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EXODUS FROM MACAO AND CESSION OF HONGKONG.
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his force to the Bogue, but not otherwise. The Admiral, at the same time, returned Captain Smith's original letter, addressed to Lin and Tang, without an answer. This was plain enough and forthwith ensued the Battle of Chuenpi. As it is the first naval engagement between Chinese and English ships of war that history knows of, a detailed account of it, both from Chinese and English sources, will be of interest.

According to Chinese history the Battle of Chuenpi arose out of Elliot's sending two men-of-war to the Bogue with a petition that the Chinese should have mercy on the British ships at Tsimshatsui and not destroy them, so that he might wait for dispatches from England. Admiral Kwan returned the petition unanswered because the English refused to surrender the murderer of Lin Wai-hi. Just then five Chinese war-ships started to preserve peace on the seaboard, carrying red flags at their mast-heads. The English mistook these flags for a declaration of war, because in England a red flag means war and a white one peace, and opened fire. Admiral Kwan advanced foremost, leading on the forces in his own person, standing by the mast of his junk, and returning shot for shot. The figure-head of one English ship was knocked off by shots from Kwan's guns, causing the death by drowning of many European soldiers. When the Emperor read the account of this engagement, he wrote on the margin, 'Admiral Kwan ought to have known better than standing by the mast, whereby he compromised the dignity of his office in the eyes of his men.' At the time the Emperor bestowed on him, for his bravery, the title of Batulu, and ordered a statement of officers deserving honours and a list of the persons killed and wounded in the action to be prepared that they might receive the rewards enacted by law.

The English account of the Battle of Chuenpi is somewhat different. The following is Captain Elliot's version. 'Captain Smith did not feel himself warranted in leaving this formidable Chinese flotilla at liberty to pass inside of him at night and to carry into effect the menaces against the merchant vessels.