LAPPA TRADE REPORT.FOR THE YEAR 1897.


　　1°. LOCAL.—The volume of trade carried on in junks through the Lapp Stations during 1897 is in point of value the largest on record since 1887. Exclusive of the junk trade between Hongkong and Macao, which alone represented Hk.Tls. 3,903,035, a value of Hk.Tls. 13,143,774 was reached in 1897, against Hk.Tls. 12,596,298 in 1896, which was itself chronicled as a very good year. A marked increase, amounting to Hk.Tls. 683,971 in Native Imports and to Hk.Tls. 333,108 in Exports, is noticeable; but, notwithstanding an advance in Opium of Hk.Tls. 143,274, a serious decline has to be noted in Foreign Imports. It is fair to state ,however , that Foreign Rice alone, which in 1896 contributed to the bulk of Foreign Imports a value of Hk.Tls. 570,614, only reached in 1897 the modest figure of Hk.Tls. 93,454, a decline incidentally due to short arrivals from Siam and Tonkin, and not likely to recur. Yet it will be found that the decrease in Foreign Imports is also due to a falling off in the Piece Goods and Japanese Match trade—a significant fact if attributable, as seems probable, to the opening of the West River. This event took place on the 4th June, and may be considered, from the influence it will have on the commercial future of this region, the one important event of the year under review. By transferring to steamers a portion of the freight hitherto confined to junks, it will rapidly diminish the volume of trade passing in and out through the Lappa Stations; and keen apprehensions are felt lest that portion of business, by being transferred to Hongkong and Canton, may be lost to the Portuguese Colony. On the West River are situated Kongmoon and Kumchuk, two important markets in this vicinity, themselves already large distributing and collecting centers ; both are now open to Foreign navigation. Steamers bid fair to once more supplant junks at these places, and local traders, if they wish to hold their own and to retain their business, must adopt this mode of transport. Unfortunately ,either from a lack of initiative or from a general disinclination to discard the traditional junk and the large interests it represents, they keep to the old grooves and are, or at least appear to be, reluctant to make serious efforts to adapt themselves to the new conditions. It is true they are ill prepared for the struggle, whereas their rivals from Hongkong and Canton already possess the necessary apparatus—a fleet of light-draught launches admirably suited to the enterprise. At any rate, the few attempts made in the right direction have not been persevered with. Four launches were successively placed on the Samshui-Macao line, taking Kongmoon and Kumchuk on the way both up and down; but freight not being at once forthcoming and the passenger traffic not paying sufficiently, they gave up the line after a very few trips—20in all,—and no longer visit Macao even en passant. This want of enterprise may be partly explained by the fact that certain difficulties exist for Hongkong steamers bound for the West River in entering the Macao inner harbour, as, both inwards and outwards, a long détour has to be made from the ordinary sea route to the Malowchow Pass, the entrance to which, owing to sandbanks, lies some way out from that to the inner harbour . But it may be surmised also that traders and shippers alike will not be slow in learning the lesson that, their goods once on board a steamer, it is more profitable to all concerned to have them taken direct to the nearest place of disposal—West River port or Hongkong ,—and not to Macao, which is in either case only an entrepôt. Meanwhile, Hongkong and Canton steam-launches secure freight on the river; newcomers are obtaining a footing in the business; and the junk trader is losing ground. Despite adverse forebodings, the last 10 years statistics show that business has maintained a firm footing all round, 1897 itself being one of the most prosperous years in the decade. It may well be found that the new trade routes just opened, and the incentive they must give to larger commercial development in these wealthy districts, will more than counter-balance the loss. A short inspection of the "Summaries" of our Foreign Imports and Native Imports and Exports is most instructive, as it enables an idea to be formed of the relative importance of the districts most likely to be touched by the new order of things in this commercial area. These districts, situated in the Kwangchow and Shushing prefectures, are all in water communication with the West River, and from their close proximity to the new centres now opened to steam navigation, may be expected to transfer to these centres part of their former business with Macao. They are—in Kwangchow-fu: Shuntak, Chantsun, Heungshan ,Shikki, Taumun, Sanui, Kongmoon, and Sanning; in Shiuhing-fu: Shiuhing, Hokshan, and Cheungsha. For the eight districts in Kwangchow-fu the tonnage during 1897 was 400,500 tons, out of a total for the whole prefecture of 526,500 tons, and the value of trade was Hk.Tls. 7,000,000, out of a total of Hk.Tls. 9,000,000. The three districts in Shiuhing-fu represent a tonnage of 79,300, out of a total of 88,300 tons for the prefecture, and in value Hk.Tls. 1,145,600,out of a total of Hk.Tls. 1,538,600. Excluding the direct junk trade with Hongkong, the total tonnage which passed the Lappa Stations during 1897 amounted to 700,000 tons, to which, as shown above, these 11 districts alone contributed 480,000 tons, or 70 per cent .; and the total value of the trade was Hk.Tls. 13,143,774, to which these 11 districts contributed no less than Hk.Tls. 8,145,600, or 62 per cent.
