It is intended that Hong-Kong shall be governed upon the same principles by which other crown colonies are regulated—namely, that there shall be a legislative and an executive council, to aid the governor with their advice and assistance.

The importance of Hong-Kong, not only with regard to the commerce of all nations with China, but more especially with reference to our relations with the Chinese government, cannot be estimated too highly. However scrupulous we may be in the first instance to limit our intercourse, as much as possible, to the mere commercial questions which may arise, it is impossible not to foresee that other complications may result from it, the issue of which it would be presumptuous to predict. A new era has at length opened upon China, a sudden and almost incredible change in all her relations with foreigners; and the ease and apparent readiness with which she has acceded to all the proposed arrangements respecting trade, is perhaps not less remarkable than the pertinacious obstinacy with which she had so long and so haughtily refused to make any change whatever in the established order of things.

Providence has at length ordained that a vast empire, which comprises nearly a third of the human race, shall no longer remain totally excluded from the great family society of nations; and we cannot but believe that the period has at length arrived when that wonderful nation is, by a slow but steady progress, to be brought under the influence of Christianity. But, while we are impressed with this feeling, let us not be too hasty in precipitating a crisis which may convulse a mighty empire from one end to the other. This, then, leads us to the momentous question of the ultimate disorganization or breaking up of the Chinese empire. This is the great event which we have to dread; for who can contemplate the fearful results of such a crisis without alarm, and without a desire to prevent a catastrophe of so vast a nature?

In this point of view, the possession of Hong-Kong, the state of our relations with the Chinese government, and the difficult questions which may possibly, at no distant period, require our most anxious attention, (it must not be forgotten that the present Emperor of China is already in the decline of life) involve a degree of responsibility which cannot be too deeply felt, and can scarcely be approached without misgivings. Every member of the government of Hong-Kong must, therefore, be keenly alive to the responsibility of his position, and must watch with profound anxiety every one of the widely spreading circles into which the acts of our administration may ultimately extend themselves. We must stand up before the Chinese government, not only in the relation of a friend, but of an ally; and, instead of weakening its authority, we ought rather to support its influence in the eyes of its own people. Our intercourse with that remarkable nation ought to be recorded in the pages of history as a blessing, and not, what it might readily become, without great caution and prudence—a curse.

Impressed with the truth of these observations, the first great and difficult question which awakens our anxiety, is that of the future relations of the opium-trade, and the course which is to be pursued with respect to it at Hong-Kong. Great anxiety has been felt as to the regulations which may be applied to it, in our own settlement, which is understood to be in all respects a free port. It would seem, therefore, that the storage of opium at Hong-Kong could hardly be prohibited; and yet it is difficult to discover how it would be possible, in that case, to avoid the dilemma of appearing in the eyes of the Chinese government to sanction, and even encourage, a description of trade especially prohibited by the Emperor. The simplest and indeed the only effectual mode by which all the difficulties of the question could be surmounted would be, inducing the Chinese government to legalize the trade, and to consent to the introduction of the drug, upon payment of a certain duty.

No stronger arguments could be advanced in favour of this step than those already employed by Chinese writers themselves, in the various memorials presented to government on the subject. Although the opium-trade is not even alluded to in either of our recent treaties, it is well known that Sir Henry Pottinger has used his best efforts to induce the Chinese government to consent to the legalization of the trade, and to introduce the article into the tariff. It is possible that this object may be ultimately effected, but at present we have no reason to believe that any material progress has been made towards bringing this question to a satisfactory conclusion.

In the meantime, the opium-trade has never been more thriving than during the past year, and bitter complaints have appeared in the Pekin gazettes, of the introduction of the drug even into the imperial palace. The emperor appears to be as hostile to the opium-mania as ever, and yet all his measures against it are quite as ineffectual as they have ever been. In fact, the people are determined to enjoy the forbidden luxury at all hazards, and no means hitherto attempted have deterred even the public officers of government from conniving at the clandestine trade, nor is it likely that they will ever be proof against the temptation of heavy bribes, which the large profits derived from the traffic enable those concerned in it to offer.

Should the trade in opium become ultimately legalized, it cannot be doubted that it would greatly tend to the advantage of Hong-Kong, and would induce many Chinese merchants to come over and seek it there, who would at the same time be tempted to make other purchases as well. The drug would then in some measure be paid for in the produce of the country, and not, as it is at present, in silver exclusively, and, in fact, all the commercial relations of the country would at once be placed upon a much more satisfactory footing.

