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342 waterworks was prominently put forward. One of the principal advocates of the waterworks scheme was the Colonial Secretary (W. T. Mercer). Observing that the paucity of the hill streams on the northern side of the Island renders the procural of a sufficient water supply for the city a matter of extreme difficulty, and noticing also that this want is specially felt in the winter season when conflagrations are most frequent among the Chinese houses, he suggested to lead the water from Pokfulam round the side of the hill, attracting at the same time the smaller rivulets crossing the course of the proposed aqueduct. The Surveyor General estimated the cost of this undertaking at £25,000. Sir J. Bowring, however, opined that it was not the business of the Government to furnish individuals with water any more than any other necessaries of life and that therefore the annual income of the Colony was not fairly applicable to such speculations. Sir John suggested the formation of a joint-stock company, but pointed out, at the same time, the difficulty of collecting a water rate from the Chinese population.

In the sphere of commercial affairs, Sir J. Bowring was unfortunate in coming, almost immediately after his arrival in China, into collision with the Shanghai Chamber of Commerce. When the capture of Shanghai by the Taipings brought the Imperial customs office of that port to a standstill (September 7, 1853, to February 9, 1854), Sir G. Bonham had suggested that British merchants continuing trade there should deposit, in the Consulate, bonds for the eventual payment of customs dues.. The merchants demurred, on the ground that the Chinese Government could not claim duties, as it had ceased to exercise authority and to afford protection, and that American, Prussian and Austrian vessels actually came and went without paying duty on their cargoes. Sir J. Bowring had, before leaving London, discussed the matter with Earl Clarendon and understood him to say that those duties must be paid. By the time Sir John reached Shanghai, the Chinese customs office had been re-established (February 10, 1854), but, after working irregularly, ceased again (March 28, 1854}, whereupon the foreign Consuls