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HONG KONG.
Encl. in No. 38.
REPORTS EXHIBITING THE PAST AND PRESENT
Enclosure in No. 38.
REMARKS upon the present state of NATIVE TRADE with the Colony of HONG-KONG. THE obstacles which our commercial intercourse with China has to encounter ought to be pointed out, to effect in some measure the removal.
1. From 1839 until now, there has been piracy along the whole coast; and, though the outlaws remained at times quiet, they very soon appeared again, to strike terror in the peaceful merchant junks. This evil does not merely exist in the neighbourhood of Canton, but extends as far as Teintsin, and is most fearful on the coast of Fokien.
The principal entrances to Hong-Kong are through narrow passages, where the ruffians can lie in wait, and pounce upon their victims with great rapidity. They have at Victoria their spics, who give then correct information about every vessel that has a valuable cargo on board, and the moment she leaves, these boats prowl about to lay hold of her, and plunder her entirely. The pirates themselves come niost from the neighbourhood of Whampoa; some cruise about in fishing-smacks of a peculiar build, so as to outsail other craft; but most of them are long rowing crafts, and several carry a letter of marque. It is very difficult to dis- tinguish them from ordinary vessels; and when pursued, they adopt many stratagems to prevent their discovery, and generally know well to manage so as to elude the arin of justice.
The traders that come from the adjacent islands-from Canton, Tungkwan, &c.-have compounded with the buccaneers, paying them a certain sum as black mail, for which they obtain liberty to navigate the seas without molestation; but the eastern passage, towards Ly-yu-moon, is at present very much infested by these depredators. They are there also more numerous than amongst the islands, and do very much mischief. The trading junks dare not leave this harbour, unless they have a strong breeze, and can depart in a large squadron. Many, therefore, are here detained a considerable time, and are ultimately, after all precau- tions, nevertheless plundered. Such occurrences have, during the present mouth, been very numerous; whilst in some of the previous ones no similar losses took place.
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We need not observe that our trade, on account of this insecurity, is much curtailed. vessels that used to come from Kityeo and Haeyeo, and took full cargoes in this harbour, often amounting to 30-40,000 dollars in value, have suffered so repeatedly as almost to drive them away entirely; and where there were formerly three or five, we have now only one.
This evil is very inveterate, and it is difficult to suggest an effective remedy which would put a stop to it, and the more so as the Chinese government will not avail itself of our co- operation. Could one believe the sufferers when they pointed out their assailants, or discover, with sufficient proofs for conviction, their haunts, the matter would be very easy; long before, however, any force can arrive, they are gone, and there are so many harbours and hiding-places for these robbers, that it would require much local knowledge and good information to appre- herid them. But as the Chinese government, on account of possessing better means for obtaining knowledge of the perpetrators, is perfectly competent to bring them to condign punishment, the constant recurrence of piracy, if duly reported to the supreme government, and the most urgent and often-reiterated requests, to put these nefarious wretches down with high hand, might rouse it from its slumbers and indifference. Some vessels of ours, fitted out in the Chinese way, might cruise about at the Kapsing and Ly-yu-moon with great advantage.
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2. The supplementary treaty, which stipulated that junks should only clear out from the harbours open to our trade, has fortunately not been carried into force. However, the very fact that four emporia, besides Canton, are accessible to our traders, with the many interme- diate stations on the coast, makes it extremely easy for junks to go to the nearest spot, and buy there nearly as cheap as the article can be sold at Canton, without risk of shipwreck or pirates, and with a speedy return of their capital. To attract, therefore, the junk trade to Hong-Kong is beyond the range of possibility, and neither regulations nor orders could effect this; so long as the other ports are open, and the British merchant can ship whatever he pleases, and go to the market which will answer his expectations best. The trade reasonably to be expected is a transit one, by vessels that wish to go to any of the northern and southern ports, and touch here on their way.
3. A more formidable obstacle is, that Chinese imports, in considerable quantity, are seldom saleable at Hong Kong. Teas were at first brought here in lots of 100 to 600 chests by sea- going junks.
But there is not a single instance on record that it could be disposed of to any advantage; on the contrary, it has entailed, in all cases, a heavy loss, and it has been given over to the shopkeepers, to get rid of it as they best could. The last adventure of this description was a cargo from the Bohea Hills, in a British vessel, which arrived from Amoy. This specula- tion ended still more tragically. Not only had the article to be sold by auction at a very reduced rate, under prime cost, but the parties got themselves into a lawsuit, and were in- volved in irretrievable difficulties, so that the whole ended in ruin. The reason given for the unfortunate issue of similar enterprises is, that the teas are not suited to our markets, and that our own merchants, having given their order to the various agents in the ports, care not for making additional and trifling purchases. Another article brought by junks is alum, which is occasionally saleable; but the greater part cannot be disposed of at Hong-Kong, and goes either to Canton or even to Macao.
Camphor fetches sometimes a fair price, but many vessels that bring their cargoes here find no purchasers.
These are the staple goods, for the disposal of which no encouragement has yet been given, and the commerce on that account is very languid.
