[Untitled], November 5, 1862.

[Untitled]

Sir: In reply to your despatch (No. 148) requesting my advice as to the proposals made by the Taoutai for the taxation of Chinese subjects within the limits of the so-called British concession, I have to observe that there is nothing in the treaties which warrants me in interfering, in any way, in such questions. The Taoutai is entitled to levy taxes as he pleases, and as long as he merely seeks to impose taxes on persons resident in the concession, which are paid by those living in the city and suburbs, I see no reason for objecting to it at a time when it is our interest, as well as that of the Chinese, that the government should not be deprived of its resources.

A heavy responsibility will rest on the consul of any port should his actions in such matters lead to the disbanding or mutiny of the highly-paid force under foreign officers, which the Chinese have imbodied by our advice.

I am, &c.,