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promising rewards to the more active subscribers. Throughout the country the scheme is being enthusiastically supported by the student class and by such associations as the China Patriotic Fund Society in Shanghae.
Considered merely as a spontaneous outburst of patriotism, the above movement is in itself perfectly legitimate, and no more objectionable from our point of view than the sacrifices made by the French people with a similar object after the Franco- German war. It assumes, however, a somewhat more serious aspect in the light of the trend of Chinese public opinion at the present juncture, and the fact that it has been welcomed with practically universal enthusiasm emphasises the importance which must be attached to the wave of anti-foreign prejudice now sweeping over the Empire. It has long been a commonplace observation that, since the troubles of 1900, both Government and people have confined their anti-foreign efforts to peaceful methods, which, in the hands of skilful passive resisters like the Chinese, have proved much more successful than such ill-considered outbreaks as those of the Boxers. Of late, however, the language used by the native press and the effect produced thereby on the ignorant mass of the people have led the more timid section of the foreign community to fear a revival of actual violence. Undue importance may, of course, be attributed to the disquieting symptoms; still, it would be foolish to under-estimate the gravity of the situation as depicted in the intelligence reports from all the consuls along the Yangtse Valley as far inland as Chengtu. A rumour, of which the source is not quite clear, crediting the treaty Powers with the intention of partitioning China, has rapidly grown in volume and intensity until it has become the chief topic of conversation among the people. Missionaries in such turbulent provinces as Anhui, for instance, who have exceptional opportunities for watching the trend of public opinion, state that undoubted effect is being produced by the dissemination of alarmist placards and leaflets, calling on the people to arm in defence of their country. These pamphlets, which resemble those circulating all over the country, and which would be ludicrous were not their influence so serious, declare that the work of partition has already begun, and magnify such incidents as the visit of Lord Kitchener, or the arrival of a British regiment in Hong Kong into acts of foreign aggression. The result of this agitation is that there is much wild talk of the formation of rifle corps, while numerous bodies of students, notably at Nanking and Changsha, bave petitioned the authorities for a distribution of arms and ammunition.
Hitherto, however, the officials have succeeded in keeping the agitation within more or less reasonable bounds. Their view of the situation is perhaps to be found in a statement made to His Majesty's consul at Changsha by the governor of Hunan. He made no attempt to minimise the gravity of the state of affairs, and expressed his conviction that it was the work of revolutionaries in Hupei. He declared, however, that the rumours were only believed by the students and gentry, not by the officials and the people at large, and that, so long as that was the case, he was complete master of the situation.
Railways.
The above agitation has by no means distracted attention from the Canton- Hankow Railway and the possibility of a foreign loan in connection therewith. The Provincial Assembly of Hunan is taking a prominent part in the movement, and is foremost in advocating compulsory subscriptions and other wild-cat schemes for averting what, in its circular to the other Assemblies throughout the country, it terms a national calamity The Hunanese can never forget that they alone of all the neighbouring provinces drove back the Taiping rebels from their capital, and, in their boasted superiority to all other Cuinese, persistently blind their eyes to what might be learnt by a study of railway matters in other parts of the country. Buoyed up by ridiculously low estimates of the cost of railway construction, flattering themselves with delusive statements as to available funds, and with extravagant hopes of enormous profits-the fact that one of the most anti-foreign newspapers of Shanghae now admits the deplorable state of the Chekiang Railway, owing to the financial starvation of the line, does not give the Hunau agitators pause--and these are now indulging in an orgy of childish arguments against a foreign loan, reckless levies on trade and people, and impudent demands for official support and subscriptions towards an enterprise in which no official interference is to be permitted.
The Shanghae-Ningpo line is making but slow progress towards completion, the energy of the foreign engineers being discounted by the dissensions and the inertia
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existing amongst the Chinese officials. On the Hangehow-Niugpo section, the work of surveying and land-purchase is still proceeding. As regards the already opened Shanghae-Hangchow section, it is the opinion of experts that the present express train speed of 118 miles in five hours is very nearly the highest rate of travelling that is to be expected, owing to the defective construction of the so-called permanent way. Surveys are now being made for an extension of the Peking-Kalgan Railway to Kuei-hua-cheng in Shansi. The length of the extension will be about 200 miles, and the funds are to be provided out of the surplus earnings of the Imperial Northern Railway.
Commercial Situation in Tien-tsin.
The condition of the native debtor firms has greatly changed for the better, and they are beginning to make arrangements with their creditors. While, at the beginning of 1909, the number of native dealers sued by British firms was fourteen, the number at the close of the same year had fallen to seven. In the case of the firms which refused to make voluntary arrangements with their creditors, the difficulty has lain in fixing the responsibility on the proprietors of the defaulting concerns. Even when this has been clearly assigned, the Chinese authorities have in some cases displayed great reluctance to act on the findings of the Shen Pan Ting, and the prospect of obtaining payment from at least four of the defaulting firms is reported by the consulate-general to be practically hopeless.
Campaign against the Lolos in Szechuan.
The punitive expeditions against the Lolos, which were organised after the murder of Mr. Brooke, are proceeding in a desultory and ineffective fashion, though the official accounts which are published in the press are uniformly optimistic. The efforts of the Chinese troops are apparently confined to sundry marches into Lolo territory, careful avoidance of any actual fighting, and some fitful negotiations with the various tribes. It is perfectly clear that the troops at the disposal of the Chinese authorities are totally inadequate they are unable to protect their own people from Lolo depredations, and can bardly therefore be expected to carry out the difficult task of penetrating into the mountain fastnesses of the warlike tribesmen.
Port of Heungchou.
According to an official report, this place, which was created with the object of withdrawing trade from Macao, is being steadily developed. It is now said to be a town of over 2,000 inhabitants, and is provided with a custom-house, a post office, &c. Unfortunately, it would not appear to possess many advantages as a harbour, the water being so shallow that steamers, even of moderate draft, have to anchor a mile from the shore.
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