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AVING, in the preceding chapter, given an outline of the political events connected with the cession of Hongkong to the British Crown, we now take up the thread of its internal history.

On the very day when the Treaty of Chuenpi was concluded (January 20, 1841), Captain Elliot issued a circular at Macao, addressed to Her Britannic Majesty's subjects, informing them that the Island and Harbour of Hongkong had been ceded to the British Crown. The news of the cession of Hongkong was conveyed to England by the steamship Enterprise which left China on January 23, 1841. Captain Elliot explained in his circular of January 20, 1841, that Her Majesty's Government had sought for no privilege in China for the exclusive advantage of British ships and merchants, and that he therefore only performed his duty in offering the protection of the British flag to the subjects, citizens and ships of foreign Powers that might resort to Her Majesty's Possession at Hongkong. A general invitation was thus given to all the merchants of other countries to utilize the proposed new British trade station for commercial purposes. At the same time, Captain Elliot expressly stated that all just charges and duties to the Chinese Empire were to be paid as if the trade were conducted at Whampoa. The Chinese Government was left at liberty to deal with Hongkong by levying, outside the port and boundaries of the Colony, charges and duties on exports from or imports into Chinese territory. This was probably all that Elliot intended,