gether with the merchandize which has been confiscated to government, according to the IIId article of the recent commercial treaty, both money and goods, shall all revert to the imperial treasury of China for the public service.

IV. As soon as the five ports of Canton, Fuchau, Amoy, Ningpo and Shanghái shall have been opened, the only places allowed for British merchants to trade at shall be the abovenamed five ports, and they shall not be permitted to go to other ports: while the Chinese people shall not be permitted to connect themselves with them, and to trade clandestinely in other ports. Furthermore, the public envoy of the English nation has issued a proclamation clearly forbidding the resort to other places, and should the merchants of the English nation either break this contract or disobey this regulation, affecting not to have heard of the proclamation of the public envoy, while they proceed to other ports, and wander about buying and selling, it shall be lawful for the Chinese officers to confiscate both ship and cargo altogether, and the English officers are not to make any objection. Should Chinese subjects proceed to other places and secretly connect themselves with the English merchants for the purpose of trade, they must be dealt with according to the laws of the country already existing.

V. Since the conclusion of the treaty of Nanking, the government will certainly not be responsible for the debts of merchants; and according to the IVth article of the recent commercial treaty, the transactions between English and Chinese merchants are not to be conducted any more according to the old system of security hongs, when petitions were made for the payment of debts, as is on record; but henceforward, whether Chinese are indebted to English, or English to Chinese, if the accounts be correct, the persons present, and the property in existence, then the parties must appear before the consuls, and in a public place make an agreement, when in accordance with the contract entered into, the different parties may pursue each other; but there is to be no general security of the whole body for individual merchants.

VI. At Canton and other of the five ports, the English merchants, whether constant residents or occasional visitors, must not disorderly go into the villages, and gratify their desires in wandering about; also they must not go far into the interior to trade; but the Chinese officers ought, in connection with the English consuls, and in accordance with the feelings of the people and the nature of the country, to consult and fix a boundary, which must not be passed

over, in order to maintain a constant good feeling and peaceful relations between the two nations. Whenever sailors and people from the vessels arrive, they must wait until the consuls and the native officers have first established the regulations, when they may be allowed to go on shore. But if Englishmen disobey these regulations, and disorderly enter the inner territory to ramble about, no matter what class or description of persons they may be, it will then be allowable for the people of the country to seize them, and deliver them over to the consuls of the English nation for punishment as circumstances may require. But the people must not beat and wound them, lest they infringe upon the established harmony.

VII. In the treaty of Nanking, it has been already stated that Englishmen may take their families and proceed to the five ports of Canton, Fuchau, Amoy, Ningpo, and Shánghái, to dwell, without being insulted or restricted; but the Chinese officers must in unison with the English consuls, and in conformity with the feelings of the people, consult as to what places, or what houses or sites of houses they may make use of; which it shall be permitted to Englishmen to hire, the rent being according to the scale of prices current at the various ports for such purposes, in conformity with which bargains may be struck and contracts entered into; the Chinese on the one hand not practicing extortion, and the English on the other not violently insisting on the hiring of particular spots. The consuls of the English nation shall annually make a report of the number of houses which the English have either built or hired, to the native officers, who shall in their turn report it to the proper tribunal. But the number of houses will naturally depend on the number of merchants, and the number of merchants on the state of trade, so that it will be difficult to fix the amount beforehand.

VIII. Formerly the merchants of every foreign nation were permitted to trade at the single port of Canton only, but last year it was agreed at Nanking, that if the emperor should ratify the treaty, the merchants of the various nations of Europe should be allowed to proceed to the four ports of Fuchau, Amoy, Ningpo, and Shángh i, for the purposes of trade, to which the English were not to make any objection. But since every other nation has been put upon the same footing with the English, should the emperor in future manifest any new favor towards the various nations, then it should be allowable for the English to share in the same advantages; neither the English nor foreign nations, however, must make this a pretext for disorderly soliciting further grace, in order to show their firm adherence to the treaty.

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IX. Should any lawless Chinese, after infringing the laws escape to Hongkong, or conceal themselves on board of any English menof-war, or merchant vessels, as soon as the English officers have discovered them, they must delivered over to the Chinese officers for punishment. Should the Chinese officers, however, make previous inquiry, or discover suspicious circumstances, which the English officers have not found out, then the Chinese officers shall seek an interview with the English officers, in order to examine and seize the offenders; when the criminals have already confessed, or evidence has been elicited, from which it would appear that the individuals in question are runaway felons, then the English officers shall deliver them up, without making any difficulty. Should English sailors or soldiers, or other British subjects, whether natives of England or its colonies, black or white, from whatever cause, escape to China and conceal themselves there, the Chinese officers shall also seize and confine them, and deliver them over to the nearest English officer for judgment, without the slightest attempt at concealment, to the disturbance of the existing amicable arrangements.