STATE OF HER MAJESTY'S COLONIAL POSSESSIONS. 151
Attempts have been made to introduce sulphur, rhubarb, coarse china, earthenware, and other items; but the demand was not of such nature as to make the speculators desirous to revisit our ports, Where imports, however, find no customer, exports cannot be expected to be much coveted as long as bullion alone will purchase them.
4. The whole Chinese marine commerce appears to approach a great crisis. The keenest Chinese merchants are convinced that our ships can carry goods cheaper and safer than their junks, and that merchandize of any value is better put on board of them. This will throw the carrying trade of the dearest articles into our hands, and most goods will be brought up from the Indian Archipelago in British bottoms on Chinese account, and proceed directly to the ports of their destination without touching here or elsewhere. We might have had otherwise a consider- able emporium here for the Straits produce, but this change has prevented it.
A few junks that touched at Victoria to buy these articles were obliged to proceed to other ports to get a cargo, whilst others that wished to collect the exports for the Archipelago, could not find a sufficient quantity on the spot, and had to send to Canton to purchase them.
4. As a great drawback upon our commercial prosperity, we may mention the absence of respectable Chinese firms, and especially of Chin Cheu merchants. Up to the present moment no man possessing a considerable property has ventured to engage in the Hong-Kong trade, or to establish a house on the island. To the repeated questions put to men of substance why they did not carry on their business under a free government, with full protection of their property, the answer has always been, that it was more advantageous at Canton, or other large cities, and would not answer at Hong-Kong. We must, certainly, make some allowance for the colony being still in a state of infancy, but yet the living in the same settlement with the large English houses, and the having nothing to fear from the rapacity of the mandarins, ought to be a great inducement for large Chinese merchants to come and reside at Victoria, After all the endeavours to fix a colony of Chin Cheu merchants in our possessions, men who are the soul of the whole commerce in the Indian Archipelago, matters remain as they were before. The privileges assigned to them by the government, and the facilities afforded, have not made them willing to repair to this place; and yet in our Straits colonies they come of their own accord, and are only too happy to amass wealth under the British flag which does not allow extortions. Even at Macao, there have been for many years back three very respectable houses, the managing members of which came over to Hong Kong to ascertain whether they could not here do some business and establish a branch or remove entirely. But, after long investigation, they gave up the idea. There appears to exist a fear of laying out money without a moral certainty of the returns, and as the trade has first to be created, there is no prospect yet of securing a large profit.
With all its disadvantages, Hong-Kong possesses likewise great facilities. Though situated in a corner of the empire, many junks, on their passage to the various southern ports, pass here. Auctions being of frequent occurrence, many articles are sold at a far reduced rate from what they would fetch in other places; and there are a number of small dealers who con- stantly speculate in such transactions, and sell a great deal to these vessels. Thus there has existed for a long while a small trade as far as single sales are concerned, but a large one when the whole is summed up, without even the knowledge of our own merchants, and beneath the notice of our great houses. This is still carried on with great spirit, and should the centage on auctions be taken off would likely grow more brisk. Long before a junk from Canton, on her way up to the northern ports arrives here, orders are given to brokers to attend the sales and provide the cargo, and there is always a probability that the purchases will be cheaper than at Canton, The boats which come from the neighbouring cities do likewise much business in this way, and frequently invest the returns of the goods sold at this place in manufactures thus obtained.
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The salt trade is the most flourishing of all the branches, and entirely in the hands of the natives.
The people that bring it hither come from Taechoo, Haehong, and Tamshuy, in the neigh- bourhood of which places their are extensive flats, often overflowed by the sea, and useless for all other purposes, except to collect in pans the salt, by the evaporation of the brine, which has been left. As it is, when boiled, much cheaper than the salt produced in the interior, and, moreover, not subject to the gabelle, it finds at Hong-Kong a ready sale, for salting fish and for taking it illegally up to Canton.
Next to it the stono trade is deserving our attention. The only produce of Hong-Kong, for exportation, is granite, and, though a very contemptible article, still it employs many hands, a great number of boats, each about 70 to 100 tons, and some capital. There are seldom less than a hundred of the above craft which monthly leave this with a full cargo for the interior; and it is considered a profitable trade, because stone blocks are constantly in demand, and will always fetch a good price in proportion as buildings are in course of erection,
The fisheries carried on from Aberdeen and Stanley are in a flourishing condition, and con- sequently, also, the trade in salt fish, which the mass of the people use generally for seasoning their rice. How many smacks belong to these places has never been ascertained; but at New Year, when they make up the accounts with their partners and owners, the harbours are full of them. It would be well to inquire into the tonnage, and issue regular passes to these
boats.
For some months past small vessels have been clearing out for Haenam, Teen-pak, and the west coast of Kwang Tong province in general. They take a good quantity of raw cotton, and, likewise, opium, and carry on a thriving commerce.
The junks that pass the harbour come principally from Teocheo and Hachong districts in Kwang Tung, and from Chic-po and Chaongan in Fokien,
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HONG-KONG,