LAPPA TRADE REPORT,FOR THE YEAR 1902.


　　1°.LOCAL.—The volume of trade in junks passing the Lappa Stations during 1902,exclusive of the Hongkong-Macao junk trade, aggregated Hk.Tls. 16,898,378, exceeding the figures for the year 1901 by Hk.Tls. 2,291,966, and is the highest value on record. Of this increase, however, the greater part was in the value of Rice imported, Hk.Tls. 1,732,916 over 1901, leaving only Hk.Tls. 559,050 to be noted as the actual increase in the value of the trade in all merchandise excluding cereals. It will be seen by reference to Table No. Ⅱ that the Foreign Import trade exhibits an advance of Hk.Tls. 1,944,205—of this Rice and Paddy contributed the greater portion,—and the Native Import trade, a conspicuous increase of Hk.Tls. 666,200. The prohibition against the export of Rice and Paddy to Foreign countries was stringently enforced at the Lappa Stations from the 20th October. This action was dictated by the severe and prolonged drought which so gravely affected the yield of cereals that serious apprehensions were justly entertained of acute and widespread distress in this province. Distress, if not famine, with its correlative in the form of piracy and brigandage, has been acute, and must have crippled severely the resources of the small farmer class and, to a corresponding extent, curtailed their normal powers of purchasing. This untoward check to the development of trade was further emphasised by the continuous and marked fall in the exchange value of silver, by introducing, on the one hand, a harassing element of uncertainty in the sphere of Foreign mercantile operations, and, on the other, enhancing the prices of commodities to Native consumers. The current of trade flowing through these Stations is so largely affected by the condition and prospects of commerce in Macao that reference to the interests and efforts of the Colony may throw light on the Lappa field. With regard to the new Luso-Chinese Treaty, which is being submitted to the Government of Portugal preliminary to ratification, the Leal Senado addressed a communication to the Home Government urging that there be no delay in carrying the matter to a speedy conclusion. It is said that it is proposed to give Macao somewhat the status of a Treaty port in respect of Chinese Customs treatment. The privilege lies in permitting steamers and sailing vessels alike to trade between Macao and Chinese ports, and the obligation entailed is payment of Duties to the Chinese Customs in accordance with the Revised Tariff. It, is pointed out that if the trade of Macao with inland places continues, as heretofore, to be carried on in junks, while that of Canton, as well as that of Kongmoon (江門), situated near Macao and shortly to be administered as a Treaty port, be maintained by steam vessels, the importance of Macao will certainly be seriously affected as a centre of distribution. The prosperity of Hongkong, the primary centre of distribution for South China, will not, it is contended, be injured by the proposed modus vivendi, seeing it is immaterial to that port whether direct communication is or is not held with smaller Chinese ports, so long as these are served through a secondary centre like Macao. Furthermore, it is stated that Portugal has obtained from the Chinese Government promise of a concession to build a railway from Macao to Canton and Samshui. The attainment of this object will assuredly redound to the credit and promote the welfare of the Colony as well as of the neighbouring province.
　　2°.REVENUE.—The total collection for the year amounted to Tls. 424,015, an increase of Tls. 46,409 as compared with that for 1901. Duty and Likin on Opium shows an increase of Hk.Tls. 32,480. General Cargo and Likin Duties, which showed substantial improvement during 1901, have made further satisfactory advances. The Ching-fei Tax has scarcely undergone any change, although the yield from individual items, such as Kerosene Oil, Cotton Yarn, and Matches, shows extreme fluctuations. The marked decrease in the Granary Tax is, of course, due to the Rice prohibition already referred to.
　　3°. FOREIGN TRADE.—(a.) Imports.—The value of the Foreign trade aggregated Hk.Tls. 5,570,095, against Hk.Tls. 3,625,890 in 1901. The paramount factor which contributed to this striking increase was the abnormal importation of Rice and Paddy in conjunction with enhancement of values; the balance of the increase is fully accounted for by the advance in White Shirtings, Indian Cotton Yarn, and Matches. Opium, imported by junks, shows a slight falling off—the figures (1,397 piculs) are, with the exception of 1892, the lowest on record. A general decline is to be noted in Cotton (excepting White Shirtings) and Woollen Goods. Flour, 27,718 piculs, is the highest noted in our Returns. American Kerosene Oil has fallen some 300,000 gallons as compared with the arrivals in 1900 and 1901, but is still in advance of the figures for all other previous years. The Sumatra product arrived to the extent of 228,037 gallons, a little over half of the importation in 1901, but still far in advance of the figures of previous years. Matches arrived to the extent of 217,084 gross, the largest importation since1897. In Metals is to be noted a general decline—the total value was Hk.Tls. 125,941,—except in Iron Wire and Yellow Metal; but it must be borne in mind that the year 1901 was one of exceptional activity.
