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my last report. The disease had completely disappeared, but the port suffered to some extent from the bad reputation it had incurred by the epidemic of 1899, and vessels from Newchwang were, with what was regarded here as excessive caution, subjected to medical inspection at Shanghai, for fear that the pest might again visit us in the summer.

Despite the troublous times a new feature was introduced into the trade of the port during the year. The Newchwang Steam Ferry Tug and Lighter Company commenced work with one small tug, the ss. Guilcar and three lighters. The want of such facilities for dealing with cargo in this harbour where wharfage accommodation is limited has long been felt. In default of much local work last autumn, the tug and lighters were chartered by the British Transport Officer for work at Shanhaikwan, where a large amount of stores for the foreign troops had to be hastily landed at the end of the

season.

Local Experiences of Boxer Rising.— The Boxer rising did not affect this port till towards the end of June. On the 13th of that month Boxer drilling was reported in the towns. On the 15th missionary refugees from towns in the interior between Newchwang and Shanhaikwan and the Chinese railway foreign employés came in. They had received warnings from Tientsin. Their arrival created some little excitement among the natives. On June 23rd a false alarm was raised about 11 P.M. that an attack upon the foreign quarter was imminent. Next day most of the ladies and children of the European community left the port. At this time the native authorities and merchants were still sanguine that no local outbreak would occur. But after the anti-foreign decrees of the latter days of June reached Moukden, the provincial Government allowed the Boxers a free hand. On June 30th the Protestant Missions in Moukden were sacked. foreigners in connection therewith had previously escaped to this port. On July 2nd the French Mission in Moukden was destroyed, and the Bishop and his staff were murdered. This was followed by the gradual destruction of all mission stations in the province.

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Still Newchwang remained quiet. The Chinese Governor (Taotai) behaved well and kept control. Up to July 26th we hoped that we would tide over the crisis. On that day the Russian troops made an attack upon the barracks of the Chinese garrison close to the town, and the Taotai, who had assured his people that so long as they observed the peace the foreigners would do the same, felt that he was losing his influence over the more turbulent spirits among the population. Meanwhile the news of events at Taku, Tientsin, and elsewhere, and of the outrages at Moukden and the attitude of the pro

vincial authorities was spreading and the excitement increased.

On July 28th the Russian Consul, hearing a rumour that a Russian captive was held in the native city, wrote to the Taotai that he must be given up immediately, or if anything happened to him the city would be bombarded. The rumour was false, but the threat gave rise to great alarm. On August 3rd the Russian Consul informed the Taotai that next day being a Russian festival a salute of thirty-one guns would be fired by the Russian gunboat lying in the river off the town. The Taotai protested that this would terrify the townspeople, and he feared that, under the impression that they were being attacked, the anti-foreign party might attempt some violence against the European quarter.

Next morning early the lawless element of the town evidently got the upper hand and advanced against the barricades guarding our end of the city. One barricade was efficiently defended by the volunteers of the foreign community. The Russian forces then took possession of the town, and a Russian Civil Administration was provisionally established. The foreign community remained under assurances from the Russian authorities of the enjoyment of their treaty privileges.

The disturbed state of the interior during the autumn rendered the transit of goods almost impossible, and trade virtually ceased. Matters improved during the winter, and cart traffic, though not so brisk as usual, was fairly large.

Ningpo [No. 2,629].-Mr. Consul Wilkin. son's Report shows that:

The gross value of the trade of Ningpo for 1900 was 15,414,191 Haikwan taels (£2,312,128 13s.); the net value, 15,227,380 Haikwan taels (£2,284,107). This latter sum is, curiously enough, almost identical with the average net value for the past ten years (1891-1900), 15,236,652 Haikwan taels (£2,285,497 16s.), but with the exceptions of 1898 and 1894, when the corresponding figures were 14,418,534 Haikwan taels (£2,162,780 1s.) and 14,599,757 Haikwan taels (£2,189,963 11s.) respectively, it is the lowest recorded since 1892. The Consul writes :-The reason, it is hardly necessary to say, is to be found in the general dislocation of trade brought about by the "Boxer" disturbances in North China. Thanks to the enlightenment of the local authorities and their energy in suppressing the beginnings of disorder no anti-foreign outbreak occurred in Ningpo Prefecture. On the other hand, in the western portions of the province, most of which still draw supplies from this port, serious riots took place, more particularly in the Shaohsing and Ch'üchou Prefectures. The uneasiness felt by the foreigners at Shanghai previous to the landing of the British troops communi

