Nanking.  In this first armed conflict with the West, China found herself defenceless owing to her lack of a navy, and it was also found that the European weapons were far superior to those of the Chinese.  In 1842 China was compelled to capitulate:  under the Treaty of Nanking Hong Kong was ceded to Great Britain, a war indemnity was paid, certain ports were thrown open to European trade, and the monopoly was brought to an end.  A great deal of opium came, however, into China through smuggling—­regrettably, for the state lost the customs revenue!

This treaty introduced the period of the Capitulations.  It contained the dangerous clause which added most to China’s misfortunes—­the Most Favoured Nation clause, providing that if China granted any privilege to any other state, that privilege should also automatically be granted to Great Britain.  In connection with this treaty it was agreed that the Chinese customs should be supervised by European consuls; and a trade treaty was granted.  Similar treaties followed in 1844 with France and the United States.  The missionaries returned; until 1860, however, they were only permitted to work in the treaty ports.  Shanghai was thrown open in 1843, and developed with extraordinary rapidity from a town to a city of a million and a centre of world-wide importance.

The terms of the Nanking Treaty were not observed by either side; both evaded them.  In order to facilitate the smuggling, the British had permitted certain Chinese junks to fly the British flag.  This also enabled these vessels to be protected by British ships-of-war from pirates, which at that time were very numerous off the southern coast owing to the economic depression.  The Chinese, for their part, placed every possible obstacle in the way of the British.  In 1856 the Chinese held up a ship sailing under the British flag, pulled down its flag, and arrested the crew on suspicion of smuggling.  In connection with this and other events, Britain decided to go to war.  Thus began the “Lorcha War” of 1857, in which France joined for the sake of the booty to be expected.  Britain had just ended the Crimean War, and was engaged in heavy fighting against the Moguls in India.  Consequently only a small force of a few thousand men could be landed in China; Canton, however, was bombarded, and also the forts of Tientsin.  There still seemed no prospect of gaining the desired objectives by negotiation, and in 1860 a new expedition was fitted out, this time some 20,000 strong.  The troops landed at Tientsin and marched on Peking; the emperor fled to Jehol and did not return; he died in 1861.  The new Treaty of Tientsin (1860) provided for (a) the opening of further ports to European traders; (b) the session of Kowloon, the strip of land lying opposite Hong Kong; (c) the establishment of a British legation in Peking; (d) freedom of navigation along the Yangtze; (e) permission for British subjects to purchase land in China; (f) the British to be subject to their own