This was the incident which led to the appointment of the Commission of Inquiry into the working of the Contagious Diseases Ordinance, the report of which Commission we have already had occasion to quote from more than once.
Later, Governor Hennessy wrote to the Colonial Office:
"Whilst the Attorney General is of opinion that, strictly speaking, there is a prima facie case of manslaughter made out against Inspector Lee, and that possibly a conviction might be obtained, he advises against a prosecution. I do not concur with the Attorney General in the reasons he gives for not instituting a prosecution in this case."
During the year previous, 1876, Ordinance No. 2 had been passed, depriving the Registrar General of the much-abused judicial powers he had exercised since 1867, and transferring them to the police magistrates.
Speaking of the incident of Tai Yau having sold her boy to pay her fine, Governor Hennessy wrote the Colonial Office, under date of December 6th, 1877:
"I am now informed that the Commissioners have obtained from the records of the Registrar General's department and from Mr. Smith's evidence the clearest proof that this practice of selling human beings in Hong Kong was well known to the department. One of the records has been shown to me in which a witness swears, 'I bought the girl Chan Tsoi Lin and placed her in a brothel in Hong Kong'; and on that particular piece of evidence no action was taken by the department."
Lord Carnarvon was Secretary of State for the Colonies at this time, and his replies to Sir John Pope Hennessy were small encouragement to the course the Governor had taken. He criticises his "somewhat unusual course" in the appointment of a Commission "composed of private persons to inquire into the administration of an important department of the Government." He says: "I am unable to concur in the suggestion made in your despatch as to the advisability of prosecuting Inspector Lee." He implies that in his opinion "Inspector Lee was acting strictly within his powers on this unfortunate occasion." "It is quite possible," Lord Carnarvon continues, "that there may be abuses connected with the Contagious Diseases Ordinance which ought to be removed; but I would point out that such abuses arise from the imperfections in the system as established by law…. While ready to give consideration to the subject of amending the system, if necessary, I fail at present to observe wherein the officers … have exceeded the duty imposed upon them by law."
From such responses as these we readily learn that it was not alone in Hong Kong that these outrageous abuses of every principle of justice in dealing with Chinese women failed to arouse more than a lukewarm interest in their behalf, and all the way through Sir John Pope Hennessy, with one or two notable exceptions, so far as the records go, was shown but scant sympathy in his efforts to correct these abuses.
On April 2nd, 1878, Sir Harcourt Johnstone asked in the House of Commons the Secretary of State for the Colonies, "whether his attention has been directed to a recent outrage committed … at Hong Kong, which is now forming the subject of inquiry by a Commission appointed by the Governor. And if he will cause special investigation to be made as to the manner in which the revenue derived from licensing houses of ill-fame is raised and expended for the service of the Colony."
In answer to this question, the Commission reported that, "the monies raised both by the licenses from houses of ill-fame, and from the fines inflicted under the provisions of these Ordinances, have been expended in the general services of the Colony; and that the actual revenue derived from this source, since and including 1857 down to the end of 1877, amounted to $187,508, to which must be added the Admiralty allowance from 1870 to 1877, amounting to $28,860, and fines estimated at $5,000, making a total of $221,368.00."