# Appendix.
Board of Trade
LE
450
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House for Queen's Solicitor-general · 20,000 dollars.
Report on the Island of Hong Kong.
Ditto, for Colonial Secretary 20,000 " 7 Ditto, for Chief Magistrate 18,000 "" 17 Ditto, for Treasurer 18,000 11 Ditto, for Land Officer 16,000 Ditto, for Clerk of Colonial Council 16,000 "" Ditto, for Colonial Surgeon 16,000 "" Ditto, for Chaplain 16,000 "" Range of building for Advocate-general, Queen's Solicitor, &c. &c. 100,000 " Prison, with house for gaoler, Hong Kong 45,000 29 Debtors' gaol, Hong Kong - " House of correction, Hong Kong 20,000 4,000 Two police stations north side of island 15,000 " " Two smaller ditto 10,000 "" 8,000 Police station at Chuck Choo 3,000 19 at Saiwan 3,000 - at Pok-foolum 3,000 Keeping in repair Chuck Choo road 1,500 Contingencies of 5 per cent. 35,775 >> " 715,500 Consulate at Canton 45,000 " Total 796,275 35Land-office, Victoria,
10 February 1844.
A. F. Gordon,
Land Officer.
This is but a small portion of the contemplated expenditure; it does not include the formation of streets and roads in Hong Kong, which (on account of the mountainous nature of the island) would cost about 100,000 sterling. It does not include barracks, stores, forts, arsenals, dockyards, wharfs, &c. all projected, and which would cost several millions sterling before they would be completed.
It is unnecessary to pursue this branch of the subject further; sufficient has been said to show the absurd and ruinous projects which were entertained, and the utter failure of the colony in regard to the nature and extent of its population. Notwithstanding the large sums of money expended, the Governor is now obliged to hire a residence which belongs to the late deputy governor, Mr. Johnston. The government offices are in a temporary building, which is falling to pieces. The General commanding has hired an inn for his residence. There is only one small barrack in Victoria, and that has been recently erected; it is not possible to rent a decent house under 150 to 180 dollars a month, about 400l. sterling per annum. The church service is conducted in a mat shed; the civil and military officers are glad to get a location, or even a room, in any spot, on any terms; and the prices of living and of servants, &c. (see Documentary Appendix) are enormous, while the whole population of the island is entirely dependent for its daily supply of food on the Emperor of China's subjects on the mainland of China.
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Commerce.-There is no trade of any noticeable extent in Hong Kong. Vessels occasionally touch here on their way to Canton, or on their return from thence when laden and about to proceed to Europe for orders. Vessels also proceeding to or coming from the ports to the northward sometimes touch here for instructions from the owners or consignees, but very few break bulk at Hong Kong. There is a considerable business done in opium.
Messrs. Jardine, Matheson & Co. have a large opium receiving ship, the "Homanjee Bomanjee,” moored the whole year round in this harbour; Messrs. Dent & Co. have also a large vessel, the "John Barry," for a similar purpose. These receiving ships contain the opium brought from India, whence it is transhipped to smaller vessels and sent up the coast. Messrs. M'Vicar, Burn & Co.; Fox, Rawson & Co., and a few smaller houses, also deal to the extent of their means in the opium trade, which requires a large ready money capital. The smaller houses, who have no vessels of their own, consign opium to agents at the consular ports, but it is kept on board the receiving ships, moored off or near those ports, until the agents sell the opium to some Chinese broker, at Shanghai, for instance, who then receives an order for the delivery of the opium from the receiving ship at Woosung,
There are no native trading junks here from the coast of China; there are none belonging to the port, and a few fishing and passage boats, which form a safe asylum for Ladrones and vagabonds of every description, constitute the native craft of Hong Kong. Even if the natural impediments did not exist to the establishment of a native coasting trade, the articles 13, 14, and 16, in the Supplemental Treaty, would effectually prevent any Chinese junks resorting to Hong Kong. Not only are the junks prevented proceeding thither from any places but the five consular ports, but they must also obtain special passports for a voyage to Hong Kong, and when arrived there the British Government are to act the part of spies for the Chinese government, and to report every vessel, the name of her proprietor, the nature of her cargo, &c., to the authorities at Canton.
