Foreign trade The fundamental purpose of the treaty was to change the framework of foreign trade imposed by the
Canton System, which had been in force since 1760. Under Article V, the treaty abolished the former monopoly of the
Cohong and their
Thirteen Factories in Canton. Four additional "
treaty ports" opened for foreign trade alongside Canton (
Shameen Island from 1859 until 1943):
Xiamen (or Amoy; until 1930),
Fuzhou,
Ningbo and
Shanghai (until 1943), where foreign merchants were to be allowed to trade with anyone they wished. Britain also gained the right to send consuls to the treaty ports, which were given the right to communicate directly with local Chinese officials (Article II). The treaty stipulated that trade in the treaty ports should be subject to fixed tariffs, which were to be agreed upon between the British and the Qing governments (Article X).
Reparations and demobilisation The Qing government was obliged to pay the British government 6 million silver dollars for the opium that had been confiscated by
Lin Zexu in 1839 and another 6 million for the money owed in
Yishan's Ransom of Canton in 1841. (Article IV), 3 million dollars in compensation for debts that the merchants in Canton like
Howqua owed British merchants (Article V), and a further 12 million dollars in
war reparations for the cost of the war (Article VI). The total sum of 27 million dollars was to be paid in instalments over three years and the Qing government would be charged an annual interest rate of 5 percent for the money that was not paid in a timely manner (Article VII).
Robert Montgomery Martin, treasurer of Hong Kong, wrote in an official report: The terms of peace having been read,
Yilibu, the senior commissioner paused, expecting something more, and at length said "is that all?" Mr.
Morrison enquired of Lieutenant-colonel
Malcolm [Pottinger's secretary] if there was anything else, and being answered in the negative, Elepoo immediately and with great tact closed the negotiation by saying, "
all shall be granted—it is settled—it is finished." (,
Cháng yuǎn, in the Chinese version of the treaty), to provide British traders with a harbour where they could "careen and refit their ships and keep stores for that purpose" (Article III). Pottinger was later appointed the first
Governor of Hong Kong. In 1860, the colony was extended with the addition of the
Kowloon peninsula under the
Convention of Peking and in 1898, the
Second Convention of Peking further expanded the colony with the 99-year lease of the
New Territories. In 1984, the governments of the United Kingdom and the
People's Republic of China (PRC) concluded the
Sino-British Joint Declaration on the Question of Hong Kong, under which the sovereignty of the leased territories, together with Hong Kong Island and
Kowloon (south of Boundary Street) ceded under the
Convention of Peking (1860), was
transferred to the PRC on 1 July 1997. ==Aftermath==