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Rh on the employment of the steamer in Chinese waters. Bat now (July 22, 1836) Lord Palmerston wrote to Captain Elliot warning him that, whilst avoiding to give any just cause of offence to the Chinese Authorities, he should at the same time be very careful not to assume a greater degree of authority over British subjects in China than that which he in reality possessed.

Another indication of the change of policy that had now taken place, was a direction Lord Palmerston gave, plainly intimating that free trade and free traders were now viewed by the Cabinet in a light different from that in which the Duke of Wellington had looked at them. What had constituted in the eyes of Canton merchants the most galling element of the Duke's quiescent policy was his determination, expressed in his Memorandum, 'to control and keep in order the King's subjects,' implying that the British community at Canton consisted of a set of smugglers, pirates and ruffians, requiring that the Superintendents be armed with the strongest powers for their coercion rather than protection. Mr. Davis, Sir George Robinson and even Captain Elliot, had hitherto been under the impression that all the powers and authorities formerly vested in the Supercargoes of the East India Company, including the power to arrest and deport to England unlicensed or otherwise objectionable persons, might be lawfully exercised by the Superintendents of British Trade in China; but now (November 8, 1836) Lord Palmerston informed Captain Elliot that, as no license from His Majesty was now necessary to enable His Majesty's subjects to trade with or reside in China, such power of expulsion had altogether ceased to exist with regard to China.

To avoid recurrence of the difference of opinion between co-ordinate Authorities, which had hampered the Commission during Sir George Robinson's tenure of office, Lord Palmerston abolished the office of Third Superintendent, and, whilst confirming Captain Elliot as Chief, and Mr. Johnston as Second Superintendent, now (November 8, 1836) placed the latter under the orders and control of the former. The suite, salaries and