350

At the same time Spelter increased from 1,090 piculs in 1903, and 14,326 picals in 1904, to 32,472 piculs in 1905. The year 1903 already exceeded the normal importation, and the increase since that year may be safely assigned to purchases for the Mints.

Foreign Rice was imported in smaller quan- tities, 2,227,916 piculs, against 3,356,830 piculs in 1904; the import of Yangtze Rice at Canton increased, however, from 2,221,443 to 3,904,912 piculs, and, with larger importation at Swatow also, the supplies from all quarters introduced into Kwangtung considerably exceeded those of 1904.

Cigars and Cigarettes continue to increase the value rising from Hk. Tls. 3,279,713 in 1904 to Hk. Tls. 4,734,579 in 1955. Household Stores also increased from Hk. Tls, 1,491,817 to Hk. Tls. 2,384,534, and Wines, Beer, and Spirits from Hk. Tls. 2,077,509 to Hk. Tls. 3,028,417. These figures are not, the value which remained in China of the year's importa- tion; in addition, there were Household Stores of a value of Hk. Tls. 518,867, and Wines, Beer, and Spirits worth Hk. Tls. 474,607, re-exported during the year to Foreign conn- tries. It is probable that much of this million taels' worth found its way to the can- teens of the belligerent forces and that the amount would have been greater had the neutral zone between the two not been pushed to the north.

Flour, 931,761 piculs, was about the same as in 1904; but whereas in former years the importation was entirely from American mill during 1905 Australia has advanced into the market. Including re-exports, mainly from Shanghai in the direction of the seat of war, the import of Flour was 989,447 piculs in 1904 and 988,423 piculs in 1905. While the northeru and central provinces of China take close on three fourths of Foreign Imports in general, of Flour they take normally but a third of the year's im- portation, the tendency being more and more to have recourse to the products of flouring mills established on Chinese soil and grinding Chinese grain; imports at the ports served by Shanghai increased from 232,447 to 326,398 picals, due possibly to the fact that the mills at Harbin were shut out from the Chinese market, but more probably to the demand for the troops in the North. The chief market for imported flour is in the ports served through Hongkong, which are constant importers of foodstuffs and in which the returned emigrants have intro- duced a taste for foreign luxuries; here the import fell from 707,000 to 662,025 piculs, and, as it is known that Australian Flour bas won & footing for the first time in this market, it is probable that we have here an indication of the effect of the boycott on this American product, greater than the amount of this reduction.

THE WHAMPOA DEEP-WATER

PORT SCHEME.

The annual report of the China Association includes correspondence between the Hongkong Branch and the London Committee. Following is an extract from letter dated 21st April, 1905:-

Dear Sir,-For some time past evidence has been accumulating which tends to show that a serious movement is on foot having for its object the opening of a port to serve eventually as the terminus of the Hankow-Canton Line. The idea is held to be impracticable by many whose opinion is entitled "to respect, and who rely upon the natural advantages possessed by the harbour of Hongkong to defeat all efforts to challenge the supremacy of this port. We hope that the optimistic opinion is warranted by all the facts of the case, but there are certain facts which ought not to be lightly regarded and which are yet seldom referred to. We have nothing to oppose to the view that, as regards the larger ocean-going vessels, there is nothing to be feared. The new Pacific liners can never go to Whampoa, nor can the German mail steamers, no steamers, in fact, drawing anything over 26 feet. But with respect to steamers draw. ing no more than this, it is unsafe to assume no rivalry can be set up. A scheme for dredging a channel through the bar below Whampao the so-called "second bar"-has recently been put forward, and is receiving the favourable consideration of the Chinese authorities. It

THE HONGKONG WEEKLY PRESS AND

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is proposed to devote a large sum of money to this object, of which a considerable part will be set aside from the LM.C. revenne. The proposed dredging operation would only be required to ont a channel some quarter of a mile long. If successful, ships drawing as much as 26 feet could get up to Whampoa at spring tides, and as much as 24 at neap tides. In referring to the proposed opp sition port. we have described it-as "at or near Whampoa." The avidity with which land in the vicinity is being bought up shows that the Chinese are going to try and make it there. A group of influential Chinese

aro interesting them. selves in the project, and Wa have good reasou to believe that they are receiv. ing every encouragement from the Chinese Authorities. It should not be forgotten that the latter view the existing Kowloon frontier arrangement as a serious handicap to the effec tive safeguarding of the Kwantung revenue. They have never cessed to resent the action of the British Government in taking over the whole of the waters of Deep Bay and Mirs Bay. and they regard the Hongkong Government as the protector of the local smuggling activities which, they believe, are a source of considerable loss to the Customs Revenue. They are apt, therefore, from the Viceroy dowuwards, to view this Colony with no friendly eye, and the pect of drawing away our trade, or any part of it, to their own shores is one which can hardly

fail to appeal to them most powerfully.

pros-

The group of influential Chinese already referred to appear to be led by the man who is the guiding spirit of the Swatow to Chou-chon- fa railway, at present in course of construction. A similar scheme for a Chinese subscribed and Japanese built railway from Canton to Wham- poa has been under consideration for some time past. Hitherto all purely Chinese railway proposals, private or official, have come to nothing, and it would have been safe formerly to assume an attitude of indifference towards news of the kind. Latterly, however, the position has changed. The appearance on the scene of the Japanese engineer working in combination with the Chinese capitalist has created an entirely new set of circumstances. As you are doubtless aware, the capital to build the line from Swatow to Chon-chon-fu has been mainly subscribed by Chinese in the Straits and in Java. Japanese engineers are constructing the line, and we understand that some 200 Japanese, all told, are employed upon it in various capacities.

