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trade is carried on outside it. The colony produces nothing itself, and the produce exported from China never touches its shores. The tea and silk is all bought and shipped at the open ports, to which markets also the great bulk of the imports is consigned direct. The connection of Hong Kong with this great trade consists chiefly in the fact that a certain number of the heads of the China houses and banks elect to live in Hong Kong as a convenient centre from whence to direct the operations of their establishments scattered throughout China. It is useful as a spot from whence, as it were, all the wires can be pulled; but for one British subject residing in Hong Kong there are scores residing in the country where the actual trade is carried on. It is at this moment a very doubtful question whether in consequence of the destruction of the Canton trade Shanghai would not be a more convenient. directing centre for the foreign trade than Hong Kong, and already some of the large houses have moved there; and I cannot well conceive a policy more likely to drive them all there than to place the residents in Hong Kong under contributions for national objects from which those residing in the open ports in China are free. It would be placing Hong Kong at a most unfair disadvantage, and might just turn the scale which is at present hanging in the balance.
19. The Chinese traffic of the colony it must be remembered is quite distinct from the foreign trade; and it is the Chinese who have made Hong Kong what it is, and not its connection with the foreign trade. The Chinese have flocked to the colony for the advantage which it offers of a quiet and secure government--than which a Chinaman values nothing more, and for this they have been made to pay. They constitute 98 per cent. of the population and probably contribute nearly a similar proportion of the revenue. They have made the colony the centre of a large local coasting trade, a depôt at which the produce of the north and south destined for consumption in China changes hands. And although this is a trade which enriches the colony, it is one in which no national interest is concerned, while the chief profit derived by the colony from the foreign trade (which is an object of national interest, and for the protection of which troops are maintained in China) consists in the mere personal expenditure of those connected with that trade who use the colony, as already observed, as a directing centre for their operations outside it. I conceive, therefore, I am justified in asserting that the troops stationed in Hong Kong are maintained there for national as distinguished from colonial objects, and that with those national objects the colony has but an insignificant connection compared with that of the British settlements at the open ports in China, which can never be called upon for any contribution similar to that now asked from Hong Kong.
20. I am far from denying that the colony derives several indirect advan- tages from being the spot selected as a military station. The garrisom forms an agreeable addition to the society of the place, while the troops add to its prestige and importance, and lead to a considerable expenditure. But if Her Majesty's troops are there as a matter of convenience for the Mother Country, and for the maintenance of national objects, and not for the protection of the colony, I do not see that the colony can justly be called on to contribute to their support simply because it profits by their presence; or at all events I do not see how in common fairness it could be refused the option of doing without them. It is one thing to take with thankfulness and to profit by what you can get for nothing, and another to pay an exorbitant price for what, although acceptable, is not indispensably necessary.
21. I am aware it may be said, Oh, it is well known the troops cannot be withdrawn, and so the threat to do so is a mere brutum fulmen." But I would answer that if they cannot be withdrawn it is because they are indispensable for Imperial purposes, for that as far as the colony is concerned I think they might safely be removed; and I can only say in support of my opinion that I am prepared to undertake the responsibility of maintaining law and order in
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