The Status of the SettlementIt was natural for the British authorities to regard the Settlementas exclusively under the jurisdiction of the British， and this was theattitude assumed by Consul Balfour， and no land in the Settlementcould be acquired without his consent. After the signing of theAmerican and French Treaties， the merchants of these two countriesclaimed that they had equal rights in the Settlement with the British.
This led to many misunderstandings and controversies which mighthave been avoided if the Treaty of Nanking had been a 1ittle moreexplicit in its statements.
Mr. H. G. Wolcott， the first Acting American Consul in Shanghai，established his consulate in the Settlement， and raised the Americanflag. This was objected to by both the British Consul and the Taotai， asit was held that no national flag， except the British， could be raised inthe Settlement. Mr. Wolcott persisted， and for a considerable time theAmerican was the only national flag displayed in the Settlement， as theBritish Consulate was till situated in the native city.
The view held by Consul Balfour was not shared by the Britishauthorities in Hongkong， who， in a dispatch to the British Consul，made the following statement：“It is doubtful whether a British authority can assume aceremonial jurisdiction over foreigners， in which case the act ofhoisting a national flag loses much of its importance. “First Land RegulationsLand Regulations put forth in 1845 by the Taotai， Kung Mooyun，by agreement with Consul Balfour， are important， as they formthe basis of the subsequent enactments governing the cosmopolitancommunity of the Settlement.
The boundaries of the Settlement were again roughly defined，the western boundary being extended as far as the Defence Creek.
Foreigners were not allowed to employ police， but could engagewatchmen， subject to the approval of the Chinese officials. Nativedomiciles were forbidden in the then existing Settlement， or its furtherextension. Natives in the Settlement were prohibited from “renting toeach other， nor may again build houses there for the purpose of rentingto Chinese merchants.“The land-renters as a body were to be responsible for the upkeepof the Settlement and its revenue was to be derived from contributionsfrom the residents. The assessments were to be made by a committeeof the merchants， nominated by the Consul， to be known as thecommittee on Roads and Jetties. The land-renters were vested with thecontrol of the revenue and expenditure.
Foreigners， other than those of British nationality， were subjectto the same regulations， the revision thereof being possible only theconsent of the British and Chinese authorities.
Four large roads were to be made in the Settlement—the presentHankow， KIUking， Nanking and Peking roads， running east and west.
Kiukiang Road was to be 25 feet wide and the others 20 feet wide.
Establishment of the French concessionM. Montigny， first Consul for France at Shanghai， entered into anagreement with Ling Taotai on April 6th， 1849， for the establishmentand government of a French Concession.
The tendency of the British to claim exclusive jurisdiction overthe territory of the Settlement was also manifested by the French inregard to their Concession. The principle was adopted that no Chineseor foreign official would be allowed to exercise his Power Within theboundaries of the Concession.
The boundaries of the Concession were clearly defined. Onthe south a part of the moat along the city wall， on the north theYangkingpang， on the east the river side from the Canton Guild to theYangkingpang， on the west from the creek named after the war god"stemple， Kuan-ti Miao， up to the Bridge of the Chow family， subject tofurther extension if desired.
This settlement has always been known as the French Concession，and attempts were made from the beginning to place it on the samefooting as the concessions that afterwards came into existence duringthe period of 1858 -1863 （Newchwang， Tientsin， Hankow， Kiukiang，Chinkiang， and Canton）。
The Establishment of the American SettlementAs Mr. H. B. Morse points out in The Inter-national Relations ofthe Chinese Empire， “the American Settlement was not created， but just"growed.‘“ The merchants lived in the English Settlement， but someof the missionaries， seeking cheaper land for residences， purchasedproperty in the outskirts. The American Episcopal Church Mission，under Bishop William J. Boone， established itself in Hongkew， acrossthe Soochow Creek. On the arrival of the first official Consul of theUnited States in February， 1854， he made his residence and raised hisflag in this American Settlement. It was some time， however， before itsboundaries were defined.
When Bishop Boone was asked what he considered the southboundary of his property， he replied， “the tow path in front of theMission buildings.“ Had he said the edge of the river， legally all theproperty afterwards accreted would， upon payment of the Sheng-ko3 The Chinese characters for “Hongkew” mean “The Rainbow Mouth.” This sectionwas called by that name of the bend in the shore making it resemble the shape of arainbow.
4 Land accretion caused by the movement of the tides and changes in the course ofa stream.
fees， have belonged to his Mission.
At first neither the French Concession nor the AmericanSettlement flourished.
The Jesuit missionaries alone Showed any interest in the new site，and， in the neighbourhood of the Concession， at once started to buildTung-kia-tu Cathedral， the corner stone being laid on November 21st，1849. This contains an organ constructed by the French Fathers， whichis unique， as the pipes are made of bamboo， and， as far as we know， isthe only one of its kind in the world. It is pointed out as an object ofcuriosity to the traveller who visits the Cathedral.