It is now well understood what was the object of these clauses; no passes will be readily granted, and junks that might proceed to Hong Kong would probably be punished by the Chinese authorities, who are exceedingly jealous that anything should occur for the advantage of Hong Kong. These and other circumstances, together with the fear of pirates, the want of a Chinese commercial community, the dearness of provisions, and the absence or high price of any trading commodities, will be sufficient to prevent any coasting trade at Hong Kong.
Dr. Gutzlaff, whose knowledge of the Chinese character and proceedings is certainly unsurpassed, says, "So long as the trade is maintained in the respective ports on an excellent footing, no vessels will visit this colony to buy articles at the same price which they can more easily get nearer to them, nor will they bring goods to Hong Kong for which there is an advantageous market in their own neighbourhood. When ships find it more profitable to proceed direct to the northern ports, the chances of Hong Kong becoming an emporium are very trifling. Whatever native or foreign trade will be carried on here must be brought to the colony by adventitious circumstances, and will last or cease according to accident; for notwithstanding the excellent harbour, Hong Kong has nothing in its position or relationship to the other ports to concentrate commerce.'
Since August 1841, Sir H. Pottinger has been issuing proclamations and regulations respecting commerce and shipping for their encouragement and protection. No duties of any kind whatever have been levied, no inquiries have been made as to the cargoes of vessels; ships might enter and depart at pleasure; but all in vain, commerce cannot be created where no materials for it exist.
The table in the Documentary Appendix shows the shipping which entered the harbour of Hong Kong for three years. It consisted principally of transports conveying troops, and vessels calling for orders or seeking freights. Ample trial has been given the place without any satisfactory result. Nearly four years' residence on, or occupation of the island, and an immense expenditure, has failed to produce any commercial operation. Every month the shipping entering the harbour are diminishing in number, and the imposition of a tonnage duty would, it is said, cause a still further decrease.
There does not appear the slightest probability that under any circumstances Hong Kong will ever become a place of trade. The island produces nothing whatever; its geographical position, either as regards the Chinese coast generally, or Canton in particular, is bad. For the trade of the coast of China it is too far to the southward of a territory which extends upwards of 2,000 miles, and if it were practicable to remove the foreign trade of Canton, the removal would be either to some of the open ports to the northward, in the neighbourhood of the tea districts, or to some island or place in the Canton River. Among other delusions that have been promulgated, is the allegation that Hong Kong is a protection to the British commerce at Canton, and especially to the tea trade. With reference to the latter, it should be remembered that the Chinese are as eager to sell us tea as we are to buy it; that the cessation of the trade would be a greater injury to them than to the British nation; that there was no difficulty in procuring tea during the war; that nothing would prevent the Chinese supplying our annual demand for tea, and, of course, receiving in return English manufactures. The tea trade is in fact as independent of Hong Kong as it would be of our occupation of the Sandwich Islands. Canton, however, has no intrinsic advantages to make it the seat of foreign commerce. So long as the Emperor restricted all foreigners to the most distant southerly port in the empire, tea, silk, or any other exportable produce was obliged to be conveyed thither, however distant the place of production or manufacture; but the case is now totally different, when the northern ports in the immediate vicinity of the tea and silk provinces are equally with Canton open to British commerce. Several vessels have already laden with tea for England in the northern ports; this may be increased, and the trade of Canton would then be proportionably diminished, thus rendering Hong Kong, (admitting for the sake of argument its reputed value as a protection to the trade of Canton) every year less and less useful to British interests in China. It is for the advantage of England that our trade with China be carried on with the northern ports. In the central districts of China, along the Yang-ze-kang and other great rivers and canals, the people are more civilized, more wealthy, and, now that they are becoming acquainted with the English, more disposed to friendly and commercial intercourse. By purchasing tea and silk near the place of production, the charges of land-carriage, &c., are avoided.