November 8, 1902.]

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were prepared to accept this as the meaning of the treaty; but is it so? We find on the contrary that looking to the document itself this is to be by no means the case. Lekin (the name) is indeed to be abolished, but instead two other sources of revenue are legalised, and the native authorities are to be allowed to levy two other taxes, one a Consumption" the other a · Destination' tax, ueither of which are defined in amount or method of levying, and the latter of which is to be leviable on foreign goods, in aldition to the proposed "Surtax." This in fact, and not the Surtax, was thom-; pensation, as interpreted by the high provincial authorities, they were to receive in consideration of the removal of the word lekin from their official language. Such is the meaning that any legal mind o a care- fully studying the wording of the new instrument must place on it. Even the Commi tee, desirous as it was to carry the opinion of the ureeting in favour of the treaty, could not escape from this conten- tion, and somewhat ignominiously was compelled to accept the amendment offered ¦ by Mr. BLAND, which seemed to offer au exit, little larger than a rat-hole it is true, from au untenable position.

As Mr. LITTLE, with more practical experience of the ordinary language of the official classes, and more practical know- ledge of the ruinous nature of the present system of raising revenue, plduly pointed | out, the new style of levying these internal dues must from the very nature of the case become far more inquisitorial and far more oppressive than that at the moment existing, and that so far from casing the friction now existing the very stipulations entered into by Sir JAMES MACKAY will of very necessity result in a wider extension of the present disabilities under which foreign trade has been vainly struggling.

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CHINA OVERLAND TRADE REPORT.

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TRADE OF KOWLOON AND .

LAPPA IN 1901.

Daily Press, 4th November.) The trade passing through the nearest Chinese Customs stations to Hongkong cannot fail to be of certain interest to those

interested in local commerce, and we there fore may profitably spend a little time in the consideration of the recently issued reports on Kowloon and Lappa in 1901, by Messrs. R. B. MOORHEAD and F. A. CARL respec- tively. At the so-called Kowloon Customs (for there is of course no Chinese station in the Kowloon district proper) a large through is rice and other cultivated pro- percentage of the commodities passing ducts. The question of a wet or dry season is therefore of great importance to the annual figures. Mr. MOORHEAD writes:-

The weather at the beginning of the year was very favourable for the rice-crops, "and the spring harvest was an exceptionally "Line unc. This abundance of the local

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rice caused a fall in the import of the foreign article. Subsequently the rainy 'season' quite belied its name, the rainfall during the summer months being far below the average of many years past. As one result of the drought there was an enormous output of salt, the China-to- "China trade in which shows an increase "of nearly one million piculs, while the import from foreign countries fell more than 50 per cent. The growth of sugar-cane was checked by the dry season, and the "manufacture of sugar in the local factories was considerably lessened. This brought about a great increase in the import of foreign-made sugar, the figures for white sugar, in comparison with those for 1900, being trebled." Of other trades, match, making is making great advances in Kwangtung and a serious rival to the Japanese match trade is now in existence. An increased import of cotton yarn was noticeable, while there was a decline in its price, so that cotton mills had a good year. The total revenue of the year 1901 was Ts. 404.450, an increase of no less than

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habits, Mr. CHAMBERLAIN consents to the reservation of the area in question, but considers that "instead of being confined | to Europeans it should be open to all; persons, whether European or Chinese, who are approved by the Governor," Secretary of State for the Colonies is not in sympathy with aay scheme to "enable the European section of the community to obtail low rents to the exclusion of Chinese of good standing." Now, this expre-sion of opilion is very fiue in principle, but we venture to think that it is an unfair state- ment of the case for an European reserva- tion and that a little local knowledge on the part of the Secretary of State would have prevented him from falling into error.. Unfortunately we cannot expect that Mr. CHAMBERLAIN Will extend his trip to the South African colonies and return to Eug laud by way of Hongkong; were he to do so he might find considerable reasons for modifying his views. Perhaps the case for such reservation as has just been refused! has not been stared as well as it might have becen Au European reservation is not desired merely to give Europeans a low- reutel area to the disadvantage of the Chinese of good standing. The history of what has happened in the City of Victoria will best show what threatens Kowloon. There was an Ordinance passed fourteen years ago, No. 16 of 1888, of which this was the Preamble :- Whereas the health and comfort of Europeans in a tropical climate deal conditions which are inconsistent with the neighbourhood of houses crowded with occupants and otherwise used after the manner customary with the Chinese inhabitants, and whereas the influx of Chinese into the Colony tends constantly to arrow the area of the City of Victoria where such conditions are attainable, and "it is desirable to reserve by law a district! Another curious instance of the substitu- "wherein such conditions may be secured." tion of a mere name for a grave fact is Now, though the Colony has grown so afforded in the stipulation that there are toumensely since 1888, there has been no be no more "Custom Houses" than lately extension of the European reservation in existed opened in the interior and the Victoria, and we se: Chinese houses all number of there was stated as "about" around, effectually preventing that extension forty. Now, as Mr. E. S. LITTLE except at a considerable expense to the pointed, out the number of Custom Houses public purse. Meanwhile houses built for recognised by the Imperial Government in Europeans in the fill district have been s. 54,426 on the previous year's figures,

