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junk behind, and the merchants very often tranship all at the large towns en route in order, if possible, to secure greater control over boats and their contents.

A Company of the kind indicated would presumably only engage reliable employés, and, in addition to its own export cargo, would secure not a little of purely Chinese freight. Being an organized Association they would also be able to come to terms with the villagers at the rapids, who gain a living by hauling junks over dangerous spots and hiring out boats for purposes of transhipment when the water is low.

A railway of course from Pakhoi to Nanning would thoroughly revolutionize the conditions of the carrying trade, and were the Chinese instead of assisting to build a railway-from nowhere leading nowhere--to devote their spare capital to the construction of such a line, they ought to receive good interest on the outlay, which, as engineering difficulties are not likely to be great, would not be excessive.

The construction of such a line might, on the other hand, have the effect of increasing French political activity in this part of the world, as, should the attempt to tap South- East China viâ Lungchou prove a failure, it is not at all improbable that France would find a pretext for laying hands thereon, and reaching her goal viâ Pakhoi.

The Customs statistics for the quarter have not yet been made up, but, I understand, the average duty revenue has been about 11,000 taels per month, of which 2,000 tuels have been transit dues on goods taken up country under some 700 inward transit passes. Considering that opium li-kin, coast trade duty, and tonnage dues do not appear in the local Returns, those figures compare very favourably with those of many older ports, and augur well for the future prosperity of Wuchow's trade.

As stated, however, full statistics must be available before one can ascertain if they are indicative of a real expansion of business.

Merchants have been grumbling loudly against the excessively high rates of exchange charged by the Customs bank as compared with the market value of silver, and, as it seems to me, that their complaints are not without foundation, the matter evidently requires looking into, Although Article XXXIII of the Tien-tsin Treaty nominally indicates a fixed standard for the payment of duty, in practice there is no uniform rate, and, in view of the impossibility of fathoming the mysteries of exchange in China, a precise definition of what shall be considered the legal equivalent of a tael of Haikuan silver, would confer a great boon on the mercantile community at large, and obviate present disputes.

Serious charges, too, of accepting bribes have been preferred against the Customs staff; but they have not been supported by sufficient evidence, and I am inclined to think that they originate with certain individuals, who, having been fined for making talse declarations, consider themselves hardly treated, and have adopted this method of taking

revenge.

I stated in my last report that I had bad occasion to write to the Prefect of Hsün chou with reference to the attitude of the people in that town towards some missionaries resident there. Since then I have had again to address him on the subject of an abusive and bscene placard, which he permitted to remain posted after its publication had been brought to his notice, and he has now issued a satisfactory Proclamation, and promised to exercise more care in the future.

In accordance with instructions received from Kueilin, the Tsang Wa Hsien, on the 24th August, issued a Proclamation announcing the settlement, on the 14th January last, of all outstanding claims of the French Government in respect of the missionary cases throughout this province; and, in terms of one of the clauses of the Agreement arrived at, enjoining on the people the necessity of living in peace with their Christian fellow- countrymen. It also stated that any missionary interference in purely native cases, not relating to religious matters, would not be allowed.

About a month ago I received a despatch from the Governor, asking me to impress on all holders of passports the desirability of exhibiting them at every town at which they arrived, so that the authorities could adequately protect them, and, if necessary, warn them against visiting disturbed districts.

Since his first formal call I have seen nothing of the new Prefect, but I hear he has been very ill all summer, and is thinking of resigning his post. The present Acting Magistrate is, in a month's time, to be relieved by the Ma-p'ing Hsien, who has been trans- ferred to Wuchow.

Early in July the local officials and gentry, at their own expense, started a school for teaching English and mathematies [Farithmetic], and there are now over 100 pupils enrolled. These bad to pass a preliminary examination, and contribute 5 dollars towards the cost of purchasing books, &c. The instruction imparted is of a very rudi-

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mentary nature, and seeing the professors are two Chinese, on a salary of 17 dollars a-month each, it is not likely ever to attain a high standard.

