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northern frontier, forwarded to Sir E. Satow in his despatch No. 8 of the 20th May, 1905 (pp. 9, 10, and 11 of the Burmah Government printed Report).

On the 1st May, 1906, Sir E. Satow addressed a note to Prince Ch'ing stating that, failing the acceptance by the Chinese Government of the draft Article laying down the watershed as the frontier, the Burmah Government would be instructed to occupy and administer the country.

The Wai-wu Pu's answer (undated in the translation in the Consulate) merely refers to the IVth Article of the Burmah Convention, stating that a settlement should be negotiated in an impartial spirit.

The author of the Petition referred to above is a not very prominent Tengyueh man, Wu Chia Yuan, whose name is not inserted in it because he has another case against the Tu Ssu Tuan Tseng, his Secretary Yang-wei-fan, and three Ming-kuang Chinese, Hsu Lin Hsiang, Chen Fu-yu, and Ku Fu-pa. The actual petitioners, ten in number, are all small merchants. The Petition states that the old custom was that for every tree belonging to the Tu Ssu cut by the traders three large and three small boards were paid to him. (This statement does not agree with the Report, and is false.) A tree produced fifty or sixty sets of boards. No boards were paid to the Tu Ssu when bought ready-cut from the natives. "Huang lien" paid nothing to the Tu Ssu,

The new rules are that the sellers of trees pay a tax to the Tu Ssu, and one set of boards in fifteen is demanded; 10 taels for every load of "huang lien"; and 30 taels for newly-instituted road passes. The mountain passes have been shut to allow the accused in Wu Chia Yuan's case to enjoy a monopoly.

I have the honour to submit that the reason for the Tu Ssu's action is to be found in the proposal (p. 19 of the printed Report and subsequent negotiations) to pay a sum extinguishing his rights in the Nmai-Hka Valley, and that he hopes to obtain a larger sum than that offered by declaring that his receipts have lately increased.

On the other hand, the nearest Burmah posts are at Loringu and Sadon, and although we claim the territory, we have no outward and visible sign of authority within some seven days' journey or more.

It would not have been any use to raise the question of the actual frontier with the Taotai, but I thought it advisable to take up the question of the increased rates of taxation. I have therefore written him a letter, translation of which I have the honour to inclose, stating that some merchants had petitioned me with regard to the tyrannical behaviour of the Tu Ssu in increasing their taxes, and that I should be obliged if he would instruct him to revert to the old tariff.

In his answer, translation of which I have also the honour to inclose, the Taotai states that he considered the matter an internal one, but that he will instruct the Pao Shan Hsien, in whose jurisdiction Tengkeng lies, to come to a just decision.

I venture to express the opinion that the uncertainty of the Pien-ma villagers as to which country they belong will not, if long continued, facilitate the occupancy of the territory by the Burmah Government, for which they are anxious at present.

I have, &o. (Signed)

H. A. OTTEWILL.

(Translation.)

Sir,

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Inclosure 5 in No. 1.

Kuan Taotai to Acting Consul Ottewill.

Kuang Hsü, 32nd year, 11th moon, 27th day (January 11, 1907).

WITH reference to your letter on the subject of increases in taxation by the Tengkeng Tu Ssu, I have the honour to observe that Li Chia Kuo and the other merchants have handed me an accusation against the Tu Ssu, and requested me to communicate with you. I observed that the matter was an internal one, and there- fore did not do so, but I endorsed a Memorandum to the Yung Chang Prefect to instruct the Pao Shan Hsien to investigate the case.

On receipt of your note I have again instructed the Prefect to transmit orders to the Magistrate to summon without delay the accusers, the accused, and the witnesses, and to investigate the case; not to permit the Tu Ssu to enforce tyrannical measures, nor to allow the merchants to escape the payment of just dues, and to come to a just decision. Etc.

(Card of Kuan Taotai.)

Inclosure 4 in No. 1.

Acting Consul Ottewill to Kuan Taotai.

(Translation.) Sir,

January 7, 1907. I BEG to inform you that I have received a Petition from Li Chia Kuo and others stating that the Tengkeng Tu Ssu is collecting unreasonable taxes, and is behaving tyrannically in many ways. They have also petitioned you. The taxes collected by the Tu Sou are already on record in the Report made by the late Mr. Litton of the (joint) survey. There is no mention of road taxes, and I have the honour to request you to instruct the Tu Ssu to revert to the old scale of taxes. Etc.

(Card of Acting Consul Ottewill.)

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