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THE ADMINISTRATION OF SIR H. POTTINGER.
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When the news of the conclusion of the Nanking Treaty and the consequent confirmation of the cession of Hongkong reached the settlers (September 9, 1842), no particular rejoicing took place, for the recognition of the cession had all along been to the local community a mere question of time or of official etiquette. The merchants were yet unaware of the serious crisis now at hand for the commerce of the Colony in consequence of the cessation of the war and the opening of five Chinese ports. On the contrary, the expectation appears to have been entertained that these measures would forthwith enhance the prospects of the Colony. 'We are nearly bewildered,' apostrophized the Editor of the Friend of China (September 22, 1842), 'at the magnificence of the prosperous career which seems now before us. Our Island will be the single British possession in China. What more in praise of its prospects can we say than this? Already we hear of teeming projects fraught with good for our Island.' The conclusion of the war and the departure of the fleet and troops, which considerably desolated the harbour, affected for the present the social life of the community far more than its commerce, which continued in its old grooves yet for a little while longer. With the return to Europe of the expeditionary forces, which left behind (December 24, 1842) only 700 men as a garrison, the settlement now entered at last upon its normal condition of a purely commercial community.

Consequent upon the conclusion of the Treaty of Nanking, the British Government took immediate steps for the formal organisation of a distinctly Colonial Government at Hongkong, by transferring the management of local affairs from the Foreign Office to the Colonial Office. The Superintendency of Trade and the direction of the new Consular Service in China, subject to the Foreign Office, were, however, for the present combined with the office of Governor and Commander-in-Chief of the Colony. On this basis an Order in Council was issued (January 4, 1843) establishing in Hongkong the Court of Justice, with