Progress of Red River

route.

French activity.

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than the route vid Mengtsz furnishes. By going straight to Kaihua (which takes five days) instead of through Mengtsz, merchants will save several days, cost of transport will be diminished, and importation and exportation will be facilitated. The road from Laokai vid Manhao to Mengtsz is very difficult, a succession of craggy ascents and stony ravines, which make the prospect of a railway remote. Between Manhao and Mengtsz (2 days' journey) the road rises from 510 to 6,150 feet. A new route is now being surveyed from Laokai to Mengtsz direct, which, it is anticipated, will effect a great saving of time. Consul Jamieson thinks that a light railway between Laokai and Mengtsz is practicable, and, considering the volume of trade, might pay.

Yet the commerce is by no means insignificant, despite the numerous hindrances to trade. This fact is largely explained by the activity of the French Government in securing concessions from the Chinese. They have obtained the opening of four towns within the Chinese frontier-Mengtsz, Lungehow, Ssumao, and Hokou. All commodities, native and foreign, entering China over the Tonkin frontier enjoy by treaty the right to claim exemption from inland taxes by payment of transit dues at the Customs; all imports not on the ad valorem list pay only faths and exports of the same category only ths of the regular tariff rates in force at coast and river ports (reductions not applicable to transit dues). All products of Chinese origin coming across the Tonkin frontier from Yunnan and Kwangsi have free importation and transit, except opiuma (unless it be sealed by the French Customs). Mr. Bourne says that the import trade in foreign goods has almost entirely shifted from the West River route vid Pose to the Red River route, and he ascribes this to the vigorous enforcement of transit passes to cover goods to Yunnan-Fu. The result is that English goods in the capital are cheaper than formerly, though the French themselves impose heavy customs duties (substantially those of the metropolitan tariff) on British goods passing through Tonkin, together with miscellaneous charges somewhat arbitrarily levied. These duties amount to 10 or 11 per cent. on piece goods and 3 per cent. on yarn. A piece of grey shirting pays nearly twice as much to the French as to the Chinese Government. M. Leroy Beaulieu, the eminent authority on colonial questions, asserts that the French Customs system, "which is for ever examining merchandise, opening packages and not closing them properly, and spoiling the goods under the pretence of guarding against smuggling," is enough to make all traders shun the Tonkin route. It should be noted that the Red River trade is almost wholly a transit trade from Hong Kong, with some similar trade from Saigon and Singapore. Indian yarn constituted more than two-thirds of the imports in 1896. The attempt to stimulate Chinese exports by the Red River has not met with much success, and the imports into China remain double the exports. M. Chailley Bert says that Tonkin should repudiate the régime of Customs duties which bars this route to European transactions in Western China.

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During 1897 the facilities for trade were greatly improved in the neigh- bourhood of Laokai, and Chinese merchants have been encouraged to attend the fairs recently re-opened there. Bonded warehouses have been established at Hanoi, Laokai, and Langson (in addition to one already opened at Haiphong) for foreign goods in transit through Tonkin. The Government is now undertaking works for the improvement of the navigation of the Red River, and the organisation of a towage service is spoken of. According to the Saigon Consular Report for 1897 tenders have been invited for the construction of a metre line from Hanoi to the Chinese frontier, presumably to Laokai, a railway which could, it is said, be constructed without difficulty, and would do much to promote trade. But Lieutenant Roux says that it would not pay to spend the necessary 4,000,0007, on a railway if it saved only three or four days in the transport of merchandise. Rocher has pointed out that the Tonkin route, though shorter and cheaper than others, has to compete with well-established and long-frequented routes, that bring merchandise suitable to the people at rates relatively low, considering cost of transport, &c., and especially with the Yangtze, which must, he says, always be the greatest commercial artery of the Empire. It appears elear that China will increase her exports of tin through Tonkin. Tin formed four-

33

fifths in value of the exports in 1896. In return, the French will probably supply south and south-east Yunnan and the region up to Yunnan- Fu with foreign goods. The heavy protective duties, which have made the French share of Tonkin trade larger than it was, have adversely affected British interests in Hong Kong. But the progress of Burma trade with West Yunnan may do something to redress the balance. The French talk of cultivating cotton in Tonkin, and exporting it to Yunnan. They claim that the cotton of Laos is superior to that of Burma. Prince Henry says that Tonkin could do a great trade in exporting cotton yarn and cloth, apparel, silk, salt, and tobacco, and in importing metals, opium, and musk.

