In 1843, a seal representing Hong Kong was instituted. The design was based on a local waterfront scene; three local merchants with their commercial goods are shown on the foreground, a square-rigged ship and a junk occupy the middle ground, while the background consists of conical hills and clouds. In 1868, a Hong Kong flag was produced, a Blue Ensign flag with a badge based on this "local scene", but the design was rejected by Hong Kong Governor Richard Graves MacDonnell.