X. At each of the five ports open for trade, there shall be an English man-of-war at anchor, in order to restrain the sailors on board of the English merchant vessels, which power the consuls may also avail themselves of to keep in order the merchants of Great Britain and her colonies. The sailors on board of such man-of-war shall be subject to the order of the commanding officer on board of such vessel, and not be permitted to enter the inner territory; the laws regarding wandering about having equal reference to the seamen on board of the men-of-war that they have to the sailors from merchant vessels. When the man-of-war is about to leave, another man-of-war shall take her place, and the consul, or chargé d'affaires, of the port shall first inform the Chinese officers in order to prevent suspicions. Whenever such men-of-war arrive in China to relieve the others, the Chinese war-junks shall not interrupt them; and since the English men-of-war do not carry cargo or conduct trade they may be exempted from the usual measurement fees, already mentioned in the XIVth article of the commercial regulations, which are on record.

XI. The treaty of Nanking has already stipulated that when the amount of money agreed upon shall have been paid, the troops garrisoned at Chusan and Kúláng sú shall retire, and yield up those places to the government of China; with reference thereto it is now agreed, that on the retirement of the troops all those houses inhabit

ed by the English officers, together with the temporary buildings and barracks, whether built or repaired by the English, shall not be broken down, but delivered over to the Chinese officers, to be given to the original owners of the land or tenements, while the English shall not require any payment, in order to avoid delays in the evacuation of the place, and disputes of every kind, by which means the amicable relations now subsisting may be preserved.

XII. The amount of duties and port charges having now been arranged, in future all offenses of British merchants connecting themselves with Chinese traders for the purposes of smuggling or evading the duties, or getting screened by the custom-house officers in order to share the spoils, shall be done away with; the envoy of the British nation has already issued a proclamation forbidding the English merchants from smuggling in the least degree, and commanding the consuls under his authority to exert themselves in restraining the English merchants who resort to the various ports for the purposes of trade, whilst they make every inquiry to eradicate the aforesaid evils; should such consuls on examination discover any cases of smuggling, they shall immediately report them to the Chinese officers, in order that the smuggled goods may be confiscated, whatever their description or value may be; while the merchant vessels engaged in such transactions shall either be prohibited from trading, or when their accounts are closed, be strictly required to depart, without the least favor or screening; the Chinese officers also shall take such native traders as have been engaged in smuggling, or such custom-house officers as have been sharing the spoils, and after severe investigation punish them according to law.

XIII. Hereafter, whenever Chinese traders shall wish to take goods to Hongkong for sale, they must first pay the duties according to the new regulations at the respective ports of Canton, Fnchau, Amoy, Ningpo, and Shanghái, whilst they obtain permits from the various custom-houses, after which they may depart without hindrance. Should Chinese traders wish to proceed to Hongkong for the purpose of laying in a stock of goods, they are also permitted to go to the offices of the Chinese authorities at the ports of Canton, Fuchau, Amoy, Ningpo, and Shánghái, and ask for a passport, taking care to pay the duties on the importation of their goods. But Chinese merchants purchasing goods at Hongkong must ship them on board of Chinese vessels, which vessel must request a portclearance from Hongkong, just as they obtain a permit from the five ports abovementioned, to proceed to Hongkong. All ships and

merchants provided with such permits must exhibit them to the Chinese officers every time of their arrival for inspection and examination, in order to avoid mistakes. At other ports in Kwangtung, Fukien, Chekiáng, Kiángsú, such as Chápú, &c., they not being places of constant intercourse, the Chinese traders are not permitted to ask for permits to go to Hongkong; and if they still go, the revenue cutters must combine with the English officers to inquire into their conduct and report.

XIV. At Hongkong, an English officer must be appointed, who, on the arrival of Chinese vessels at that port for the purpose of purchasing goods, must strictly examine their passes; and should there be any Chinese vessels or traders not provided with passes, or with passes not furnished at Canton, Fuchau, Amoy, Ningpo, and Shánghái, shall consider them as smugglers and evaders of the duties, while a report of the circumstances shall be sent to the Chinese officers in order to inquire into the affair: under such an arrangement not only will pirates be stopped in their progress, but all kinds of smuggling will be prevented.

XV. As the arrangements at Hongkong are certainly not like those at the five ports, and as there are no Chinese officers stationed there, should Chinese traders get in debt to the merchants of other nations, the English officers must settle the affair; but if Chinese debtors escape from Hongkong, and return to their native districts, where they have property and inheritances, the English consuls shall draw up an account of the matter, and report it to the Chinese officers, who shall prosecute the parties. But Chinese merchants trading abroad must also have some factory or persons who stand as security for them. Should English merchants without inquiring accurately be deceived by them, the officers cannot inquire farther. With respect to English merchants at the five ports getting into debt to Chinese traders, and escaping to Hongkong-on the Chinese officers making a clear statement accompanied by all the proofs to the English officers, the latter shall act according to the Vth clause of the present supplementary treaty, in order to put the parties on an equal footing.

XVI. In a former section, it is clearly stated, that whenever Chinese carry goods to Hongkong for sale, or convey goods from Hongkong to the five ports, they must obtain permits from the various custom-houses; now it is agreed upon that the officers of customs at the five ports shall monthly make a statement of the number of permits granted, and of the names of the vessels and merchants