Reports, minutes, and despatches on the British position and prospects in China

Preface

. The undersigned feels it to be an imperative duty to sub rait for consideration the accompanying papers on our present position and prospects in China, which have been printed for more ready perusal and reference, in the order in which they were originally written. When the undersigned was selected for office in China, it was stated, that the field of observation was of great magnitude and importance ; that the attention of Europe was fixed on our conduct ; and that a knowledge of our colonial and commercial affairs would be eminently useful. • Impressed with the justice of these views, the undersigned broke up his arrangements in this country, proceeded to China, and devoted all his energies to the examination of the financial and commercial interests connected with a position unprece dented in the history of any age or country.

In compliance with the suggestion, that all the information he acquired was to be primarily devoted to the service of Her Majesty's Government, the annexed documents were, from time o time, transmitted to the different departments of the state, as it was found impossible to analyze our financial affairs and commercial prospects, without reference to our foreign and colonial relations. In the progress of investigation, a conclusion was irresistibly formed, that the Treaty of Nankin and the Supplementary Treaty of October 8, 1843, were susceptible of considerable improvement, — that peaceful and profitable intercourse with the whole of the vast Chinese empire would be of great advan tage to England and China, — that a most ill-judged selection had been made for the foundation of a British colony, — that our trade could be extended and rendered permanent, only by a wise and honourable modification of our position previous to the final arrangement of the Treaty of Nankin in January, 1846, and that, unless these modifications were now made,

PREFACE.

IV we should be for a long period precluded from obtaining them; very large and unnecessary expenditure would be in curred; commercial and religious expectations would be disappointed ; and, the seeds of discontent and strife having been sown, another war would almost inevitably ensue, which, although of Chinese origin, would seriously involve European, Russian, and American interests, create internecine hostilities, and compromise the peace of the world. In the hope that the reports and despatches transmitted would produce a correction of the mistaken and unneces sarily restrictive policy, which time and circumstances were daily rendering more palpable, the undersigned resolved, although suffering from climatic disease, to await in China the result of these statements ; but on his return to Hong Kong from the northern ports, in June last, he ascertained that Governor Davis was recommending to Her Majesty's Govern ment a further expenditure, on civil works alone, of half a million dollars from the British exchequer, on a barren and utterly useless island* ; that, in addition to the very large and unre- * By a Parliamentary Return (No. 264, of May 4, 1846) it appears that the total revenue raised in Hong Kong from January 29, 1841 (when British possession was taken by Captain Elliot), to September 30, 1845, amounted to £29,436; that is for nearly five years at the rate of less than 6000 a-year.

Of the total sum of £29,436, the amount received as rent of land for building was £16,208, leaving only £13,228 from all other sources. The mere civil colonial expenditure, as far as it can be gathered from the above imperfect return, amounted for the period quoted, to £161,634, thus showing a deficit for civil expenses alone, of £132,198. The military and naval expenditure, military works, charges, &c, for the same period at Hong Kong, has not been less than, on an average, .£200,000 per annum. Thus this barren, useless island has cost England already more than a million and a quarter sterling to the present date ; while the Americans carry on a trade with China equal to half the commerce of England with China, at a cost of about £1000 a-year 1 A mercantile Consul at Canton, and the occasional presence of a ship of war at Canton, affords all the required aid of the United States' commerce with China, while we are uselessly squandering life and treasure at Hong Kong.

PREFACE.

. V quired military expenditure incurred, extensive fortifications were projected and their construction commenced*, by which several million dollars would be wasted on a rock which pro duces nothing— protects nothing— commands nothing,— no, not even the entrance of the Canton river ; which, after five years' occupation and an immense outlay of money, is totally devoid of an import or export trade of any kind whatsoever t, — which is of no service to us in reference to the tea trade, — which, notwithstanding various inducements, has not a single respect able Chinese inhabitant, " or even shopkeepers with any pre- * According to the Ordnance Estimates, ordered to be printed, February 16, 1846, it would appear that Her Majesty's Ministers are still unacquainted with the real nature of Hong Kong, or they would not sanction the continuance of enormous expenditure on an utterly useless barren rock.

