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HONG KONG AND

advantage to her trade-a lasting credit to her character-and a powerful means of establishing and of extending her civilizing influence over one-third of the human race.

While viewing our trade with China as one of vast importance, I cannot forget that there are other subjects of equal if not of superior consideration.

Happily these subjects are not antagonistic, but collateral: what- ever gives political power and Christian influence to England in China, affords the means of expanding her commerce, and of strengthening her intercourse with the myriads of industrious and intelligent people, on whose shores she is now irrevocably established.

The position which England has assumed, the treaty which she has forced on China, (which has thus been opened to all Europe and America,) and the shock which the late war has given to the Tartar Government, and which may probably end in the dismemberment, if not destruction, of the Tartar empire of China, all indicate the great responsibility we have incurred.

England cannot remain passive in China--there, as elsewhere, she must advance or recede; the latter is impossible; and the former, if uncontrouled, will plunge her into the greatest difficulties. The abandonment of Chusan, in December, 1845, and the retention of Hong Kong as the sole settlement of Great Britain in China, will, ere long, by the force of peculiar circumstances, lead to our territorial occupancy on the main land of China; a measure greatly to be deprecated and condemned.

But by our retention of Chusan island there could be no excuse for seeking a continental occupancy: it is large, fertile, salubrious, well peopled, and admirably situated for commercial, military, maritime, and social purposes.

Abundant scope would thus be given for developing the energies of Great Britain, and remove all plea of necessity for establishing ourselves on the main land.

Whether China be a foe or a friend, England, by the occupation of Chusan, would be prepared to defend or to aid, as circumstances might demand. Whether war or peace prevailed in Europe, equally advan- tageous would be our position to resist an enemy, or to encourage the trade of the western world.

The permanent occupation of Chusan by England involves so many considerations of the highest importance, that I trust their Lordships

CHUSAN COMPARED.

will excuse the earnestness with which I seek their immediate and deep investigation of the question; and that they will be pleased to over- look any strong expressions which I may have used in my reports on Hong Kong and on Chusan.

Twenty years have been devoted to an investigation of the colonies of England, and I trust their Lordships will deem that the long study of this vast subject, and the personal examination of many of our transmarine possessions, have qualified me to form and to express an early opinion on the British position in China.

If the sentiments I have endeavoured to convey relative to the utter inutility of a large governmental expenditure on Hong Kong, and to the great importance in every point of view of permanently occupying Chusan, be productive of the desired result, I shall have the satisfac- tion of feeling that I have endeavoured to do my duty, and I hope in some degree to justify the confidence reposed in me.

I have, &c.,

R. M. MARTIN,

Col. Treasurer.

No. V. To the Right Hon. Sir R. Peel, Bart., First Lord of the

Treasury.

Sir,

H. M. Treasury, Hong Kong,

November 14, 1844.

I MOST respectfully solicit your early perusal and consideration of two reports which I have prepared on the islands of Hong Kong and Chusan.

Governor Davis has transmitted the "Report on Hong Kong" to Lord Stanley, and the "Report on Chusan" to the Earl of Aberdeen. I have transmitted copies of these reports to Mr. Trevelyan, the Assistant Secretary to the Treasury, with an explanatory letter of this date.

When Lord Stanley did me the honour of selecting me for the duties of Treasurer, I believe his Lordship expected that any information I acquired here should be devoted solely to Her Majesty's service.

In fulfilment of what I deemed my duty, I collected all the facts bearing on the present position and future prospects of Hong Kong;

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