APPENDIX II.
CONFIDENTIAL DESPATCH BY CONSUL ALCOCK TO SIR GEORGE BONHAM, JANUARY 13, 1852.

I have the honour to acknowledge the receipt of your Excellency's confidential despatch of the 17th ultimo, and although the departure of the Audax within three days of its receipt leaves me but little time for consideration or inquiry, I have devoted so much time and thought to the subject during the last five years that I venture to reply without delay.

On the general scope of coercive measures adapted to ensure success in any negotiations with the Chinese Government, and more especially on the blockade of the Grand Canal as a very cogent means, I have already in my confidential report of January 19, 1849, and subsequently in another of February 13, 1850, submitted the opinion I had formed after long and careful study of our position in China; and further inquiries and experience of the people we have to deal with have only served to confirm the views contained in those reports.

I took the responsibility of sending Mr Vice-Consul Robertson with the Espiègle to Nanking in the spring of 1848 with the strong conviction that at that particular season, with the tribute of grain uncollected and a thousand of these grain-junks actually under an embargo at Shanghai, any demonstration of force in the neighbourhood of the Grand Canal would command immediate attention, and the result went far to establish the accuracy of the conclusion. Circumstances since then have, however, altered both in a favourable and an adverse sense. Taokuang, with his humiliating experience of the superiority of our arms and his known and acknowledged desire to avoid any further collision during his reign, is no longer on the throne; and his young successor, untaught by the experience of his father, has given very unequivocal signs of disposition to enter upon a different policy. On the other hand, a protracted and serious insurrection in the southern provinces has drained his treasury, weakened his authority, and now threatens, unless he finds means by force or bribery to put the insurgents down, at no distant period to affect the stability of his throne. If the arrogance of youth in the new sovereign should therefore dispose him on the one side to venture on a crusade against Western Powers, his perilous position in regard to his own provinces cannot fail to impress upon him the prudence of at least temporising until a more convenient season. I am led to think, therefore, from all I can learn, that the two contrary forces will go far to neutralise each other, and that Hsienfêng, with all his hostile feeling, will be at the present moment as accessible to reason, from the peculiarly embarrassing position in which he is placed, if backed by coercive means, as was his predecessor at the conclusion of the war.

From this your Excellency will perceive that I deem the present time, from the political condition of China, more favourable than any later period may be for the success of coercive measures. As regards the season of the year to be selected, both in reference to the navigation of the Yangtze-kiang and the transmission of the grain tribute, the blockading should not be commenced later than April. During the summer the sun melts the snow on the mountains and sends down the freshets, swelling the river until it overflows its banks with great accession of violence to the current. When the fleet sailed up in July 1842 many of the soundings taken were over paddy-fields, and altogether out of the bed of the river, as the soundings and observations of the Espiègle clearly demonstrated. The tribute also begins to be sent up to Peking from some parts as early as April. A fleet of grain-junks were at the mouth of the canal when the Espiègle made her appearance at the end of March in 1848.

