In 1842, the terms of the Treaty of Nanking (the British name for Nan-jing) dismantled the old Canton system. The number of treaty ports cities opened to foreign residents increased from one (Canton) to five (Canton, Xiamen, Fuzhou, Ningbo, and Shanghai ̊), and the island of Hong Kong became a permanent British colony. British residents in China gained extraterritorial rights. The Qing government agreed to set a low tariff of 5 percent on imports and to pay Britain an indemnity of 21 million ounces of silver as a penalty for having started the war. A supplementary treaty the following year guaranteed most-favored-nation status to Britain; any privileges that China granted to another country would be automatically extended to Britain as well. This provision effectively prevented the colonization of China, because giving land to one country would have necessitated giving it to all. With each round of treaties came a new round of privileges for foreigners.