There is, however, another point out of which difficulties may arise, besides the one above mentioned—namely, the attempts of foreigners to enter China at other places besides the five ports, or even, at these latter, to push themselves beyond the limits indicated by the Chinese authorities. According to our present understanding, certain boundaries are to be laid down, beyond which no foreigners are to pass. But there will be many difficulties in the way of preventing the violation of these regulations. Already something of this kind has occurred, and the interference of Sir Henry Pottinger had been called for. A little pamphlet has even been published at Macao, called a "Narrative of a recent visit to the Chief City of the department of Changchow, in the Province of Fokien." In this case the aggressors were not Englishmen, but Americans, and they forced their way into the country, in opposition to the wishes and orders of the local authorities, who pointed out to them that their doing so was contrary to the provisions of the treaty. It is evident that they passed themselves off for Englishmen, and were thought to be so by the authorities.

Sir Henry Pottinger thought it incumbent on him to advise the viceroy and lieutenant-governor of Canton, that these individuals were not Englishmen, and to express his hope that in future the local mandarins would seize and confine all those who might commit the smallest infraction of the treaty, (if British subjects) and send them to the nearest English consular officer, to be dealt with as might be found necessary, in order to enforce implicit obedience.

The last point to which I think it necessary to allude is the mutual surrender of criminals, so that English offenders who may take refuge in China may be given up to our consular officers by the Chinese authorities, and Chinese offenders who may take refuge at Hong-Kong, or on board our ships, may be given up to the Chinese officers. This stipulation has already been acted upon at Hong-Kong, where a party of pirates who were chased ashore by the Chinese government cruisers were instantly seized by the police, and handed over to the proper Chinese officers.

In fact, the more we reflect upon the position in which we now stand in presence of the Chinese government, and in the actual possession of an island upon its frontiers, the more we must become impressed with the vast responsibility which attaches to all our proceedings, and the great necessity which exists for the utmost caution, prudence, judgment, and firmness on the part of every public officer employed in our service in that country.

I have reserved all mention of the terrific storms to which Hong-Kong is occasionally exposed during the summer season. Our squadron, after its return from Canton, was exposed to the full fury of one of these hurricanes, while it lay in the harbour previously to our advance upon Amoy. The Chinese, although ignorant of the use of the barometer, acquire from experience a tolerably accurate knowledge of the indications which determine the approach of these dreaded typhoons.

Unfortunately, Victoria Bay, although completely land-locked, lies fully exposed to the whole fury of the tempest from its beginning to its end; there is no shelter whatever on that side of the island. It is a curious and novel sight to watch the preparations which the Chinese make for the approaching storm; the mixture of superstitious observance and prudent precaution which they adopt, either in the hope of averting the threatening tempest, or of securing themselves against its immediate effects. The sultry, oppressive feeling of the atmosphere, the deep black clouds, and other indications, warn them to be prepared; and, from the noise and excitement which soon take place among the Chinese, one would rather imagine they were celebrating some festival of rejoicing than deprecating the fury of the gods. Many of their houses, on these occasions, are decorated with lanterns stuck upon long poles twenty or thirty feet high, huge grotesque-looking figures, and various devices. The beating of gongs, the firing of crackers, and explosion of little bamboo petards, from one end of the town to the other, and in all the boats along the shore, create such a din and confusion, that a stranger cannot help feeling that there must be danger at hand, of some kind or other, besides that of a storm.

It is also a curious sight to watch the hundreds of boats and junks getting under weigh at the same moment, all eager to get across to the opposite shore, under shelter of the mainland, as fast as possible, knowing full well that they would be certainly stranded if they remained on the Hong-Kong side. In the high stern of every junk stands a man, who perseveringly beats a large suspended gong with his utmost strength, while the rest of the crew appear quite as intent upon firing off crackers as upon the management of their boat. By this means they hope to awaken their tutelary god, and to induce him to listen to their prayers for succour. The greater part of them take refuge in a bay directly opposite Victoria, from which it is about four miles distant, under the lee of the mountains on that side.

Frequently all the threatening appearances which call forth these preparations pass off without producing a typhoon. The flashes of lightning are fearfully quick and brilliant; the peals of thunder are almost deafening; the huge black clouds hang gloomily over the mountains, or are banded across from one side to the other, pouring their waters in torrents upon the basin between them. In this way the storm at length subsides, and the horrors of a typhoon are averted.