cated itself to their Chinese fellow residents, many of whom are natives of Ningpo. These last flocked back to their homes in such numbers that the daily steamers from Shanghai arrived at that time-the latter end of June and the first half of July-crowded to the danger point, and extra boats had to be put temporarily on the line. During this three weeks' scare close on 30,000 passengers were thus conveyed, the normal traffic being some 7,000. These people passed for the most part into the interior, spreading exaggerated reports of events in the north of China and increasing everywhere the cost of food and conveyance. A somewhat similar commotion was created in August by news of the relief expedition to Peking, but the consequences to trade were not so grave. Later on confidence was gradually restored, and a great number of the Ningpo men returned to Shanghai, but mischief had meanwhile been done, and the effect of the excellent harvests of the year was largely counteracted.

Pakhoi-West River Trade-Railways of S.W. China [No. 2,683].-Mr. Acting-Consul Savage's Report shows that the total value of the trade of Pakhoi for 1900 was £601,654, a decrease due generally to the troubles in the north. But signs are not wanting that the import trade will fall considerably lower :—

The causes which have mainly contributed to this result are the development of the West River trade, the low exchange value of silver in copper cash, and the absence of all customs barriers around the free port of Kwang-Chow-Wan.

As an instance of the extent of which the opening of the West River affects the import trade of Pakhoi, it may be mentioned that, whereas, at Wuchow, the import of grey and white shirtings rose during 1900 to some 222,277 pieces, as compared with 153,630 pieces in 1899, there was at Pakhoi a falling-off in the same articles from 43,541 pieces in 1899 to 31,457 pieces in 1900.

On the other hand, the HaiphongMengtză route which, until the end of March, 1900, showed a steady increase of trade, offered no serious competition to Pakhoi during the rest of the year, owing to a war scare and the expectation of troubles along the Tongking border.

The Hanoi-Lungchow route is not yet complete, although a broader gauge has now been carried through from Gia-Lam to Langson. The Langson-Lungchow section, however, is as yet in its first stage of preparation; this route, therefore, cannot as yet be considered as a rival to Pakhoi for the overland trade.

The effect on the trade of this port of the opening of Kwang-Chow-Wan as a free port has been far more serious,

although it is very unlikely to be permanent, in one sense.

Mr. Savage says that railway schemes of various sorts have been spoken of, which would tend to draw off by artificial means a part of the West River trade from its natural channel.

Thus I have myself heard of a scheme for a railway which was to run from Kwang-Chow-Wan, across the Lei Chow peninsula, to An-p'u, thence up the valley of a small river to Yu Lin Chow, and ultimately to Nanning, where it was to join the extension of the Hanoi-Lungchow line.

Without attempting to discuss the probability of the construction, or the chances of success, of such a railway, I wish merely to point out the effect it would conceivably have upon the trade of this port. It seems to me reasonable to suppose that by tapping the rich districts of An-p'u, Yü Lin, and Kiaochow, and by securing the conveyance inland at all times of the year of such foreign goods as the latter market especially consumes, it would deal such a blow to Pakhoi as would reduce its commercial importance to a mimimum. It is doubtful, however, whether this result would be sufficient in itself to warrant the immense outlay such an undertaking would necessarily postulate.

This objection applies apparently to other schemes for railways intended to divert the trade of Southern and Western China into special channels, and notably to the well-known plan for a railway from Lao-Kay to Yünnan-fu and probably beyond, which is now the object of a special French mission to the capital of Yunnan. In this connection I take the liberty to insert the following translation of an extract from a valuable article by the French Captain Bernard on this subject:

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"It is thought that all the products of this province (Yunnan), one of the richest and most populous of China, would take the new outlet thus offered them. Chungking is 2,200 kiloms. from Shanghai by existing ways of communication, and only 1,500 kiloms. from Haiphong, hence every advantage would appear to be on the side of Tongking. As a matter of tact the problem is not so simple. Chungking is 250 metres above sea level. Yünnan-fu is 1,990 metres above it. Supposing two railroads to have been constructed from Chungking, one to Shanghai and one to Haiphong, the former would meet with nothing but moderate inclines, and that only for a short portion of its length; the latter, on the contrary, would be constantly within a mountainous region. Notwithstanding the difference in length of transit, the cost of transport to Haiphong or to Shanghai per ton of merchandise would be identical.

