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Rh Magistrate of the Island of Hongkong to exercise authority, for the preservation of the peace and the protection of life and property, over all non-Chinese inhabitants (those of the Army and Navy excepted) according to the customs and usages of British police law, and over all Chinese inhabitants according to the laws, customs and usages of China, as near as may be, every description of torture excepted. But all cases requiring punishments exceeding a fine of $400, or imprisonment of over 8 months, or, in case of flogging, more than 100 lashes, or capital punishment, were to be remitted to the judgment of the Head of the Government. Captain Caine was at the same time appointed Superintendent of the GoalGaol [sic], which had been hastily constructed, but as all minor offences committed by the Chinese were punished by a free resort to bambooing, the Gaol, small as it was, was never crowded while this rough and ready system of adminsteringadministering [sic] justice by means of the bamboo continued in force.

The next Gazette (May 15, 1841) published the first Census of Hongkong. By some clerical blunder, however, the hamlet of Stanley, whhich never counted more than a few hundred inhabitants, was put down as having 2,000 Chinese inhabitants, and accordingly received the false description of 'the capital (of Hongkong), a large town.' It never was anything of the sort. Correcting this first Census table accordingly, we find that there were in Hongkong, in May 1841, altogether 5,650 Chinese residents, viz. 2,550 villagers and fishermen, scattered over 20 hamlets among which Shaukiwan and Wongnaichung take a prominent place, 800 Chinese in the Bazaar, 2,000 Chinese living in boats on the harbour, and 300 labourers from Kowloon. The Census also states that at that time the population of Tsimshatsui (not included in the Census) amounted to 800 Chinese.

One of the most important measures of Captain Elliot's regime was the declaration of the freedom of the port which constituted in fact the most powerful incentive to bring trade to Hongkong. By a proclamation issued at Macao (June 7, 1841), Captain Elliot informed the merchants and traders at