The actual typhoon is of a very different description; in fact, it differs in no respect from the worst hurricanes which visit the Mauritius or the West Indies. Hong-Kong was visited in this way on the 21st and 26th of July, 1841, and a more severe typhoon than that which took place on the first of those days is, perhaps, never experienced. The theory of these circular storms has been well laid down by Colonel Reid and others; so that in the present day a vessel caught in them at sea would be much less exposed to danger than formerly, provided her captain had made himself master of the well-confirmed theories which have been propounded upon the subject. The sphere of their operation is very limited, neither do they occur every year, but seldom oftener than every three or four years.

At Hong-Kong, various ominous appearances were the forerunner of the storm on the occasion alluded to. For some days previously, large black masses of clouds appeared to settle upon the hills on either side: the atmosphere was extremely sultry and oppressive; the most vivid lightning shot incessantly along the dense, threatening clouds, and looked the more brilliant because the phenomena were always most remarkable at night, while during the day the threatening appearances were moderated considerably, and sometimes almost entirely disappeared. The vibrations of the mercury in the barometer were constant and rapid; and, although it occasionally rose, still the improvement was only temporary, and upon the average it continued to fall. A typhoon was, therefore, confidently predicted, and the more so because none had occurred for several years.

The Chinese, on this occasion, made every preparation in their power; but that comprised very little except the everlasting firing of crackers and beating of gongs, although they endeavoured also to get shelter for their boats in the best way they could. Our own ships prepared for the coming danger as well as circumstances permitted, everything being made as snug as possible. But the whole harbour was at this time crowded with transports, store-ships, and merchant-ships, in addition to our men-of-war and steamers; indeed, so close were they anchored together, that in many cases there was not even room to veer cable. It was evident to all, that if the expected typhoon should burst upon them, the most serious disasters would inevitably take place.

It was not without many misgivings and forebodings that, in the midst of all the preparations for the storm, and when there was every indication of its immediate outbreak, a small schooner was observed to get under weigh, and stand out of the harbour towards Macao; she had treasure on board, and one or two passengers. She was never afterwards heard of; not a vestige of her was ever discovered; she must have foundered at sea at the very commencement of the storm.

During the night of the 20th, the weather was tolerably calm, but ominously sultry; towards daylight on the 21st, it became squally, with heavy rain, and a good deal of swell was now getting up in the harbour. The barometer continued gradually to fall, and the squalls became heavier. The typhoon could no longer be doubted; and, as it was desirable to move the Nemesis as much to windward of the other ships as possible, steam was got up quickly, and with some difficulty she was moved to a good berth on the opposite side, under shelter of the high land above Cowloon. Topmasts were lowered, and everything made snug, and she was brought up with both bowers, open hawse, to the N.E., and veered to a whole cable on each.

Between seven and eight o'clock in the morning, the wind was blowing very hard from the northward, or directly upon the shore of Hong-Kong, and continued to increase in heavy squalls hour after hour. Ships were already beginning to drive, and the work of destruction had commenced on every side; the Chinese junks and boats were blown about in all directions, and one of them was seen to founder with all hands on board. The fine basin of Hong-Kong was gradually covered with scattered wrecks of the war of elements; planks, spars, broken boats, and human beings, clinging hopelessly for succour to every treacherous log, were tossed about on every side; the wind howled and tore everything away before it, literally sweeping the face of the waters.

On shore, the hospital was one of the first buildings blown down upon the heads of the unfortunate inmates, wounding many, and aggravating the sufferings of all; yet only one man, a helpless idiot, was killed. The buildings being merely of temporary construction, most of them partly built of bamboo, barracks and all came tumbling down like children's card-houses.

From half-past ten until two the hurricane was at its highest, the barometer at this time having descended to nearly 28.50 according to some, but on board the Nemesis it was never lower than 28.89. The air was filled with spray and salt, so that it was impossible to see anything that was not almost close at hand. Ships were now drifting foul of each other in all directions; masts were being cut away; and, from the strength of the wind forcing the sea high upon the shore, several ships were driven high and dry.

The native Chinese were all distracted, imploring their gods in vain for help. Such an awful scene of destruction and ruin is rarely witnessed; hundreds of Chinese were drowned, and occasionally a whole family, children and all, floated past the ships, clinging, in apparent apathy, (perhaps under the influence of opium,) to the last remnants of their shattered boats, which soon tumbled to pieces, and left them to their fate.

