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6 the Crown. In announcing his plan, he repeated once or twice in strong language to his subordinates, that he felt he was incurring a great risk, but that it was for the benefit of both countries, and the risk should be incurred though his life might be the sacrifice. He at the same time enjoined the utmost secresy, unless the thing could be arranged, and until, in that case, his representations should be sent off to the Emperor. To avoid mistake, I requested that his proposals should be given to me in writing, and Hwang-tajin accordingly gave me a paper of which the following is a translation:—

"The opium imported by the English merchants amounts yearly to 30,000 chests or more. If the Plenipotentiary will become security for the whole body of merchants, that this opium shall produce as the yearly amount of duty 3,000,000 dollars, that is, 2,100,000 taels of sycee, it might be arranged to pay in advance the amount for five years, upon the principle of a mortgage of rent, and to make this security last for a period of ten years, beginning from the day of the new system of trade coming into operation, such a security involving the certain payment of the amount, though during the ten years to become a subject of further consideration. If this can be done, we would have it determined on quickly; if not, we would have the subject dropped at once. For the rest, Mr. Morrison will make any verbal explanations."

It will be observed, that upon the system of bargaining, they have begun with very high figures and conditions. This I pointed out to them. With reference to the last sentences, it must be explained that the Commissioner is very anxious to have the matter decided on, if the proposition be at all entertained, in time to go up to the Court with his present communications regarding the tariff, & c. These communications he thinks of having ready in four or five days. I suggested the propriety of the proposition coming as from Sir Henry in his intended memorial to the Emperor, but the Commissioner expressed the wish that that memorial should appear as simply an expression of pleasure at the final conclusion of peace between the two countries, and that this matter should be made the subject of a communication to himself so as to be accompanied by his own remarks upon it. He said (if I rightly understood him) that he would wish, too, to have it pointed out that this question was not thus urged at Nankin, because to carry the legalization of the trade by force of arms was not our purpose, but is pressed now, because of the importance that its being legalized is to the preservation of good understanding between the two countries, seeing that to stay it is impossible.

2. The only remark on the subject of the intended memorial from Sir Henry to the Emperor, that arose out of our conversation, in addition to that which I have just made above, was that his Excellency would wish to have a draft of the memorial in his hands for consideration and emendation before its being written fair.

June 30, 1843.

IN answer to Keying's proposal on the subject of opium, it is only at this moment necessary for me to beg that it may be explained to him that any such arrangement as he has pointed out is utterly impracticable. The British Government do not wish to foster or encourage the trade, but seeing that the Chinese Government have not the power to prevent the importation and use of the drug, the British Government would be glad to do anything that lay in its power to place the traffic on a less objectionable footing. I have already at Nankin, and again in a memorandum dated at Whampoa, explained all this, and to those papers I must refer the Commissioner, though it is probable I shall, at some future day, address his Excellency again on this topic.