 28.9.43 edition

Notice dated 1st Sept 43 - The Albion Hotel at Macau has been bought by Capt A H Fryer. John Smith’s store and auction room will continue to operate in the Hotel’s godown.

Friend of China 5.10.43 edition

New York Commercial Advertiser reports that Mr John R Peters Jr., son of ex-alderman Peters, will join Caleb Cushing’s delegation. Mr Peters Jr is a scientist and his addition to the team is at the suggestion of the American Institute. He will be taking machinery models and drawings to promote industrialisation in China. Perhaps in a few years there might be a railway from Peking to Canton

Friend of China 5.10.43 supplement

The Emperor of China has approved the new tariff and announced that it should be brought into effect in the five ports. To give effect to the requirements of the new tariff the following appointments have been made:

A consul will be appointed to Fuk Chow as soon as possible

Friend of China 5.10.43 supplement

Letter from Sir Henry Pottinger at Macau to G T Lay, Consul at Canton, dated 22nd Sept 43:

I approve your circular concerning vague manifests.You have told me the Hoppo is getting to grips with the new system and a letter from me to the Imperial Commissioner is now no longer necessary.Please recall that ‘it is no part of the duty of the British Government or its officers to render any assistance to mercantile firms or individuals in conducting their business beyond what is expressly laid down in the General Regulations.’ I have in mind the loss of the agency of the Hong merchants which British merchants might think you are there to replace.

Concerning the appeal that you submitted to the Imperial Commissioner on behalf of Mr Coolidge, who requires that obstacles to trade be removed, I think you should have said that it was submitted by Coolidge as the Agent of a British firm and not as an American trader, which appears to be what the Commissioner has understood from his reply. Having said that, the reply is satisfactory for although the obstacles to trade remain, it admits that the Hong merchants are no longer agents of the Imperial government.

Keying’s reply to Coolidge (through the British Consul) 15.9.43

“Previously Chinese merchants were selected by government and carried on trade on behalf of the foreign merchants. Now the Hong merchants have been disbanded and English merchants can deal with whoever they please. The Chinese government will not interfere.

“Concerning the renting of houses and godowns that concerns Coolidge, the Plenipotentiary has already communicated with us and we instructed the Hong merchants to rent such houses and godowns to you at just and fair prices. But Coolidge says he has difficulties which he cannot resolve. “If I strictly follow the agreement and do nothing for him it would be unkind. Coolidge’s problem comes from the Hong merchants now being free to rent or not to rent their property just as the English merchants are free to trade or not to trade. This is required under the new system. We cannot compel the Hong merchants to act contrary to their wishes as it is the intent of the new arrangements that everyone is free to do as he likes. All I can do is first to send an officer to the Hong merchants to urge and encourage them and second to issue a Proclamation to the people publishing your need of houses and godowns to rent.“This new system is based on mutual willingness. If money is to be made, the Chinese government will not beg its people to do so, they will certainly do so of their own accord. The foreign merchants should act with justice and carry on their business with a view to the long term. In this way I hope that commerce will be improved to the benefit of all parties.”

Friend of China 12.10.43 edition

Article from the Sydney Morning Herald on the potential of the China market:

(in the style of the well-known English article of 1842 on the commercial benefits of adding 1” to the tails of shirts sold in China)

Consumption of cotton yarn per 1,000 head of population:

Country

German states/Austria

German Customs League

Russia

Hindustan

China

Population

4,116,000

27,142,000

59,672,000

131,751,000

300,000,000

Consumption

2,915 lbs

1,821 lbs

276 lbs

86 lbs

16 lbs

If the imports of cotton yarn into China can be increased to the level of consumption in India the increase will comprise over 21 millions pounds. We can have a big increase in trade to China only if the home duty on tea is reduced sufficiently to stimulate consumption to the point that the profit from Chinese tea sales will finance increased imports of cotton. Tea duties in England are 200% on ordinary grades and 100% on luxury grades.

Friend of China 12.10.43 edition

Canton Trade report – dull except Bombay cotton

Friend of China 12.10.43 edition

A poem of hints to Editors entitled ‘how to please all your readers’ is submitted by a reader. Not reproduced here.

Friend of China 12.10.43 supplement

Three of the crew of Lorcha No 11 have been arrested. The ship was scuttled off Chuan Chow on 9.7.43 at which time Dr McKinley and some other Europeans on board were found to have been murdered. The case is under investigation.

Friend of China 12.10.43 supplement

Editorial - Although trade was supposed to stop until the commercial treaty was ratified (except at the military stations at Ku Long Su and Chusan and at Canton) it appears that £1,600,000 of British, Indian and Straits produce (excluding all the opium that has been traded) has been sold along the East Coast. Hitherto the market for British manufacturers in China has been insignificant. The declared value of British and Irish exports to China in 1841 was £862,570 which is considerably less than raw cotton imports and only a fifth of the opium import.

The Chinese are able to make everything that we sell to them very cheaply but the quality of our machine-made cloth is better. Our white cotton long cloth is preferred by the Chinese for under-garments - it is smooth and comfortable.

The late Emperor forbad the cultivation of cotton in certain districts fearing that the rice harvest would be reduced. Now by importing British cottons, more land can be turned over to rice cultivation.

The main obstacle to increasing trade with China is the enormous duty on Chinese produce in England.

From what we know of the Chinese there are many articles currently extensively consumed in America and Europe that could be made more cheaply in China. This is a big subject.

Friend of China 12.10.43 supplement

Canton trade report – Patna $830-840, Benares $800-810, Malwa $710-715. Demand has been checked and prices reduced by a recurrence of the old squeezes by Provincial officials.

Friend of China 19.10.43 edition

Edict of Sir Henry at Macau dated 4.10.43:

Refusing to join ship

Absent without leave

Long absence

Desertion

£2 or 30 days

double pay for the period

1 month’s pay

forfeit money & effects

Friend of China 19.10.43 edition

S J Cook has bought the British Hotel at Canton from J S Case and has renamed it the Canton Hotel. All debts incurred prior to 23.9.43 are payable by Case.

Friend of China 19.10.43 edition

Extracts from the Peking Gazettes:

The Emperor has discovered that opium is being smuggled into His palace by Manchu horse dealers. Some have run away and rigorous measures are ordered to prevent a recurrence. A new list of people enjoying the right of entry is published. Princes of the blood and high ministers can enter but their dependents and all palace staff must be registered and wear a numbered badge at the waist. The palace guards are all changed and only guards acquainted with the appearance of the regulars are to be used in future.42

Friend of China 19.10.43 edition

Now the northern ports are opened can we expect a supply of ice? Americans supply this successfully to India. Hunt’s Merchants Magazine says for the last two years 16 Boston firms have been shipping ice to the East and West Indies and many southern ports. The demand is so great that Boston cannot supply it and extra ice is brought from the interior by rail. Ice used to sell at New Orleans at 6¢ lb. Now it is 1¢. But whereas the old daily profit was $1 it is now $4 such is the increase in volume. The ice is sawn by machine into blocks at least a foot square. The blocks are packed in hay and straw. It is then boxed in thin lumber to make it airtight. In 1840 a Boston company paid $7,000 for straw and hay to pack its shipments. Recently we heard from Calcutta that the ice stock was exhausted and the resulting discomfort of the residents was found to be nearly intolerable. Now we can supply ice from China as well as supply ourselves. We know the Chinese in the northern provinces use ice extensively in the summer but they have never shipped it south. Perhaps this is another market for us to open. The opulent Cantonese spend lavishly on their comforts and would likely consume a lot.

Friend of China 26.10.43 edition

A letter from Keying to Pottinger