"There appears, moreover, to be some apprehension lest the British should suc

ceed in constructing a line of railway from Burmah to Szuch'uan, and it is thought imperative to have a start of them. But even if the two lines were constructed one after the other the British line would at once have a great advantage. It would have its terminus on the Gulf of Bengal, very much nearer European ports; it would establish communications between China and two enormous reservoirs of men and natural resources, Burmah and Bengal.

"Finally, however seductive the plan of a railway leading from Haiphong to the heart of China may appear, it is quite certain that for a long time such a railway would lead to nothing but an amount of traffic insignificant in proportion to the capital taken up by the construction thereof. If the line is to stop at Yünnan-fu, a transit trade of at least 100,000 tons on the Vietri-Lao-Kay section, and of 50,000 to 60,000 tons from Lao-Kay to Yünnan, would be necessary annually to cover all expenses of the line.

"The estimated tariffs postulate, moreover, goods of a value capable of supporting transport charges, which would amount to at least 30 frs. per ton as far as Lao-Kay, 60 frs. to Mengtzŭ, and from 100 to 120 frs. to Yünnan. None may venture to say what period of time would be necessary to achieve such a result."

Samshui. [No. 2,645]. - Mr. ActingConsul Little's Report says:

The trade of this port during the year 1900 declined over 20 per cent. as compared with the previous year, the gross value of the imports and exports having fallen from £447,700 to £355,400. How far this was a result of the troubles in the north it is difficult to say, for the business of the port, as measured by the amount of revenue collected, remained remarkably steady during the first three quarters of the year. It is to be noted, however, that the imports, which account entirely for the large decrease, fell off some 14 per cent. during the third quarter when political affairs were at their worst, and this must no doubt be attributed to the timidity of the importer and the reluctance of merchants to consign on credit whilst the situation remained so threatening. It could scarcely have been due to local unrest, since, with the exception of some plundering raids by armed bands on the lower part of the river, things remained quiet throughout in this district, and on the north river nothing was generally known, even as late as August, of the troubles at Peking.

The imports were valued at slightly over £228,600 (including re-exports, £1,100), against £362,000 the previous year. Of this amount foreign goods represented £222,900 as compared with £351,000 in 1899, being a decrease of - over 36 per cent. Native produce was

imported to the value of £5,700, against nearly £11,000 the previous year.

Of foreign imports, cotton goods were valued at £80,000, a decline of £124,000, or about 61 per cent.; the principal items were grey shirtings, £15,500 (decrease £10,800); white shirtings, £21,200 (decrease £11,800); T-cloths, £4,600 (decrease, £4,000); Japanese cotton flannel, £1,800 (decrease £400); Japanese cotton cloth and crape, £1,600 (decrease £800); Indian yarn, £30,100 (decrease £90,100).

Soochow [2,713].-Mr. Acting-Consul Wilkinson reports a fall in trade from £206,715 to £181,395 in 1900, and says the prosperity of the place, owing to its proximity to Shanghai, is declining. As for the projected Shanghai and Nanking Railway, he says:

The railway from Shanghai to Soochow, and thence to Chinkiang and Nanking, the concession for which was granted nearly four years ago to an English company, has not yet been commenced.. The terms were still under discussion when the troubles in the north broke out, and the political outlook has not been sufficiently encouraging since to induce investors at home to put money with any confidence into Chinese enterprises. Yet the line is one which ought to pay handsomely. Its total length will be about 250 miles, and as, beyond the construction of a number of short bridges, there are no engineering difficulties of any kind to be encountered, it ought to be built at very reasonable cost. The railway will have to compete, of course, with the canals, and as its proposed route lies along the banks of the most important. of these waterways, the competition will be keen. I am of opinion, however, that the traffic, both in passengers and goods, is large enough for both. The population of this portion of Kiangsu is very dense indeed, and the fertility of the land is extraordinary. The fares and freight charged will have to be very low. At present the competition between the various steam launch companies has reduced passenger fares on all inland waterways to an absurdly low rate. A man can travel nowadays from Shanghai to Soochow, a distance of 80 miles, for 20 c. (5d.). but, though they crowd their passengers together like sheep, the launch companies would soon be bankrupt if they depended only on this class of fare. Their charges rise gradually, for there are at least eight different classes according to the food and accommodation provided, from 20 c. to 2 dol. 40 c. (5s.) for a single cabin. On other routes, between Soochow and Hangchow for instance, or between Soochow and Chinkiang, rates are a good deal higher. The fares charged by the Imperial Chinese Railway in the north average about d. a mile for second-class