For 1845-46. For 1846-47. Ordnance establishments . . £1,900 . . £6,604 Barrack ditto . . 2,522 . . 1,861 Clerk of Works, &c. . . 949 . . 931 Labourers' wages .. 1,654 .. 1,843 New works and barracks .. .. .. 113,000 £124,239 What the past ordnance expenditure has been it is difficult, if not impossible, to say ; but it is very desirable that the vote for the above sum of £124,239, for only one branch of service, be suspended until an impartial inquiry be made. The officer commanding the troops at Hong Kong, and the officer in charge of the engineers, who are now causing and recommending this expenditure, both formerlv declared that Hong Kong was valueless to England ; and the respected heads of the ordnance, artillery and commissariat, have in vain protested against this waste of the public money. f British Merchants' Memorial to Lord Stanley, dated Hong Kong, 13th August, 1845.

The " Times," dated London, April 6, 1846, says " Hong Kong has quite lost caste as a place for mercantile opera tions ; many of the merchants had already abandoned the island ; since the beginning of the present year, two firms had given up their establishments, and two more of old standing had expressed their determi nation to quit the colony."

PREFACE.

. VI tension to property," — which has " no natural productions, or consumers of exports, beyond the mere wants of the colonists themselves, and is even entirely dependent on the inhabitants of the Chinese empire for its daily supply of food*," — of whose harbour the half only belongs to England, while all the islands therein and around belong to China, — which is completely commanded from the closely-adjacent coast and islands, and is itself incapable, from physical defects, of being regularly fortified ; — an island, in fine, which the British merchants resident in China, and best qualified by practical knowledge to form a correct judgment on the subject, have declared to Lord Stanley, " was never actually required for the purposes of commerce, and has become even less so, since the opening of the five ports *."

In addition to his desire to prevent this grievous misdirec tion of national resources and energies, the undersigned con sidered that no further time was to be lost in endeavouring to obtain, by negotiation, the cession of the invaluable island of Chusan, or, at least, to retain it until the Tartar Government entirely fulfilled the Treaty of Nankin, and to prevent its occupancy by any other power ; finally, to enlarge our intercourse and amend our mercantile positions with a view to the reci procal benefit of the British and Chinese empire and people. Acting on the conviction that a servant of the crown is a steward of the public interests, and is morally responsible if he silently permit waste or mismanagement of the national resources, and that the more distant his location from the seat of Government, and the higher his station, the more imperatively he is called upon to make his official conduct conform able with the principles which sustain and regulate private life — the undersigned sought from Governor Davis six months' furlough, to convey the information he had acquired in China to Her Majesty's Government at home; to endeavour to correct the misrepresentations of those who had pecuniary investments * British Merchants' Memorial to Lord Stanley, dated Hong Kong, 13th August, 1845.

PREFACE.

. VII and building allotments, houses, bazaars, and mortgages, in Hong Kong, previous and subsequent to the Treaty of Nankin ; and to sustain his own statements, as could only effectually be done by his presence in England. In order to accomplish these objects he offered to give up the whole of his salary, — to defray the heavy expenses of an overland journey to England, — to allow his personal and collateral securities to the crown to be retained, — and to forfeit the high office he had the honour to hold, should his conduct be disapproved by Her Majesty's Government. Governor Davis refused the furlough thus sought, although the regulations of the service fully empowered him to grant it*; and it was stated that the word "resignation" must be used, if the undersigned determined to place the views he entertained and the information he had acquired before Her Majesty's Government.

Thoroughly convinced of the soundness of his views and of the importance of his information, — bearing in mind that, if Sir Stamford Raffles had been at home to urge an exami nation and discussion of his reports and despatches, the rich island of Java would now in all probability be a British possession, — believing that there was still time to rectify, to some extent at least, our position and affairs in China, — that he would be unworthy the confidence reposed in him, and undeserving the character which he had hitherto held, if, in such an emer gency he hesitated between the solemn dictates of public duty and the sacrifice (however serious to him) of private considerations; — the undersigned, after several fruitless endeavours to obtain a furlough, requested a board of survey on his accounts and treasury, — closed them satisfactorily, — gave them over, by orders, to the relative of Governor Davis, — and most reluctantly sent in his conditional resignation of office, in the strong hope that, when his conduct and motives were fully known in England, he might confidently rely on the justice and liberality of Her Majesty's Government; and that the national interests would * See Letter to Colonial Secretary, p. 116.

