2
In conse-
and was furnished with but 600,000 roubles by the Imperial Government. quence, many of the employés have been notified that they will not be paid this month. I am informed that a Commission will soon arrive from St. Petersburgh to investigate the accounts and inspect the railway.
Some of the more pessimistic people here predict a failure of the railway and the suspension of operations. They seem to look for hope in the present Duma working harmoniously until foreign financiers can be induced to make a loan, after which the Duma will probably be dissolved, and the present Administration continue its policy. The Russians are people of extremes.
All commercial and industrial enterprises in North Manchuria appear to be at a standstill, chiefly on account of lack of capital. Many of the small Bouring mills are standing idle, and the large ones are doing but little work on account of no money to carry on operations, and for the want of a market for their product. The Russian authorities are of the opinion that conditions will greatly improve as soon as navigation of the rivers is open and the troops are all out, so that trade can have free movement. This might be true, the Russians are in a very favourable position to study conditions here; but to me it appears that there is much development work to be done in North Manchuria before their expectations are met.
Very respectfully, (Signed)
FRED. D. FISHER.
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are no doubt making every effort to secure an influence there. The Mongol Princes are practically absolute, and are left almost wholly to themselves to run affairs. Their chief industry is cattle raising, and some sheep. They appear to have little appreciation of values, and consequently Chinese, Japaneso, and occasionally Russian bartering expolitions have been profitable. Under such conditions they will be an easy prey to any well-organized scheme to bring them under a "sphere of influence," if permitted to be carried out. The province is reported to be rich in minerals, and some of its districts are very fertile. The Chinese Government appears to be awake to the dangers, if an article published in a recent issue of the "Harbin Vestnik" is true, which states in substance that China is preparing to reorganize the Administration of Mongolia by placing it under a Viceroy and dividing it into four provinces, and that military protec tion will be provided.
Very sincerely, (Signed)
FRED. D. FISHER.
Dear Mr. Rockhill,
Inclosure 2 in No. 1.
Mr. Fisher to Mr. Rockhill.
Harbin, Manchuria, April 4, 1907. THE Russian-Chinese Commission, referred to in my official of to-day regarding the Customs question, is composed of General Duh, the Harbin Taotai; General Sun, the Chief of the Harbin branch of the Tsitsihar Bureau; M. Konovaloff, the appointed Collector of Customs; Consul-General Luba; M. Daniel, the diplomatic agent of the Railway; M. Roman, the Chief of the Commercial Department of the Railway; and M. Latkin, the Russian Commissioner of Customs at Vladivostock.
Chinese troops have been arriving at Harbin from the south for several days. It is reported that 10,000 are to be stationed at Tsitsihar, and 20,000 at Harbin. Small detachments are being distributed throughout the settled parts of North Manchuria for protection against "hunghutzes," and they appear to be doing good work, as it is prey of reported that traffic along the main roads is becoming practically safe from the brigands.
General Duh has informed me that post-offices will be established in all important places in the north, and that the Harbin office will be opened this month. Telegraphic offices will also soon be established.
The "Harbin Vestnik," the Railway's organ, publishes a statement that the Chinese are soon going to build a railway from Tsitsihar to Aigun, and that a line from Kai- yuan (north of Mukden) to Tsitsihar is projected, to be built by English capital, and when completed will be taken over by the Chinese. There is no source here from which such a report can be confirmed. The line from Tsitsihar to Aigun would be of considerable use to the Russians in the construction of the projected Amur Railway. The other line would probably pass through North-Eastern Mongolia, and would open up a very fine agricultural country, and give the whole Nonni River country an outlet with the south.
Mongolia appears to be causing a good deal of anxiety on the part of both the Russians and the Japanese. The Russian Government is preparing to establish Consulates and banking houses in the principal towns of that province, and it is reported bere that the Japanese are objecting. So far Russian commercial undertakings and gold-mining schemes have not met with much success. In order to secure an influence with the Mongol Princes, several Russian expeditions have been sent in with tribute and presents, but the Mongol Princes have not shown much desire to join with Russia on any scheme. The Russians believe that the Japanese have aroused the Mongols' suspicions, and are embittering them against the Russians through the agency of secret relations and by placing Japanese at the heads of bands of "hunghutzes." The Japanese
* On the Amur River, due north of Tsitsihar.
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