In addition to this a Granary, tax the provinces is, instead of forty, several acquire by the better-class Chinese, who hundreds, each with its own individual are willing to pay the enormously increased rice and paddy exported brought in Hk. branches; and as if to stulify itself the treaty rentals, so that the result is a great scarcity Tis. 22,437, though only levied from the 6th March to the end of the year. A decrease proceeds to say that the transit dues retained of European residences at a reasonable ou goods for native use or for exportation rent. It was thought that in the laying of nearly two million taels from the previous shall be paid at the first Custom House out of Kowloon, ample space being at the year's figures occurred in foreign imports, they shall pass.

It may be a matter of Government's disposal, a strictly European the net value for 1901 being Hk. The indifference whether a station he called a

reservation would afford relief to the 18,956,231. But, as owing to the abundant Custom Hou-e, a lekin station, or a mere undeniabl want of residential accomodation local rice-harvest the falling off in the barrier. But it is unfortunate that we for Europeans, without inflicting any hard-import of rice and paddy was Hk. Tls. shall in the case of the "treaty" wing ship on the Chinese. The Secretary of 3,462,901, the remaining foreign import. notified, be left without the means of pro- State for the Colonies has decided otherwise really increased, the improvement in the testing as illegal against any of the and so, thigh there is to be a reservation opium figures being marked. Altogether hindrances to trade unless these should bearin Kowlo, it is not to be an European 686 piculs of foreign opium passed through the names of lekin or "Customs "barriers;

the Kowloon stations, the highest figures which, we may be assured, they never will,

since 1893, when 916 piculs passed through. In 1899 only 459 piculs were recorded. Exports to foreign countries showed an advance ou the 1900 figures of nine per cent., the total value for 1901 being Hk. The increase, says Mr. Tls. 22.919,708. MOORHEAD, is due to the slightly enhanced value of most of the principal commodities. The export of building materials was con- siderable, owing to the erection of so mary new houses in Hongkong. steam-launcises passed the Kowloon stations than in 1900, the total being 4,431. Junks increased in number by 2 per cent. Altogether 49,808 launches and junks com- ined entered and cleared. Passenger traffic showed an increase of 84,891, or 11 per cent. on the previous year's figures. No treasure was reported as carried by the junks,

KOWLOON RESERVATION

QUESTION.

(Daily Press, 8th November.) We fear that European residents in this Colony who were in hopes that in Kowloon at least some reservation of land would be made within which the Chinese would not be permitted to live in immediate proximity to Europeans will not be much consoled by

reservation but one for Europeans and the wealthier among the Chinese, the Governor's approval- a changeable quantity, owing to the changes of Governor-being the criterion of eligibility to live in the reserva- tion. It may be argued that the evils of terement-huses and the contiguity of the lower classes of Chinese will be avoided by those Europeans who live zu the new reservation. This is true: but te European of moderate means will still compete for houses with the well-ford, Chinese, and the outcome of this competition will be the same as it has been in parts of the Iill district and elsewhere.

Mr. CHAMBERLAIN's assurance to H.E. the Governor of his entire approval of the principle of the establishment of a reserva- tion in which persons of a cleanly and

The Japanese Navy Department has decided healthy mode of life will be safe from the to build a shallow-draft gunboat for use on the risk of infection due to the neighbourhood | Yangtsze. The vessel will be built in Japan, of lower classes of Chinese with insanitary and will be named the Uji.

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