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106 In consequence of these proceedings Captain Smith, in command of H.M.S. Volage, gave notice of his intention of establishing a blockade of the port of Canton (September 11, 1839), but when the Cantonese Authorities thereupon promised to withdraw the offensive proclamations, the blockade was suspended five days later. Negotiations now commenced afresh concerning Elliot's desire to bring the British community back to Macao. Captains Elliot and Smith had an interview (September 24, 1839) with the Chinese Sub-Prefect of Macao, in the presence of Governor Pinto, endeavouring to find a basis of agreement between Elliot and Lin. Elliot was determined not to re-open trade inside the Bogue. Lin was equally determined not to let the British return to Macao. Accordingly it was proposed, on the Chinese side, as a compromise, that British trade should henceforth be conducted at Chuenpi, under the guns of the Bogue forts. Lin proposed also a series of new trade regulations, the leading ideas of which were that the Hong Merchants' monopoly of supervising and conducting the trade as responsible mediators should continue, and that cargoes should be at the risk of the ship until laid down at Canton, and at the risk of the Hong Merchants until shipped on board. This compromise would have had a good chance of success, had not Lin coupled with it the impossible stipulation that every merchant, before participating in the trade, should sign a bond, agreeing that all British subjects in China should be subject to trial and capital punishment by Chinese tribunals according to the provisions of the Penal Code of China. Captain Elliot having asked a representative Committee of British merchants (Messrs. H. Wright, G. T. Braine, W. Wallace and Wilkinson Dent) to advise him on the subject of the proposed trade regulations, the Committee, after consultation with the Hong Merchants, stated (October 22, 1839) that in their opinion a trade under the proposed new plan could not be commenced until the British community had returned to Macao. Individuals from among the British community indeed went back to Macao whilst these negotiations proceeded. A British ship (Thomas Coutts), the