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PUBLIC RECORD OFFICE

Reference :-

ILLIC.O. 882

6 PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO

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cargoes are usually fresh and salt fish, or wheat and beans. An import tax is similarly charged on all incoming junks discharging grain, wine, timber, cotton, lime, iron, rice- pans and salt.

These junk coast-customs were in force before the Japanese occupation in 1895, and were originally paid to the Wen-Teng Magistrate as part of the revenue of the district. The Japanese did not interfere with the collection of these customs. The British Naval Authorities in 1898, apparently not fully understanding the nature of these charges, took them over, and Government has collected them even since. Similar coast customs are charged by the Chinese on all junks touching at other Chinese ports and harbours when they load or discharge any cargo. It appears that these customs should be either abolished altogether or paid over to the Wen-Teng Magistrate through the City Magistrate as part of the legitimate revenue of that district. It would seem best that these customs and charges should be abolished, as Wei-hai-wei is by international agreement a free port, where no customs may be imposed, and it would appear somewhat inconsistent. to continue imposing customs duties on Chinese goods when European commerce is entirely exempted. that the District Magistrate of Wen-Teng protested at the time when the Naval and It may be noted Military Authorities took over the collection of these customs in 1899.

sam shoo."

Chinese Wine Licences.

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33. This is a monopoly of importing and distilling Chinese spirits and wine Fommonly called " private sale for three years, in return for payment of a rent of $1,200 per annum.

This exclusive privilege is given to a contractor by Contractor or farmer provides his own revenue preventive force.

Chinese Opium Licences.

The

39. This is a similar monopoly to that mentioned in the preceding paragraph. The special rights are given to a Chinese contractor or farmer for three years, in return for an annual payment of $2,350 rent. with the wine and opium monopolies, and providing for their regulation and control.

There is a Magisterial Order dealing 40. As a matter of fact, both these monopolies are in one sense an infringement of the system of making Wei-hai-wei a free port, as they give a monopoly of im- portation to one or two persons. possible to carry on the monopoly.

Without this privilege, however, it would be im-

Fines of Court.

41. Fines for offences or penalties are inflicted at the discretion of the presiding Magistrate, both on the island and on the mainland. This source of revenue brings in about $800 per annum on an average.

43. The total revenue from all sources collected in 1901-02 was $21,188.

An Imperial grant of about £10,000 a year is made to the Settlement in support of the Civil Administration. It is paid by the Home Treasury at the rate of exchange fixed by the Admiralty and War Office every quarter, for the payment of His Majesty's forces in China. With regard to financial arrangements, provision is now made by the Lords of the Treasury for placing the whole grant to the credit of the Settlement in the Imperial Treasury chest at Hong-Kong, excepting a small sum that is retained at London to meet the charges of the Crown Agents. A Colonial Government account is further entered into with the Hong-Kong and Shanghai Bank at Shanghai, and with the local agents of this bank, Messrs. Lavers and Clark, at Wei-hai-wei.

General imprests on the Officer in Charge of the Treasury chest in Hong-Kong are made by the Commissioner, and reported to the Colonial Office. The cash neces- sary for local purposes is obtained from Messrs. Lavers and Clark at Liu-Kung-Tao, and a current account is also kept with the Shanghai branch of the bank to meet disbursements there.

Expenditure.

44. The costs of the Civil Establishment are very small, and the service at present is carried out with the utmost economy. The ordinary expenditure on Civil Establishments and other charge average at present only about $30,000 a year. The explanation of this economy is that the War Office and Admiralty assist very largely in carrying on the Administration by means of their clerical staff and by sharing

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launches, &c., with the Colonial Government. The public works of the Settlement and the medical and sanitary work, for instance, are entirely carried out by the Royal Engineers and the Royal Army Medical Staff.

The work of the Civil Government is very simple, and it has been found possible to dispense very largely with an English writing clerical staff. The only drawback to this is that the Commissioner and Assistant Commissioner cannot keep such detailed returns of public work as would be possible if there were more clerks. The practice, however, of carrying on the administration by "rule of thumb" is found very efficient in its actual operation. Expenses connected with municipal work are met by the small revenue raised from the townships on the island and mainland.

The Parliamentary grant-in-aid is made in aid of general revenue, and is not devoted to any one particular service.

The present system of following the English financial year from the 1st April in one year to the 31st March in the next one is a most inconvenient one. Locally, everything financial is settled from the 1st January to the end of December in one and the same year, as all contracts, agreements, and engagements are made on the castern system of a month's notice during the twelve months of the current year.

It would be advisable that the Settlement should be allowed to anticipate yearly so much of the Parliamentary grant as relates to permanent Civil Establishments and charges, and any recurring works. If this were sanctioned, the local account could be kept more conveniently, and the present confusion between the home financial year and the local current year would be avoided.

The only heavy items of expenditure are works and roads, and these are now Icing completed, and will not be recurrent; the upkeep of roads will cost very little, as they are not macadarnized.

The chief public civil works already executed are:-

Gaols. One on the island and one on the mainland. An abbatoir on the main- land, quarters and offices for the Assistant Commissioner on the mainland, extension of the pier on the mainland, and bunding of the seashore at Mahto. The total cost of all the various public works and buildings constructed since the occupation of the British from 1898 up to date and including those now under construction is $74,000. Since the occupation of the Settlement by the British Government, 18 miles of level road have been constructed and five miles of an inland road are now being finished, or 23 miles in all. The total expenditure when all the roads are finished from 1898 up to date will be $35,000 approximately. Mule tracks to a total length of three miles have been improved and re-made at a cost of $2,450,

The whole of the roads and paths, therefore, have only cost approximately $39,000. Much credit is due to the Acting Colonial Engineer, Major Lee, Royal Engineers, for making these roads and for carrying out these various Colonial works in the face of many difficulties not usually experienced in other Colonies.

Most of the works on the island, the roads, drains, jetties, public offices, &c., were carried out by the War Department in 1899 and 1900 before the Colonial Office assumed the administration.

Quarters for the Commissioner still remain to be built, and it is a moot question whether they should be on the mainland or on the island, and this awaits the decision of the new Commissioner, Mr. Lockhart, C.M.G.

45. The only work of any importance to be carried out is the building of the native town on the island. This is estimated to cost altogether some $70,000. It is perhaps doubtful whether this large expenditure should be proceeded with in the face of the withdrawal of the troops from Wei-bai-wei. It would be quite possible, if the whole property now owned by the War Office and Admiralty were transferred by arrangement in London to the Colonial Office, to map out the present Settlement so as to allot one portion to the Navy for dockyard, coal, and cooley quarters, and one portion to the Chinese. No particular evidence, moreover, is forthcoming to show that any great change is called for now, and as the number of Europeans on the island is so small and the health of all is so good there, it seems well that further enquiry should be made before this large expenditure is undertaken.

46. The only other two heavy items of expenditure are lighting the harbour, and the mail service.

As regards lighting the harbour, the Chinese customs at Chefoo have since 1899 maintained the two lighthouses at an annual cost of $4,830. In 1901, it was proposed that the Settlement should maintain the lighthouses, but although this would have