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84 by a regular line of large fast steamers added greatly to its prosperity. The evidences of these improved conditions are to be found in the opening on June 15, 1867. of a new dock at Aberdeen and the formation of various joint stock enterprises for the improvement of port facilities. There was a temporary check to the Colony's prosperity at the close of 1866 and in the beginning of 1867, but the crisis, though severe while it lasted, passed away without leaving any permanent ill effects, and in 1870 there were abundant proofs forthcoming that the Colony was commercially quite itself again. The next year was remarkable for the establishment of cable communication between the port and distant parts of the world. Shanghai was brought into direct touch with the Colony on May 26th; New York and London were coupled up on June 9th, and Saigon and Singapore on August 1st.

Sir Robert MacDonnell's successor in the Governorship was Sir Arthur E. Kennedy, who had previously served in leading administrative capacities in Western Australia and West Africa. His administration, which extended from April i6, 1872, to March 1, 1877, was an uneventful one. The matters of chief interest which occupied the attention of the community were a series of incidents arising out of the Chinese blockade of the port which was continued with, if anything, increased rigour. Yielding to mercantile pressure the Governor appointed a commission to inquire into abuses connected with the action of the Chinese maritime customs. The report supported the views of the local community but it had no influence on the Home Government, which was too definitely committed to a policy of non-interference to take action in the direction desired. The arrest, in May, 1874, of a Chinese revenue junk caught in the act of firing at fishing boats in colonial territorial waters seemed to promise a new development, but the Chinese Government having tendered ample apologies for the incident, and promised to punish the offenders, the Attorney-General was ordered to enter a  in the proceedings which had been instituted in the High Court against the men. and the episode was thus quietly closed. Memorials continued to be sent home against the system, including one from the Chamber of Commerce on August 3, 1874, in which the blockade was condemned as an organised invasion of the freedom and sanctuary of the port. Lord Carnarvon, the then Secretary of State, in replying to these representations, while admitting that abuses had occurred in connection with the action of the Chinese revenue cruisers, denied that the exercise of the right of search in close proximity to Hongkong affected the freedom of the port and afforded valid excuse for diplomatic remonstrance. Lord CarnavonCarnarvon [sic] subsequently saw fit to modify these views, and it was announced in January, 1876, that the Home Government were of opinion that the community of Hongkong really had a grievance and were entitled to relief. Sir Arthur Kennedy afterwards submitted a series of proposals for the future regulation of the junk trade. These were (1) that all Chinese cruisers should be prohibited interfering with Hongkong junks, except those of the Hoppo; (2) that a definite Chinese tariff of import and export duties, applicable to Hongkong junks, and fixed regulations for the Hoppo's dealings with Hongkong junk masters be published and adhered to; (3) that a joint board should be appointed to investigate all complaints of illegal seizure. The suggestions, which were endorsed by the Chamber of Commerce, were sent home, and ultimately formed the basis of discussions which were conducted between Sir Thomas Wade, the British Minister at Peking, and the Tsung li Yamen. The two first proposals were rejected by the Chinese Government and a modification of the third was embodied in the Chefoo Convention in the form of an arrangement for the creation of a mixed commission consisting of a British consul, a Hongkong officer, and a Chinese official to arrange a set of regulations calculated to benefit the revenue collection of China without interfering with the commercial interests of Hongkong.

A tremendous typhoon, which is accurately described by Hongkong's historian as "the severest disaster that ever befell the Colony of Hongkong," burst over the island on the evening of September 22, 1874. "On the morning of September 23, 1874," says Dr. Eitel, "the town looked as if it had undergone a terrific bombardment. Thousands of houses were unroofed, hundreds of European and Chinese dwellings were in ruins, large trees had been torn out by the roots and hurled to a distance, most of the streets were impassable, being obstructed by fallen trees, roof timbers, window frames and mounds of soil thrown up by the bursting of drains. Business was at a complete standstill for several days. The praya was covered with wrecked sampans and the debris of junks and ships, whilst in every direction dead bodies were seen floating about or scattered along the ruins of what was once the praya wall. Thirty-five foreign vessels, trusting in their anchors, were wrecked or badly injured. Over two thousand lives were lost in the harbour within the space of about six hours, during which time the screams of the Chinese in distress on the water were heard by residents on the upper levels of the town, to rise above the terrific din of the storm&hellip; The amount of property destroyed in Hongkong within those terrible six hours was estimated at five million dollars."

Chequered as had been the history of Hongkong, the period upon which it entered after the retirement of Sir A. E. Kennedy was to be memorable for its unrest and excitement. The new Governor was Mr. (afterwards Sir) John Pope-Hennessy, an Irish Conservative who, as a member of the House of Commons from 1859 to 1865, attracted Disraeli's notice, more because of his political views than from any great regard for his personality. Mr. Pope-Hennessy entered the colonial service as Governor of Labuan and Consul-General of Borneo in 1867, and he subsequently served as Governor of the West African Settlements, of the Bahamas, and of the Windward Islands. He was a man of peculiar temperament and endowed with more than a common share of the pugnacity which is traditionally attributed to his race. Both at the Bahamas and the Windward Islands he was in continual hot water, owing to his indiscreet championing of the interests of the native community. So bad did the relations between himself and the European community at length become that a strong movement was set on foot for his recall, and ultimately he was withdrawn. In Hongkong he was received (on April 22, 1877) without prejudice, though with no excess of enthusiasm. But he had not been in office long before he gave a taste of his peculiar qualities. In October, 1878, after a series of minor incidents illustrative of the Governor's facility for creating trouble, the community were startled and outraged by the announcement that the selection of an acting successor to Mr. C. C. Smith, the Registrar-General, who had been promoted to the Colonial Secretaryship of the Straits Settlements, had fallen upon Mr. J. A. da Carvalho, a Portuguese clerk in the Treasury. The indignation was the greater because Mr. Carvalho was not even a British subject. The protests made would probably not have had much effect had it not been for this circumstance. As it was, the appointment was revoked because of the inability of Mr. Carvalho to qualify by taking the oath of allegiance. Another appointment which created much dissatisfaction at the period was the nomination on January 22, 1880, of Mr. Ng Choy, a Chinese barrister, to a vacant post on the Legislative Council. The position had been held previously by the Hon. Mr. H. B. Gibb, and if the ordinary rule had been followed the choice of his successor would have been a European colleague of his. But it was not merely in personal matters that the Governor showed the cloven hoof. His entire administration was tinctured with a prejudice which did not favour the predominant section of the community. Even when he acted rightly he so contrived matters as to invite condemnation. One of his pet official hobbies was a scheme of criminal reform based in the main on the philanthropic ideals which obtained in England. Whipping, branding, and deporting—features of the penal system of the Colony as he found it—were strongly condemned and eventually abolished by him, and he made other changes in the direction of greater leniency. The Chinese lower classes were naturally grateful for the favours received, and dubbed the Governor "the merciful man"; but the European community, with a profounder knowledge of the springs of Chinese criminal nature, were profoundly dissatisfied at what they regarded as the dangerous workings of the policy adopted by the Governor. A great outburst of serious crime which took place in 1878 lent point to the indignant representations of this important section of the population, and as month succeeded month and the crimes increased in seriousness it was determined to hold an indignation meeting to protest against the action that had been taken. The demonstration took place on October 7, 1878,