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460 away from Canton by the exaction of tonnage dues and thenceforth entirely conducted in Hongkong whence the rice was sent to Canton in junks. Opium was at this time shipped less to Canton, and chiefly to Kongmoon, Samshui and Sheklung, where lower duties were levied than in Canton. Likewise also the numerous small ports between Swatow and Hongkong were supplied from Hongkong with opium by junks which had to pay a duty of 20 taels at those intermediate ports, whilst at Swatow 30 taels import duty and 10 taels Li-kin had to be paid. This was not a smuggling trade but a judicious avoidance of a port (Canton) where extra charges were made. But it was the resultant expansion of the Hongkong junk trade, coupled with the simultaneous decline of the Canton trade, that induced the Cantonese Authorities to establish the Customs Blockade of Hongkong in order to levy here those extra charges and thus to force the junk trade back into its former channel for the benefit of Canton.

The result was striking. At the close of the year 1868, a sudden depression, which reached its height in 1869, came over the native trade of Hongkong. The cotton dealers of Hongkong exported in 1869 only 110,000 bales in place of 200,000 exported in 1868. No more than 335,000 piculs of rice passed through the Colony in 1869. The sugar trade also shewed a considerable decline. The market compradors reported sales amounting, in 1869, to $146,000 against $165,000 in the previous year. The salt fish trade continued on the decline which had set in from the moment when the Customs Blockade commenced. The rent of Chinese houses fell in 1869 about 25 per cent. and some 250 business houses in the principal streets stood, empty and unoccupied. Nevertheless the reviving energies of foreign commerce in 1870 appeared to stimulate also the native trade of Hongkong, which recovered slowly from the injuries inflicted upon it by the Chinese Customs Blockade.

In the government of the Chinese population, Sir Richard systematically gave to the Registrar General the most extensive powers. But he took a personal interest in every detail, probed