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5 but it is involved in difficulties and intricacies such as, I fear, nothing but the legalisation of the traffic can possibly remove.

It is matter of public notoriety that the chief mercantile houses engaged in the opium trade in China have already provided themselves with vessels built in America, and sailing under American colours, with American masters and crews, and it is also well known that any vessel may obtain a Portuguese register, and the right to carry the Portuguese flag.

I had actually offered to Elepoo, before his death, to issue a Proclamation in the Queen's name, calling on all British vessels trading in opium to quit the harbours and inner waters of China, on pain of seizure and confiscation, but we could not (as I told Elepoo) assist in such seizure and confiscation, and the Chinese Government has not apparently the power of enforcing the proclamation I proposed, so that it would only have tended to expose its weakness further. This fact, and the connivance of the Chinese authorities of all ranks in the opium trade, are the great and insurmountable obstacles to any plan that can be devised. Any nation in Europe may prohibit the importation of certain articles of merchandise from England, but none of them can call on England to enforce that prohibition; and even supposing it possible by some miracle that not a chest of opium should from this day forward be produced in all India, other countries would take up the cultivation, and trade in it, so long as the Chinese were determined to have the drug, and their Government were not able to prevent its being brought into the country.

I have not myself seen occasion since I have been in China to form the opinion which I know some have imbibed, as to the pernicious and demoralising effect of the use of opium; and, I believe, that not a hundredth portion of the evils spring from it that arise in England from spirituous liquors.

(Extract.)

I FORWARD translations of the following papers:—


 * 1. Copy of a memorandum dated the 29th June, drawn up by Mr. Morrison.
 * 2. Copy of a memorandum dated the 30th June, drawn up by me.
 * 3. Translation of an official memorandum, without date, containing detailed replies to 2.

June 29, 1843.

UPON the subject of opium, I pointed out to the Commissioner, and after wards separately to Hwang and Hien Tajins, the importance of separating the trade in it from that in other articles, unless the far more desirable arrangement of legalizing it could be carried out. And I added, as directed by Sir Henry, that the best mode of effecting this object would be to allow it to be carried on at the two principal points, Namoa and Chin-chew, where the trade has hitherto or a long period been carried on. If this were done, it might not be impossible to prevent the resort of vessels engaged in the opium trade to other parts of the coast.

All this was fully understood, and tacitly assented to: After two or three hours, however, on my joining the Commissioner in the cabin, where he was then alone, he resumed the subject, and began with inquiries as to the quantity of opium that is yearly imported, the duty it would bear, &c.; to which I answered that the yearly importation amounts to about 30,000 chests, and it will probably bear a duty of 50 dollars per chest or a little more. He sent for Hwang and Hein Tajins, and having dismissed his Servants, proposed the subjoined plan, as one by which he might hope to insure the legalization of the opium, by giving the Emperor not merely the assurance that it would, but the promise that it should, be the source of a large revenue to