CO129-224 - Foreign Office - 1885 — Page 447

117

Most of the trade between Tonquin and Yunnan will, I think, be by water as far as Mong-hwa, and thence by porter or mule back to the various marts in Yünnan.

From Mong-hwa to Yunnan-Fu the journey by land is easy, and occupies, according to M. Dupuis, eight days; according to General Mesny, eleven. The cost of conveyance Close to Mong-hwa there of the customary picul of 120 catties is about 3 taels or so. are the rich tin mines of the Mong-tsze district, which are now in fair working order. Yet Pai-hsieh Ting, in spite of its distance, absorbs at present most of the produce of these mines.

The conclusion I am tempted to draw from the above facts is that, considering that in China geographical facilities are often less important factors of routes of trade than financial arrangements, and considering also that for various reasons it will not be to the interest of the provincial authorities of Yunnan to favour the route by the Song-koi River, most of the trade with Yünnan will be conducted by the West River.*

With regard to the desirability of opening a Treaty port on the West River, I think if this is done Wu-chou should be the point selected. In the first place, because General Mesny informs me that Wu-chou is about the highest point of the West River easily reachable by steamers. Secondly, because Wu-chou is situated at the junction of the West River and the Fa River.

The Fu River is itself an important waterway flowing through a rich district and passing various populous towns such as Kwei-lin, &c. Its importance was greatly increased some years ago by the digging of a canal connecting it with the Siang River, which, after passing the important towns of Yung-chow, Hêng Chow, and Chang-sha, flows into the Tung-ting Lake. The Canton boats I saw at Ichang in 1873 bad come from Canton by

the above route.

The opening of Wu-chou as a Treaty port would possibly cause a loss in trade to Canton in exports, especially tea, and to Hankow in both imports and exports. I fear it would not increase to any great extent the bulk of our trade with China. Our goods already reach Wu-chou pretty freely, and as for the native produce that passes through Wu-chou, it has only a very few extra miles of inexpensive waterway to find its outlet by Canton.

The reasons for it coming to Canton are the extra duties charged on junks and cargoes clearing thence for Hong Kong and Macao.

In conclusion, I have to express my thanks to General Mesny for the very obliging manner in which he furnished me with information.

Sir,

I have, &c. (Signed) C. T. GARDNER.

Inclosure 2 in No. 116.

Consul Allen to Mr. O'Conor.

Pakhoi, August 13, 1885.

I HAVE the honour to acknowledge receipt of your despatch of the 13th July, 1885, calling on me to report on the effect which I consider the facilities given to France by the Franco-Chinese Treaty of Peace will have on British trade in Pakhoi and the districts in commercial communication with it. I will perform this task to the best of my ability, but if any conclusions at which I may arrive shall eventually be proved erroneous or absurd, I will ask you to bear in mind that my sources of information are neither complete nor perfectly accurate, and that prediction is, at the best of times, liable to lead "one into

error.

I have not been supplied with an authentic copy of Article VII of the above Treaty, but the Article, as given in the "North China Herald," asserts the immediate construction of a railway in the north of Tonquin. In this report, therefore, I assume that the French, belonging, as they do, to a civilized nation, will at once make such communications as the country is best fitted for, be they water routes, horse roads, or railways, and that, whatever duties they may impose, they will grant every facility of locomotion.

1 may

take it for granted that Her Majesty's Government, in opening Pakhoi, never intended it to be simply a port to supply the neighbourhood with yarn, opium, and piece- goods, and to procure thence a little cassia and aniseed and a few hides, but rather to be the shipping port of south-west China. Hitherto, these hopes have been unfulfilled. not suppose that foreign goods often penetrate more than 150 miles into the interior. The

I do

* It is observable that the French Treaty only stipulates what duties are to be levied at the Customs stations on the frontier. Goods after passing such Customs stations will still be subject to the local provincial taxation,

[351]

2 H

}

444