[This Document is the Property of His Britannic Majesty's Government.]

4

of the river patrol service in as short a time as three years. Generally speaking, there is now no fear of pirates along the West River. From Pose to Wuchow the patrol is conducted by a system of stationary native gun-boats, patrol-boats, and guard-houses, all under the supervision of an officer with head-quarters at Nanning. Below Wuchow steam-launches and small gun-boats move up and down constantly.

Pose, at the head of junk navigation, is a town of 15,000 inhabitants, and of considerable importance as a distributing centre for Western Kuanghsi, and for Kueichou and Eastern Yunnan. It acquired its strategic importance in the campaigns of Wu san kuei in the 17th century.

Inhabitants.The inhabitants of Kuanghsi consist of Miao tribes in the north, Yao tribes in the west, Hakkhas along the waterways, and T'n jen everywhere else. The Cantonese are not numerous and live in the towns. The population is about 5,000,000, and 70 per cent. may be considered as Tu jen, who are of Shan stock. The Cantonese are the most energetic and the most intelligent of the inhabitants, but they are regarded with intense aislike and suspicion by the others.

While at

Railways. Various railway schemes are proposed for Kuanghsi. Nanning I learnt that a Belgian engineer, M. Squitbin, was actually surveying for a railway from Kueilin to Nanning vià Liuchou-fu. The idea is to extend this line into Hunan. I have also been told that the French will finance the construction of a line from Nanning to Lungehou. The taotai informed me that the governor had favourably considered a plan for a railway from Nanning to the Yunnan frontier. He admitted to me that it was practically impossible to raise funds in the province for even the Nanning-Kueilin line.

At the present moment, and indeed for many years to come, it would be sheer folly to incur the cost of building a line from Nanning into Yunnan. There is nothing in the physical nature of the country to make such a scheme difficult, if the right direction be taken. But first of all, security from brigandage must be assured, trade developed, mines opened, and the population increased before the scheme would be reasonable. fear the date of construction is far distant.

There can be no doubt that the official feeling in Kuanghsi is strongly anti- French. The officials, both civil and military, speak resentfully of alleged French intrigues and do not conceal their appelension of a French invasion. The causes of this feeling appear to be the proximity of so powerful a neighbour as France on the Kuanghsi border, the remembrance of the annexation of Tongking, the indiscretion of the French colonial press, and batred of Roman Catholic missionaries. It may be suspected also that the Kuanglisi officials are anxious to exaggerate their political importance in the eyes of the central Government by continually harping on the French bogey. Moreover, perhaps the Chinese official mind has always a bias towards suspecting someone of harbouring sinister designs.

Opium. From personal observation and close enquiries, I am inclined to believe that no opium is now grown in Kuanghsi except in the Hsi lin district on the western Kuanghsi-Kueichou frontier, and in the district near Lungehou. The amount cultivated is small, and the taotai at Nanning told me he anticipated that even this would disappear in 1910.

AFFAIRS OF CHINA.

CONFIDENTIAL.

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[November 3.]

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SECTION 3.

No. 1. Rest 1 DEC TO

Mr. Mac Müller to Sir Edward Grey,-(Received November 3.) (No. 367.) Sir,

Peking, October 14, 1910. THE native press summary for the month of August, enclosed in my despatch No. 314 of the 13th ultimo, referred, under the heading of " Administrative Changes," to the appointment in certain provinces of commissioners of foreign affairs, who were to be responsible to the Wai-wu Pu for the conduct of all matters relating to foreign affairs within their districts. These appointments followed a precedent set in Manchuria in 1907 and in Chekiang later, and, as already reported, similar appoint- ments have now been made in five other provinces of the Empire. My French colleague regards with some apprehension the formal interposition of an official between the consul and the governor or Governor-General as being likely to still further obstruct and retard the transaction of business. I have not received any reports tending to show that such has been the effect in Fengtien, Kirin, or Chekiang. It is true that early in the year Mr. Sly wrote to the Governor of Kirin to inforni him that he had taken charge of His Majesty's consulate at Harbin, and that the governor caused a reply to be sent by the commissioner of foreign affairs. Mr. Sly objected to this procedure, and, failing to obtain satisfaction, reported the incident to me and to the acting consul-general at Mukden. The correspondence which ensued between Mr. Willis and the Viceroy of Manchuria resulted in the acquiescence of the latter in the view urged by Mr. Willis, namely, that the consuls have the right, under the agreement of 1880, to address the higher officials direct on matters of importance. The main question as to who was to be judge of what matters were important was left undetermined, but in conversation both the Viceroy and the commissioner of foreign affairs showed a disposition to treat the matter in a reasonable spirit. The consular body at Mukden were engaged about the same time in a controversy of a similar nature with the Viceroy, but their united efforts failed to achieve a more definite result. It should, however, be explained that in neither case did the correspondence relate to questions of great importance.

The acting consul-general at Tien-tsin has now, in a despatch of which I have the honour to enclose copy, called my attention to the institution of the office of commissioner of foreign affairs for the province of Chihli, and has suggested that I may consider that this step should have been communicated by the Wai-wu Pu to the diplomatic body for their approval. This course would perhaps have been more in accordance with the spirit of the agreement of 1850, and, if I thought it was intended that all correspondence between the consuls and the higher authorities should cease, I should have been prepared to contest the matter. Such, as far as I can judge, does not seem to be the intention at present, and I do not there- fore consider that in principle we should be justified in refusing to accept the com- missioner as an intermediary between His Majesty's consular officers and the provincial Government, provided that the right of direct communication with the higher officials is maintained in regard to all matters which the consular officer considers of sufficient importance to warrant it. I have explained my views in reply to Mr. Fulford, of which the copy is enclosed herein. Unless otherwise instructed by you, I do not propose to raise the question, but, if it should be broached, to adopt the attitude I have indicated above.

I bave, &c.

W. G. MAX MÜLLER.

Enclosure 1 în No. 1.

(No. 49.) Sir,

Consul-General Fulford to Mr. Max Müller.

Tien-tsin, October 11, 1910.

I HAVE the honour to inform you that on the 9th instant I received a despatch from the Acting Customs Taotai, Chien, to the effect that he had been instructed by

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