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Governor Pehkwei for punishment. This was done, and the arrangement answered admirably. The Governor was pleased, he presented himself before the Chinese as the executor of our judgments, and at the same time we, to a certain extent, seemed to be conceding to the Chinese the principle of exterritoriality which we assert as against them.... I have no 'responsible ministers' here, though the presence of a colleague, and, since military operations began, the position of the naval and military Commanders-in-Chief, have required me to act with some caution, in order to make the wheels of the machine work smoothly and keep on the rails. For this reason it was that I suggested a few days ago the plan of evacuation. The maintenance of order in a city under martial law was, I felt, an affair rather for the Commander-in-Chief than for me, therefore I was in a false position when I meddled with it directly. But the question of remaining in the city or not was a political one. By letting it be known that I had there my lines of Torres Vedras, upon which I should fall back if necessary, I obtained the influence I required for insuring, as far as possible, the adoption of satisfactory arrangements within the city. I must add that this evacuation plan was not intended by me to be a mere threat. I have it clearly matured in my mind as a thing feasible, and which would be under certain circumstances an advisable plan to adopt. In taking Canton we had, as I understand it, two objects in view: the one to prove that we could take it; the other to have in our hands something to give up when we come to terms with the Emperor,--'a material guarantee.' I believe that the capture of the city, followed by the capture of Yeh, has settled the former point. Indeed, from all that I hear, I infer that the capture of Yeh has had more effect on the Chinese mind than the capture of the city. I believe, therefore, that we might abandon the city without losing much if anything on this head. No doubt we should lose on the second head; we should not have Canton to give up when a treaty was concluded, if we had given it up already. Even then however we might, by retaining the island of Honan, the forts, &c., do a good deal towards providing a substitute; so that you see my threat was made _bona fide_. I certainly should have
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