11

Since that date June last year, the state of our political relations with China has rendered it impossible to complete the transfer of the land, but with the sanction of His Excellency Mr. Bruce, Mr. Parkes has procured a lease of it from the Kowloontung Government, and Her Majesty's Military Force are encamped upon it.

10. These proceedings will be found reported in your Excellency's Despatch No.33 of 26th ultimo, and it is earnestly to be hoped that on the final settlement of our affairs in China the otherwise worthless Kowloong Peninsula will be ceded to us and incorporated with the Colony of Hongkong. Should this negotiation be overlooked, on the retirement of our Troops, the Revangtung Government will resume possession of the ground, public justice will be daily thwarted, and the Government of Hongkong placed in a constant state of embarrassment.

11.

There is not much to be inferred from the Returns of Square Rigged Vessels entering the Port, as these show an increase in number but a decrease in ...

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