Though Hong Kong, when handed over to Great Britain in 1841, was a practically uninhabited island, it has now a population of 377,000, of which 360,000 are Chinese. The city of Victoria is situated round the southern shore of the harbour, and is, next to London, the greatest shipping port in the world. Behind the city steep hills rise to the height of over 1,800 feet, their rugged sides scored by well constructed roads and dotted over with handsome buildings, while a cable tramway leads to the Peak (1,200 feet high), where fine houses and terraces afford in summer accommodation for the European residents, who find in its cool heights relief from the oppressive temperature of the sea level. It is hard to say whether Hong Kong is more beautiful from the harbour or from the Peak. From the one is seen the city crowded round the shore behind the broad praya or sea front, and sweeping up the precipitous sides of the hills--spreading as it climbs from street to terrace, from terrace to villa, up to the very Peak--terrace and villa nestled in the everlasting verdure of the luxuriant tropics, varied by blazes of colour from tree, shrub, and climber, the blue masses of hydrangea at the Peak vying with the brilliant masses of purple bougainvillia, or yellow alamanda of the lower levels, the whole bathed in such sunshine as is rarely seen in temperate regions, while above the blue sky is flecked with light fleecy clouds. Away to the eastward is the happy valley, a flat oval, around which the hill-sides are devoted to a series of the most beautifully kept cemeteries in the world. Here Christian and Mohammedan, Eastern and Western, rest from their labours, while below them, in the oval valley, every sport and game of England is in full swing. From the Peak we look down upon the city and the harbour, and our gaze sweeps onward over the flat peninsula of Kowloon to the bare and rugged hills that sweep from east to west. But the interest centres in the magnificent harbour, on whose blue bosom rest the great steamers of every nation trading with the Far East, round whose hulls are flitting the three hundred and fifty launches of which the harbour boasts, whose movements at full speed in a crowded harbour bear witness to the splendid nerve of their Chinese coxswains. Out in the harbour, towards Stonecutter's Island, the tall masts of trim American schooners may be seen, the master--probably part owner--with sometimes his wife on board, and with accommodation aft that the captains of our largest liners might envy, while the thousands of Chinese boats of all descriptions look like swarms of flies moving over the laughing waters of the bay. The hum of the city is inaudible, and even the rasp of the derricks that feed the holds of the steamships or empty them of their cargoes comes up with a softened sound, telling its tale of commercial activity. [Illustration: A STREET STALL.]