passengers and d. for first-class passengers. If similar rates are charged on this line, or better still, if a third and still cheaper class is started, there is no doubt that a very large proportion of the passenger traffic would be attracted to the railway. The Peking and Tientsin line has shown that the Chinese appreciate the speed and comparative comfort of railway travelling, and there is no reason why they should be different in this province. The goods traffic will be more difficult to capture, but the protection which the railway will afford from the delays and rapaciousness of the likin officials ought to be a great inducement to traders to make use of it for their goods. Certainly none of the numerous other railway schemes, now talked of in China, have fairer prospects than this line.

It is believed by many that the advent of the railway will bring back to Soochow a good deal of its former importance as a trade centre. I am inclined to doubt whether this will be the case. The inhabitants are not of an enterprising nature, and it seems to me more likely that the railway will render Soochow even less important commercially than it is by diverting a further portion of its trade to Shanghai. The future hopes of the city must be centred in its silk filatures.

Wuchow [2,658].-Mr. Consul Hausser's Report shows that:

The total value of the trade of Wuchow during the year 1900, as shown in the returns of the Imperial Maritime Customs, amounted to 6,552,591 Haikwan taels (£1,017,016), an increase of 407,467 Haikwan taels (£63,242), as compared with the aggregate value of the trade for 1899.

During the first two months of the year little business was done, but in March there was a great improvement, which, had it continued, must have resulted in a very large increase in the year's trade. Events in the north of China, however, naturally reacted most unfavourably on trade in the south, and from the middle of June till the end of July all business was practically at a standstill. In August, says the Consul, confidence became somewhat restored, and both imports and exports began to come forward more freely, the improvement continuing till the end of the year. Notwithstanding the unfavourable conditions under which trade was thus carried on during a great part of the year, the stoppage of the trade with the northern ports, and the uncertainty engendered by the political situation being aggravated by the chronic disorder and partial scarcity prevailing in the interior of the province. Wuchow is one of the few ports showing an advance in the year's return, the other ports being Kiaochow,

Shasi, Nanking, and Santuao, with the two trading stages of Kongmoon and Kumchuck. The increase is to some extent discounted by the higher values taken for this year's returns, but though advance was checked there was no actual falling-off. The limit of expansion of the trade of the port has evidently not yet been reached, and under more favourable conditions a far larger trade may be expected to develop.

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The news of the north occasioned Yangtsze Valley. merchants retired

Wuhu [No. 2,667].-Mr. Consul Mortimore's Report shows that the total value of the foreign trade of the port of Wuhu during the year 1900 amounted £2,814,235 (18,131,986 Haikwan taels), as compared with £3,045,816 (20,305,440 Haikwan taels) in 1899. This total is made up of foreign imports, £932,112; native imports, £371,376; and exports, £1,510,747. "These figures show a decrease in all cases on those for the year 1899; but the amounts are far in advance of the average of preceding years, and, says the Consul, had it not been for the Boxer outbreak in the north I think that there can be no doubt that the year 1900 would have been the most successful experienced at the port. disturbances in the much unrest in the Numbers of the larger to their homes and withdrew their capital as far as possible from current transactions. The banks too refused to make any but the smallest advances to merchants, and these only at an exorbitant rate of interest, which occasioned a scarcity of money, so that none but the most urgently-needed foreign goods were imported, and there was a falling-off in the native products brought down from the interior. In fact at one time the steamers obtained so little cargo that it was rumoured the companies had decided to cease running temporarily, but with the arrival of the foreign troops matters improved somewhat and this step was not taken. I regret that it has been found impossible to obtain statistics of the value and quantities of goods imported from, and of Chinese goods exported to, the United Kingdom and its dependencies. The whole trade of Wuhu is practically with Shanghai and other Treaty Ports."