How far a blockade at the present time would have the desired effect—that is, if made effective before the month of May—is a question upon which I cannot feel any doubt. Much would of course depend upon the suddenness of the descent, and therefore upon the previous secrecy observed; much upon the available nature of the force employed. Besides two or three large-class vessels, I am strongly persuaded there should be at least two small steamers of light draught of water, and one or two brigs, which would be quite as effective against any force the Chinese could bring to bear, and far more manageable and serviceable, as well as less costly, than larger vessels. If the result aimed at were not very promptly attained, it might be necessary to retake Chinkiang-fu as a base of operations, and to detach two or three small-class vessels to watch the entrances of water-courses and canals nearer the mouth of the Yangtze-kiang, of which there are at least four, and through them junks with tribute might otherwise pass to the north and into the Grand Canal at some point above the Yangtze-kiang, and between it and the Yellow river. There is also a very free communication with all the lowland districts south of the Yangtze-kiang and the north above Nanking by means of the Seu ho, which runs from Soochow west into the Yangtze-kiang at Wu Hu and Taiping. But from this point northward there does not appear to be any good water communication leading to the Grand Canal without descending the Yangtze-kiang as far as Iching and Kwachow on the two mouths of the Grand Canal at its junction with the Yangtze-kiang below Nanking. These secured would therefore stop the main traffic by the Seu ho route to the north for the relief of Peking. My own impression is that if no warning were given, nor time allowed for previous preparation, our demands would be granted within one month of the commencement of the blockade. If from any unforeseen cause, however, the negotiations were protracted, and the Chinese Government had leisure to recover from its panic and adopt plans for obtaining tribute and grain by circuitous routes, it would be in that case that Chinkiang-fu might be required, together with a good watch on the various tributaries of the Yangtze-kiang below and eastward of Nanking already referred to; and perhaps on the coast towards the Yellow river and the Peiho two or three cruisers might be required to intercept junks sent by sea with tribute. Such in effect is the intention of the Chinese Government at the present moment, without any reference to us. The grain to be collected from the eight provinces, divided into upper and lower, consists of the common grain and of white rice, the latter for the consumption of the emperor and his Court, which it is intended shall be sent this season by sea from Shanghai,—a circumstance peculiarly favourable to the success of any blockading measures, since, as it would be necessary under any contingencies to cover Shanghai and our large interests there with an effective force, the same means would enable her Majesty's Government to lay an embargo on a large and especially important portion of the tribute already collected in the port. I do not imagine it would be contemplated to abandon Shanghai, and I am far from thinking it would be either necessary or expedient—though at Ningpo, Foochow, and perhaps Amoy, it might be considered well—to withdraw the few foreigners for a time. At Canton, no doubt, it would be imperative either to give adequate protection or to abandon the place. On this point I am scarcely called upon to offer an opinion. It probably does not enter into any plans contemplated to strike a blow at Canton, or to adopt any measure necessarily entailing bloodshed and heavy loss: were it otherwise, no doubt the fall of Canton and the humiliation of the Cantonese would in itself go far to read a salutary lesson throughout the empire, and especially at Peking, where there is reason to believe they look upon Canton and the Cantonese as affording the great barrier to our progress, from our inability to make any impression either upon the city or the people.

I do not, of course, presume to offer these suggestions on the general measures which might be found needful for the protection of British interests along the coast, and the distribution and economising of our forces while a blockade on the Yangtze-kiang was being effected, as better informed than your Excellency on such points, but merely refer to them incidentally as necessary parts of any plan for demanding redress by coercive measures at the mouth of the Grand Canal.

For the better illustration of the points touched upon in this despatch in reference to the different points of access to the Grand Canal, either coastwise or by the Yangtze-kiang below Nanking and the two mouths of the canal, which will have to be borne in mind, I beg to enclose a very rough and hasty plan of the main channels, taken chiefly from the elaborate map of the empire published under the Jesuits, and which Mr Medhurst, when my last confidential report was in hand, was good enough at my suggestion to work at on an enlarged scale, availing himself of all the additional information, by comparison of maps, itineraries, &c., that was accessible.

I shall be glad if in this somewhat hasty reply to your Excellency's despatch I have been able to afford such information as you have desired; but if not, or upon any other points it should appear that further inquiries can be prosecuted advantageously and without creating suspicion, I shall be happy to give my best efforts to carry out your Excellency's instructions.

APPENDIX III.
CONFIDENTIAL DESPATCH TO SIR GEORGE BONHAM, DATED JUNE 17, 1852. (EXTRACT.)

