a
hostile nature except the capture of the old fort of Khelat-i-Ghilzee by
Major Lynch, on which occasion the garrison was destroyed by a mistake,
an event which caused great commotion among the whole of the Ghilzee
tribe, as will be seen in a future page. It may be mentioned that in
Scinde, during this year, the fortress of Khelat, which had again
fallen into the hands of the enemy, was recaptured, and the whole of the
Punjaub fell into a state of disorganization; but the British were not
called upon to interfere in the internal dissensions which shook the
throne, so long and ably occupied by our steadfast ally, Runjeet Sing,
whose death gave rise to the commotions.

In China, after Chusan fell into our hands. Admiral Elliot, accompanied
by Captain Elliot, sailed to the Pe-che-lee harbour, where he arrived
on the 9 th of August, 1840. On the 30th of that month an interview took
place between Captain Elliot and Keshen, the-imperial commissioner, the
third man in the empire, and the negociations were protracted until the
15th of September, on which clay the admiral sailed away from the Peho.
When the squadron returned to Chusan, it was discovered that Admiral
Elliot had consented to transfer the negociations from the Pe-che-lee
to Canton, where all details were to be settled, and where the Chinese
government promised to arrange everything to the satisfaction of the
British. Negociations were carried on; but in the meantime Keshen was
busily employed in erecting new batteries at the Bogue, barricading
the bars in the rivers by sinking boats laden with stones, throwing up
breast-works near Canton, and levying troops. It was so evident that the
Chinese commissioner was insincere, that hostilities recommenced on the
7th of January. Two of the Bogue forts were reduced, and Keshen then
offered to adjust matters without delay. These arrangements were made
between Captain Elliot and the imperial commissioner:--"1. The cession
of the harbour and island of Hong-Kong to the British crown. All just
charges and duties to the empire upon the commerce carried on there to
be paid as if the trade were conducted at Wham-poa. 2. An indemnity to
the British government of 6,000,000 of dollars, 1,000,000 payable at
once, and the remainder in equal annual instalments, ending in 1846.
3. Direct official intercourse between the two countries upon an equal
footing. 4. The trade of the port of Canton to be opened within ten days
after the Chinese