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(...In 1839 the refusal by Qing dynasty authorities to import opium resulted in the First Opium War between China and Britain. Hong Kong Island was occupied by British forces on 20 January 1841 and was initially ceded under the Convention of Chuenpee as part of a ceasefire agreement between Captain Charles Elliot and Governor Qishan, but the agreement was never ratified due to a dispute between high-ranking officials in both governments. It was not until 29 August 1842 that the island was formally ceded in perpetuity to the United Kingdom under the Treaty of Nanking. The British officially established a Crown colony, and founded the City of Victoria the following year.
When the Union Flag was raised over Possession Point on 26 January 1841, the population of Hong Kong island was about 7,450, mostly Tanka fishermen and Hakka charcoal burners living in a number of coastal villages. In the 1850s large numbers of Chinese would emigrate from China to Hong Kong due to the Taiping Rebellion. Other events such as floods, typhoons and famine in mainland China would also play a role in establishing Hong Kong as a place to escape the mayhem.
The establishment of the free port made Hong Kong a major entrepôt from the start, attracting people from China and Europe alike. The society remained racially segregated and polarised due to British colonial policies and attitudes. Despite the rise of a British-educated Chinese upper class by the late 19th century, race laws such as the Peak Reservation Ordinance prevented Chinese from living in elite areas like Victoria Peak. Politically, the majority Chinese population also had little to no official governmental influence throughout much of the early years. There were, however, a small number of Chinese elites that the British governors relied on, including Sir Kai Ho and Robert Hotung.They accepted their place in the Hong Kong hierarchy, and served as main communicators and mediators between the government and the Chinese population. Sir Kai Ho was an unofficial member of the Legislative Council. Robert Hotung wanted Chinese citizens to recognise Hong Kong as the new home after the fall of China's last dynasty in 1911. As a millionaire with financial influence, he emphasised that no part of the demographics was purely indigenous...)
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