　　2°. REVENUE.—The total collection amounted to Hk.Tls.461,528, which, compared with that of 1896, shows an increase of Hk.Tls. 51,226. To this increase every item of Duty, Likin ,and Ching-fei on general cargo, both inwards and outwards, contributed. Duty and Likin on Opium alone showing an increase of over Hk.Tls. 27,000. The Granary Tax, in which a slight decrease appears, was forcibly limited, owing to a prohibition against the export of Rice and Paddy abroad, which remained in force for seven months. In point of Revenue 1897 ranks among the best three years on record since the opening of this office.
　　3°. Foreign TRADE .—(a.) Imports.—With the exception of Grey Shirtings , which advanced on last year by 2,000 pieces, a slight decrease is noticeable throughout the list of European Cotton Goods, principally marked in White Shirtings, 8,000 pieces, and in Dyed Shirtings, 2,000 pieces, less than in 1896; whereas among Japanese Cotton Goods, which were so much on the increase, Handkerchiefs have almost disappeared and Cotton Cloth has receded by no less than 1,300 pieces, though Towels and Cotton Flannels kept close to last year's figures ,and amounted to 14,411 dozens and 7,614 pieces respectively. Indian Cotton Yarn fell off by over 3,400 piculs , which fact, if it is remembered that the import of the last few years was only one-third of what it used to be, does not speak well for the future of this trade. In Woollen Goods, Medium Cloth slightly improved by some 600 pieces, but Narrow Cloth receded from 880 pieces to almost a nonentity, and this, in conjunction with previous years' remarks upon a steady decline, would tend to show that this article is no longer used in these districts .Regarding Piece Goods, Cotton Yarn, and also Japanese Matches, the quantity of which this year was not half the amount it was in 1896, it may be interesting to note the report brought from Shuntak that these articles are now procured there from Kumchuk, whither they are steamer-borne from Hongkong. Metals show no change worth mentioning. As to Sundries ,an increase of some 5,000 piculs is shown in Raw Cotton; while Japanese Matches, as against 764,053 gross, only reached 394,187 gross, but, as already observed, this fall may be only the first indication of a change of market. On the other hand, American Kerosene Oil rose from 208,270 to 355,595 gallons, and Sumatra Oil from 68,675 to 104,470 gallons. However satisfactory this increase in the Kerosene trade may be, it has yet much ground to recover to approach the quantity reached in previous years, viz., over 800,000 gallons. Sumatra Oil continues to be in great demand, and now, the third year of a steady advance, can be said to have taken a firm hold on the market.
　　(b.) Exports.—Brown Sugar advanced from 84,289 piculs in 1896 to 122,947 piculs in 1897; it is brought in bulk from Yeungkong, Onpo , and other districts in the four lower prefectures. The Sugar-cane crops are reported to have been very good, especially so in the autumn. It is stated that arrivals of Sugar from the producing districts were curtailed owing to the demand in Japan being smaller than was anticipated. Prices fell from Tls. 2.80 in the spring to Tls. 1.80 in the autumn. Hemp rose from 1,673 to 3,595 piculs, and Essential Oil(Aniseed and Cassia) from 427 to 1,038 piculs. Fans, Mats, Chinaware, Paper, Samshu, and Tobacco might seem to be new and promising trades if the Export Tables alone were consulted ;but it must be noted that these quantities are normal, but were not recorded in former years among Exports to Hongkong. Black Tea shows much the same proportions as in 1896—25,577 piculs, against 25,507 piculs. For Great Britain the volume of business is slowly diminishing. The bulk was shipped to Hamburg and continental ports, small quantities also going to South America and Africa, the low rate of exchange assisting transactions. Silk is likewise dwindling away and shows lesser amounts than in 1896. A large per-cent age of Silk is packed up and marked in Shuntak, the place of production, for transhipment to Bombay. The business of the Silk filature is said to still give employment to no less than 500 women, and it is reported to have been this year attended with profit.
　　(c.) Re-exports.—Nil.
　　4°. COAST TRADE.—(a.) Original Shipments Coastwise.—No remarks.
　　(b.) Reshipments Coastwise.—Nil.
