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356 of retribution (October 18, 1860), and the Peking Convention (October 24, 1860) secured at last the ratification of the long dormant Treaty of Tientsin. In accordance with the demand of the Allies, the conduct of international affairs was now transferred from Canton to Peking and the was created (January, 1861) as a special department for foreign affairs. After the death of the irreconcilably hostile Emperor Hienfung (August 22, 1861), Prince Kung came to the front and by a coup d'état (November 1, 1861) made himself virtually Prime Minister of a new regency, the heads of which were the Empress Dowager and the Empress Mother of the infant Emperor Tungchi. Next, Prince Kung established the Foreign Maritime Customs Service which was ably organized by Mr. H. N. Lay with the assistance of Mr. (subsequently Sir) Robert Hart. During Mr. Lay's absence in England (1862 to 1863) to bring out a flotilla of gunboats under Captain Sherard Osborne, R.N., Sir R. Hart gained the entire confidence of the Chinese Government. Mr. Lay was, owing to his imperious refusal to place that flotilla under the orders of the Provincial Authorities, dismissed by Prince Kung (July 19, 1864) and Sir R. Hart obtained the supreme control of the Foreign Customs Service. With the aid of the Allied Forces (since February 21, 1862) Shanghai was delivered from a threatened attack of the Taipings and, thanks to the services of the Ever-Victorious Army under General Ch. Gordon (January 6, 1863, to June 1, 1864), the Taiping rebellion was crushed by the capture of Nanking (July 19, 1864) and peace restored in the Empire for awhile.

During this time the relations of Hongkong with the Chinese Government had steadily improved. As long as the occupation of Canton by the Allied Forces continued (January 5, 1858, to October 21, 1861), Hongkong was virtually the port of supply for Canton city. The renewal of the war with China, in 1860, also gave a fresh stimulus to Colonial activities in various directions and the commissariat and transport services, required by the Allied Forces from October, 1859, to the close of the year 1860, caused the shipping interests of the Colony to