CO537-(33-34) — Page 261

PUBLIC RECORD.OFFICE

Reference :-

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Indian interests.

Flometrade.

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with 7 per cent., and Europe, exclusive of Russia, with 7 per cent., the remainder being absorbed by Russia, Japan, and other countries." With regard to the carrying trade, over 75 per cent. of the foreign trade of China is carried under the British flag, the French coming next with a little over 10 per cent., over 4 per cent. falling to the Japanese, 3 per cent. to the German, and 2 per cent, to the Russian flags. It will thus be seen that British interests in the trade are very extensive. The average annual values of the exports from, and imports to, Great Britain for the 10 years ending 1881, are 12,597,3847., and 4,961,9881. respectively, so that the total value of the trade of the United Kingdom alone with China is 17,559,3721., or nearly one half of the total trade in which British possessions are concerned. Tea and silk are the principal articles exported to the United Kingdom, the value of the former being about 7,000,000%, that of the latter, roughly speaking, 2,000,000l. The bulk of the imports from Great Britain consists of cotton and woollen fabrics, the former absorbing annually nearly 4,000,000, the latter about 1,000,000%.

The Indian Empire is also largely interested in the Chinese trade, as it exports annually a large quantity of opium to the Celestial Empire, receiving bullion in return. The importance of the opium trade may be estimated from the fact, that the value of this article amounted in 1879 to nearly 44 per cent. of the total Chinese import trade, and to over 40 per cent. in 1881, the money value of the drug being in the latter year over 10,000,000l. This importance is further enhanced when it is considered that from the export duty on opium in 1881 the Indian Government derived nearly 10 millions, or more than 14 per cent. of its total revenue, the value of the commodity amounting to nearly the same proportion of the value of the Indian exports.

The Home Chinese trade, so far as it is conducted under treaty regulations and in foreign vessels or vessels of a foreign type (and this is the only branch of the Home Trade regarding which trustworthy information can be given), is carried on between the different Treaty ports, along the coast, on the Yangtse- Kiang, and in the two islands of Hainan and Formosa. The port of Shanghai is the great receiver and distributor of foreign imports and of exports to foreign countries. 1t alone absorbs more than half the value of the total Home Trade; its nearest rivals being Tientsin, Hankow and Chinkiang.

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Vessels under the British flag carry 50 per cent. of the coast trade of China; vessels under the Chinese flag carry nearly 42 per cent.; 5 per cent. of this traffic falls to the share of the German, and 2 per cent. to the American flag. Besides the articles connected with the foreign trade, those most worthy of note are rice, sugar, paper, raw cotton, cuttle-fish and bean oil, &c. These articles, intended for local consumption, account for a large portion of the entire coast trade. This trade has of late years considerably increased, owing probably to the increased facilities afforded by the use of steamships, which are gradually monopolizing the whole of the trade. The effect of this increase of steam- vessels has been, to a certain extent, to turn the trade into foreign bottoms, but the Chinese still continue to do a large proportion of it, and a native Company, known as the China Merchants Steam Navigation Company, largely subsidised by Government, does a considerable share of the business. Between the unopened ports the native trade still employs thousands of small craft, but their numbers are gradually diminishing owing to the increased use of steam- ships and sailing vessels of European type. The ports in the south of China always require to import large quantities of rice--the staple food-and they obtain supplies of it from the Delta of the Yangtse. From the same region also is exported to the north the grain which forms a portion of the revenue of the Imperial Government at Peking. The quantities so exported generally proceed coastwise and are likely to increase rather than diminish.

It is impossible to state what proportion the inland commerce bears to the coasting trade at the present day. In bygone days, the latter was insigni- ficant compared with the former, which was carried on by numerous fleets of junks plying on the Grand Canal. This great waterway, which connects the capital with the Yangtse, and the country to the south of that river, is not now

The quantity of rice (exclusive of tribute grain) exported annually from Shanghai averaged during 1880 and 1881 over 200,000 tons.

The quantity of tribute rice exported from Shanghai amounts to about 42,000 tons

annually.

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use for traffic north of Chinkiang to the same extent that it was formerly, and it is believed that through communication between that place and Peking is limited to a short period during the summer floods.* This interruption of traffic is due to the change in the course of the Hoang-ho, which took place some years ago, and which made a breach through the northern portion of the canal. Á considerable portion of the former traffic has consequently been diverted, and now forms part of the coasting trade.

The total customs revenue derived from the foreign and home Chinese Customs trade amounts to 4,000,000l. annually, or about 4th of the total revenue of revenue, the Imperial Exchequer, which according to the best informed sources nearly reaches 25,000,000l., per annum.

From the foregoing statistics it may be concluded that in the event of an Effect of interruption to the trade of China, British interests in general, and those of blockade. the Indian Government in particular, would be unfavourably affected. How far China herself would be injured it is difficult to conjecture. She would certainly lose a portion of the customs revenue derived from the foreign trade, and the coasting trade would also suffer. The effect of war alone upon the trade of China, setting aside, for the moment, the question of a blockade, is not to be inferred from the experiences of western nations. Thus, for instance, although England was at war with China during the years 1857 to 1860, British exports to China never fell below 9,000,000, and British imports actually increased from 2 millions in 1857 to more than 5 millions in 1860, when the war was at its height.

(2.) POINTS LIKELY TO BE BLOCKADED.†

A reference to the Table on p. 5 will show that a blockade of the mouth of the Yangtse river would shut up ports which absorb nearly one-half of the total trade, and would moreover prevent the export of grain from Shanghai to to the capital, and would cut off a portion of the food supplies of the South.

It is therefore certain that a blockade of the mouth of the Yangtse would be peculiarly damaging to the trade of the country; but such a blockade would interfere with very large foreign interests, and would in all probability give rise to serious political complications. Into this aspect of the case it is not within the scope of this paper to enter; but assuming that diplomatic difficulties have been overcome, it is questionable whether the closing of these ports only would suffice. The Chinese Empire though nominally one is far from homogeneous. It may be fairly doubted whether the interruption of trade at the mouth of the Yangtse, and the cutting off of a portion of the food supply of the South would bring any great pressure to bear upon the Court of Peking. Scarcity of the food supply is one of the evil consequences of an overgrown population which is experienced in one part or another of the provinces almost every year. It would, therefore, possibly be considered necessary more directly to coerce the feeling of the capital by blocking its port Tien-Tsin.§ The shutting up of the important City of Canton in the south might not be without its effect, and the exclusion of the supplies of rice which reach the port from the north might give rise to internal disorders among its turbulent population. Supposing a blockade of these points to have been resolved upon, a closer examination of the localities becomes necessary.

It can

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The port of Shanghai is situated on the left bank of the Wong-pu River, Shanghai. 12 miles from its junction with the Yangtse, and 44 miles from the sea.

be reached by vessels drawing 18 feet at almost any high water, but only at spring tides by vessels of heavier draught, there being near the entrance of the

• This statement is based on a report dated 1876, but it seems possible that steps may have been taken to restore this great work. In 1882 a large number of soldiers were employed at Chinkiang (the junction of the Canal and the Yangtse) in excavating the Canal.

See General Map of China, No. 1.

The loss of the tribute rice would affect the Exchequer; but in former years it was conveyed by the Grand Canal to Pekin, and if this has been repaired it might again take the same route.

A further advantage to be gained by closing this port would be the cutting off of the coal which might be supplied from the Kaiping mines near Tien-Tsin to the more southern harbours. These mines are believed to be capable of giving an output of 1,000 tons a-day, and they supply at present the Arsenal and gunboats at Tien-Tein.

See Plan No. 2.

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