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to them, which has given them enormous profits, and they have probably dealt in foreign goods as much as Russian.
Failure has attended all Russian colonization schemes in Manchuria, nor have any extensive industrial enterprises been undertaken by the Russians that have not relied upon the army or the railway for their existence. Now, with the bulk of the army withdrawn and the rest soon to follow, and the railway endeavouring to reduce its expenditure to keep it within some comparison with its earnings, the prospects for Russian trade in North Mauchuria are not very bright. The only items of Russian manufacture having a market of any consequence among the Chinese at Harbin are kerosene oil, matches, sugar, and some cotton goods. It foreigners be given an equal opportunity, they need have little fear of Russian competition. With the Russian merchants at Harbin transactions that do not yield enormous ready profits are not considered worthy of their attention, while their business methods are usually lax and uneconomical.
The Municipal Government of Harbin is under a department of the Railway Company, but there has been such general dissatisfaction among the merchants and other residents that a reorganization is under consideration. The chief cause of dissatisfaction appears to be the inadequacy of the police service.
There has been a movement to induce the Railway to turn over the commercial portious of Harbin to an International Municipal Council upon the opening of Harbin to international trade and residence, and it is even said that with a little pressure this will be done. Should the Railway agree, it would solve the question of securing a location for an International Settlement that would be convenient to both rail and water transportation. The Railway Co:cession has a total area of 47 square miles, which embraces everything that is desirable. But if the Company should reserve for themselves any special rights or privileges in such a Municipal Administration as is hoped for, the same conditions which are now causing so much dissatisfaction would continue to exist.
The Railway Company have actually drafted a scheme for the reorganization of the Municipal Administration. Russian commercial interests at Harbin approve it with the exception of a few minor points.
It is expected that martial law will be withdrawn and the new municipality will take over some time during January,
There is no organized Chamber of Commerce in Harbin. The Commercial Department of the Railway has endeavoured to attend to such matters as ordinarily come before such an organization. The Harbin Commercial Club also gives some consideration to the general conditions of commerce and trade.
The most important Chinese town, so far as trade is concerned is, Fudiadian, which is outside the Russian Settlement.
Immediately adjoining Fudiadian is Shikiadze, which is to be the Chinese official town where the offices of the proposed Department of Harbin are to be located.
The chief disadvantages of these two towns are their low elevation and their poor river frontage.
It is reported from Mukden that Russian control in North Manchuria is almost, it not quite, as complete as it was throughout the three eastern provinces before the war. The negotiations for the restitution of this area to the sole administration of the native authorities have been marked by mutual procrastination. Harbin, still garrisoned by a portion of the Manchurian army, has not yet been opened to foreign trade, and troops are stationed at Kuangchengtzu, Kirin, and in other cities of the province of that name, as well as in Heilungchiang.
of
In the south the Viceroy at Mukden is endeavouring to gather to himself the reins government so long held by alien hands. By a non-committal attitude and frequent reservations regarding the extent of Japanese power in the leased territory and railway zone, he seems to be preparing to raise numerous questions at the expiration of the evacuation period in April 1907.
The Chinese Eastern Railway is in operation as far north as Mengchiatun, a point 6 miles south of the Russian station at Changchun (Kuangchengtzu). Negotiations are now in progress for the adjudication of the disputed proprietorship of this station, and for the arrangement of through communication between the system's operated by the two Powers. The Japanese Consul-General, who has been appointed one of the Com- missioners for Japan, confesses that he regards his task as a difficult one, and has little hope of securing a recognition of the claims of his Government to the property in question. It is not improbable that a point midway between the present termini may be
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agreed upon as a common station where the change from one gange to another will be made, and where the Chinese eastern railroad will be joined by the proposed Changchun- Kirin line.
It appears that the relations in Manchuria of the Representatives of the recent combatants are not altogether cordial,
The Russians are trying to influence Chinese public opinion through the columns of a paper printed at Harbin in Russian and Chinese, while, although the press at Dalny, Newchwang, Liaoyang, and Mukden in the Japanese sheets makes frequent uncompli- mentary references to the Chinese Government and people, the editorials and news items in the Chinese editions issued from the same offices proclaim the unselfishness of Japan's actions in Manchuria, her interest in the progress and welfare of the people, and describe the terrors of Russian national administration and her sinister designs.
The German Consul has arrived, and is installing himself.
The number of European firms at Newchwang is increasing rapidly, while American enterprise is conspicuous by its absence, the large sales of American goods, with the exception of oil, being made principally by merchants of other nationalities. In Mukden the British-American Tobacco Company, the Singer Sewing Machine Company, the Manchuria Trading Company, and Arnhold, Karberg have appointed foreign repre- sentatives, while the Japanese trade is increasing; considerable importations not only of Japanese goods, but of American flour, piece-goods, and oil, are handled by Japanese dealers.
The Chinese authorities maintain their former contention that Mukden is a ** self- opened port," and that foreign merchants shall be obliged to reside outside the city walls, and that they shall not be permitted to own land.
The area which the Viceroy intends to set aside as a foreign Settlement lies to the west of the city between the wall and the railroad. Although the officials have stated that no foreigner except a Consular officer, for whom exception will be made, will be allowed to lease land until the Regulations have been definitely settled, Japanese merchants have already located along the main thoroughfare to the station, having rented or seized land from the natives and erected buildings thereon.
In Mukden and other cities numerous buildings, both official and private, previously forcibly occupied by the Russians, were seized by the Japanese armies in their gradual advance to the north. Although these premises are no longer needed for military purposes, and although it is impossible in many instances to question the titles held by the native proprietors, Japanese merchants have been permitted to occupy a number of the buildings, and no disposition has been shown to restore such property to the rightful
owners.
Regardless of Treaty restrictions, Japanese merchants have settled throughout Manchuria wherever they are able to find a market for their wares; and with the cognizance of the Consular officers they refuse to submit to native taxation, on the plea that their stocks are for military use. Chinese merchants, subjected to li-kin and other taxes which the Japanese refuse to pay, find themselves handicapped in the sale of native products, which have been skilfully imitated and placed upon the market by these dealers; while the character of the majority of the immigrants, and the low order of the women who have established themselves along the railroad, have forfeited the respect and roused the resentment of the Chinese.
Companies organized in Tokió are sending prospectors throughout the interior to examine the mineral resources preparatory to locating claims, and native officials say that they have been urged to hold all desirable properties for joint Japanese and Chinese exploitation.
The restrictions which formerly prevented foreigners from travelling in the interior, where Japanese merchants were allowed to transact business, have now been withdrawn. Europeans and Americans, however, find themselves unable to secure docking and warehouse facilities at Dalny, although this port has heen declared open to international trade; and the railway rates-5 sen per ton per mile between Newchwang and Tashih- chiao and the north, and 2 sen a-mile between Dalny and Tashihchiao--counterbalance any disadvantage which Dalny may have felt on account of the longer railroad haul, and make it difficult, after paying the Newchwang customs dues, for them to compete with those merchants, almost exclusively Japanese, who import through the leased territory. The transportation facilities afforded by the railway are insufficient. Foreign merchants have asserted that Japanese goods are granted preferential rates, and although these accusations may not be justified by actual fact, the necessity for shipping through agencies either managed by or associated with Japanese, and the impossibility of dealing directly with the railway authorities, gives these privileged firms an opportunity to
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