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Diplomatic Department.

His Excellency Her Majesty's Plenipotentiary and Chief Superintendent of British Trade in China, &c., &c., is pleased to give publicity to the subjoined Notification by Her Britannic Majesty's Consul at Shanghae, establishing Provisional Rules for the Clearing of Ships in the absence of a recognized Custom-house Establishment at that Port.

Superintendency of Trade, Victoria, Hongkong, 26th September, 1853.

On the 7th instant before daybreak a Column of armed men entered the City of Shanghae by the North Gate and took possession of the Place. The Authorities were deposed,—the Che-hëen killed, and since that date the Leaders of the force, whoever they may be, remain Masters of the City. The Custom-houses with the other official Buildings have been either demolished or plundered, and there is at present no Custom-house Administration, and no recognized authority to carry on the functions of Government. The City has been partially plundered. Contributions have been levied, and serious dissensions among the armed men of various Provinces who are in possession, still threaten a sanguinary struggle for supremacy, chiefly between the Fokien and Canton Factions.

In this state of affairs a very natural anxiety exists as to the security of property within the Foreign settlement; and many urgent representations have been made to H. M.'s Consul to induce him to afford facilities for the departure of British ships with valuable cargoes, on the ground of insecurity and of injury and loss from detention, irrespective of greater danger.

Many arguments more or less cogent have at the same time been urged as reasons why sailing of ships should be authorized, without regard to a Treaty, for the moment in abeyance at this Port, or any Trade Regulations to the contrary. H. M.'s Consul thinks it right under these circumstances to state in the plainest manner his views in reference to the means suggested for diminishing the disastrous influence of the Insurrection on Trade at the Port; more especially in reference to the arguments which have been suggested as something an unfettered line of action.

It is contended that the Treaty has for the moment at least no existence at this Port, since there is no Government to carry out its provisions, and that in regard to the rights and claims of a Custom-house, where none exists there can be no obligation to observe its rules or pay its duties. To this a very obvious reply suggests itself on the part of the Chinese Government, namely,—that the capture of an isolated sea-port on the coast of a vast Empire, can in no sense abrogate a solemn Treaty entered into between the two Sovereigns of Great Britain and China. The obligations continue to exist on either side, although for a time the means of giving full effect may, by insurrection or violence, be wanting to one of the contracting parties. The inability of the one Government to enforce its rights owing to the calamities which beset it, so far from being a reason why the other should take advantage of the circumstances to ignore its rights, forms in truth the strongest argument for their honest recognition. That this is the view taken by H. M.'s Plenipotentiary, and by H. M.'s Government, has been placed beyond doubt. It remains therefore