Nanning, though by Imperal Decree declared a treaty port in February, 1899, is, however, not yet open, the necessary arrangements not having yet been completed. Whether any genuine British merchant other than the ship-owner will derive any direct advantage from the opening of that place to trade may well be doubted. His natural market is Hong Kong, and he has no inducement to establish himself in the interior, seeing that in nine cases out of ten he has no real pecuniary interest in either import or export cargo right to or from its destination or place of origin in China. The actual volume of trade with Hong Kong is not likely to be increased to any great extent, the only difference being that a certain proportion of duties now paid at Wuchow will then be levied at Nanning. The greatest improvement will probably be in the import trade with Canton, which will be covered by the payment of one duty and a half to the Foreign Customs. For most commodities this will amount to less than the present likin rates, and it may be assumed that the Chinese will not be slow to take advantage of this fact, the necessary corollary being the estab lishment of a further number of quasiforeign hongs under the protection of Consulate and Customs. But should a British merchant wish to send his goods inland under transit pass, it will be necessary for him to have an agent at Nanning, for it is, perhaps, not generally known that the carriage in the same vessel of transit-certificated goods or produce, destined for or coming from places above or below a treaty port, is not permitted. In other words certificated goods may not be carried by steamers between treaty ports although such goods may be destined for some place inland beyond the last treaty port. The goods, if sent by steamer, must be re-exported under exemption certificate to the last treaty port en route, and there take out their covering transit pass, thus necessitating the owner of the goods having a responsible agent there to pay the transit dues. Take the case of yarn from Canton destined for some place in Yünnan. It might obviously be more convenient for the merchant in Canton to take out his transit pass there, and ship the goods by steamer to Wuchow or Nanning, whence they would go on by native boat. But if he does take out a pass in Canton the yarn can only proceed by native vessel, taking perhaps six weeks on the voyage in place of as many days. The object of this rule is by no means obvious.

The extension of trade in China depends mainly on the improvement of means of communication, and the question of the navigability of the West River between this and Nanning is, therefore, one of general interest. Judging from the rise and fall of 50 to 60 feet at Wuchow, the period of low water appears to last

from the beginning of December to the middle of March, after which the river rises rapidly, attaining its highest level in June, and falling again gradually from the end of September. From an examination of the river between this and Nanning recently made by an expert it may be affirmed that at least two rapids exist which could not with safety be negotiated at low water by any steamer, but that for probably eight months of the year there would be no serious obstacles to steam navigation throughout. Whether steamers could be run at a profit, depends chiefly on the abolition of the distinction between interport and inland water steamers, which under present regulations would deprive the former of any share in the large trade carried on with the important places between Wuchow and Nanning, such as Jung Hsien, Teng Hsien, Hsünchow, Kwei-Hsien, Hengchow, and Yungshun, not to mention passenger traffic to and from these and other smaller places. Statistics of the exact volume of trade with Nanning itself are not available, but the transit passes taken out through this office show that for quantity and variety of native produce exported it is far ahead of any other place in this province. Small native launches have run irregularly during the year to Ta Hwang Chiang, and even as far as Kwei Hsien, with passengers, calling en route at Meng Chiang and Pai Ma.

Wuhu [2457].—The Report of Mr. Consul Mortimer on the trade of Wuhu for 1899 says that the year has been the most prosperous experienced at Wuhu since its opening. The value of the trade, which during several years has averaged about 10,000,000 Haikwan taels, during 1899 doubled itself, the net amount being 20,305,440 taels£3,045,816. The increase was observable in every class of imports and exports.

COREA [2511].

Mr. J. N. Jordan's Report for 1899 shows that the trade declined to the extent of 2,627,568 yen, or over £260,000 at the rate of 2s. per yen. Mr. Jordan describes the construction of the Soul-Yusan railway. On the subject of mining there are the following passages:—

The development of the mineral wealth of Corea is generally agreed to be the one great resource of the country, and the important factor which will materially increase Corea's buying capacity, and it is encouraging to be able to report an increase in the export of gold to the extent of £55,765 during the past year. This is the amount as shown by the Customs returns, but the export of gold being duty free a large quantity is taken out of the country as

personal luggage, and it is probable that the real increase is far in excess of the figures given above.

