the people go they are rarely found in a state of abject poverty; on the contrary, they are often wealthy, and command the trade of whole islands and provinces, as well by their capital as by their superior enterprise and industry." The English, who had formerly a factory at Amoy, were compelled to relinquish the trade by the severe extortions to which they were subject. The Dutch continued it for a longer time, but neglected it when their influence at Formosa ceased. The natives of Amoy have always shewn themselves ready to cultivate the friendship of foreigners, wherever they have been, and in their dealings they have a character for honesty beyond all other Chinese. They are more ambitious of successful mercantile enterprise than of literary distinction or advancement, which is generally so dear to a Chinaman. The shops of Amoy are generally well supplied with the necessaries and luxuries of life, the merchants are civil, and although the town is neither handsome nor very cleanly, and the population in some parts of it are densely crowded together, still there are many fine houses, which indicate the possession of wealth and consequence. An immense trade is carried on between Amoy and the island of Formosa, to which a great number of emigrants are even still attracted from the province of Fokien. Before the occupation of Hong-Kong was thought of, several proposals were made for forming a British settlement upon Formosa, as being conveniently situated for extending our trade with the inhabitants, not only of the adjacent district of Fokien, but of the whole coast of China. This suggestion was partly encouraged by the recollection of the settlement which the Dutch once possessed upon the island; but it seemed to be forgotten that the Dutch were at length forcibly expelled, and that the population having greatly increased since that period, it is not likely that we should be suffered to retain possession of any part of the island without being constantly harassed and provoked to bloodshed; moreover, the privilege of trading with Amoy does away with all probability of advantage to be derived by direct trade with Formosa.