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166 in the whole history of the Colony, made her pleasure known contrary to the just principles of religious and social toleration here guaranteed to Chinese semi-civilized pagans, who were thereby, more than by anything else, induced to flock to Hongkong and settle on the Island. The same proclamation added, to the statement of the previous proclamation concerning the rule that Chinese in Hongkong should, until Her Majesty's further pleasure, be governed according to Chinese laws, customs and usages (every description of torture excepted), the (detailed provision that, pending Her Majesty's further pleasure, the Chinese in Hongkong should be governed by the elders of villages (Tipos), subject to the control of a British Magistrate. Regarding this point Her Majesty's further pleasure was made known many years after (Ordinance 8 of 1858), when an attempt was made to improve the working of the Tipo system by giving them official salaries. Some years later, when this measure proved fruitless, the Government discarded the Tipo system altogether. Yet, although this system is now officially not recognized and has been replaced by the Registrar General's Office, the Chinese secretly adhere to their own system faithfully. The Chinese people in town are at the present day under the sway of their own headmen (the Tungwa Hospital Committee), and the people in the villages are ruled by their elders, as much as ever.

As regards commerce, this same proclamation stated that 'Chinese ships and merchants resorting to the port of Hongkong for purposes of trade, are hereby exempted, in the name of the Queen of England, from charge or duty of any kind to the British Government,' but, it was added, that the pleasure of the Government would be declared from time to time by further proclamations.

According to a (seemingly incorrect) statement resting on the authority of Commander J. Elliot Bingham, who was at this time First Lieutenant of H.M.S. Modeste, the terms of the Chuenpi Treaty included also the surrender by the Chinese, as neutral ground, of 'the peninsula of Kowloon' meaning