The American mines mentioned in previous reports are now in full working order, and the German mines in process of development, and a British syndicate is now in possession of the Unsan gold mine, generally considered to be the richest mine in the country, it being known to Coreans as the "Pearl of Corea."

The history of the concession is briefly as follows:-In September, 1898, Messrs. Burn, Murdoch and Hay, acting as agents for Mr. Pritchard-Morgan, M.P., obtained, through the instrumentality of Her Britannic Majesty's Chargé d'Affaires at Soul, a concession entitling them to locate a mining area of 60 by 40 li (20 by 13 English miles). In November last Mr. Pritchard-Morgan, accompanied by a staff of geologists under Dr. Jack, LL.D., F.G.S., arrived in Soul, and proceeded to the Unsan district, in the Ping-an province, to examine a gold mine which for many years had been worked in a primitive manner by the Coreans, and the district in which this mine is situated was finally selected as the site of the concession. Considerable opposition to the selection was shown by the Household Department, which has charge of all mines, and a keen controversy arose which did not cease until well on in March of the present year, when the Corean Government admitted the validity of the title, and placed Mr. PritchardMorgan in full possession. The mines are now in full work, about 500 men in all, mostly Coreans, being employed thereon. Machinery is being ordered from home, and it is anticipated that in a year or so the sound of the stamp mill will be heard in the Unsan Valley. The district has been re-named "Gwendoline," to prevent confusion with the American gold mines, which are situated at Woonsan, the Corean pronunciation being very similar. The mines have the reputation cf being the richest in the country, and the opinions of Dr. Jack and Mr. Gustav Braecke, the present manager of the mines, point to the conclusion that their value has not been over-estimated. gold-bearing strata is a sedimentary deposit extending for a great distance, and is similar in many respects to the deposits on Witwatersrand in South Africa.

The

Corea may be said to offer a very fair field for capitalists who will stay in the country and watch their interests, and a word of advice to concession seekers may not be out of place. The two things requisite to success are unlimited patience and full power to accept a contract when the opportunity arrives, the delay incurred in telegraphing home and elsewhere being sufficient to give time for the growth of opposition, which may prove fatal. Soul,

and indeed the whole country, is a hotbed of intrigue, and the revolutions of the political wheel are unceasing: ministers and favourites, no matter how strong their position, are liable to be swept away at a moment's notice, and the grant of a concession which has met with the bitterest opposition under one régime may be perhaps easily obtained a few weeks afterwards. The introduction of European and American capital into the country, apart from the benefit to the Coreans in the shape of wages and other forms, tends to give a greater feeling of security as indirectly pledging more Powers to upholding the independence of the Empire, and this feeling of security is likely to react favourably on trade generally.

Opening of Kunsan, Masampo, and Songchin. On May 1st the three new ports of Kunsan, Masampo, and Song. chin were opened to foreign trade. The first is about half way between Chemulpo and Mokpo, and the second and third a few miles west of Fusan and north of Wonsan respectively. Of the three, Kunsan alone has any trade to speak of, the figures for that place reaching the respectable total of £46,619 for the eight months, while the returns for the other two are insignificant. Masampo, however, which possesses one of the finest harbours in the East, and is situated in a rich district, is likely to develop into a port of no little importance.

HAWAIIAN ISLANDS [2492].

The chief interest of Mr. Consul Hoare's Report for 1899 is in the passages showing how the United States practises the policy of the " open door" :

British imports showed an increase during the year 1899, compared with 1898, of £97,386. Their total value in 1899 was £354,931, and in 1898, £257,545. The articles contributing principally to the increase were building and railroad materials, cement, roofing iron, machinery, crockery and glassware, hardware, oils and paints, and bags.

There were no exports direct from the islands last year to the United Kingdom; those to Australia, New Zealand, and Canada, together amounted to £11,380. The exports to the two first-mentioned colonies consisted mainly of coffee, wool, and honey, the value of the coffee being £3,840; wool, £1,680; and honey, £1,140. As has been heretofore observed, British manufacturers have been under serious disadvantages, as compared with American, in their trade with these islands by reason of distance, heavy freight charges, and a tariff varying from 10 to 25 per cent., whereas most American goods have been admitted duty free under the Reciprocity Agreement between Hawaii and the

United States. Notwithstanding, however, these disadvantages, a certain and not unsatisfactory amount of British trade has been done.

