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Commissioner of Customs.-Mr. King, the new Commissioner, is unreliable to a degree, pro-Chinese, and retrogressive. He has already succeeded in making himself generally unpopular, both officially and otherwise. Any general advancement of commercial interests or any furtherance of British objects, so long as he remains at Canton, will not be facilitated.

Canton--Hankow Railway.-On the reappointment of his Excellency Tsen as Viceroy, the two chief Controllers (one of whom was Wa Ting-fang) resigned. The line is now open for some 13 miles. It has been carefully constructed, and is said to be a marked contrast to the Japanese-built line from Swatow to Chaochow-fu. The first section has a considerable number of bridges, and one cutting was necessitated with a maximum height of about 50 feet and a total length of 1,000 yards. The engagement of two British (Canadian) engineers and one Japanese has already been reported, as of a Norwegian. The more recent engagement of a Swiss makes a total number of eight section engineers, of whom two are Chinese, and His Majesty's Consulate-General is informed that telegraphic application has been made for nine additional Canadians. The salaries of the Canadians now employed are respectively 6101. per annum, rising in three years to 750, and 4251, increasing in six months to 5001. They are both young men, one being 26 and the other 24 years of age.

3. Changsha.

Canton-Hankow Railway.-On the 28th May the Provincial Treasurer and the Hunan Railway Company urged the people of the province in a joint appeal to take up the Company's shares, so that the Hunan section should be proceeded with without further delay. The cost of the line (400 miles) was estimated to be over 30,000,000 dollars. Preference shares to the amount of 6,000,000 dollars (including the money already raised by the Chamber of Commerce) would be offered to the public up to the 4th December. Besides the general dividend 'one-fifth of the receipts would be appropriated to these shares. The fact that foreigners were in no way interested in the enterprise was emphasized, and it was added that if a foreign engineer was employed to survey the line a Chinese engineer would be associated with him. The public were also assured of the certain financial success of the undertaking and the appreciation of the shares.

The appeal has produced no effect. The official Director and his colleagues are hoping to raise a large part of the capital in Shanghae and the Straits Settlements.

Protection of Foreigners. The officials display considerable solicitude for the safety of the foreign residents. Every Mission (as also the Customs residences) has a guard of three or four soldiers posted outside its gates, and every member of the Mission going out-of-doors is followed about by one of the guard. Strangers arriving at Changsha are escorted in the same manner. A certain amount of espionage seems to be included in this attention.

Liuyang.Throughout June there were persistent rumours of fresh trouble in the Liuyang district, but His Majesty's Consul does not think that any serious outbreak is threatened. Two hundred soldiers were dispatched from Changsha on the 17th June with two officials specially charged with the arrest of the leading conspirators. The officials reported that the rebels were dismayed by the military preparations and had all dispersed, while official underlings returned from Linyang state that no rebels had ever been visible.

4. Chengtu.

Thibetan Affairs.--An anonymous letter was published in April in a native newspaper of which the following are the more important points: The Imperial Residency is situated in Anterior Thibet and is divided into four Departments (1) the Secretariat, (2) the Thibetan Department, (3) the Chinese Department, (4) the Nepalese Department. There are five Grain Commissariats, two in Anterior Thibet, one in Ulterior Thibet, one on the Szechuan frontier, and one on the Indian frontier near Darjiling (this last named is the most lucrative).

Native Government.-In Thibet the direct Rulers of the people are all Native Chiefs, descendants of officials alone being eligible for office; thus the common people can never become officials, save only lamas and Chinese, who must first shave their heads and enter the priesthood." The writer then remarks on the practice of choosing Rulers from hereditary families, and continues: "With regard to Chinese suzerainty

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over Thibet, the Thibetans have clearly manifested their desire to be tributary to China, and their anti-foreign feeling is more pronounced than in any other country. If schools were established and education spread throughout the land and the country divided into provinces some of the natives might, after careful selection, be employed in the lesser official posts. This would tend to sweep away the distinction between the aristocracy and the plebeians, promote progress, and tend to raise the prestige of the Government." Military Administration.-The majority of the Chinese troops formerly stationed in Thibet have either married native women or have taken to opium and have become enervated and incapable of bearing arms. Unfortunately the descendants of soldiers alone can enter the ranks. The native Thibetan troops formerly possessed no foreign rifles, but through the energy displayed by the Dalai Lama in initiating reforms a factory was established, Ghurka gunners engaged, and 2,000 guns manufactured.

Lamas.-There are, the writer observes, five large lamaseries, in each of which there are over 7,000 priests and acolytes. In every family two out of three brothers become lamas.

Customs Station.Yatung is distant So English miles from Darjiling and 14 from the Grain Commissariat already referred to. This station was opened in 1894 as au observation post on trade between India and Thibet, but so far uo duty has been levied. Thibetan Currency." Thibetan silver is very inferior in quality." The writer fears that unless the reform of the currency is taken in hand the British a few years after the opening of Gyantse will do it for themselves.

Nepal. The Ghurkas are an extremely warlike race and very expert in the use of their knives. Their King, who has recently been on a tour of inspection in British territory, is paying great attention to increasing the strength of his country, and possesses an army of over 100,000 able-bodied troops. The Ghurkas still continue to send tribute to China, but the British are at present doing their utmost to establish close and intimate relations with them, doubtless for some ulterior motive. Nepal is in the position of a buffer to Thibet, and therefore merits particular attention.

The year before last the Nepalese King addressed a request to his Excellency Yu, Imperial Resident in Thibet, begging him to select and send to Nepal three or four good professors versed in Chinese learning to instruct his subjects and spread enlightenment among the people of the frontier. It is reported that his Excellency Yn paid no attention to this request. The matter is one well known among those having intercourse with Thibet, and appears to bear the stamp of truth. That Nepal, situated in the very heart of the mountains, should take this step bodes well for Thibet. The latter country, however, is in the toils of the British, and, unless Nepal solves the difficulty, the Ghurkas will be involved in the loss of Thibet.

Organization of New Territory.--The following proposals for the administration of the Szechuan-Thibetan frontier appeared in the "Universal Gazette" of the 7th May:--- "A Japanese paper, under date of the 29th April, 1907, announces that the late Viceroy of Szechuan Hsi Liang and the Imperial Commissioner in charge of the defence of the Szechuan-Yunnan-Thibetan border have recently submitted a joint telegraphic Memorial suggesting six measures of reform in the administration of Thibet, together with proposals for raising the necessary funds. These six measures are as follows:--

"1. The raising of a brigade of modern drilled troops to be stationed along the Szechuan-Thibetan frontier.

"2. The adoption of comprehensive measures for the working of the numerous mines found in the territory under the rule of the native chieftains.

"3. The construction of roads for the improvement of communication and the promotion of trade.

"4. The establishment of schools at Batang.

5. The building of a city wall, fortifications, and official residence at Batang; the abolition of the native Rulers, and the appointment of local officials.

"6. The opening to cultivation of some 3,000 Chinese li of land in the neigh- bourhood of Batang.

"It is estimated that a preliminary sum of 2,000,000 taels will be needed. There will further be an annual expenditure of 3,000,000 taels, to cover which it is proposed to ask for a yearly contribution from other provinces, as is done in the case of Kansu and the new territory. The Government having already decided to allot a sum of 1,000,000 taels from the Board of Revenue, the balance could be supplied from the Chungking, Chinkiang, and Hankow Customs.

To this Memorial the Imperial sanction has already been received."

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