CO129-224 - Foreign Office - 1885 — Page 444

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corner of that province (including the Prefectures of Tai-ping, Nan-ning, Chin-ngan, Sz-ngan, &c.), will continue to receive its imports from Hong Kong by two routes, viz., the West River, and the land route via the Port of Pakhoi.

With reference to Yunnan, Mr. Gardner derives his conclusions from Major-General Mesny, of the Imperial Chinese army, who is of opinion that the wealth of Yunnan consists in its mines of lead, copper, and tin, which are at present inadequately worked; even if the hopes entertained by the French as to mineral wealth and a future large population in Yünnan are realized, this will not, in his opinion, prejudice the trade of Canton. That port will still be in a position to compete, not unfavourably, with the French ports in Tonquin in supplying, by way of the West River, such increased popula tion with the commodities it will require.

I would here beg attention to the fact that Northern Yünnan is easily accessible by the Yang-tse River, à trade route which has been strangely ignored, partly in consequence of the erroneous delineation of maps, and partly from a mistaken idea that the rapids of the Upper Yang-tse, oppose an almost insurmountable obstruction to water traffic. The northernmost department of Yunnan, namely, Chautung, is bounded on the north by the Yang-tse, and with regard to the danger incurred by junks ascending or descending the rapids, I need only remark that nearly the whole import and export trade of the rich province of Ssü-ch'uan, the largest province in China, is conveyed through those rapids, which, indeed, are only formidable during two of the summer months.

This point, which bears very strongly on the development of trade with Western China, deserves more than passing reference. But for the moment I confine myself to a quotation from a trade Report by Mr. Spence, in which he remarks: "I have been up and down them (the rapids of the Yang-tse), in Chinese junks, at all seasons of the year-in the height of the summer freshet and at the lowest winter level-and I am firmly convinced of their practicability for small, handy, light-draft, full-powered steamers, during nine months of the year, without the aid of more than the ordinary methods of steam navigation."

This statement is supported by the authority of Mr. Yankowski, a Yang-tse pilot, the only expert who has examined the rapids at various seasons of the year.

Major-General Mesny considers Chautung to be "the most populous and richest part of Yunnan.” Mr. Baber informs me that the same Department

very rich in mineral wealth, as yet slightly developed, and that the minerals must always find their exit, as they do at present, down the Yang-tse.

Mr. Clement Allen, Her Majesty's Consul at Pakhoi, in a Report on the same subject, which I had desired him to draw up, treats the question with more especial reference to the effect which the facilities given to France by the Franco-Chinese Treaty will exercise upon British trade in Pakhoi. He takes a somewhat gloomy view of the present condition of that port, but is satisfied that it is perfectly possible, by means of a lighter and more equitable system of inland duties and an honest and liberal observance by the local functionaries of the transit-pass clause of the Treaty of Tien-tsin. and still more by the construction of roads, to build up the trade of Pakhoi into one of great value. Pakhoi possesses one great advantage over any of the Tonquin ports, viz., the good approach to its harbour, which can be entered at any time of the tide in a 5-fathom channel, without pilotage.

Mr. Allen and Mr. Gardener both draw attention to the consideration that, in China, geographical facilities are often less important factors of trade routes than financial arrangements, and with reference to this fact I venture to quote a remark of Sir Thomas "That river," he observed, Wade upon the introduction of trade by the Tonquin River.

'presented considerable physical difficulties, and in addition there was the difficulty of a double fiscal system, as the French would, of course, collect duties at their (Tonquinese) ports." He spoke without the smallest jealousy in this matter, for, after spending more than forty years in China, he had come to the conclusion that there was room enough for all; and supposing that the French did make that a great trade route, it would be for the south-eastern section of Yunnan and nothing else." (Proceedings of the Royal Geo- graphical Society, December 1882.)

So far as his argument extends I am disposed, in the main, to agree with Mr. Gardner's conclusions. I see no reason to apprehend any immediate prejudice to the interests of British trade with Kwangtung; but our commercial relations both with that province and with Kwangsi would, I am disposed to think, be strengthened by the establishment of a Treaty port on the West River at the highest point, of any commercial importance, accessible by steamers.

It will be observed that Mr. Gardner does not discuss the conditions which would arise from the construction of railways by the French in Tonquin. If that scheme be

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