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Wanhsien has practically ceased, for the consignees prefer to wait indefinitely for their cargo rather than incur the risk of piracy. It is more than likely, moreover, that the brigands and constabulary are working hand in glove.

For several months past a state of anarchy has prevailed in Wanhsien, Conditions there were far from perfect, while Lu Shih-ti and Tien Chung-ku were in residence, General Li but with their departure for the front things went from bad to worse. T'ien-tsai was directed by Tang Chi-yao to extend his jurisdiction to include Wanhsien, but when he attempted to follow this instruction, the entry of his troops was forcibly obstructed by the Hupeh Expeditionary Force, and a battle was fought for the possession of the city on the 8th and 9th July. Finally, General Li was persuaded to withdraw his forces and evacuate the Wanhsien district.

Ichang.

The situation in Ichang towards the end of July, brought about by the arrest of Wo Kuang-hsin at Wuchang, was described in the summary for last quarter. For a short time there was a serious danger that his troops, stationed in Ichang, would attack the local provincial forces, which were in inferior numbers; later it was announced that the former would be taken over by the Governor of Hupeh and incorporated with his forces. To this General Chang Chi-shan of the 13th Brigade, after some negotiation, agreed. General Fei Kuo-hsiang of the 4th Mixed Brigade declined to acquiesce, but resigned, leaving Ichang with a few fellow-officers of similar views. His troops have now been united with the provincial forces, and are known as Pu Chung Hupeh Ti Yi Lu, 1st Hupeh Brigade for the Supply of Deficiencies.

After his departure, Fei Kuo-lisiang endeavoured to bring about a mutiny Orders have been issued for his amongst his former troops, but completely failed. arrest, and an unconfirmed report is current that he was caught and shot about the beginning of September.

During the critical period Wang Mou-shang, commander-in-chief of the provincial His resignation was forces at Ichang, resigned on the ground of alleged illness. refused, but be finally left the port early in August för Wuchang, whence he apparently

declines to return.

The arrest of Wu Kang-hsin naturally disturbed the situation at Shase where a brigade of his troops under Liu Wen-ming was stationed. For some time the usual apprehensions that they would mutiny and loot the place were entertained, and in some degree realised; on being marched by General Liu to Kung An, near the Hunan border, with the intention apparently of joining forces with the Southerners at Changsha, the troops refused to fall in with their leader's plans, mutinied and looted the place. They then returned to Shase which again passed through a period of nervous tension, until it was finally agreed that they should be given 10 dollars each, disbanded and sent back to their homes,

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Two new vessels, or rather two old vessels with new names and under new -commenced trading between here and Chung- Hags-the Weihsin" and the "Kirin' king in August.

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Junk traffic on the Yang-taze is still almost at a standstill owing to the political situation and the illegal taxation imposed by the Southern military authorities on the river.

Considerable quantities of opium have come down from Szechuan during the The larger proportion is probably brought overland surreptitiously to a quarter. village on the Yang-taze, opposite Ichang, whence it is smuggled over at night and placed on the Lower River steamers. The customs appear to be constantly detecting and confiscating sampans engaged in the traffic. Two large seizures were made towards the end of the quarter: one of 5 piculs (666 lb.) on the "Hungfu" and another of 29 piculs (approximately 1 tons) on the "Robert Dollar."

Whilst the Chinese authorities continue to permit the cultivation of opium and will not enforce their own laws with a view to putting the trade in it down it is impossible for steamers to prevent its being carried on them and unjust to penalise them, providing the foreign officers are not implicated.

Mukden.

In spite of the leading part taken by General Chang Tso-lin in the recent conflict for political supremacy at Peking, it cannot be said that, except in official circles, any great interest has been shown locally in the events at the capital or in Chang Tso-lin's

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own doings, though his prestige has naturally been enhanced here as elsewhere in China by the success of his party and the prominence which he has gained.

Chang has been severely criticised in the British press at Tien-tsiu by reason of certain statements showing a pro-Japanese tendency, and anti-British and American bias, which he would appear to have made at an interview given on the 16th August to Japanese journalists. The criticism was quite undeserved, for it was natural that his interviewers, being Japanese, he should have spoken in as friendly a manner as possible of Japan. Experience has proved to His Majesty's consul-general that there is no nation more disliked and distrusted by General Chang Tso-lin than the Japanese, and that if he has a preference for any foreign nation it is for the Americans, whom he regards as China's most likely allies in the struggle which, in his opinion, is bound to come in the future between China and Japan

Since the Governor's return to Mukden he has been holding a series of conferences with the Governors of Kirin and Heilungchiang, and the chief military and chief civil officials of the province. The following matters were discussed :-

1. The separation of military and civil affairs.

2. The reorganisation of the army.

3. The improvement of the civil administration, more especially by the careful

selection of district magistrates.

4 The suppression of brigandage and maintenance of order throughout Manchuria. 5. The reformation of the currency.

6. The settlement in Manchuria of famine refugees from Chilli.

It has further been decided to increase the army by four brigades and to make the armies of the three Manchurian provinces into a single organisation.

Famine refugees from Chihli province have been well received and cared for in Manchuria, and preparations are being made at Mukden to deal with many hundreds more who are expected to arrive during October. Although no public subscription has yet been opened for them, General Chang appears to be fully alive to the need of doing all he can, and is shirking uo expense in the matter.

Anti-Japanese feeling in Manchuria has been considerably aggravated by the Shaw case, though in other respects the Japanese are showing themselves more conciliatory to foreigners, and seem to be genuinely anxious to obtain British and American co-operation in developing the industries of the province.

Nanking.

During the first half of the September quarter brigandage was worse in the north of the province than it has been since the summer of 1917. This is attributable in part to the return from the South of large numbers of dispersed Northern soldiery, who found it difficult after their military career to settle down to a peaceful agricultural life, and preferred to make a living by robbing their neighbours.

The brigands have learned, moreover, to concentrate on the safer and more profitable business of kidnapping well-to-do people and holding them for ransom. Towards the end of July a French priest and a prominent native agent of the Standard Oil Company were carried off, but were released unconditionally after much trouble.

In southern Kiangsu and Kiangan piracy has flourished; in the latter district an official salt depot was raided by pirates who had made off with a good deal of booty. Elsewhere sudden raids have been made on prosperous market towns, the pirates invariably escaping before any troops appeared on the scene,

The authorities are still on the look-out for Bolshevik propaganda, rumours in connection with which are constantly arising. Nervous as the officials appear to be, there are so far no visible effects among the mass of the population, who perhaps hardly constitute a favourable soil for the reception of such ideas. Native secret societies have, however, sprung up, the principal one being known as the Ching-hung Hui, or Green and Red Society, the main subject of which is said to be assassination.

As a result of his reduction of provincial expenditure, the Military Governor, General Li Shun, hoped to save 200,000 dollars on the financial year, a saving which includes reduction on the allowance of each district for administrative expenditure, against which the magistrates continue obstinately to protest.

In connection with women's education in Kiangsu, the first national school for girls has been founded in Yangchow. Schools of every description-elementary,

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