There appears to have been some little mistake in the original site of the town, the principal part of which, or, at least, the part most inhabited by the Chinese, is situated, in a great measure, upon the declivity of the highest of the mountains which shut in the harbour. The space for building is very limited, and, indeed, this is the case along the whole shore. Gradually people have spread themselves eastward along the front of the harbour, and, probably, at no very distant time, a second town will spring up at the eastern end of the harbour; indeed, the buildings already erected by Messrs. Jardine and Matheson are so extensive, as to form almost a town of themselves. But the great distance from one end of Hong-Kong, or rather of Victoria to the other, is already a source of great inconvenience, particularly in a hot country. In a short time, the establishment of an exchange in some central part will probably be undertaken, and will go far to remedy the inconvenience. It is unfortunate that the space between the foot of the mountains and the edge of the sea is so very limited. It would have been a great advantage to have been able to form a quay or esplanade along the front of the harbour, with warehouses and dwelling-houses in the rear. But this was not practicable; and, consequently, the back of the warehouses in most instances faces the water, which in some measure detracts from the appearance of the town, as seen from the harbour. Nevertheless, it is impossible for the stranger not to be struck with the first view of it as he approaches. He could scarcely be prepared to see so many large, handsome buildings occupying a great extent of frontage in a settlement so recently acquired. There are few things more striking of the kind than the view of the Bay of Victoria and the roads of Hong-Kong, from any one of the hills at its eastern end towards Matheson's Point. The number of European vessels, Chinese junks, boats of all kinds, and the long line of handsome buildings skirting the bay, and lighted up by a brilliant sun piercing a cloudless atmosphere, present a picturesque and interesting scene, which is scarcely detracted from even by the barren mountains in the rear. As regards the defences of Hong-Kong, it is evident that our main reliance must always be placed upon our ships of war. The two small batteries already erected could be of little service against an enemy. A plan was submitted by Major Aldrich, the commanding engineer, for forming a large fort somewhere about the centre of the bay. But this plan did not meet the concurrence of Sir Henry Pottinger, although he referred it for the consideration of the government at home.