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122 was now offered, by Kishen, in addition to the opium indemnity and the Chehkiang prisoners were exchanged for Tinghai.'

The last sentence of this Chinese account of the Second Battle of Chuenpi is of special importance, as it fixes the source from which the proposal to cede the Island of Hongkong; to the British Crown emanated. It was Kishen and not Elliot who proposed the cession. As to the 'Chehkiang prisoners' here referred to, there is some mistake here. Kishen's proposal was to cede Hongkong as a trade station (like Whampoa) and in exchange for the Bogue forts and Chusan (Tinghai). Sul)sequently, 'the Chehkiang prisoners,' that is to say, the crew and passengers of the troopship Kite, which stranded (February 15, 1841) by accident on a shoal near Tinghai and fell into Chinese hands, were naturally surrendered by the Chinese when Tinghai was evacuated.

After the capture of the Bogue forts, Admiral Kwan came with a flag of truce, begging for an armistice, in order to give the High Commissioner time to consider certain propositions he intended offering for Elliot's acceptance. The armistice was granted and shuffling negotiations recommenced. At last, on January 20, 1841, was concluded the Treaty of Chuenpi.

By this Treaty, four preliminary propositions were agreed to by the Chinese and British Plenipotentiaries, to the effect, (1) that the island and harbour of Hongkong (not including Kowloon peninsula) should be ceded for ever to the British Crown, and the Chinese batteries on Tsimshatui dismantled in return for the demolished Bogue forts, (2) that an indemnity of six million dollars should be paid to the British Government in six annual instalments, the first being paid at once, (3) that direct official intercourse between the two countries should be conducted on a footing of international equality, and (4) that the trade of the port of Canton should be opened within ten days after the Chinese new year (therefore on February 1, 1841) and be carried on at Whampoa, until further arrangements should be practicable at Hongkong. All other details were to stand over for further negotiation. It must be added, however, that