The question of monopolizing the trade of Manchuria has hardly yet arisen, as Russian goods are not imported to any appreciable extent and exports to Russia are still less numerous. But if the attempt to take the trade to Dalny were to succeed, the Russians would have matters entirely in their own hands and differential treatment, of all kinds might be expected. Fortunately, it is no easy task to turn the channel. Mr. Hosie, in his Reports above quoted, describes the nature of the trade of Manchuria, and shows the advantages, both natural and artificial, which Dalny enjoys. Despite these advantages, the trade of Dalny is still practically nothing. Merchants of Newchwang, who are the masters of the situation, show no inclination to place themselves under Russian control. They distrust the treatment which they would ultimately receive in a Russian port.

Chinese

The railway being still in an embryo stage, the rates have been provisional up to the present time. The charges for freight between any station and Newchwang and Dalny have been as follows:

Newchwang, per car Dalny, per car First-quality merchandise (piece goods, silk, &c.) 0.625 rouble per verst (equivalent to 1s. 11'6d. per mile) 0.425 1s. 4d. Second-quality merchandise (grain, beans, bean-cake, &c.) 0.50 rouble per verst (equivalent to 1s. 6.9d. per mile) 0.30 0s. 11'3d.

[1 car carries 750 pouds (124½ tons circ.).]

A further reduction has lately been made for second-quality goods to Dalny, varying, according to the starting station, from 0.15 rouble to 0.30 rouble per car per verst.

I am informed that these rates are largely modified by special arrangements, and that it is necessary to fee the railway employés to secure quick transit. The Russian railway people have always maintained that their line would destroy the trade of Newchwang by withdrawing all traffic to Dalny, and further developments of their policy are probable this year when the line is declared officially completed.

I have, &c.

(Signed) H. E. FULFORD.

Last previous Paper. 70 20905 Ans 22 Sep. Jos/34229 [B & L (76)-631-25006-11-

ext subsequent Paper. 34229 N23451 (Subject.) Foreign Post Offices 203 DOMESTIC.

Red' 25 JUN 23 7 in China proposes to reply to Chinese note that every facility is already affected for exam at British post offices in China: sendo copy letter from Chinese Minister: Mr. Lucas (Minutes.) I send copy D come to the foremor Houghing and ask the ascertain Potmaates & ipso, to obtain for the at Shanghai whether why be made this alleged Statment. So reply. REJ is to ARC25 25 at once

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