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208 (January 13, 1844), aroused an extraordinary amount of sarcasm. Between the public press and the Governors of Macao and Hongkong there arose (since January, 1844) a good deal of acrimonious discussion, which led to historical inquiries as to the exact title under which the Portuguese held their Colony. The cause of the misunderstanding was the fact that the original draft of an Ordinance published by Sir Henry, on January 26, 1844, to extend the law of England to all British subjects in China, particularized Macao as 'situate within the dominions of the Emperor of China,' and that this was viewed by the Governor and loyal Senate of Macao as a gross violation of international law and comity. Between the Canton and Macao communities on the one hand and the European community of Hongkong on the other hand, there was constant and intimate social intercourse. Though every commercial house readily accommodated visitors, there were several flourishing hotels, first 'Lane's Hotel' (1841 to 1843) and then (since May 1, 1844) the 'Waterloo' (Lopes) and the 'Commercial Inn' (Maclehose).

With the commencement of the year 1844, the foreign community of Hongkong began to be divided between friends and enemies of the Colony. Sir H. Pottinger, whose health was undermined by the strain of his diplomatic worries and by the influence of the climate, and who had never courted friendly relations with the leading British merchants, now began to show more plainly than ever that he held no higher opinion of the typical British Colonial trader than that which the Duke of Wellington held in the days of Lord Napier. And the British merchants, feeling themselves classed by the Governor with, smugglers and pirates, and resenting the mismanagement of the Supplementary Treaty, were not slow in attributing to Sir H. Pottinger a considerable share in the supposed ruin of Hongkong commerce. The officials and the community were thoroughly out of touch with each other; the newspapers freely libelled the Surveyor General, the Chief Magistrate, the Postmaster and other officials, whilst the official reports sent to Downing