MR. H. T. LIDDELLsaid, he begged on behalf of his hon. colleague (Mr. Horsfall) to ask the First Lord of the Treasury whether instructions had been sent, or were intended to be sent, to Her Majesty's Superintendent of Trade in China, to cancel the bonds taken on British trade at Shanghai between the 9th of February and the 12th of July, 1854; whether instructions had been given, or were intended to be given, to Her Majesty's Superintendent of Trade in China, to interdict the interference of the consular courts in China, in reference to all the bonds and securities taken on British trade since the expulsion of the Imperial Customs' authorities from Shanghai by the insurgents in 1853; whether, when disputes of a pecuniary nature, and involving questions of international law, arose between British subjects and the Chinese authorities, it was intended that such disputes and questions should be decided by the British authorities in China, or referred home to be decided by the Supreme Government; and, whether Her Majesty's Government had taken, or intend to take, any measures to enforce upon the Imperial Government of China an equality and uniformity of practice in the levying and collection of the Customs' duties at all the ports in China open to foreign trade, in accordance with treaty stipulations; or whether it be intended to forbid all consular interference in the collection of the 1513 Chinese revenue, leaving the settlement of duties to be arranged between the native Chinese merchants and their own Custom House, according to the practice which prevails at Canton?
§ VISCOUNT PALMERSTONI beg to state, Sir, that instructions have been sent to China to cancel bonds taken at Shanghai for duties between February the 9th and July the 12th, 1854. Sir John Bowring has been called upon for a full report of all the circumstances under which the bonds were given, and generally as to the state of affairs at Shanghai at the time, and, until his report is received, Tier Majesty's Government must suspend their decision. Sir John Bowring has been informed that no proceedings can be taken in the consular courts in reference to the bonds and securities given at Shanghai between the 7th of September, 1853, and the 9th of February, 1854, which bonds and securities he has been directed to cancel and return to the parties. The decision in regard to bonds subsequently given must he reserved until Sir John Bowring's Report referred to is received. It would depend upon the nature of the question which may have been raised, whether it was susceptible of decision on the spot; but, as a general rule, questions involving the construction of treaty engagements, the solution of which is attended with reasonable doubt, must be referred home for decision by Her Majesty's Government. Directions have been given to warn the Chinese authorities that they must levy equal ditties with impartiality upon the trade of all nations. A state of things has lately arisen at Shanghai from which, although nothing more than what is due is taken in the shape of duties, and that front all alike, the merchants at Shanghai are placed in a disadvantageous position as compared with the merchants at other ports where a taxer system prevails. Sir John Bowring's attention has been particularly called to this state of things, and he has been directed to endeavour to remedy it, by urging the adoption at other ports of the Shanghai system, under which the duties are collected on behalf of the Chinese Government by a Committee of three foreigners; but no instructions have been given to urge the general adoption of the Canton system. The treaty with China prescribes a certain degree of consular interference for the protection of the Chinese revenue, and the consuls hold the ship's papers until proof is produced to them that the 1514 demands of the Chinese Custom House are satisfied.