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170 and Hongkong merchant, gave simillarsimilar [sic] evidence (May 18, 1847) to the effect that, in the first instance, there was no disinclination whatever on the part of the respectable Chinese shopkeepers, and other useful people, to come to the Colony. Lieutenant-Colonel Malcolm's evidence (June 1, 1847) confirms the foregoing statements. 'In a few months,' he said, 'an extensive trade sprung up and immense quantities of piece goods were sold on the island, which were transported to the mainland in native boats. Small vessels were passing hourly between Canton and Hongkong carrying the goods which were sold by sample at the former place, and daily vessels were coming from the north to obtain supplies for the other ports.' Both Mr. A. Matheson and Lieutenant-Colonel Malcolm further stated that this prosperous state of things, brought on rather suddenly, continued until an equally sudden reaction set in about two years later (in 1843). In our own opinion, this early trade movement was simply the natural result of the interference caused by the war of 1841 with the junk trade of the Canton river. The junk trade having once gravitated towards Hongkong, it took some time, after the declaration of peace in 1842, to return to its original channel. But, certainly, had the free trade policy been maintained in Hongkong, a large share of the junk trade might have been retained in the Colony.

With the return of the troops from Chusan, the harbour of Hongkong began to be crowded again with men-of-war and troopships, and a Naval Court of Inquiry was held in Hongkong, (April 25, 1841) to accertainascertain [sic] the causes of the extraordinary rate of mortality which had decimated the troops stationed at Chusan in 1840.

An augury of the rapid progress which the new settlement of Hongkong was expected to make, was the appearance (May 1, 1841) of the first Hongkong Government Gazette. In the first number of this Gazette (printed yet at Macao) Captain Elliot, as charged with the Government of Hongkong, notified that, pending Her Majesty's further pleasure, he had appointed (April 30, 1841) Captain W. Caine (26th Cameronian Regiment) Chief