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in the conduct of the college. It is proposed to associate another doctor with Dr. Mazzolani at an aunual salary of 9,000 fr. (3604). Dr. Vadon, the assistant French hospital doctor, tells me he was offered the post, but was forced to decline it owing to the opposition of the senior doctor, Dr. Féray. I hear that the post was also offered to Dr. Dumont, a French railway doctor at Pohsi, but he declined it.
French Placard at Mengtse.-A ridiculous incident which has caused the French some loss of face has recently occurred at Mengtse, The acting French consul, M. Bradier, issued a proclamation which was posted not only in the foreign settlement but in the native city of Mengise and at Milati, a station on the French railway about 12 miles from Mengtse. The proclamation warned all Europeans and Chinese that, owing to fear of rabies, stray dogs would be shot down, regardless of ownership, by the French police. The new taotai worked himself up into a high pitch of excitement, and the Italian consul protested against the French consul having presumed to give orders to Italian subjects. M. Bradier invited the latter to sign the notice jointly, but he declined. The upshot of the affair is that M. Bradier has expressed his regret to the taotai, withdrawn all his notices, and taken no action against stray dogs.
Visit of French Geologists.---The French consul has informed me that a French geological party of four will visit Yünnan in November next. They will divide into two parties, one working east and the other west of the French railway from Laokay to Yunnan-fu.
Visit of French Military Attaché-The French military attaché at Peking is expected here towards the end of the year.
M. Bacot.-M. Bacot, a French traveller (to whom reference was made in my June report), has given up the idea of doing more than proceeding to Batang and thence to Tali-fu, where he is expected at the end of the year.
French Site.-The French consular site outside the city has not yet been acquired.
Japanese Spies.-There are a large number of Japanese mistresses of French railway employés and others in Tonquin and Yunnan. It is said that some of these have been sending information to Japan.
French Railway The construction train of the French railway is now at Su-chia- t'ou (kilometre 361). The past summer, especially the months of July, August, and September, has been a trying one for railway construction, owing to the torrential rains. In the lowest (Namti) section (kilometres 1-71) slips occurred to block the traffic for 50 kilom. Tunnel 142 was flooded waist-deep and mails buried for some weeks beneath 10,000 cubic metres of débris. At kilometre 98 the upper mountain slope came down upon and obliterated the track. This spot is still impassable for about 100 yards. If the bridge at kilometre 94 had gone, as was feared at one time, I am assured on the best authority that the railway would have been delayed for another year.
But the bridge stood, and it is now hoped that Yünnan-fu will be officially opened to traffic in March 1910. It was reported that the Chinese merchants would boycott the railway on account of the high rates demanded. There was a good deal of grumbling, but nothing else, until the French railway authorities suddenly announced that, in addition to the surcharges of 10 per cent. (temporarily demanded for exchange compensation) and of 5 per cent. (for difference in touch between the French piastre and the Yunnan dollar), an additional 7 per cent. would be required as further compensation for the difference in the dollar touch. The Chinese merchants thereupon determined to boycott the line, but a commission is now sitting at Mengtse to discuss this question. The commission is composed of the French consul at Mengtse, the commissioner of customs, the taotai, two French railway representatives, and two delegates from Yunnan.
Difference in Dollar Touch.-In connection with this dispute, the Chinese authorities at Yünnan-fu invited the French consul to be present at an assay at the mint of Chinese and French dollars. The latter declined to attend. The result was announced that the touch was identical. I hear, however, on independent authority that the Chinese difference is appreciable, being from 3 to 4 per cent. in favour of the piastre. merchants of good repute have assured me that they do not object to pay 5 per cent. as the difference in value between the French and Yünnan dollars, because they know that the touch of their Yünnan dollar is variable, and cannot be depended upon. They refuse to pay, however, the extra 7 per cent., and declare they will revert to mule traffic.
