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Elliot followed up with the proposal of four conditions which came
to be known as the Convention of Chuanbi. One of the conditions was "The island of Hong Kong and its harbour is to be ceded to Britain and the Qing Empire shall according to the Huangpu (Whampao) Trade Regulations be entitled to levies and duties in respect of commercial activities in Hong Kong". (Note 17) On January 26 Elliot declared formal possession of Hong Kong by Britain and raised the Union Jack on the island. On January 28 he sent a deputation to hand in a document to the assistant commander of the Chinese garrison at Da Peng giving notice that Qi Shan had ceded Hong Kong to Britain who had accordingly taken possession of the territory from which all existing Chinese military installations and personnel should evacuate. (Note 18) On February 1 Elliot posted a notice to the effect that Hong Kong Island had come under British rule and inhabitants on the island would henceforth become British subjects owing allegiance to the Queen and obedience to her officials. (Note 19) On learning that Qi Shan had without authority ceded Hong Kong Island, the Emperor Dao Guang ordered his dismissal from office followed by arrest and confiscation of his property. The emperor in effect did not recognise the Convention of Chuanbi. In April 1841 Palmerston received a report on the Convention of Chuanbi and flew into a rage. He considered the compensation extorted from China was too small, only 6 million yuans. He was further piqued at the uncertain status of
Hong Kong which could not be termed a British dependent territory if China was entitled to tax levies on the island. He accused Elliot of failure to carry out instructions and thereupon relieved Elliot of all his duties. H Pottinger was appointed plenipotentiary in place of Elliot. On June 5 Palmerston issued instructions to Pottinger which contained specific directions about Hong Kong Island. The latter directions were to the effect that Hong Kong Island was to be held fast and whatever defence installations or works, batteries or armed forces on the opposite side of the island calculated to threaten or endanger the island's shipping anchorage should be destroyed or evacuated. On arrival in China in August Pottinger led a massive naval task force and three thousand marines on a northern expedition. The British forces overran Xiamen, Dinghai and occupied Zhenhai, Ningbo.
Zhenhai, Ningbo. In a report to Pal- merston Pottinger wrote, "the Beijing authorities must either surrender or suffer the coastal provinces coming under our rule. Her Britannic Majesty will soon be in a position to declare which of China's coastal ports or which coastal regions will be incorporated into Her Majesty's empire". (Note 20) It showed a haughty intention of possessing Chinese territory by the British. In June the following year when reinforcements arrived from India Pottinger launched an attack on Changjiang (Yangtse River) and took Shanghai and Zhenjiang • In early August the invasion fleet came within striking distance of Nanjing. The Qing government hastily sent Qi Ying to Nanjing to offer surrender. Pottinger listed out his terms for peace requiring total Chinese compliance with them. Qi Ying and his aides signed the treasonable Treaty of Nanjing on August 29. The treaty covered a comprehensive spectrum of details including compensation, opening of five trading ports, customs arrangements, extraterritoriality, unilateral best-favoured-nation status and etc. It was the first unequal treaty concluded between modern China and imperialists. Independant China became a semi-colony. Article 3 of the treaty provided: "China cedes and assigns to the British sovereign and to his hereditary successors to the throne the island of Hong Kong to hold in perpetuity and to rule and administer according to such laws and legislations as it may please the British sovereign to enact and enforce." (Note 21) By this instrument Hong Kong Island, an area of 75.6 sq. km. of Chinese territory, became a British possession. Though one year earlier, i.e. Jamuary of 1841, Elliot had in the haughty flush of military prowess declared Hong Kong a British possession it was the Treaty of Nanjing that ratified the formal occupation of Hong Kong.
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