If I might without presumption express an opinion on our general policy in China, I should add that it seems in danger of being paralysed by the two antagonistic forces [alluded to in the preamble], and by necessities difficult to reconcile. The magnitude and extreme importance of our interests in the East—in commerce and revenue (for, as I have shown, the China trade is the connecting-link between Great Britain and India, and necessary to complete the circle of trading operations)—suggest on the one hand the necessity of avoiding all measures that may rashly jeopardise such interests, yet nevertheless make it imperative on the other to adopt firmly and unhesitatingly whatever steps may be necessary to prevent loss or deterioration. How these can best be reconciled is the problem to be solved. As late as the last war, throughout all our previous intercourse the attempt had been made to arrive at the solution by a system of temporising and concession, even to that which was unjust and injurious, and this steadily carried out, with a few rare and brief exceptions. Our policy since the treaty has manifested a tendency to an opposite course, encouraged no doubt by the result of the first determined stand made. It has, nevertheless, been so hesitatingly developed that we appear to halt between the two. In words we have asserted resistance to insult or wrongful treatment, but in acts we have not seldom temporised and submitted. The fruit of this policy we now are beginning to reap. Principles of action have sometimes been asserted and then abandoned, instead of being persisted in until the end was accomplished. In dealing with the Chinese, however, nothing appears to be so necessary as to keep the ground once assumed. If this be true, there cannot be too much caution used in first asserting or contending for a right; but that step once taken, there is no safe halting-place between it and full success. A course of alternate opposition and submission cannot do otherwise than end in defeat; and defeat in this country is never limited to its immediate consequences. It has appeared, on looking back through the ten years which have now elapsed since the termination of the war, that the first half of the period was passed in comparative security under the strong influence its events were calculated to exercise on the Chinese mind; but, true to their invariable policy, they have never ceased to seek by every means in their power to make the British authorities develop under what instructions they were acting and to penetrate into their true spirit, in order to ascertain the limits to which our sufferance would extend and the nature of the powers of resistance or retaliation her Majesty's Government were ready to authorise. I think it cannot be matter of doubt to any one resident in China throughout this period, that during the latter portion the Chinese have felt assured of the essentially pacific determination of our Government and the policy of endurance and sufferance in all cases of minor wrongs. And, assured under such a system (with the known impossibility of any direct action in Peking), they have, during the last two years more especially, felt emboldened, systematically, by a series of apparently small encroachments and aggressions, to undermine our position, and to restore, as nearly as may be, the state of things existing before the war, extending the system to all the ports.

With this conviction I have thought it desirable to bring before her Majesty's plenipotentiary in detail many illustrations of the deteriorating influences at work at this port, and now venture to pass these rapidly in review, that their collective evidence may not be wanting. And in order that I may be brief, I shall merely note in the margin the number and dates of various despatches bearing upon similar matters, without further reference to their contents. By these I think it will be seen that the general current and tendency of all the official acts for the last two years upon which I have frequently commented as they occurred has been distrust, and strongly adverse alike to our trade and the stability of our position.

Evidence, I think, will be found in these records to establish the fact that the present Taotai Wu (or Samqua, as he is more familiarly known, of Canton trading memory) has been especially selected as the chief agent to initiate, and the fit instrument for carrying out, a retrograde policy: his character, means, and the general direction of his efforts to damage our local position, territorial and social—to cripple and restrict our trade, and to Cantonise the whole of our relations both with people and authorities in the north—are all in keeping with this mission, and incomprehensible on any other supposition.

The steps of his progress have been carefully watched, and in the despatches noted in the margin traced, together with their effects—neither very apparent on the surface. These may perhaps best be considered by aid of a somewhat arbitrary division as to subjects rather than chronologically, for they have generally run on conterminous and parallel lines. Starting from the Tsingpu affair, in the spring of 1848, and his baffled efforts to pluck from us the best fruit of the risks incurred to vindicate an important principle, from which date he hung about the place—in the background it is true, but not the less busy as a spy from Nanking, between which place and Shanghai, occasionally acting Taotai, at others absent, he oscillated until the fit time appeared to have arrived. After the accession of the new emperor, Lin was displaced from the Taotai office, and he was finally installed by "imperial appointment" to put his hand to the work before him. His steps may be traced in the sinister influences and obstruction brought to bear upon all our interests.

The land tenure and regulations under which a foreign colony had rapidly risen covering more than a hundred acres of land, as an element of strength and independence to the British more especially, seems to have excited both the jealousy and the fears of the Chinese authorities. There seemed no limit to its progress and development; each year saw more and more land occupied, while houses of a large and costly description rapidly filled up the vacant spaces.

Before Wu came ostensibly upon the scene some progress had been made in the creation of difficulties, and the authorities having in the spring of 1849 granted a large and absurdly disproportionate tract to the French, over which the French consul claimed a territorial jurisdiction, the national susceptibilities of the Americans gave the opportunity of bringing French and Americans, and the latter and the English, into collision, and they were not slow to profit by it to set the land regulations practically aside while officially appearing to uphold them.