CUBA [No. 2,674.]

Mr. Consul-General Carden's Report on Cuba for 1900 shows that there are 1,400,262

Cubans and 172,535 persons of other nationality, of whom 6,444 are Americans, 129,240 Spaniards, and 731 British subjects, Mr. Carden says:—

On the cessation of Spanish sovereignty in Cuba the imports of Spanish merchandise, being deprived of the protection they had hitherto received from the differential duties in their favour, were reduced to one-third of their former amount, thus practically throwing open a new market of £4,000,000 to the world's competition. The distribution of this new trade among different countries is a matter of such direct interest to British merchants and manufacturers as to call for somewhat detailed examination.

Tables are given showing the imports of merchandise by articles and countries in the two years 1899 and 1900. Commenting upon these, Mr. Carden says:

As was only natural, the United States has been the principal gainer in the readjustment which has taken place in the Cuban import trade, and now occupies the same relation towards other countries as regards her commercial supremacy in Cuba, as Spain did formerly. The latter, however, has lost considerably more than the United States has gained, and the difference, which amounts to about 15 per cent. of the total imports, has been divided among the other countries doing business with Cuba.

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At first sight it would appear that the share of it which has fallen to the United Kingdom is very small, but if the value of the Indian rice imported through Hamburg in 1899 and 1900, which, as I have mentioned in another part of this report, has been credited to Germany, be added to the British imports, the total would be increased by £165,000, and would show a very fair percentage of gain as regards the whole trade. . though Cuba imports to-day from the United Kingdom and British Possessions more than almost any of the SpanishAmerican Republics, except Brazil and the Argentine Republic, its real importance as a market for British goods lies in the great possibilities of its future development. But in order to profit by the increase which may be confidently expected ere long in the Cuban trade, British merchants and manufacturers must bear in mind that only by the closest attention to the requirements of the market and by promptness in filling orders can they hope to retain their present proportion of the imports, in view of the competition, under great disadvantages to themselves of distance and facility of communication, which they will have to expect from the United States in almost every class of goods which they supply.

The trade in machinery, of which the

United Kingdom formerly had a fair share, has passed entirely into American hands. It is difficult to believe that such a loss can be other than temporary, as British machinery has always been held in esteem in Cuba for the excellence of its quality, although its sale was somewhat restricted owing to its being generally more expensive than American. The subject is well worth the serious attention of British manufacturers, as the field is a very large one, and its possible extension is limited only by the purchasing power of the country. Besides plants for sugar factories, agricultural machinery of all kinds, and pumping apparatus for irrigation, there will soon be a good opening for the sale of industrial machinery, electrical plants, and all kinds of labour-saving apparatus, the use of which is becoming every day more necessary, owing to the high prices of wages and the constant recurrence of strikes among labourers and artisans.

Finally, in miscellaneous articles there has been a falling-off of nearly 30 per cent. in the British imports, in spite of the fact that there has been a considerable increase in the total imports under this head.

To sum up, it will be seen that the value of the British imports into Cuba in 1900, including the rice sent through Germany, represented somewhat over 17 per cent. of the total imports.

Mr. Carden recommends greater activity in pushing British trade, and concludes that there is every reason to believe that the United Kingdom will profit by the new conditions created by the United States in proportion to the energy and adaptability shown by British traders.

JAPAN [No. 2595.]

Mr. A. H. Lay's Report on the Foreign Trade of Japan for 1900, says :

The lamentable occurrences in China and the continuation of an unsettled state of affairs have acted as a check upon the rapidly expanding export trade of Japan, and her manufacturing industries have suffered in consequence. Moreover, the silk crop, upon which this country in the main relies to adjust the balance of its commerce with foreign countries, was a disappointment. With regard to the import trade, the indications in the autumn of 1899 were that the ensuing year would offer splendid opportunities for business. The result was that large quantities of goods ordered abroad which appeared in the returns for 1900, and the year opened with a feeling of over-confidence in commercial circles. It soon became apparent, however, that the outflow of specie, which had already begun, was likely to

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