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202 always been worsted by Chinese Machiavellis. Under these circumstances, not only were Chinese merchants afraid of entering upon any commercial dealings with British or Chinese firms in Hongkong, but even among the mass of the Chinese population of the districts near Hongkong the notion got abroad that the Hongkong Governors were powerless in the hands of the Mandarins, and that the Chinese Authorities might punish artizans and labourers, resorting to Hongkong or settling down in the new Colony, by subjecting their relatives on the mainland to extortion and maltreatment. As trade could only be brought to Hongkong by guaranteeing perfect freedom from custom and excise exactions and inspiring native and foreign merchants with confidence in the Colonial Government. Sir Henry's Supplementary Treaty, by destroying both the freedom of the port and confidence in the independence of the Hongkong Government, unwittingly annihilated for the time all chances of Hongkong becoming the centre of the coasting trade. Successful as a diplomatist, dictating the terms of peace forced upon the Chinese at the point of the bayonet, Sir Henry appeared now to have been an utter failure when he attempted to negotiate a Commercial Treaty on equal terms with astute Chinese diplomatists. The principal points for which Sir H. Pottinger may be blamed consist in his leaving the important opium question entirely in statu quo ante and in omitting to secure for Chinese subjects residing in Hongkong freedom to trade (in Chinese bottoms at least) with the whole of China. It is said that when this truth at last forced itself upon the recognition of Her Majesty's Government, the proposal to raise Sir Henry to the peerage, in reward of the glorious negotiation of the Nanking Treaty, was dropped in view of this signal failure of the Supplementary Commercial Treaty.

The Chinese had yet other objections to Hongkong. The sea all around the Island was infested by pirates whose headquarters and stores of supplies were (falsely) believed to be under the direction of a Chinese resident of Hongkong enjoying official patronage. Sir H. Pottinger endeavoured (since May, 1843)