The more enthusiastic advocates of a forward French policy in Yunnan have dilated on the numerous regions that may be tapped from Tonkin- south Yunnan to Ssumao, and the tea regions S. of that town; west Yunnan to Tali and even Tibet; Kueichou and Kwangsi; Yunnan-Fu and N. to Ssuchuan and the Yangtze. It will be sufficient to touch on two routes, those through south Yunnan to Ssumao and through central Yunnan to the capital, for present indications do not point to the development of any great trade with Kueichou and Kwangsi, or with Ssuchuan.

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Mengtss to Ssumao.-The trade route is a circuitous path which strikes the Mengtsz to "great route," already described (page 29), at Yuanchiang. The country to the Ssumao. immediate N. of the Tonkin-Yunuan frontier is a wide and almost unknown region of mountains, inhabited by Shans and Lolos living in practical independence under native chiefs. Prince Henry and Lieutenant Roux explored this region, keeping to the right bank of the Red River. They traversed a very intricate country by means of mule tracks, and found no wide plain between Mengtsz and Ssumao. There was little cultivation, and the villages were few and miserable. Lieutenant Roux speaks of their passing five or six villages a day, and considers this not a small number for south Yunnan, which he describes as in the main a poor country-thus agreeing with Mr. Bourne and disagreeing with M. Rocher. They passed the town of Isa, a place fairly well peopled and having a brisk trade in salt, sugar, tobacco, &c. Another place of some importance was Muongle, situated on what the Chinese call the "little route" between Upper Laos and the Red River. This route, along which tea and cotton are carried, is only practicable in the dry season-the damp at other times causing fevers. Muongle is about 10 miles north from the Tonkin frontier, which is here con- stituted by the chain that divides the Namu from the Black River. The town has a native industry of black cotton stuff, and a trade in raw cotton and opium. There is said to be an easy route from Muongle north-west to the Mekong basin. After traversing savage and mountainous country the travellers reached Ssumao. Prince Henry says that the Ssumao district is richer than that of the Upper Red River, but the latter has copper and tin, and more varied cultivation.

Mengtsz to Yunnan-Fu.-This road (nine stages) is one of the best roads Mengisz to in the province, and easier and more expeditious than that from Pose. Yunnan-Fu, After crossing a small pass and a high mountain chain with a good road and gradual ascent, and then another mountain pass with a well-paved road, the route to the capital is good and fairly level. This route passes several towns of some little importance, including Tunghai, Kiangchuan, and Tsinning. The Lyons Mission found many ruined villages as far as Kuangi, after which the country changes, and there are rice, wheat, and other crops, irrigation canals, and populous plains. Linan or Lingan-Fu is a large place in a fertile plain, much ravaged by plague. It is here that the "great route from Kenghung and Ssumao joins the Mengtsz-Yunnan-Fu route. Very diverse accounts of Linan are given by Rocher and Colquhoun. Mr. Bourne found that Tunghai, three days N.-W. of Linan in a fertile opium-yielding country, has a larger trade than Linau in foreign goods from Pakboi. Hsinhsing-chow is in a valley rich with indigo and rice.

On 11th April 1898 the Chinese granted the French the right to construct Railway a line to Yunnan-Fu. Rocher says that a railway from Tonkin to Yunnan- Projects. Fu would be superior in advantages to one from Pose (ou the West River) to Yunnan-Fu. It should not go vid Mengtsz, but by the Red River, and

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