The opium trader Speculation, the P. & O. steamer Canton, the U.S. clipper Sea Serpent and Perry's U.S. Squadron lying off Hong Kong

Initially captured by Captain Eliott, R.N., in August 1839 during the opening phases of the so-called "Opium War", the island of Hong Kong was granted to Great Britain by the Convention of Chuanpee on 20th January 1841 and then ceded absolutely the following year under the terms of the Treaty of Nanking. From the moment Captain Belcher, R.N. took formal possession of the territory on 26th January 1841, however, it assumed an imperial role of the greatest importance, not only as the principal base for the Royal Navy's Far Eastern fleet but also as the main port of discharge for the immensely lucrative opium trade with China.