The desire of the community to carry out an extravagant and not very practicable scheme for a new park or exercise-course that should enclose nearly the whole arable ground and villages within our limits afforded the next opportunity, and the arrogant humour and superstitions of the Fukein clans supplied the ready instruments for inflicting a second blow upon the rights and security of the foreigner at Shanghai connected with the occupation of land.

These attacks and aggressions have since been perseveringly followed up—popular commotions, abusive and menacing placards, having all been used in turns to the damage of our position, and the result has been discredit, broken regulations, divided and antagonistic pretensions between the two most numerous classes of foreign residents—the British and American—and between all foreigners and the Fukein clans, the most turbulent and aggressive of the native population at the port,—a result of which, looking to all the present embarrassment and future danger to our interests it is calculated to produce, I am bound to say I think Samqua may well be proud. The national vanity of the French leading them to an absurd and useless acquisition, the love of exercise of the British leading the equestrians to press an ill-advised and impracticable scheme for a three-mile racecourse, and the national susceptibilities of the Americans leading them to dispute the land tenure which hitherto had been the condition of their own security,—all have been adroitly turned to the greatest advantage, to the profit of the Chinese and the serious detriment of the foreigner.

The progress made in creating obstacles to our commerce has been not less worthy of remark. For a system of total laxity in the custom-house administration under Lin a capricious alternation of vigilance and neglect, under which oppressive acts of partiality and injustice are frequently perpetrated, has been substituted, to the great derangement of operations in trade. The carrying trade has been harassed and impeded, and the Taotai is now actively engaged in efforts to get the cargo-boats under his exclusive control, and to organise a cohong of five firms on the model of the ancient establishments at Canton, while already—I believe at his suggestion (indeed he scarcely denies it)—information has reached me that a new transit duty of seven mace per picul has been levied at Chung-An on the produce proceeding thence from the Black Tea districts to Shanghai. A duty of over 7 per cent, in violation of one of the most important of our treaty stipulations, with a monopoly of cargo-boats, a right to levy new transit duties, and a cohong—the three leading advantages secured by the treaty vanish. It is vain to disguise the fact, for nothing can be clearer or more certain. On these points I have been collecting detailed information, and shall shortly be enabled to write more fully on the subject. I beg your Excellency in the meantime to rest assured that the main facts have already been placed beyond doubt. In connection with these, freedom of access to different points in the interior and with Ningpo by the inland route as advantages long enjoyed have also attracted attention, and some more feeble efforts have been made to throw obstacles in the way.

In the administration of justice perhaps more than in any other directions adverse influences have been brought to bear with complete effect. Redress for any injury inflicted on a foreigner, protection from frauds, or recovery of debts, are all wholly unattainable. The action of the Chinese tribunals in our behalf is null and void, and the course taken by the authorities in all cases referred to there amounts to a total denial of justice. The act of the Taotai in seizing and flogging Mr ——'s boatmen was only wanting to withdraw from the foreigners all protection dependent upon the Chinese laws and their administration under our treaties.

Under these three heads, therefore, I would sum up the progressive and evident deterioration in our position here. The tenure of land, the operations of trade, the administration of justice, have all been objects of attack, and with serious prejudice. That, however, which is at present evident as the effect of the steps taken, forms but a small part of the injury which will in a very short period be too manifest to be overlooked if no determined steps are taken to reverse the policy now pursued. The time, I am firmly persuaded, has arrived for meeting by energetic action these insidious attacks—as the least dangerous course—if our most important interests here are really to be defended with any effect.

How this may best be done I feel your Excellency is entitled to demand from the officer who seeks so earnestly to impress you with a conviction that action is necessary, and I have no wish to shrink from the responsibility of suggesting measures by which I conceive some positive good may be effected, to repair the mischief, and much impending evil at all events averted.

In reference to the land, also, it would seem very desirable that some understanding should be come to with the United States chargé d'affaires by which any participation in the advantages of the British location, consistent with the security of all, should be freely conceded, while anything incompatible with this condition must be as certainly resisted, in their interest not less than ours. If Dr Parker prove impracticable I see no resource but a reference home, when I trust all the real importance of the questions at issue to the interests of British trade and the British position at this port will be steadily kept in view; nor should it be forgotten that in its maintenance all foreign States are deeply interested, whatever the Americans for the moment may think. Any injury to our position must recoil with double force upon so weak and small a minority as they are when left to stand alone.

