for diplomatic remonstrance. As a remedy of the existing state of things, Lord Carnarvon revived (March 22, 1875) the old suggestion of Sir R. Alcock, to entrust to a Chinese Consul in Hongkong the privilege of collecting from junkmasters the receipts for export duty levied in China and issuing to them in the Colony similar receipts for duty payable on account of importation into China. Lord Carnarvon's reply caused much discontent in Hongkong, as the position taken by him was honestly believed by Hongkong merchants to impair British prestige in China. Considerable excitement was caused soon after by the news that the British steamer Carisbrook had been fired into (June 13, 1875) when crowded with Chinese passengers and captured by the Chinese Customs cruiser Pengchauhoi (officered by Englishmen in the Hoppo's pay) for landing passengers at Hainan when that island was not yet opened to foreign trade. Great rejoicing, however, took place in Hongkong, when a dispatch from Mr. Herbert, the Under-Secretary of State, was read in Council (January 7, 1876) announcing that Lord Carnarvon had formally renounced the views of Sir Brooke Robertson and come round to see that the community of Hongkong really had a grievance and were entitled to protection and relief. Sir Arthur now at last took up the matter and recommended three proposals, intended to solve the knotty problem, viz. (1) that all Chinese revenue cruisers should be prohibited interfering with Hongkong junks with the exception of those of the Hoppo; (2) that a definite Chinese tariff of import and export duties, applicable to Hongkong junks, and fixed regulations for the Hoppo's dealings with Hongkong junkmasters be published and adhered to; (3) that a joint Board should be appointed to investigate all complaints of illegal seizure. The Chamber of Commerce endorsed these proposals (February 3, 1876) and addressed Lord Carnarvon accordingly (February 10, 1876). The matter now passed into the hands of the Foreign Office and became the subject of negotiations between H.M. Minister at Peking (Sir Thomas Wade) and the Tsungli Yamen. The latter, of course, denounced the first and second