As the form of the two or three despatches the Governor has addressed to me since my arrival has not been in accordance with the rules of Chinese etiquette in such matters, I requested the Taotai to draw the attention of his Excellency's writers to their omissions; and shortly afterwards received a reply, stating that the offending individuals had, by his Excellency's orders, all been dismissed.

Although three months have elapsed since I last reported on sites, I find it as difficult as ever to come to a conclusion on this point, and would almost prefer to leave the responsibility of a decision to my successor-the substantive holder of the post. The bastily-formed views regarding the mistake that has been made in locating the settlement on this side of the Fu River, to which I then gave expression, have since been confirmed by all residents and visitors to the port; and Dr. MacDonald, the Customs' doctor, who recently arrived here, is so convinced of the superiority of the west bank of the Fu River, from a sanitary point of view, that he has already bought land there, and is in treaty for more. The Commissioner of Customs is evidently swayed by a similar feeling of indeci- sion. He has entirely abandoned his original idea of having the custom-house at the east end of Jardine, Matheson, and Co.'s property, and is endeavouring to get that firm to give him in exchange a piece of high ground nearer the town. The position will, I think, be made clearer by the accompanying rough sketch. The custom-house was to have been placed in the east corner of (1), now Mr. Acheson is trying to procure the west corner of (II), his office at present being on a bulk moored at the lowest landing- jetty.

Butterfield aud Swire's land (III), alongside of which the steamers anchor, is the most central and suitable piece of ground so far purchased, as it will require but little filling-in, and is near to the business quarter. Should the custom-house eventually be built on (11), Jardine, Matheson, and Co.'s property will have the advantage of being in close proximity thereto; but, on the other hand, their constituents will have a long way to go if they want to discuss business, and, as is well known, the native is averse to walking further than he can possibly help. (IV) and (V) give the positions of the temples occupied by myself and Mr. Acheson; and, unless land be purchased from Jardine, Matheson, and Co., and the very great expense incurred, (VI) is the only site I can find on this side of the river. It is a delapidated temple, the Chin-lien-an, standing on a slight elevation, not reached by ordinary floods, and next to the pauper cemetery. It is, roughly, about 200 feet wide by 400 feet deep; and I am told, once acquired, it would be an easy matter to have the paupers' graves removed, and part of the space occupied by them included in the Consular grounds. The price demanded is 3,600 taeis. Although situated on what for this side of the river is, comparatively speaking, high ground, it is during the floods surrounded by water, and at all times by graves innumerable, more or less saturated with moisture.

Wuchow is classed by the Chinese as lying in the malarial regions, and, after my summer's experience here, I quite recognize that they did not adopt this classification without reason. I have had several attacks of fever, all my servants have suffered in turn, and Mr. Acheson has had similar experiences.

In fact, the whole of the level land east of the Fu River, including the town, is low- lying and unhealthy, being invariably inundated during the summer months. Every inch of high ground is covered with graves, and level ground not built upon has been converted into stagnant fish-ponds, studded-more Chinese--with offensive latrines. These ponds, as the winter advances, gradually dry up, leaving wide stretches of filthy mud, and, under those circumstances, it is hardly surprising that the place should be as morbiferous as it is.

The sole reason why it would be desirable to have the Consulate on this side would be not to inconvenience those baving dealings with it. But I venture to think that by the time a Consulate has been built, the present necessity of almost daily communication with the Consul will have ceased. Steamers will then be running under river certificate and everything in working order, and, in the event of any one having business to transact at the Consulate, it would be no great hardship to make him go to the other side of the Fu River, which is only one-third of a mile away from the steamer anchorage, and not as far es the stretch across the river at Swatow.

On the west bank of the Fu River several sites are easily obtainable. (IX) is the piece of land bought by Dr. MacDonald for a native dispensary, and (X) is a piece on the hill-top, for which he is at present nogotiating on the basis of 450 s for

six mou.

(VII) and (VIII) are two pieces of garden land, for which 2,800 tacls and 2,500 dollars

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