As regards the measures now in progress for organising a cohong, levying new transit duties, and creating a monopoly of cargo-boats, all tending in the most serious degree to fetter our trade, in indirect violation of the express stipulations of our treaty, I confess there seems to be but one course consistent with the credit of our Government or the defence of our interests, and that is resolutely and firmly to resist them as infractions of treaty. Two modes of doing this, however, suggest themselves. The one is by active proceedings—prohibiting the payment of any maritime duties by British subjects until satisfaction is obtained, and a distinct intimation that if this does not suffice other and more determined measures should follow. The other involves a system of negation that would be peculiarly embarrassing to the Chinese local authorities, and eventually to the Government at Peking. This may be carried out by simply holding the treaty to be in abeyance by their own acts, and declining to take any steps with British subjects to enforce the conditions—whether as regarded customs, access to the interior, the purchase of land, or the administration of justice—so long as the measures objected to were persisted in.

In reference to these two courses, I will not hesitate to say that, if left to my discretion, I should adopt the first; but the condition of ultimate success would be the certainty that, if the object was not attained by such means, her Majesty's Government would feel pledged to send a squadron to the mouth of the Grand Canal next spring with an imperative demand for the Taotai's disgrace and the reversal of all this obnoxious policy, and authority to resort to coercive measures if not listened to.

If, however, it should be deemed preferable to incur the risk of doing nothing—or what, I confess, appears to me even more dangerous, to make protests, or demonstrations which there is no serious intention of following up to their legitimate conclusion—the negative policy is of course the only one to be attempted. The responsibility of the initiative would then be thrown upon the Chinese themselves. The tables would be turned, and the Chinese will be left to right themselves as they best could, while a large revenue will slip through their hands and manifold complications and embarrassments in their relations with foreigners arise to their confusion. The task, in fine, they now assign to us would devolve upon them, and their sole remedy, if they did not choose to give way, would be to stop the trade; but as that would be a plain and ostensible casus belli, they will not attempt it.

If, on the other side, nothing effective be done, I must frankly state my conviction that our position in the north will rapidly deteriorate, and our relations be embroiled, if not irreparably injured. I believe means for the amelioration of both may be safely taken, and have long been required; but I feel still more strongly convinced that at no distant period they must be taken, and the longer they are delayed the greater will be the ultimate cost, and the more imminent the hazard to our future trade and relations with China.

If I am correct in these inferences, the conclusion of the whole must be that the time has arrived when it will be no longer safe to defer strong and effective measures in defence of our interests, and that there is a clear necessity for present action to avert at no distant period a costly war and a shock to this empire it is so ill capable of sustaining, that it must of necessity be attended with great peril not only to the present dynasty but to the existing social organisation of the country.

APPENDIX IV.
ACCOUNT OF THE SALT TRADE ANNEXED TO MR PARKES' SUMMARY OF THE NATIVE MARITIME TRADE OF FOOCHOW, 1846. (EXTRACTS.)

They have constituted the sale of salt a monopoly, which they place in the hands of a set of merchants whom they hold liable for the payment of a fixed amount of tax. This, in some instances, falls rather heavy upon them, but proves an easy measure to the authorities, who have thus but little trouble or expense of collection. All the supplies of salt are drawn from the sea-shore, and consequently there is an appointment of salt inspector in every maritime province, who superintends everything connected with the gabelle: he holds a high rank and receives good emoluments from the Government, 3000 taels per annum. It also forms one of the duties of the governor-general of the province to act as chief superintendent of salt excise.

Most of the supplies from Fukien have to be sent into the interior and the adjacent province of Kiangsi viâ Foochow. The salt is made all along the shore to the southward....

