HONG KONG ANNUAL REPORT, 1952
it was agreed that a commercial treaty should be subsequently negotiated laying down the general con- ditions under which the foreigners should live and pursue their commercial activities. In addition, Article III provided for the cession of Hong Kong, in the following terms. "It being obviously necessary and desirable that British subjects should have some port whereat they may careen and refit their ships when required, and keep stores for that purpose. . . This phrasing reflects the reality underlying the founding of the Colony, for Hong Kong is a product of its harbour and of the ships that use it and which became, and still are, its life-blood. The home government had adopted a correct policy with regard to Hong Kong. The 1841 cession was not recognized, and the island was regarded as being under a military occupation; it ordered all building except that necessary for military purposes to cease, and leases of land already made were not recognized, so that the annual rents could not legally be collected. The news of the Treaty of Nanking was received with enthusiasm in London, which feared the prospect of a long war. The Tory Government still showed some reluctance, until the Treaty had been ratified, to make permanent arrangements for the administration of the island, and as a temporary measure the government of the island was placed in the hands of the Superintendent of Trade, responsible to the Foreign Office. On June 26th, 1843, the ratifications were exchanged at Hong Kong, with great ceremony, and the way was now clear for the Colonial Office (it was at this time an adjunct of the War Office) to assume responsibility. Sir Henry Pottinger was appointed the First Governor of the Colony, though as Superintendent of Trade he remained subject to the Foreign Office. The Governors of Hong Kong retained this dual role
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