PREFACE.

. VIII not require the sacrifice of a private individual for endeavour ing to accomplish public objects, which, as detailed in the following statements, will, it is believed, be found deserving of the gravest attention. We are at present only on the threshold of that vast empire, whose half-civilized inhabitants constitute a third of the human race, and upon whom it is in our power to confer benefits of incalculable value by means of an extended commer cial intercourse, and the facility which that intercourse will afford of introducing amongst them a knowledge of our own customs and habits. To avail ourselves peacefully and righteously of the means which Divine Providence has placed within our reach of introducing Christian civilization among myriads of mankind, ought, it is most respectfully suggested, to be an object of paramount national as well as individual solicitude; and if in any manner this object be promoted by means of the information obtained or the measures suggested by the undersigned, he will have the satisfaction of feeling that he has not uselessly endeavoured to fulfil the duty which he swore to perform as a faithful servant of Her most gracious Majesty in China.

R. M. MARTIN. London, May, 1846. Lord John Russell has had the goodness to favour Mr. Martin with the following copy of a letter addressed to his Lordship by the late Marquis Wellesley — one of the greatest statesmen of the age — to whose principles reference is made at page 101. Lord Wellesley was of opinion, that the establishment of an English ambassador at Pekin, and of a Tartar or Chinese ambassador in London, was essential to a right and peaceful understanding between both countries. " Kingston House, Knightsbridge, "My dear Lord, November 17, 1840. " Your Lordship's uniform kindness and obliging attention induce me to trouble you with a request, in the success of which I am deeply interested, from motives of gratitude and friendship, as well as from a sense of public duty. " Several respectable friends of the present Government, from the same sentiments, have already expressed their concurrence in my opinion, and have declared an anxiety equal to mine on the same subject.

" Our object is to see Mr. Montgomery Martin (a gentleman well known to your Lordship and to the public) employed in some station in which his eminent talents, and extraordinary industrv and diligence, and extensive information, might be rendered useful to the empire. " My friendship for Mr. Martin is founded on no light basis. I entrusted him with the publication of the documents connected with my administration of the British Empire in India ; a work which he has completed to my entire satisfaction. " This work necessarily involved the most confidential communication and intercourse, by which I am enabled, with the most perfect certainty, to pledge my honour to the integrity, ability, honest zeal, and indefatigable spirit of industry bv which this worthy gentleman has obtained so high an eminence in public estimation.

" Mr. Martin has made the affairs of the British colonies, and of India, the more especial objects of his laborious studies ; but he is also better informed on the interesting subject of Ireland, (more particularly on the operation and result of her legislative union with Great Britain,) than any person I have ever conversed with. Generally his knowledge of statistics is most extensive and most practically useful. " My gratitude towards this gentleman renders me most anxious for his welfare; but I would not recommend him to your Lordship, if I were not satisfied that his active employment in the public service would be beneficial to the empire, and honorable to himself and to your Lordship. " I have, &c, " WELLESLEY. " To the Right Honourable Lord John Russell." The following dissent in council was recorded on the proposition of Governor Davis to license, under the sanction of Queen Victoria, the opening of opium smoking-shops in Her Majesty's colony of Hong Kong, for the purpose of raising a revenue.

When recording this dissent, the answer of the Emperor of China, on a suggestion from Governor Davis to Keying, the Imperial plenipotentiary, for licensing the importation of this pernicious drug into China, was stated to be thus, — " It is true, I cannot prevent the introduction of the flowing poison, — gain-seeking and corrupt men will, for profit and sensuality, defeat my wishes, but nothing will induce me to derive a revenue from the vice and misery of my people." This was an answer worthy of a Christian monarch. The Christian Sovereign of England, through her representative Governor Davis, has done that which a heathen Emperor has rejected; and Hong Kong has been made the opium smoking-shop, for the safe resort of the sensual, the idle, the dissolute and most degraded and depraved Chinese, — who, under the flag and license of our most gracious and religious Sovereign, are there protected in the prosecution of a vice which destroys body and soul, — which is corrupting society to the core, — which has no parallel in its fascinating seduction, in its inexpressible misery, or in its appalling ruin.

