4

estimates the probable date of the opening of the line to Kalgan as 1909, but it will not be totally completed until 1910; the line will, however, be opened in a semi-finished state to bring in some money. The monthly receipts of the section already opened amount to 10,000 dollars, which is sufficient to pay working expenses.

The permanent-way of the section Peking-Nankow, which was opened to traffic a year ago, does not seem to have suffered at all, in spite of the recent heavy seasonal rains,

Jehol District (North Chihli).—Though the crops have been unprecedentedly good this year, never has the district been in such a lawless condition, and that in spite of the presence of a great number of troops at the chief town. The officials own to a great deal of brigandage, but I learn on a recent visit that the brigands are not mere roaming homeless persons, but that they have fixed habitations from which they issue to travel sometimes as much as 30 miles to raid someone's house before returning home with their booty. These brigands, who are frequently ex-soldiers, have never yet attacked foreigners. A missionary gives me as his opinion that this district (which is outside the Great Wall) is quite twenty years behind the rest of the province inside the wall as regards civilization.

The population, half Mongol, half Chinese, is extremely friendly to foreigners; officials are also friendly, but rather reserved.

The Tartar General has memoralized the Throne to secure the division of the province, Jehol to become the capital of a separate province outside the Great Wall, but the Throne has not yet replied.

The Tartar General informed me, at an interview which he accorded me, that he had evolved a great scheme for connecting Jehol and Peking by rail vid Dolonnoor and Kalgan. He maintained that such a line would be easy to construct, and would avoid the mountains, but the expense would be very great, and there are no big towns to feed such a line. Jehol alone would benefit, and would gain an exit for the minerals with which the mountains on all sides are full. The coal is not worked at present at all, but there are immensely rich seams which will be tapped directly some means of transport for the mineral is found. Gold is also there, just enough to lead speculators on from place to place like a will-o'-the-wisp. Silver is abundant, but at a great depth.

There does not seem any likelihood of such a railway as that conceived by the Tartar General being built for very many years at any rate.

A number of German officers have recently visited Jehol, but though they made every effort to see the Tartar General, he refused to give them an interview.

A number of Japanese officers also recently visited the town, and went everywhere armed with note-books. Their behaviour caused so much suspicion that they were dogged by the order of the Chinese authorities wherever they went.

Swatow.

State of District. There was a great scarcity of rice during the quarter ended the 31st July, which led to a certain amount of disorder in some parts, but not to any serious extent. One result of the scarcity seems to have been the stimulation of the emigration trade.

Schools.--The objection to the new-fashioned schools established all over the country seems to be not so much the extra expense involved, as rather the alleged objectionable results of the new teaching on the pupils themselves. It is complained that they become unfilial and independent, and no longer have the slightest respect for their parents and seniors, and this it is that causes such grave dissatisfaction with the new order of learning.

W. J. GARNETT.

(Signed)

This Document is the Property of His Britannic Majesty's Government.) (7

AFFAIRS OF CHINA.

CONFIDENTIAL.

[38208]

(Confidential.)

Sir,

No. 1.

Foreign Office to Admiralty,

522 [November 284 DEC 07

SECTION 3.

Foreign Office, November 20, 1907. I AM directed by Secretary Sir E. Grey to acknowledge the receipt of your Confidential letter of the 19th instant, respecting the measures which the Commander- in-chief on the China Station proposes to take for the suppression of piracy in the waters round Canton.

Sir E. Grey concurs in the terms of the telegram which the Lords Commissioners of the Admiralty propose to send to Vice-Admiral Sir A. Moore. I am, &c. (Signed) F. A. CAMPBELL.

[2732 u-3]

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