Revenue. The treasurer has told me that the increase in salt li-kin of 4 cash per catty will bring in 100,000 taels (12,0007) annually. Opium li-kin represented
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officially 300,000 taels annually, although it was known that 1,000,000 taels was collected--the 700,000 taels disappearing into the pockets of the fi-kin officers. feared that salt would not bear further taxation, as its price was already 13 dollars a-picul (2d. a-lb.) at Yünnan-fu, and it was difficult to see how ordinary expenditure could be met, to say nothing of the costly new reform schemes, unless the central Government furnished supplies for Yünnan. He made a few cynical remarks about Chinese railway schemes in Yunnan, and told me the railway subscription funds in hand would probably be diverted before long to found a bank.
(b.) Commercial Summary,
Poll Tax-The police taotai has levied a poll tax of 30 cash monthly in order to pay for police expenses and refuges for foundlings. The wages of the Yunnan-fu policeman vary from 300 to 800 cash daily, and the force numbers 110. The annual upkeep is estimated at 10,000 taels (1,215/).
Police. In the intelligence report for the period ending the 31st December, 1908, it was stated that the police interfere hardly at all with the people. The state of things is changing, and the police have now commenced to run in street brawlers, formerly allowed to exhaust themselves in vituperation for the entertainment of the bystanders.
Tea-house Tax-Another tax of 2 cash per tea-pot was levied on the tea-shops under orders of the Literary Chancellor, to form a fund for rescue work among the numerous prostitutes of Yunnan-fu. After the proclamation had been posted, he discovered the difficulty of fixing the number of tea-pots replenished daily, and the tax has now been commuted to a fixed sum per tea-shop.
The scheme proposes to
hire houses for the unfortunate women to live in, where they will be educated and their morals improved. It is hoped that respectable men will be attracted to marry them. No practical measures beyond the collection of the tax have yet been taken.
Electrical Works.--Electrical works at Anning-chou (18 miles west of Yunnan-fu) are contemplated to supply the yamêns and barracks at Yünnan-fu with 6,000 lamps. Tenders were invited from M. Barbage (French) and Herr Esterrer (German). The former exceeded 300,000 taels, and the latter, whose estimate has, I hear, been accepted, was as low as 120,000 taels (14,500/). The Chinese company is composed of local gentry. The superintendent of the Chinese telegraphs in Yünnan-a Dane- tells me he cannot believe that a successful installation
can be put up for 120,000 taels.
The installation put in the Normal College by M. Barbage cost 6,000 dollars (5001.) (June intelligence report).
German Mining Engineer.-A German engineer, M. Fraulob, visited the Kuo-chiu tin mines near Mengtse and the antimony mines near Kailua. Liu Taotai, who controls the Mining Department, tells me that foreign capital will not be allowed to participate in the development of either of these groups of mines. Two Chinese experts from the tin mines in the Straits Settlements were, he said, at Yunnan-fu, and were arranging for the flotation of a Chinese Tin Mining Development Company with a capital of 600,000 taels (73,0007). It was hoped that Chinese living abroad would buy shares.
Ho-kou. Large sums bave been spent by the provincial Government in laying out Ho-k'ou as a rival commercial settlement to Laokay. It is to be feared that Ho-k'ou will never prove of much account as a trading centre, as direct transport by the French railway into Yünnan will deprive it of its importance even as a transit station, and it has no trade of its own. Kerosene oil and matches may, however, be shipped by junk to Ho-k'ou from Manhao and thence carried by mules, as it is claimed that this method of transport will compare favourably with the present railway
rates.
Cheap Food.-Food continues to be very cheap, and the promise of a magnificent rice harvest is forcing the price still lower. Best quality rice is selling at 210 taels per 120 cattles, or, say, 2 lb. for fd., and inferior quality is as low as 6 lb. for 1d. The market prices of the more common vegetables have dropped 50 per cent. This is due to the larger extent of land under vegetable cultivation since the poppy has been banned. Pork is about 10 per cent. cheaper than last year. It is generally admitted that foodstuffs have never been so cheap for the last sixteen years, but it is also said that the people are getting poorer now that the opium crop, valued at 38,000,000 taels (4,600,0007.), is lost to the province. Another twelve months may show more positive
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