of 26th March 1860.

In the next paragraph it is stated that Lord Elgin placed the ground under the jurisdiction of the Colony - My previous despatches will show that we are still waiting formal document by which the cession is to be legally placed under the jurisdiction of this Government.

These two points, however, are not material, and I pass to the consideration of the more important parts of General Grant's letter.

In the first place General Grant's proposition amounts to the conversion of the newly acquired ground into a purely Military Cantonment, separate and apart from the Government of Hongkong, whereas the very article of the Peking Convention by which the cession is made declares

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