Dissentient — on the proposition for licensing the retail consumption of Opium in this Colony, on the following grounds : — I. Because the consumption of opium is not necessary to the subsistence or health of man, and is therefore a vicious indulgence. II. Because the use of opium is not only a vice in itself, but the parent of many other vices ; and whoever indulges in opium never ceases its use until poverty and death ensue. III. Because it is no justification to say that, as gin, beer, wine, and other fer mented liquors are stimulants attended with pernicious consequences, when used continuously in excess, that therefore the use of opium may also be licensed by Government. The experience of civilized nations has shown that fermented liquors are advantageous to the healthful energy of man ; but no experience has shown that opium is beneficial to the body or mind of man, individually or collectively.

IV. Because no Government ought to make private vice a source of public revenue. V. Because, independent of the foregoing and of other considerations, the pecu liar position in which England at present stands towards the Chinese Government on this subject, — the strong feeling entertained by a very large and influential portion of the community at home respecting the sale of opium in China, — and the risk which his Excellency incurs of creating an unfavourable impression against his Government, without any corresponding fiscal advantage to the state, renders it inadvisable to license the consumption of opium in this colony. Desirous of earnestly and faithfully advising his Excellency, these remarks are offered for the Governor's consideration with great respect. — R. M. MARTIN. Hong Kong, November 26, 1844.

MEMORANDUM ON THE ABOVE. Having this day ascertained that his Excellency the Governor has been pleased to offer a comment on my dissent respecting the Opium Licensing Ordinance No. 21, and that his Excellency refers to the dissent being ante-dated to 26th May, 1844 ; I hereby declare that the above-mentioned dissent was written by me for the first time (in the presence of my clerk), on the day the dissent was presented to Council, namely, on the 26th day of November, 1844 ; that until that day I had not written one word on, or referring to, Ordinance No. 21 ; that when the said Ordinance was read a first time, on 20th November, it was not possible for me to put in a dissent ; that I did so on the day of the 2nd reading, previous to the 2nd reading; that I expressed my regret at being compelled to oppose the second reading of Ordinance No. 21, which after some observations on my dissent was then read and finally passed.

R. M. MARTIN. Hong Kong, February 12, 1845. ABSTRACT OF PROCEEDINGS IN CHINA. 1. Examination os our financial state in Hong Kong, with several detailed statements. (Transmitted to Governor Davis, June 1", 1844 ; to Lords of the Treasury, June 19, 1844.) 2. Report on the British currency and monetary exchanges in China. (June 1844.) 3. Report on Hong Kong in all its aspects. (Forwarded to Governor Davis, July 24, 1844 ; to Lords of the Treasury, August, 1844.) 4. Report on Chusan, and examination of our policy in China. ( Forwarded to Governor Davis, August 30, 1844 ; to Lords of the Treasury, September 20, 1844.) 5. Comparison between Hong Kong and Chusan. (Transmitted to Sir Robt. Peel, November 14, 1844 ; to Lords of the Treasury, November 1-1, 1844.) 6. Dissent in Council on proposed legislative enactment for licensing opium smoking-shops in Her Majesty's settlement of Hong Kong.

(Read before Governor in Council, November 26, 1844.) 7. Despatch respecting French intrigues in China. (To Sir Robert Peel, December 21, 1844.) 8. Draft legislative enactment, to enjoin an observance of the Sabbath in Hong Kong. (Transmitted to Governor Davis, February 2, 1845.) 9. Minute on the British position and prospects in China ; and an exposition of the Treaty of Nankin and of the Supplemental Treaty. (Forwarded to Governor Davis, April 19, 1845 ; to Sir R. Peel, April 25, 1845 ; to Lords of the Treasury, April 25, 1845.) 10. Representations and correspondence on the Governor's violation of instructions from Lords of the Treasury, on the disbursement and accounts of the public monies. (Forwarded to Lords of the Treasury, in May, June and July, 1845.) 11. Correspondence respecting six months' leave of absence, to represent the state of our affairs in China to Her Majesty's Government.

