Beginning of trade , also known as City Hall's Fountain (near the rear side of present-day
Bank of China Building), was built in 1864 and demolished in 1933. , Hong Kong, c.1890. The building on the left is the
HSBC building (second design) China was the main supplier of its native
tea to the British, whose annual domestic consumption reached in 1830, an average of per head of population. in 1898. 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 British plenipotentiary
Charles Elliot of the
Royal Navy and Captain
Anthony Blaxland Stransham of the
Royal Marines. After a series of Chinese defeats,
Hong Kong Island, then part of Guangdong's
Xin'an County (known as Bao'an County in ancient times), 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. 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
Zhoushan (Chushan) Island, Elliot took it upon himself to claim the island on a permanent basis. The ostensible authority for the occupation was negotiated between Elliot and the Qing
Imperial Commissioner,
Qishan. The
Convention of Chuenpi had been concluded but went unrecognised by the Qing court at Peking. Subsequently, Hong Kong Island was formally 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 30June, 1997. ==Demographics==