ABSTRACT
Hong Kong, once a cluster of hilly islands, was born out of trading relations between Britain and China, and its rise and development has been determined by geographical and economic factors. The East India Company played a peculiar part in the development of opium trade with China. The question of Hong Kong and Macao belong to the category of questions resulting from a series of unequal treaties which the imperialists imposed on China. The Indian opium enterprise consisted of two segments: the Malwa opium, and the Bengal opium. The Canton system had greatly facilitated the trade between the Chinese and foreign traders at Canton. The crisis in Canton and the British response to it, especially the conduct of Charles Elliot, had triggered intense debate in British Parliament and the public. Acquisition of the New Territories was also pleaded on the ground that it was necessary to ensure efficient administration, protection, and for obtaining more land for cemeteries.
