Canton System
Kendrick anchored about a mile offshore of Macau on January 26, 1790. Gray had arrived in November and by January had made it to Whampoa, a trading center near Guangzhou (Canton), about up the Pearl River. Both captains found trading difficult under the Canton System. Kendrick sent a letter to Gray, telling of his arrival and asking for advice on how to proceed. Gray sent a letter back along with letters from Joseph Barrell, the owner of their venture. Gray described his difficulties with the Canton System and suggested Kendrick go to a smuggling area called Dirty Butter Bay on the west side of Montanha Island (today part of Hengqin). Gray also provided the names of buyers who would assist in smuggling. The letters from Barrell were friendly and reaffirmed Kendrick's command of the venture and broad authority to continue as he judged best.