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their courage during the year by an active interest in their affairs, but they are thoroughly alarmed. The Yunnan-fu papers fortunately threatened the life of one big mule owner, Shang, and Hertz tells me that this man has applied for letters of naturalisation, and that he will probably defy Chinese officialdon from his home in Myitkyina. The entire business operations of the Tengyueh contractors, however, were upset throughout the past open season in consequence of the frontier agitation, and they will probably be very shy in making further tenders. I can only suggest that the contract should be worked next year through this man Shang in Myitkyina, and we could probably help him in a quiet way at Tengyueh. The mule owners are generally small men, and the contractor is really a broker, so that he could probably work from British territory without great difficulty. A number of mules might also be collected through a substantial Chinese merchant, who is now living in Lashio, and sent up by rail to the Myitkyina district.
16. We are in the unfortunate position of having practically no transport in Burmah either for military or administrative purposes beyond the Chinese mules. The authorities are now anxious to forma mule corps (with a basis of Chinese mules if they could be obtained), and it seems important that this should be done, with a view to making the movements and rationing of the military police in the Bhamo and Myitkyina districts independent of Chinese aid. A large number of mules have recently been thrown upon the market in consequence of the substitution of the Tonquin-Yunnan-fu Railway for mule transport in the east of the province, and the present season would probably be a favourable one for making purchases. I am reluctant to accentuate the difficulties of this question, as the military authorities are inclined to take a somewhat serious view of the Chinese problem, and it appears unwise to make statements which might create unnecessary alarm.
17. It was difficult to break down the idea that China could be entirely neglected on the north-east frontier, but the pendulum has swung heavily since the march of Chao-Ehr-feng's troops to Lhassa, and the possibility of a strong Yunnan army in the near future has now been foreseen, whilst the military unpreparedness of Burmah has been recognised, especially in the way of transport. It seems only right and sound that the real military position in Yünnan should be watched, but I feel very strongly that there is no menace to us from that direction for some years to come, and that by a stiff back and a little bluff now we can establish our frontier position without the least risk of serious opposition, whilst every year of delay will make it harder to secure a satisfactory border-tine. The Yunnan authorities are too dependent on the prestige of the new army to risk a defeat, and I do not believe for a moment that they would even allow a conflict until they have established the new troops a little more firmly and have furnished adequate supplies of ammunition and taught their men to use it.
Powang Raid.
18. Since leaving Tengyueh I have had an opportunity of seeing Thornton's report of this incident. There seems little doubt that the trouble arose out of an internal dispute in Burmah as to the office of headman in a notoriously unruly district, and that the Chinese Kachins came in to help the rioters. The trouble has been settled for the time being, but that corner of Yunnan is ruled by dissolute and irresponsible sawbwas, and may give trouble at any time unless the Chinese will take it in hand. Thornton recommends--
(1.) That a claim of 5,776 rupees be presented for property stolen and destroyed; (2.) That a claim of 2,300 rupees be presented for loss of life and grievous hurt in accordance with frontier law;
(3.) That the offenders should be punished by the Chinese; and
(4.) That the stolen animals and property should be recovered by the Chinese authorities and returned.
19. I concur most fully in Thornton's view that the violation of the frontier was a very serious affair; points 3 and 4 appear to demand vigorous action by the Chinese in the Kachin country, and they could be pressed to take such action from Tengyueh; these points could probably be settled locally. With regard to points 1 and 2, however, I see no possibility of obtaining compensation from the Chinese unless you saw your way to making representations at Peking, and I do not think that our case is sufficiently strong to warrant us in asking you to do this. There is no doubt that the trouble originated in our own country, and that numbers of our own people were concerned with the deaths and the loss of property, and it would
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be very difficult to proportion the blame and the retribution between the British and Chinese Kachins. The Yunnan-fu authorities have taken a very decided attitude in refusing compensation, and I see no chance of enforcing payment from them locally. As we are unlikely to obtain compensation, therefore it seems sounder not to present a definite claim, but to confine ourselves to a general line of protest.
20. At the same time this has been one of the most serious raids in recent years; but for the intervention of the Chinese Kachins the local trouble could have been quelled without difficulty, and if the taotai had taken ordinary precautions there would have been no such intervention. I think, therefore, that this case would justify a demand for the removal of the taotai. taotai Liu Chun held a durbar of all the Shan sawbwas and tribal chiefs, and he told After the frontier meeting of 1909 the them that frontier trouble at any point would mean the removal of the tribal authority, hinting at the same time that such removal would be permanent, and that the Chinese would undertake the administration of the State in future. During the whole of that year we had not one instance of serious trouble on the frontier, proving the great moral influence which is wielded from the Tengyueh head-quarters.
21. Since the arrival on the frontier of Taotai Keng the position has been reversed. Throughout the troubles in the British Shan States last summer he sent messages to the Chinese Shans which were provocative in character, and at one time he circulated a report that the British had been wiped out in the northern Shan States and that eighty had been killed. During the frontier meeting last January he received from us a general official warning that his attitude was a direct incitement to border troubles in the Kachin country, and a special call to prevent a raid on Powang. His failure to take action precipitated this violation of the frontier, and his retention in office will be a constant menace, as is proved by the recent report of a raid on the Bhamo district, and the massing of Kachin rebels in stockades hetween Nantien, Lungchuan, and Mengmao.
22. It is unlikely that the Chinese would appoint a friendly taotai to the froutier at the present crisis, but Chinese officials do not like losing their billets, and a successor might be a little more careful and a little less ill-balanced if the tradition of the dismissal of an anti-British taotai was substituted for the elevation to high office of the Taotai Chin. I believe that the removal of the present taotai would inci- dentally strengthen our position in arranging for the supply of mule transport next autumn.
Bhamo-Teugyuch Road.
23. Howell travelled with me for a few days from Tengyuch, and we examined a stretch of mountain country with a view to discovering a possible new route for the third section of the road up to Tengyueh, which will be constructed next year if mule tax funds are available. We found a feasible track over the hills which could be made safe and satisfactory throughout the rains, though I think that on general principles we should not too greatly lengthen the road in an effort to obtain good gradients. A safe dry track is the main need; mules do not mind steep gradients, and only make short cuts across them if they are too much prolonged. Howell takes a different view of the matter from Carey, and he is willing to advise the Chinese that the construction of this most difficult stretch with amateur supervision would be a waste of public money and a responsibility which the road committee should not properly incur. With his concurrence, I have approached the Government of Burmah with a request for assistance in obtaining trained supervision, and the Public Works Departinent have very kindly undertaken to find us three men, a native engineer to align the road, and two supervisors of labour. Their wages would be about 150 rupees, 60 rupees, and 50 rupees a-month respectively. Their engagement would of course be subject to the approval of the taotai, but Smith might make this a condition of any new agreement in regard to the mule tax. Mr. O. C. Lees of the Public Works Department, who has been good enough to promise his advice and assistance in this matter, tells me that he could probably arrange for three good men whose services are being dispensed with on a reduction of the Public Works Department staff, and such an arrangement would avoid the necessity for a formal application to the Government of India, whilst their monthly wages would be lower than those of officers detached for foreign service. It is probable also that the Chinese might not object to the supervision of natives of India, provided that they were not actually in the employ of the Government of Burmah.
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