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32 on the same amicable footing, and the people appear to take little heed of the events now occurring at Canton.

At an interview I had with the Taoutae the other day, I took the opportunity to mention the general report of an Imperial rescript having been received, inculcating the preservation of peace at the ports. His Excellency said he had heard it, but had received nothing of the kind, and he was certain that neither had the Governor-General at Foo-chow; it was a false report, of which there were always many about. The trade at this port is very promising; immense quantities of rice from Bally and other places are being imported in foreign bottoms, and the market price is high and rising: it has advanced during the last week from 4 to 5 mace per picul, the quotations now being for Bally, 2 taels 1 mace to 2 taels 2 mace, and for white Java, 2 taels 3 mace to 2 taels 4 mace, and holders refusing to sell. Shirtings have been freely taken at favourable rates: the demand last month, owing to the departure of the northern junks, was very brisk; it has now slackened again. The favourable accounts from England of the tea and silk market had its effect on this. Up to date, the quantity shipped of this season's, silk amounts to 69,984 bales against 32,859 last year; the total settled for may be taken at 74,000 bales, leaving not more than 1000 bales on stock, for which extravagant prices are asked; in fact, never since the port was opened have prices ranged so high. Teas have not been in such demand, and the stocks low, but it is expected the news by the last mail will cause much activity in this market.

My earnest endeavours will be directed towards the preservation of the present order of things at this port, under your Excellency's instructions.

I AM commanded by my Lords Commissioners of the Admiralty to send you herewith, for the information of Her Majesty's Secretary of State for Foreign Affairs, copy of a letter dated the 15th March, from Rear-Admiral Sir Michael Seymour, reporting generally on proceedings and the state of affairs in the Canton river, and at Hong Kong and the northern ports of China.

I HAVE the honour to report, for the information of my Lords Commissioners of the Admiralty, that nothing of importance has occurred in the Canton river since my letter of the 15th ultimo. The dispositions of the ships are nearly the same, with the addition of the "Elk;" their duties being confined to keeping open the navigation of the river, and in watching the mouths of the creeks, the war junks of the Chinese being assembled in their interior waters in great force.

2. Rockets are continually thrown during the night into the Macao Fort, and occasionally shot are fired from guns in row-boats, hitherto without doing any serious damage, and the fort being strongly armed and garrisoned, and due precautions taken to guard against fire, little anxiety is felt for its security.

3. I regret to state that another small steamer, the "Queen" (under Portuguese colours), with a valuable cargo, has met the fate of the "Thistle." She was seized by the Chinese crew and passengers, on her way from Hong Kong to Macao; Mr. Cleverly, marine surveyor, who was one of the passengers, is the sole survivor of the Europeans, who were but four or five in number. After