June 18 and 24, and July 8, 1845. (Transmitted to Governor Davis, with explanatory letter to Lord Stanley, July 8, 1845 ; and to Mr. Stephen, Under Secretary of the Colonies, same date.) 12. Rise, progress, and condition of the tea trade, with numerous tabular statements, &c. (Forwarded to Lord Stanley, September 3, 1845.) 13. Points for the consideration of Her Majesty's Government on the whole of our affairs in China, with Appendices A 3 and C, showing (1) A necessary reduction of expenditure to the extent of £250,000 a-year; (2) Fair and honourable terms of negotiation with the Chinese Government for the cession of Chusan ; (3) Reply to Sir H. Pottinger's reasons for preferring Hong Kong to Chusan ; (4) The means to be adopted immediately for the rectification of our erroneous policy, to improve our position, and to expand our trade, &c. (Trans mitted to Lord Stanley, September 3, 1845.) 14.

Report on the Opium Trade; with all the Chinese Government State Papers on the subject. (Transmitted to Lord Dalhousie at the Board of Trade.) ABSTRACT OF PROCEEDINGS IN CHINA. XII In corroboration of the preceding documents, which are very voluminous, abstracts on the above points have been given to Lord Stanley, to the Earl of Aberdeen, to Mr. Goulburn, to the Earl of Dalhousie, and to Lord Canning, in November and December, 1845 ; and a Synopsis of a complete Commercial Report on China (for which the materials were collected during a personal examination of all the Consular ports, and after visiting every accessible part of China,) was forwarded to the Earl of Dalhousie, 4th December, 1845; and the sum of £T0O is author ized to be spent in completing the Report for the consideration of the Board of Trade.

These labours were in addition to the arduous and responsible duties of Her Majesty's Treasurer for the Colonial, Consular and Diplomatic services in China, which were rendered extremely harassing and anxious t y the departure in China from the clear and positive instructions of the Lords of the Treasury ; by the difficulty of procuring proper clerks, or by their death and absence from illness ; and by the frequent recurrence of a depressing climatic disease, which at one period nearly proved fatal. My accounts, with their voluminous vouchers, were all passed as complete and correct by the Auditor-General, previous to my departure from the colony ; and they have been found accurate in their detailed payments and balances, by the Commissioners for Auditing the Public Accounts, excepting two items amounting to less than three pounds sterling, on which further explanation is required from the colony.

The following announcement appeared in the Government Gazette of Hong Kong, two days after my departure from the island ; since then I understand it has been proposed to nominate me as the representative of the Anglo-Chinese merchants in England. Although I differ with those gentlemen engaged in the opium trade, I felt bound to declare to Lord Aberdeen that a more honourable, patriotic, and public-spirited class of men than the British merchants in China, is not to be found in any part of the world. " A Government notification in to-day's ' Mail' announces the resignation of Mr. Montgomery Martin, who is already on his way to England, having taken his passage by the ' Lanrick' for Bombay. During the short period he held the office of Colonial Treasurer, this gentleman, by his affability and obliging disposition, and his readiness to communicate from his varied stores of knowledge, was so generally known and appreciated by the community, that any eulogium upon him would be superfluous.

His residence in China will no doubt have furnished materials for an additional work to the many he has produced on our colonial history ; and most people here will be anxious to see the views he «ves to _the world upon the relations of Great Britain with China, and the prospects of the colony of Hong Kong." —China Mail, Hong Kong, 10th July, 1845. It may be added that I caused my " Analysis of the Bible" to be translated into the Chinese language for general circulation, and by the last accounts the work had been favourably received in different parts of the empire of China (it may be read by 300,000,000 of people) and was producing a good effect. REPORTS, MINUTES AND DESPATCHES ON THE BRITISH POSITION AND PROSPECTS IN CHINA. Respecting Hong Kong No. I. — To his Excellency J. F. Davis, Governor of Hong Kong.