During the height of the typhoon, the engines of the Nemesis were kept going at half speed, and she rode through it very easy, without suffering any damage. But even those few vessels which did not drive were in constant danger of being run foul of by others which did; in fact, crowded as the bay was with shipping, it was a matter of wonder that even more serious damage was not done than actually did occur. The heaviest part of the typhoon appears certainly to have passed directly over Hong-Kong, for even at Macao, which is only thirty-five miles distant, it was much less severely felt, and, moreover, there was a difference of nearly four hours in the time of its occurrence; nevertheless, beyond Hong-Kong the typhoon was also very severely felt, and several ships were in the greatest danger.

It is a remarkable fact, that both our plenipotentiaries, Captain Elliot and Sir Gordon Bremer, (who has recently returned,) were wrecked on this occasion, and were only saved, as it were, by a miracle. They were on their way to Hong-Kong, in Captain Elliot's cutter, the Louisa, when the typhoon, already commencing, compelled them to anchor in not a very favourable berth, under one of the numerous islands at the mouth of the Canton river. Every measure was resorted to which good seamanship could suggest, to give any chance of safety to the little vessel, but all in vain. She soon drove—her spars and masts were carried away—a heavy, tumbling sea broke over her, washing everything overboard—the destruction of the vessel, and the loss of every one on board, seemed to be inevitable. Fragments of the numerous wrecks along the coast were floating past them every moment. Having been driven from the island under which they first took shelter, they were carried before the wind for the distance of from two to three miles, expecting every moment to be swallowed up; the commander had been already washed overboard. At length they caught sight of land right ahead, with a heavy surf breaking on it, apparently almost close to them. The suspense at this moment was intense and awful. If the vessel touched the surf, they would be launched into eternity in a moment. But, providentially, the little cutter cleared the breakers, almost within reach of their spray. The anchor was now let go, but could not hold the little craft, so heavily did the sea break over her; and at length she was driven full upon the shore, where she instantly bilged and filled. Some people now jumped overboard, others crawled on to the nearest rocks, but at length all hands got safely on shore, with the assistance of a rope, which one of the boys who had succeeded in swimming ashore made fast to one of the rocks.

Besides the plenipotentiaries, Lord Amelius Beauclerk and one or two other gentlemen were partakers of these disasters. There is little doubt that they all owed their preservation, under Providence, to the admirable seamanship and cool presence of mind of Captain Elliot himself, who took command of the little vessel during the most trying period, and whose accurate knowledge of the coast was of essential service.

Their troubles, however, were not yet at an end. They managed to save very little provisions or clothing from the wreck; and the only place they could discover, in which they could shelter themselves for the night, was a large fissure in the side of a precipice, open at the top, with a small mountain-stream running through the centre of it. There they anxiously awaited the dawn of morning, in a sitting posture, (for they could not lie down,) and drenched to the skin. Soon after daylight they discovered two Chinamen, who came down to pillage the wreck; and several dead bodies of Chinamen were found cast up upon the shore. After some hesitation and difficulty, a bargain was at length made to convey Captain Elliot, for one thousand dollars, to Macao, in a fishing-boat; but, shortly afterwards, another party of Chinese fishermen, coming up from a neighbouring village, commenced robbing all the shipwrecked people, stripping them of their clothes, and, among other things, getting possession of a star of the Hanoverian Guelphic Order. In a short time, the demand for conveying Captain Elliot to Macao, as soon as the weather would permit, was raised to two thousand dollars, which was agreed to.

Yet difficulties seemed to multiply hourly; for, at this juncture, some of the Chinese, having found two or three bodies of their countrymen lashed to spars, and dreadfully lacerated by being dashed against the rocks until they were lifeless, took it for granted that this had been done purposely by Captain Elliot and his party, and for some time their threatening gestures and angry looks of retaliation seemed to portend bloodshed. This was, however, at length averted; and, ultimately, after agreeing to pay upwards of three thousand dollars, Captain Elliot, Sir Gordon Bremer, and two other persons, were laid upon their backs, in the bottom of a boat, and carefully covered over with mats. Scarcely, however, had they fairly got away from the island, when another misfortune threatened to consign them to the most bitter fate. An armed mandarin-boat passed close by them, and hailed the Chinese boatmen, asking for news about the wrecks. What a prize was at this moment within their grasp! No less than twenty thousand dollars had been already offered as a reward for the capture either of Captain Elliot or Sir Gordon Bremer. Had the boatmen been treacherous enough to betray their charge, (and Captain Elliot was personally known to them,) what a grand display her Majesty's two plenipotentiaries would have made in Pekin, carried about in bamboo cages, like wild beasts! What proclamations and boastings! What promotions and rewards! But, happily, this was not to be; and, in a few hours, the party landed safely in the inner harbour of Macao; Captain Elliot having for his costume a jacket, without any shirt; the commodore, a blue worsted frock; and each of them a pair of striped trousers. To crown all, in this unhappy plight, the moment the two high functionaries were recognised by the Portuguese officer of the guard, the latter were ordered to "turn out," as a mark of respect; but were soon induced to defer it until a more fitting opportunity.

