The entrance into the city is obviously a question of principle, not of any direct practical advantage in a commercial sense. The freedom from annoyance, and security to property, are more truly so, and of these two the latter, by far the most essential and important to our interests, seems only to require more storage room for goods, away from a dense Chinese suburb which renders insurance from risk of fire impossible, and entails upon our merchants all the additional danger of fraud in the Chinese warehouse-keepers, who are of necessity the custodians of our goods.

We cannot hope that any effort of ours or of the emperor will suffice to change at once the character and habits of a people, or even of the population of a city. But the last war has shown that with us it rests to bring at any time the pretensions of the Chinese rulers down to a nearer level with their military power; and if they cannot from inherent weakness do all that may be desirable, neither are they in a position to refuse any concession, clearly at their option to grant, and such are these which it would seem most important to Great Britain to secure: the nature of our demands and the circumstances under which they shall be preferred are considerations of policy and expediency. But the real question, and by far the most important, it will be obvious, is rather what it may be wise to demand, than what it may be possible to obtain. The danger of collision between the rival civilisations of the East and West has long been foreseen, instinctively felt by the Chinese, and more clearly discerned by Europeans in the result of the late war; and the larger commercial interests growing up under, and in spite of, the present system of restrictions, has only tended, by partially extending the points of contact without placing our relations on a plain basis of reciprocity and equality, to increase the chances. It can only be hoped that the gradual introduction of European arts and ideas and their fructification may in some degree fuse and harmonise the discordant elements before the course of events which otherwise tend to precipitate a violent and disastrous collision are beyond our control. To such a peaceful and beneficial termination of the difficulties which unavoidably beset our relations with China, the efforts of all Western Powers should in the common interest be directed.

These considerations must act as the most powerful checks to any initiative measures of a large and comprehensive character for the improvement of our position and the more rapid development of our commerce.

In this point of view the two greatest obstacles to any advance are the large commercial interests and national revenue at stake, and the danger of being followed by the envoys of other foreign Powers who, having no such great interests to jeopardise, are without this beneficial and most needful check, and may therefore be induced to repeat at a semi-barbarian Court the intrigues and counter-projects for the destruction of our influence and the injury of our trade in the East which are at work in our own times in every capital in Europe, as formerly in India and the Eastern Archipelago.

Russia, France, Spain, Portugal, Holland, and America, with their several jealousies and united rivalry with England, their missionary enterprises or commercial and political schemes clashing in their aim and development, are all capable of creating such turmoil, strife, and disturbance throughout the empire, if free access to the Court and the provinces were insisted upon by Great Britain, as could only end in the ejection of Europeans from China as formerly from Japan, or an intestine war in which European power would probably be involved on opposite sides, and to their mutual destruction as States with commercial interests in the country. These, again, might lead to attempts at territorial possession, suggested in the first instance, as in India, in self-defence, and afterwards continued from necessity. With Russia spreading her gigantic arms to the north and east, Great Britain on the south and west, Spain, Holland, and Portugal with their colonies in the Chinese and Indian seas, a struggle for superiority on the soil of China for exclusive advantages or predominant influence might be centred in Peking and embroil the whole of Europe in hostile relations. The same objection applies to all efforts to enlarge our intercourse and remove limitations, and has ever prevailed. It was recognised as an objection to the last war. The course of events urged on by the opium trade left but little alternative at the last, or there can be no doubt, with the additional fear of the uncertain result of a struggle with a vast empire like China, the resources of which were so imperfectly known, the British Government would have been deterred from any onward step, as these motives did in effect prevent any hostile aggression, so long as it was possible to avoid it, without the sacrifice of our trade.

The war over, it again prevailed, and we are once more in a position to accept as final the increased but limited advantages resulting, or to try for more, and by our policy to avert or provoke disturbing causes which must lead to change. The moderation which marked, and the policy which dictated, our treaties carried us back to the old ground of a nation trading by sufferance, under limitations and restrictions which kept us at the boundaries of the empire, and with us the rest of the Western world, the only difference being enlarged facilities and better guarantees for the pursuit of trade on the coast-line, and within the restricted limits of the five ports selected. It is now for the British Government to determine whether we should rest content with the revenue derived from an import of some 60 million lb. of tea and the export from India of 40,000 chests of opium, netting together some 7 millions sterling to the British and Indian Government, together with the incidental advantage of the raw produce of silk, promising to render us independent of Europe and the adjoining markets for the supply of this staple of an important branch of our manufactures at a cheaper rate, and the market for Indian cotton, the circumstances which lend to China nearly all its importance; or take measures, not free from danger and difficulty, of great prospective magnitude, both in a political and commercial sense, to make China a great market for our manufactures also. At present the Chinese take considerably less than 2 millions sterling in annual value out of an aggregate production of some 70 millions. In this respect they are of less importance to us as customers than the West India colonies, the Italian States and islands, or one of the larger European States, so small a fraction do they absorb. The prospect that would urge us on should be the hope of seeing China take of our manufactures as large a share as all Europe, and instead of a couple of millions, create a demand for more than twenty. The produce of tea and silk we have, the market for opium and Indian cotton is ours. We want an equally large and beneficial market for our manufactures—our cotton fabrics, woollens, linen, and cutlery, for which our powers of production are all but unlimited.

Two questions suggest themselves, therefore, on the solution of which the decision should depend, it being assumed as unquestioned that something of risk and danger to that which we have must attend all effective efforts to win that which is as yet wanting.

To the first four great commercial objects involved in our relations with China, as above specified, shall we sacrifice the fifth?

Or shall we peril all for the attainment of the fifth, by the endeavour to create a market for our manufactures which at present exists only in its rudiments, and to a small fractional value?

If the extreme exiguity of the market for manufactures be not held to justify the voluntary incurrence of great risk or danger to our tea, silk, opium, and raw cotton trade, which form the great bulk of our commerce as it exists at the present day, British and Indian, it will only remain to be determined what are the various secondary means at our disposal for the improvement of this fifth or manufacturing branch as the primary object, and their respective chances of success on the one hand and dangers attending their adoption on the other. For the dangers, it must be well understood, are of two kinds—those attending failure, and those which may be consequent upon, and the ulterior results of, success in the first instance.