At sea, lat. 27 N. East coast of China, Sir, July 24, 1844, on board " Syed Khan." I have the honour to lay before your Excellency the accompany ing report on the Island of Hong Kong, which I had just completed when I was seized with the recent severe attack of illness which obliged me to proceed to sea*. The documentary appendix will not be ready until after my return to Hong Kong. The facts contained in the report are, however, sufficiently conclusive for the formation of a judgment on the present or prospective value of the colony ; and I have to solicit the favour of your Excellency transmitting the report to the Secretary of State for the Colonies, as I believe no report on Hong Kong has yet been laid before Her Majesty's Government. Having devoted twenty years to the personal examination and study of the colonies of England, France, Spain, Portugal, and Holland, my • The following is the certificate under which leave of absence was granted; but the leave was not taken until l"th July, when the application of many leeches saved my life, and compelled an immediate removal from Hong Kong to Macao in the Government boat : — "I do hereby certify that Mr. R. M. Martin has been for some time past suffering from general debility, with frequent feverish attacks and threatenings of dysentery, which render it highly advisable that a temporary absence fi-om Hong Kong should be permitted; and I do strongly advise that leave of absence should be granted to him for six weeks to proceed to sea, or the north-east coast.

(Signed) ALEX. ANDERSON, " Victoria, Hong Koug^ly 3, 1844." Col. Surgeon." B mind has been prepared for an investigation of Hong Kong ; and I trust I may not be deemed presumptuous in having thus early formed my conclusions on the existing value and future prospects of the colony- I have, &c, R. M. MARTIN, Colonial Treasurer. Inclosure in No. I. Report on the Island of Hong Kong. Locality. — Hong Kong, which in the Chinese language signifies " Red Harbour, "(or "Flowing Streams,") is in north latitude 22° 16' 27", east longitude 114° 14' 48", distant about forty miles east of Macao. It forms one of a numerous but scattered group of lofty islands, termed the " Ladrones," which vary in size and height, but agree in their arid and rugged features. The length of the island from east to west is about eight miles, with a breadth of two to four miles ; it is separated from the main land of China by a strait, or inlet of the sea, varying in breadth from half a mile to three miles ; one entrance, the Lymoon Pass, being less than a mile wide.

Physical Aspect. — The island consists of a broken ridge, or " hogsback," of mountainous hills running from w. n. w. to e. s. e., at an average height of about 1000 feet ; but from this ridge and its spurs various conical mountains are elevated to the height of 1500 to 2000 feet above the sea, and very precipitous. The whole island, indeed, rises abruptly from the oaean, particularly on the north face; there are a few narrow vallies and deep ravines through which the sea occasionally bursts, or which serve as conduits for the mountain torrents ; but on the north side of the island, especially where the town of Victoria is built, the rocky ridge approaches close to the harbour, and it was only by hewing through this ridge that a street or road could be made to connect the straggling town of Victoria, which stretches along the water edge for nearly four miles, although only comprising about fifty European houses, and several Chinese huts and bazaars.

Here and there on the tops of some isolated hills, or along the precipitous slopes of the mountains, some houses have been constructed, but the rugged, broken, and abrupt precipices, and deep rocky ravines, will ever effectually prevent the formation, at Victoria, of any concentrated town adapted for mutual protection, cleanliness, and comfort. Hono- Kong cannot be said to possess any vegetation : a few goats with difficulty find pasturage. After the heavy rains of May, June, July, August, and September, the hills assume somewhat of a greenish hue ; but the whity-brown or red streaked ridges, with the scattered masses of black rocks, give a most uninviting and desolate aspect to the island, which is unrelieved by the adjacent mainland, whose physical features are precisely similar to that of Hong Kong, the mountain-tops and sides presenting in many places a singular configuration and gloomy prospect.

Geology. — There is no igneous formation in ong Kong. The island partakes of the same geological character as the whole coast of China, south of the Quesan group of islands. The structure may be briefly described as consisting of decomposed coarse granite, intermixed with strata of a red, disintegrating sandstone, crumbling into a ferruginous-looking clay. Huge boulder-stones, which gunpowder will not blast, may be seen embedded in a stiff earth, or they are strewed over the tops and sides of the mountains. Gneiss and felspar are found in fragments, and there are indications of iron-stone. That the granite is rotten, and passing, like dead animal and vegetable substances, into a putrescent state, is evidenced from the crumbling of the apparently solid rock beneath the touch, and from the noxious vapour or nitrogen which it yields when the sun strikes fervidly on it after rain.