in 1843, the date of the establishment of this Colony. In both settlements, the European population, about two thousand (2000), mostly English, and the Chinese population of about hundred and fifty thousand (150,000) are nearly the same. But Shanghai is governed by a Municipal Council freely elected by the European taxpayers, which exercises the powers usually belonging to Municipalities in England, i.e. the management of the local Police, and the construction of the local Public Works of all kinds. The Foreign Office simply requires that the Regulations and Bye-Laws framed by the Municipal Council shall be approved by the British Minister at Peking, as Colonial Ordinances are approved by the Governor, but it (the Foreign Office) interposes in no way with the free action of the Municipality. Some of the English merchants resident at Hongkong have also houses at Shanghai, and they occasionally reside there. They are fond of contrasting the better results of local and Municipal Government.