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12 of her present owners, as reported in the "China Mail" of December 11. I have caused the Colonial Department to make a special report, of which I have the honour to inclose copy to your Lordship. The right of the vessel to carry the British flag, and to enjoy the protection of British authority, appears to me incontestable.

THE lorcha "Arrow," 127 tons burden, received a Colonial register under Ordinance No. 4 of 1855, on the 27th September, 1855.

On that day, Fong-Aming, Compradore of Messrs. John Burd and Co., made the requisite declarations to the effect that he was the sole owner of the vessel, that he was the lease-holder of landed property in Hong Kong, and that he had been truly and bonâ fide a resident within the Colony for the last ten years, or thereabouts. He also certified that the vessel was designed for trade with China and for none other.

He produced as his securities, Mr. Frederick H. Block, head partner of the house of Burd and Co., and Mr. Douglas Lapraik, watch-maker and trader, of Victoria.

With these he entered into the necessary bond joint and several engaging the lawful employment of the vessel, under the penalty of 3000 dollars. The surveyor's certificate of measurement having been put in and agreed to by Fong-Aming, and the Registrar-General having reported the validity of the securities and the owner, the register was duly signed by the Governor, registered by the Colonial Secretary, and counter-signed by the Colonial Treasurer.

Evan Thomas was entered as master, and on the 8th January, 1856, the name of Thomas Kennedy was endorsed on the register as having become master. I should note that the registers under the Ordinance above quoted, are valid for one year from date.

And I should add, in explanation of the statement about the purchase of the register for a large sum, that the lorcha had been originally taken by pirates, by them sold, and then claimed from the buyer by the owner. The matter became subject of dispute, and was settled by arbitration, Fong-Aming paying 1100 dollars and retaining her.

The full particulars of this transaction, which I believe to be entirely correct, will be found in the "China Mail" newspaper of 11th December last.

I FORWARD copy of a despatch from Mr. Meadows, dated 26th ultimo, conveying a document which he believes to be authentic, and which, if it be so, is of the highest interest, as marking out the policy of the Imperial Court. I inclose a translation made by Mr. Chinese Secretary Wade, and as he attaches the highest value to Mr. Meadows' opinion of its genuineness, I have thought it desirable to send a copy to the United States and French Legations.