Communications

Railways.

Roads.

Financial.

250,000 acres remain uncultivated; but beyond that, for 150 to 350 kilom in the direction of Kuanghsi and Yünnan, there are said to be only 500,000 inhabitants. Jungle and forests extend over the whole country and the climate is very unhealthily. It rapidly improves after the land is brought under cultivation.

The area suitable for growing rice still available in Cochin China is estimated at 3,500,000 acres.

In my last Report I stated the earnings of the Tonquin railways amounted to 415,000 dollars in 1902. The Haiphong-Hanoi line (101 kilom.) accounted for 107,000 dollars of this amount during the six months from April to September. The receipts were 4,000 dollars and 9,600 dollars during the first two months, rising to 29,600 dollars when the line was fully open.

Postal service Saigon to Haiphong 3 337 :::: :::: Fr 580,000 238,900 268,000 158,600 Total 1,240,600

Subsidy to "Correspondances Fluviales" in Tonquin, 400,000 dollars.

Subsidy to Messageries Fluviales in Cochin China, amount not ascertained.

In my last Report I recorded the contemplated increase of the military forces, both Naval and Military. If these are maintained, a return of 2 per cent. or 3 per cent. on the capital expenditure is looked for.

Surveys - preliminary, at any rate - have been made of the projected lines. A sum of 200,000 dollars for this purpose figured in the Budget for 1901, besides other sums before and since.

A survey is being made for a proposed (? military) line from Traihutt (near Yenbai) to Vanbu.

Increase of forces.

The formation of a new brigade of natives (which is supposed to consist of 8,000 men) has now been completed, but I state this under reserve pending further inquiries.

Confidential

The company of "ouvriers d'artillerie" (see last Report) consists of 128 Frenchmen and 106 natives.

The railway from Battambong to Muong Krat is said to be likely to divert 50,000 tons of cargo from Saigon.

The military roads made in Tonquin since 1896 are, I believe, about 1,000 kilom. in length.

There are about 4,000 kilom. of metalled roads in Cochin China and 3,500 kilom. of navigable waterways. In Cambodia the waterways are navigable for 600 kilom.

In Annam, the length of navigable waterways is 2,500 (see last Report).

I gather from the trade Returns that there was a considerable increase in the importation of arms last year. I believe the present stock of ammunition in the Colony is 1,000 rounds of cartridges per man and 600 shells per gun.

Page 19

A map of the Mekong is attached showing the state of navigation in 1902 and the expected results of the completion, in 1905, of the works now in hand.

The revenue estimates for the current year are as follows:

Local budgets General Budget Total increase compared with 1902 Dollars. Dollars. Dollars. 14,664,700, an increase of 1,101,000 28,980,600, 1,838,000 2,989,000

I understand it is proposed to establish arsenals in Tonquin and Cochin China.

A map of the Lackay district is attached,* showing the normal distribution of troops.

Political,

It is reported that information was recently obtained by the authorities, showing the existence of a somewhat widespread plot in the Tonquin Delta against the Government.

A leading man in the plot is said to have been arrested and sent to Poulo Condore, but whether or not in connection with this alleged plot, I do not know.

The Japanese activity

The action of the Japanese in Siam is still attracting attention.

A Japanese Consul is said to have formed an Association of Chinese numbering 800 or 900, many of whom were formerly French protégés.

Against this increase, however, must be set the considerable loss caused by diminished value of the dollar, which is reckoned at 2 fr. 20 c. instead of 2 fr. 40 c. in 1902.

The total gold payments of the Colony amount to some 35,000,000 fr., so the increased silver payments on this sum will absorb about 1,250,000 dollars.

It should be noted, however, that the enhanced receipts have been obtained without recourse to taxation.

Some apprehension seems to be felt lest the fall in exchange may cause Colony embarrassment in meeting the large payments due on its gold loans, which amount to 350,000,000 fr., of which 155,000,000 fr. have already been spent.

I think these fears will prove to be groundless since, as I have shown elsewhere, silver prices of goods tend to rise almost immediately in sympathy with the higher silver price of gold.

The number of officials in Cochin China is, according to my information, about 300 French and 3,000 natives, and I estimate the total number (French) in Indo-China to be about 4,000, of whom 1,200 are in the Customs and Excise.

The proportion of French officials to civilians engaged in business is probably at the utmost 2 to 1 (not of course, really trade).

The following is a statement of the cost and numerical strength of the judicial establishments in Cochin China :-

Cost. Number of Officials, Co-t per Head of Population, Cents. Dollars. 288,000 25 234

According to the Chief Justice these figures compare very favourably indeed with those for the Straits Settlements.

* Not reproduced.

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