The salt is made at these places by people belonging to the various localities, and the manufacture gives employment to numbers of individuals, who in those sterile districts have few other means of subsistence. The general method of manufacture is to collect the saturated loam from the beach in heaps, and thence to draw off the brine by drainage into large but shallow-built vats, when crystallisation is effected by exposure to the natural heat of the sun. The brine being all extracted from the heap, it is removed to the beach, and the same earth, having been immersed in the salt-tide, can again be used. In fine weather great quantities can thus be expeditiously manufactured, but a succession of rain stops the works, and a scarcity in the supplies is the consequence. The producers are exempted from all taxes or charges on the part of the Government, on the consideration that they are in mean labouring circumstances, though many of the salt-farms are very extensive, and some of their conductors possessed of better competence than the merchants, on whom the whole burden of taxation falls. Junks are despatched to these places by the salt merchants for freights.

The Government system of exacting a fixed annual amount of gabelle is very defective, and places the trade, which might prosper under other management, on an unhealthy basis. When the trade is dull, it becomes still more depressed by the nature of the liabilities that the merchants have at all times equally to bear, and which then become burdensome; and again, on the other hand, in case of a thriving season, the revenue is in no way advantaged. Their wretched executive, however, prevents any improvement. They therefore content themselves with fixing a stated sum, upwards of 300,000 taels per annum; and if they can secure the requisite number of persons to undertake to dispose of a certain quantity of salt that will yield excise to this amount, they are content. Thus each merchant is bound to conduct the sale of the quantity that he undertakes, or rather is held responsible for the amount of duty due on such quantity, and having once paid this up, should he be so disposed, he is at perfect liberty to transport and sell more salt on his own account, duty free; whilst, on the other hand, should he, from a glut in the market or other circumstances, not be able to dispose of the quantity of which he had undertaken the sale, he has still to pay duty on the whole at a fixed unalterable rate.

It is therefore the imminent risk attending salt speculations that causes people of property to be so averse towards entering them. They involve a great outlay of capital, with continual liability but uncertain remuneration. Thus, if a man embarks the whole or greater part of his means in speculations which do not succeed, he becomes instantly embarrassed with the Government, and, with no incomings to relieve him, may perhaps not succeed in recovering his first failure. Most of the merchants being men who are selected merely on account of their capital, the management of their business is entirely in the hands of those they employ, for whose honesty or capacity they are mainly dependent for success. The charges and expenses connected with carrying on a salt business are very great. Yet there are several instances of old merchants employing good managing men, and possessing plenty of supporting capital, having amassed large fortunes in the trade, though, on the contrary, cases are much more numerous of speculators having suffered losses and contracted debts with the Government. A debt to the State of no less than 1,450,000 taels by the salt dealers of Foochow has thus gradually collected.

The nomination of salt merchants is almost invariably compulsory, and no one can retire from the business without he is totally unable from want of means to continue in it. In these cases the reflection that they were obliged to undertake the transactions that led to their ruin must add increased poignancy to their losses. When once, however, they have undertaken a transaction, they are much favoured by the authorities, who give them entertainments and confer honours and distinctions upon them. There are head merchants appointed, who hold some control over the proceedings of the others. To be a head merchant a man must be of known character and not owing anything to the Government. They are responsible for all the other merchants, who, however trustworthy, have all to be secured by the head merchants. In case of any merchant becoming in arrears with the payment of his duties, the salt inspector orders the head merchants to limit him to a certain time in which to liquidate all charges. According as the case needs, the head merchants convene and consult as to whether they should pray for an extension of the term or require some of the other merchants in substantial circumstances to lend the necessary amounts, or perhaps they may proceed to pay it themselves. If also they find that any of the other merchants are incompetent, from want of means, to manage their business, they represent the same to the salt inspector, that they may be allowed to retire. At present there are four head merchants out of a total of sixty-one....

Smuggling is also carried on to some extent. As this, however, affects the vital interests of the salt merchants, they show great vigilance in investigating and reporting to the authorities any instances that may come within their knowledge, and for this purpose fit up and maintain several small vessels which keep up a constant watch against contraband proceedings.

There are a multiplicity of fees and charges which prove very onerous to the merchants. [Here follows a list of forty-seven separate fees, dues, and charges, amounting to 15,300 taels, or about £5000 sterling, on 900,000 lb. weight, or about one-eighth of a penny per lb.]

END OF THE FIRST VOLUME.

PRINTED BY WILLIAM BLACKWOOD AND SONS.