But a new state of things has now arisen which will still further interfere with British imports. On June 14, 1900, the Hawaiian Islands, in conformity with the Act of Congress approved by the President of the United States on April 30 last, became a Territory of the United States, to be known as the Territory of Hawaii, and with the advent of the United States Tariff and Navigation Laws, which took effect here on that date, the conditions of foreign commerce with the islands will undergo a material change in favour of American merchandise and shipping, and as regards the latter, foreign vessels will no longer be able to carry passengers or freight between the islands and other United States ports. The Coasting Laws being now extended to Hawaii the trade will now be carried on solely in American vessels. In this connection, however, it is understood that the United States Treasury Department has ruled that the ships of the Pacific Mail Company, the Toyo Kisen Kaisha, and the Occidental and Oriental Company can leave passengers here to be taken on by following vessels of the same lines. This it is considered will not be interfer. ing with the coasting business, as the tickets held by such passengers will be "lay-over" tickets, and will be bought from the United States to a foreign port or vice versâ.

Since the passage of the Newlands Act, approved July 7, 1898, annexing the Hawaiian Islands to the United States there has been a period of transition. It was not known for certain whether the islands would be admitted as a territory, or whether they would have to go through a period of colonial probation, in which case the possibility of a duty being laid upon Hawaiian sugar would have affected the prosperity of the islands. But now that the Territorial Act has passed and is in operation all these matters of doubt have been set at rest.

Section 98 of the new Act provides :

"That all vessels carrying Hawaiian registers on August 12, 1898, and which were owned bonâ fide by citizens of the United States, or the citizens of Hawaii, together with the following named vessels claiming Hawaiian register, Star of France, Euterpe, Star of Russia, Falls of Clyde, and Willsott, shall be entitled to be registered as American vessels, with the benefits and privileges appertaining thereto, and the coasting trade between the islands aforesaid and any other portion of the United States, shall be regulated in accordance with the provisions of law applicable to such trade between any two great coasting districts."

PHILIPPINE

ISLANDS [2436].

Mr. Consul Harford's Report for 1899 says that the collapse of the insurrection and the opening of the ports having restored confidence, a great activity in commercial quarters has ensued; but the continuation of this prosperous state of affairs is very much dependent on circumstances, for though the ports are safe, the interior of this island, and of many of the others, is quite the contrary. When the accumulated cargoes now in these ports are disposed of, it will depend on the state of the country whether any further exports will be forthcoming. Law and order are being restored as rapidly as possible, but the immense size of the country renders it a difficult task. The natives, I believe, would willingly return to their agricultural pursuits, but the influence of their leaders appears sufficiently strong to keep them from surrendering. Prices have increased to such an extent that Manila, which till recently might be classed as a cheap place to live in, must now be considered the reverse. As yet the provision markets are not seriously affected, though fruit, vegetables, game, etc., are 20 per cent. dearer, but house rent, servants, carriages, horses, launches and labour of every description are already treble the price of last year. In consequence of the great demand, launch hire, and everything connected with shipping, commands its own price. Improvements are visible in every direction, and already the town has quite a different appearance from last year. The work of draining the filthy town ditches and stagnant pools, which is in contemplation, may possibly entail an epidemic, but the advantage to posterity is inestimable. The recovered land of the city walls and moat will provide building sites which American enterprise will know how to utilise, and though Manila will never become a fashionable watering-place it may become a great commercial power in these waters before the first quarter of the century has passed. The two well-known leading industries of Manila, hemp and tobacco, will, I fear, suffer very severely for some time from the late insurrection, but there are no doubt at present golden opportunities for the employment of capital and talent in many local trades. Ice manufacturers, livery stables, hotels, and genera enterprise are much wanted, but I most strongly deprecate young men without capital (no matter what their education may be) coming here in search of employ

ment. The departments of the post-office and telegraph, being now under American and British control, are admirably conducted. The telephone, the water supply, and the electric lighting are Spanish, and also deserve great praise; the electric lighting plant is being enlarged, and Manila will soon be one of the best lighted towns in the East. In every department the greatest courtesy and attention is to be found from the officials. The Chinese labour question is one of great importance in these islands; America's experience of it in California not being satisfactory, there is strong influence against it, but taking into consideration the natural indolence of the Filipino, it will

