ENG-1953 — Page 251

HONG KONG ANNUAL REPORT, 1953

centred in Canton and Macao. The Portuguese were the first Europeans to arrive off the China Coast in 1517, and they were followed by the Spanish, Dutch, English, French and, after the close of the American War of Independence in 1783, by the Americans. It is, however, unnecessary to follow this intercourse in detail.

By the early 19th century, western trade with China had been centred on Canton, which had had a monopoly since 1755, despite the fact that the English had tried desperately hard to break that monopoly and establish themselves at Ningpo. The trade was governed by monopoly on both sides. On the Chinese side, the Canton monopoly was reinforced by that of the co-hong. The co-hong was an association of Chinese merchants who had secured by purchase the monopoly of trade with the west, and who were held responsible for the foreign traders, and had to act as security for them. On the British side, the East India Company held a monopoly of the trade until 1833, although in fact it had been breaking down for some time before it was abolished in that year. By this time, the trade had fallen predominantly into the hands of the British, and was increasing rapidly. Personal relations with the co-hong merchants were cordial; there were no written contracts, and all undertakings were given and accepted verbally. "We found them honourable and reliable in all their dealings, faithful to their contracts and large-minded" wrote one observer, W. C. Hunter. But in spite of the flourishing and lucrative nature of the trade, there were many complaints of the conditions under which it had to be carried on.

There were eight regulations limiting the freedom of the foreigners at Canton; and if these regulations were not consistently applied, they were always liable to be enforced and were regarded as vexatious. Briefly, they did not allow traders to reside at Canton all the year round, but only during the actual trading season; women were not allowed to reside

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