　　(c.) Coastwise Arrivals.—Of the most important of Native Imports, Salt Fish rose from 237,260 piculs in 1896 to 245,861 piculs in 1897. Notwithstanding this increase, the catch was not up to the expectations of the fish dealers. Numbers of boats are said to have deserted these waters: 700 junks used to be engaged in this trade, whereas only 430, with a population of some 5,000 persons, actually remain. It was already stated in last year's Report that ,owing to the high price of Salt in Macao, fish dealers found it to their advantage to shift their business to Hongkong. The export of Ground-nut Oil, an article of equal importance, declined during the year, the Ground-nut crops having suffered from the gales and floods which prevailed in the four lower prefectures during September. Hence the large increase in the import from Hongkong—111,350 piculs , against 79,361 piculs in 1896.
　　5°. INLAND TRANSIT.—Nil.
　　6°. SHIPPING.—14,375 junks, with an aggregate tonnage of 699,353 tons, were engaged in the home carrying trade passing through the Lappa Stations, showing a decline from 1896 of 1,734 junks and 200,679 tons. Those engaged in Foreign trade—almost entirely with Hongkong—numbered 1,504, representing 190,676 tons, or nearly the same figures as the previous year. The total number of junks passed through the Stations and engaged in both Foreign and Native trade was thus 15,879, representing 890,029 tons, a slight falling off from 1896.
　　7°. PASSENGER TRAFFIC.—The number of passengers noted at the Lappa Stations amounted to 121,048 inwards and 120,436 outwards, an increase of 988 inwards and a decrease of 1,060outwards as compared with the previous year.
　　8°. TREASURE.—NO remarks.
　　9°. OPIUM.—(a.) Foreign.—Against 1,865 piculs in 1896, the import of Foreign Opium amounted to 2,120 piculs, the largest figure recorded since 1887, with the exception of 1894,when 2,175 piculs were imported. This increase, of over 250 piculs, is pretty well divided among the principal markets drawing their supplies from Macao. These supplies were-for Heungshan, 130 piculs; Shikki, 260 piculs; Kongmoon, 362 piculs; Sanning, 325 piculs; and Cheungsha, 386 piculs,—making a total of 1,463 piculs, which represent two-thirds of the entire Opium business. On the other hand, except at Shuitung, in the Kochow prefecture, no serious decline is visible. Both as regards the demand from year to year and the places of distribution this trade must, as a matter of fact, be taken as uncommonly steady and, if anything, on the increase. Neither the growth of the Native drug nor the too readily assumed fact that quantities are smuggled by Singapore junks appear to affect it much within this radius.
　　(b.) Native.—One lot only, of 8 catties of Szechwan Opium, was passed in 1897. From careful inquiries made during the year, it has been ascertained that very little Opium is produced in these parts, and that whatever is grown does not appear to leave the place of production, but is consumed in the locality. It is most difficult to obtain reliable information ,yet , to quote the figures at hand, 200 mou are supposed to be under poppy cultivation in the Heungshan district, which, with a yearly yield varying from 3 to 10 catties per mou , would give from 6 to 20 piculs a year. It is clear that where the Foreign drug can be readily obtained it continues to be in demand, and that, in this part of the Kwangtung province at least, the Native drug is not in favour.
　　10°.MISCELLANEOUS.—To meet the requirements of the river trade, two new Stations were added to this Customs district during the year, viz., Wangmoon Station, at the entrance of the Kerr Channel, and Mongchao Station, on the Broadway (Motomoon), the only two routes authorised by the regulations for vessels plying between Hongkong and the West River ports .Mongchao is a small island at the west end of the Malowchow Pass, and at the same time on the border of the Broadway. It had been selected as a point equally convenient for vessels to call at for their papers, whether taking the Malowchow Channel or going round the islands and Massie Point, and it was thought that larger vessels would take the latter route by preference. The river, however, does not seem to be navigable except for light-draught vessels, and for mutual convenience they are now made to call at Malowchow instead of Mongchao .During the seven months of 1897 in which the West River was open to Foreign navigation,258 vessels passed up river and 258 passed out. Of these 516 vessels, 292 took the Motomoon (Broadway) route, and 224 the Wangmoon route. During December the Wangmoon route was almost exclusively followed. It is a slightly longer way about than through the other entrance for vessels calling at Kongmoon , but it is evidently preferred during the north-east monsoon .In 1897 10 merchant steamers cleared from the outer roadstead—5 for San Francisco and 5for Australia.
　　The net value of the year's trade was—Imports, Hk.Tls. 7,249,460; Exports ,Hk.Tls. 5,894,314.
　　                                                         T. PIRY,
　　                                                                 Commissioner of Customs .
　　LAPPA , 15th February 1898.