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History of Hong Kong (1800s–1930s)

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Through Industrialisation, Queen Victoria and East India Company

Territorial establishment

Beginning of trade

China was the main supplier of its native tea to the British, whose annual domestic consumption reached 30,050,000 pounds (13,600,000 kg) in 1830, an average of 1.04 pounds (0.47 kg) per head of population.

From the British economic standpoint, Chinese tea was a crucial item since it provided massive wealth for the taipans—foreign (especially British) businessmen in China—while the duty on tea accounted for 10% of the government's income. Some of the earliest items sold to China in exchange for tea were British clocks, watches and musical boxes known as "sing-songs". However, these were not enough to compensate for the trade imbalance and the insistence by the Chinese that they be paid in silver. Opium exports from India after 1830 provided the silver needed to balance the trade. Lin Zexu, a special Chinese commissioner appointed by the Qing Daoguang Emperor, wrote a letter to Queen Victoria in 1839 taking a stance against the acceptance of opium in trade. He confiscated more than 20,000 chests of opium already in Hong Kong, which had already been used years earlier as a transhipment point, and supervised their destruction.

Confrontation

London saw the destruction of British products as an insult and sent the first expeditionary force to the region. The First Opium War (1839–1842) began at the hands of Captain Charles Elliot of the Royal Navy and Captain Anthony Blaxland Stransham of the Royal Marines. After a series of Chinese defeats, Hong Kong Island was occupied by the British on 20 January 1841. Commander (later Admiral) Edward Belcher, aboard HMS Sulphur, landed in Hong Kong on 25 January 1841. Possession Street still exists to mark the event, with Belcher's Bay named after Belcher. Commodore Sir Gordon Bremer raised the Union Jack and claimed Hong Kong as a colony on 26 January 1841. He erected naval store sheds there in April 1841.

The island was first used by the British as a staging post during the war, and while the East India Company intended to establish a permanent base on the island of Zhoushan, Elliot took it upon himself to claim the island on a permanent basis. The ostensible authority for the occupation was negotiated between Captain Eliot and the Viceroy of Liangguang, the Manchu official Qishan. The Convention of Chuenpi was concluded but had not been recognised by the Qing Dynasty court at Beijing. Subsequently, Hong Kong Island was ceded to Britain in 1842 under the Treaty of Nanking, when the territory became a Crown colony.

The Opium War was ostensibly fought to liberalise trade with China. With a base in Hong Kong, British traders, opium dealers, and merchants including Jardine Matheson & Co. and Dent & Co. launched the city which would become the 'free trade' nexus of the East. American opium traders and merchant bankers such as the Russell, Perkins and Forbes families would soon join the trade.

On signature of the 1860 Convention of Peking, which marked the end of formal ended hostilities in the Second Opium War (1856–1858), Britain acquired the area south of Boundary Street on the Kowloon Peninsula rent-free under a perpetual lease. Later, in 1898, the Qing government reluctantly agreed to the Convention between Great Britain and China Respecting an Extension of Hong Kong Territory (also known as the Second Convention of Peking) that compelled China to cede a further area north of Boundary Street to the Sham Chun River along with more than two hundred nearby islands. Seen by the British government as vital to safeguard the defensive capabilities of Hong Kong, these areas became collectively known as the New Territories. The 99-year lease would expire at midnight on 30 June, 1997.

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