Boats were now sent off, without delay, together with an interpreter, in order to rescue the other sufferers; and at last they all arrived safely in Macao, on the 25th of July.

But it is time to return from this digression to the harbour of Hong-Kong, just at the time when the height of the typhoon had passed over. Towards noon the wind veered round a little to the southward of east; at two P.M., it began to moderate; and at three P.M., its severity had past. Before sunset, the haze began to clear off a little, and gradually the scene of devastation became more and more visible, and presented such a frightful spectacle, that you could hardly believe that it was the same harbour of Hong-Kong, which had been recently so gay and tranquil, with crowds of shipping upon the smooth surface of its waters. The shore was covered with wrecks and stranded boats, and the temporary buildings on shore had disappeared altogether.

Many of our ships were now found to be missing, having been driven out to sea during the fury of the gale. Among the latter was H.M. schooner, Starling, about which great apprehensions were entertained. It was feared that she might have foundered, with all hands on board.

On the following morning, at daylight, the Nemesis was ordered to go out and render assistance to any vessels in distress, and to bring off people from the wrecks; and particularly to look out for the Starling, in case she should have gone on shore upon any of the neighbouring islands. In every direction immediate assistance was required, and many poor fellows were rescued by the Nemesis from a watery grave.

It was curious to remark how completely every vessel that had gone on shore was torn to pieces, and in so short a space of time; every part of them was broken up, and the fragments were floating about the harbour and lining the shores on every side, above high-water mark. A number of artillerymen and sappers were taken off the wreck of one of our prize war-junks which had gone on shore; and the whole crew of the Prince George merchant ship were likewise saved from one of the neighbouring islands upon which they had been wrecked; but the captain of the vessel refused to leave the island, where he vainly persisted in seeking for the body of his unfortunate wife, who was drowned when first the vessel struck.

Not being able to gain any tidings of the Starling, the Nemesis proceeded on through the Capsingmoon passage, towards Lintin, in the hope that she might have taken refuge under that island. Fortunately, she was now descried beating up gallantly through the passage towards Hong-Kong, and, as soon as the steamer ran alongside, there was a general cheer of congratulation. The tale was very soon told. During the height of the typhoon, the Starling had parted a cable, and, as she was now drifting fast, Captain Kellett at once slipped the other, in the hope of being able to run through the Capsingmoon passage, as his only chance of safety. With very great exertion and good seamanship, he fortunately succeeded in the attempt, even in the midst of the typhoon, and had even managed to lie-to and pick up some unfortunate Chinamen, who were floating past him upon the wreck of their shattered junk. At length, he succeeded in getting under the lee of the island of Lintin, where he brought up with a common boat's anchor, having a couple of guns fastened to the cable. By the aid of this contrivance, he rode out the gale, until it moderated sufficiently for him to get under weigh, and attempt to return to Hong-Kong. The Nemesis, however, now took the Starling in tow, and great was the surprise and joy of every one at Hong-Kong, when the two vessels were seen standing in together in safety.

In this typhoon, H.M.S. Sulphur, Algerine, Royalist, and the schooner Hebe, were dismasted; and at least twenty merchant vessels and transports were either driven ashore or were dismasted, and suffered other injuries.

Five days afterwards, on the 26th, there was a recurrence of the typhoon, which the Nemesis rode out very easily in the Typa anchorage at Macao; but it was not so severe as the first one, and comparatively little injury was caused by it. There is reason to believe also, that, had all the ships at Hong-Kong been moored in proper berths, and early precautions taken, before the commencement of the first typhoon, the danger and the damage inflicted would have been much less severe.

No time was lost in refitting the ships, and preparations were now hastened for the advance of our forces upon Amoy, and for pushing on our operations further northward, while the favourable season lasted. Sir Gordon Bremer had returned from Calcutta, in the Queen steamer, on the 18th of June, having been invested with the functions of joint-plenipotentiary, in conjunction with Captain Elliot. This high honour was, however, of short duration; for, on the 9th of August, Sir Henry Pottinger arrived from England, via Bombay, having been appointed sole plenipotentiary and chief-superintendent of trade in China: he was accompanied by Vice-Admiral Sir William Parker, by whom all the subsequent naval operations were conducted.