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42
making a total of 1,867,542 dollars (200,000l.). It will doubtless be a long time before the Central Government are able effectively to contest the right claimed and exercised by the southern provinces of retaining the salt revenues collected by them for purposes of local expenditure.
The estimated receipts of the Peking octroi are given as 453,380 dollars. The postal service is expected to yield 40,620 dollars. The railway department budgets for
à deficit of 8,830,000 dollars (900,0002.), while 1,000,000 dollars has been allotted to the Panamá Exhibition.
The receipts for the customs are estimated at 29,706,701 dollars (3,000,0002.) for the six months.
As the figures for the actual expenditure and revenue for the same period of last year were not available, it is impossible to make any comparison or to test the probable accuracy of the sums mentioned above. That the Government realises the necessity for economy is shown by the issus of numerous presidential orders enjoining the strictest retrenchment in all departments and by their genuine anxiety to obtain control over the financial transactions of the provinces. The present Reorganisation Loan will at most allow the nation a breathing space, and unless the reorganisation of the salt gabelle can be effectively carried out, China will be left without any tangible security to offer for future national loans.
I have, &c.
[33369]
No. 87.
B. ALSTON.
Mr. Alston to Sir Edward Grey.-(Received July 20.)
(No. 163.) (Telegraphic.) P.
Peking, July 20, 1913. FUKIEN made a declaration of independence to-day, and Kuang-tung on the 18th July.
His Majesty's consul-general at Canton reports that the Kuomintang prompted the action of Kuang-tung, and that all the local authorities of the province belong to this body.
It is reported that Shanghai Arsenal has been evacuated by the northern troops recently sent to garrison it, an arrangement having been come to with the southerners. Wusung fort is also held by the latter.
The northern troops have been successful both on the Kiangsu-Shantung border and in neighbourhood of Kiukiang. Hostilities are at present confined to these districts. It is doubtful whether the Chinese fleet will remain loyal.
[33587]
No. 89.
Mr. Alston to Sir Edward Grey.—(Received July 21.)
(No. 165.) (Telegraphic.) P.
Peking, July 21, 1913.
I SENT the military attaché to Hankow on his way to Kiangel, where hostilities are in progress. He reports as follows
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*
General Li-yuan-hung has informed me that Hanyang and Wuchang are securely held by northern troops on whom he can rely. There is no reason to apprehend danger to foreigners or troubles similar to those which occurred during the revolution. "The northern troops are a match for the Hunanese troops, who are, however, concentrated and will probably fight. The Hukow forta at Kiukiang are being attacked by the northern troops. Chang-hsun has won a victory at Heu-chow and is advancing south. If the northern troops are successful at Kiukiang they will march to Nanking to co-operate with Chang.
General Li-yuan-hung appears to think that the northern arms will soon be entirely successful."
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