probably be found impossible to do without the Chinese. One of the principal objections is that by their industrious habits they gradually obtain a monopoly in all retail trades, but this may be remedied by confining their enterprise simply to manual labour, and for this they are most admirably adapted, and in the hot season positively necessary. The Filipinos make excellent clerks if they can be well overlooked, but if allowed they will spend their time in gambling and cock-fighting; they have no idea of putting energy into any of their pursuits, and have no commercial instincts; they also care little for money, loss or gain being to them apparently a matter of indifference.

[Cd. 457 and Cd. (Natal Field Army) 458].These volumes, which were published by the Government on February 8th, 1901, and appeared also in the London Gazette of that date, contain a mass of Despatches and constitute an official history of the war in South Africa from the time Lord Roberts arrived at Cape Town in January, 1900. Lord Roberts's first Despatch is written from Cape Town, February 6th, 1900. The position then he described in the following passages :—

On the 26th January I received intelligence of Sir Redvers Buller's withdrawal from Spion Kop to Potgieter's Drift. The second attempt to relieve Ladysmith having failed, it has become imperatively necessary to give early effect to the policy indicated above. With this object I am collecting as large a force as possible to the north of the Orange River Kailway Station, with a view of joining the troops under Lord Methuen's command, and proceeding, in the first instance, to relieve Kimberley. The Column, including Cavalry and Mounted Infantry, will number 35,000 men, with about 100 guns. On the relief of Kimberley being accomplished, I propose to leave a moderate garrison at that place, and with the remainder of the force, to move eastward for the purpose of threatening Bloemfontein and seizing some point on the railway between that place and Springfontein. This operation will, I trust, cause the Boers to reduce the force which they have concentrated round Ladysmith, and enable our garrison there to be relieved before the end of February.

In order to carry out the concentration north of the Orange River, I shall have to make use of the whole of the 6th and 7th Divisions, and am obliged to postpone the reinforcement of Lieutenant-General Gatacre's force, although it is barely sufficient effectively to control a civil population which contains many disturbing elements, or to regain possession of the territory which the enemy has invaded. I am compelled also to withdraw the greater part of the force under Lieutenant-General Kelly-Kenny from Naauwpoort and its neighbourhood, in spite of the importance of restoring railway communication

between Middleburg and Stormberg. The arrival of 15 additional battalions* of the Line and Militia will place matters on a better footing, but in view of the possibilit that the third attempt to relieve Ladysmith may fail, the deadlock in Natal which will follow, and its probable effect on the South African population, I have reluctantly arrived at the conclusion that more troops are needed for the active prosecution of the war.

On the 28th January I applied for another Infantry Division and Cavalry Brigade from home. The Cavalry Brigade has been placed under orders for field service, but the despatch of the Infantry Division has, I am informed, been suspended for the present. If, as I hope, the relief of Ladysmith can be effected, at any rate as soon as the enemy's attention has been distracted by offensive operations on our part in the Orange Free State, the transfer of an Infantry Division from Natal to Cape Colony may perhaps become feasible. On this point, however, I shall be better able to offer an opinion when the result of the further operations in Natal is known.

Ostensibly,

It might appear at first sight that the force in this country is equal to the military requirements of the situation, but the difficulties of carrying on war in South Africa do not appear to be sufficiently appreciated by the British public. In an enemy's country, we should know exactly how we stood; but out here, we have not only to defeat the enemy on the northern frontier, but to maintain law and order within the Colonial limits. the Dependency is loyal, and no doubt a large number of its inhabitants are sincerely attached to the British rule and strongly opposed to Boer domination. On the other hand, a considerable section would prefer a Republican form of government, and influenced by ties of blood and association, side with the Orange Free State and Transvaal. Even the public service at the Cape is not free from men whose sympathies with the enemy may lead them to divulge secrets and give valuable assistance to the Boer leaders in other ways.

The next Despatch was written from Jacobsdal, February 16th, and described the relief of Kimberley. On the 28th of February Lord Roberts sent a Despatch from Paardeberg giving a

*The Line battalions will not arrive until the middle of March.