The experiment is being watched with the keenest interest by the Chinese, and it appears probable that in the event of success there will be a powerful demand from the more enlightened and wealthier classes all over the Empire to be allowed to build under like conditions their own railways wherever required, On the success or failure of this little outerprise would seem to depend the future course of the development of railway building in China. In the event of success, we may expect to see increased opposi- tion offered both by officials and people to any future schemes for building railways with foreign capital.

In view of this, the importance of pressing ahead with whatever preliminaries are still neces- sary to prepare the way for the loan required to build the Kowloon-Canton line, in order to have it ready for flotation at a favourable moment, has becom a increasingly apparent. Hence our constant representations on this subject. Our idea was, and is, that if the B. & C. Corporation could get in first with their line to Canton, the idea of starting an opposition port would receive considerable discouragement, and the movement on foot, as described, would suffer a severe check. On the head of this came positive information that the Americans were attempting to obtain a con- cession for an open port to serve terminus to their Hankow to Canton line. From the foregoing it might appear that they would be likely to encounter Chinese opposition, and possibly they may. At the same time it is equally open to anyone to surmise that they may find it convenient to join forces with the Chinese on some mutually advantageous business basis. Our information from one source colours this theory. From another we hear that the America Chins Development Co. are trying to get the concession clear for themselves under ■ clause in their original agreement providing for access to the sea. There would seem to be

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two groups of Americans at work, but there is some doubt about this. There is, however, no doubt at all about the truth of the statement made in our telegram of the 31st:-

“Americans endeavouring to arrange for deep-water port near Whampoa as " terminus Canton-Hankow line.”

our

If there had been any doubt about the matter message would have been couched in different terms. Often it is not possible to obtain precise information when it may never- theless be advisable to utter a warning note, and in cases of this kind we shall always take the precantion of using guarded languagə calculated to make clear to you the uncertain nature of our information. In this case there was no doubt,

and we therefore telegraphed a plain statement of fact. When we adopt this course we trust that you will give us credit for having some- thing more to go ou than mere rumour.

As regards the railway negotiations in Corporation will not fail to take into considera- progress at Peking, we trust that the B. & C. tion the danger to this Colony arising out of delay :--I am, Dear Sir,

Yours faithfully,

+

M. STEWART,

Hon. Secretary.

PS. When I described the proposal to make the terminus of the Canton-Hankow line "at

point on the left bank of the river, opposite

Whampoa," I, of course, meant “at a

Whampoa." A proposal to carry the line across from the left bank to the island of Whampoa would be absurd on the face of it.

Regarding the anchorage possibilities of the proposed new port, I wrote on the 3rd that nearer though not at Whampoa, there is fair depth of water in places." It would have been more broadly trus to say that both at and near Whampoa there is very considerable depth of water in places - often as much as forty feet, I am told on good authority. In this respect the proposal offers no difficulty. The difficulty s to get there. At present, as you are very well aware, there is a barrier below Whampoa, one of three monuments of Chinese fatuity, at present blocking tho river. The other two are in the back reach, as you also know very well, That which crossed the river just below Wham- poa is already under process of demolition. That goue, there is again the difficulty presented by the "second bar." With the proposal to dredge a chancel through this I dealt last week. In addition to these obstacles, I am well aware that the crossing east and north of Lintin Iuland will always require very skilful navigation to negotiate in a ship drawing 26 feet, but with careful piloting it can be done, and that being so, Whampoa has only to offer sufficient inducement and it will be döne.

The Viceroy was recently interviewed on these questions. He denied that the Americans were moving in the matter. But he also denied that the Hankow-Canton Agreement conferred upon them a right to bring their line to the sea. This appears to indicate that he had heard of their aim and claim, and, moreover, had exercised his mind upon it.

But whether by Chinese or Americans, or by both combined, the setting-up of a rival port would be a very serious matter for Hongkong, and it behoves us to leave no stone unturned in the endeavour to discourage the growth of the idea. I am, Dear Sir, Yours faithfully,

Joseph Welch, Esq.,

M. STEWART,

Hon. Secretary.

Hon. Soc., China Association, London. The following replies were made:➡

19th May, 1905. SIR. At meeting of the General Committee held on the 16th instant, your letter of the 3rd April was read, in which you confirm your telegram of March 21st, and urge the necessity for hastening the construction of the Kowloon- Canton Railway,

The Chairman remarked that in negotiations- with the Chinese delay is unavoidable, and pointed out that no one would be more hurt by the delay than the British and Chinese Corpora- tion themselves. The agent of the Corporation at Peking is now, with the assistance of the British Minister, pressing for the assent of the Chinese Government to the agreement already

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