　　(b.) Exports.—The total value of the Export trade during 1902 amounted to Hk.Tls. 5,928,178,against Hk.Tls. 6,246,617, a decrease of Hk.Tls. 318,439—Mats participate to the large extent of Hk.Tls. 195,000. Luichow (雷州) is the centre of the Mat industry, and in former years the shipments were entirely by Native craft to Macao direct. During the year under review large quantities are reported to have found their way to Kwangchowwan, whence they were conveyed to Macao in a steamer under the French flag; and as cargo carried in steamers is not noted in our statistics, there is accordingly a noteworthy shrinkage in this return. The remaining items which are prominent as regards decrease are: Trimmed and Untrimmed Palm-leaf Fans, Fresh Fruit, Ground-nut Oil, Poultry, Samshu, Refuse Silk, White Sugar, Black Tea (the lowest figures on record), and Leaf Tobacco. The principal articles which show noticeable increase are: 1st Quality Paper (2,297 piculs, the largest export since 1897),Orange Peel (2,423 piculs, the highest figures for 10 years), Pigs, White Raw Silk, Silk Piece Goods, and Brown Sugar (181,197 piculs, some 44,000 piculs over the figures for 1901, and the highest recorded).
　　(c.) Re-exports.—Nil.
　　4°. COAST TRADE.—(a.) Original Shipments Coastwise.—No remarks.
　　(b.) Reshipments Coastwise.—Nil.
　　(c.) Coastwise Arrivals. —The total value was Hk.Tls. 5,400,105, an increase of Hk.Tls. 1,410,967 and Hk.Tls. 666,200 as compared with 1900 and 1901 respectively, thus showing a steady advance. A large number of items contributed their quota to this increase: the most salient were Mats (which advanced from 147,425 pieces in 1901 to 836,323 pieces, owing to an especially keen demand in Chantsun (陳村), Beans and Peas, Fresh Fruit, Ground-nut Cake, Dried Lily Flowers, Ground-nut Oil, Salt, Silk Piece Goods, Brown and White Sugar, and Vermicelli; while among the few marked decreases were Native Cloth (Nankeens). Salt Fish, and Timber.
　　5°. INLAND TRANSIT.—Nil.
　　6°. SHIPPING.—The number of junks, inwards and outwards, employed in the carrying trade of this district amounted to 16,610, representing an aggregate of 964,034 tons: 15,427 junks,826,047 tons, were engaged in the home trade, and 1,183 junks, 137,987 tons, were employed in the Foreign trade. In 1891 the total number of junks noted was 16,601, aggregating 966,717 tons—singularly enough, almost precisely the same figures. The home trade shows a decrease of 8,469 tons,—the Foreign trade, an increase of 5,786 tons,—as compared with the figures for the previous year; this latter is largely due to vessels plying to and from Kwangchowwan, a total of 134 junks, 5,931 tons, as against 52 junks, 1,346 tons, in 1901. The real test of increase or decrease in the shipping trade should be sought in arrivals and departures with cargo; and looked at from this point of view, the year is slightly ahead of its predecessor, the figures being 14,870 junks, against 14,769. During the year 1,888 vessels entered the West River and 1,890 passed out, giving a total of 3,778; of these, 551 took the Motomoon, or Broadway, and 3,227 the Wangmoon, route, against 605 and 2,542 respectively in 1901. The two steamers under the Portuguese flag, the Waon and Taiping, continued to run between Macao and Samshui, and made 546 trips during the year, carrying cargo to the value of Hk.Tls. 473,519.
　　7°. PASSENGER TRAFFIC.—The number of passengers by junks noted at the Lappa Stations was 124,407 inwards and 119,929 outwards, an increase of 7,609 and 7,962 respectively. In addition to the above, the Portuguese steamers Waon and Taiping carried 20,211 passengers in wards and 17,927 outwards.
　　8°. TREASURE.—No movements of Treasure were reported during the year.
　　9°. OPIUM—(a.) Foreign.—There was exceptional activity in the Opium trade, beginning about the 16th June and continuing, without a pause, to the 5th July; then followed a lull, which was succeeded by renewed activity in August, caused by the fact that the provincial authorities had sanctioned a farm, called the Kuang Hsing Kung Ssú (光興公司), on payment, it was stated, of $1,200,000 per annum, for the privilege of taxing to the extent of $5 each ball when boiled down, thus about doubling the existing Duty and Likin. On the 8th September the new Opium farm commenced to function, and up to the end of the month the arrivals of Opium practically ceased—only 34 chests were imported up to the time the farm ceased to exist. Seeing that the farmer established stations in the immediate proximity of the Lappa Stations, and considering that no Prepared Opium passes these Stations, but only the raw article Duty and Likin paid, in transit to centres of distribution or places of consumption, it was quite clear that the monopolist's activity was calculated more to interrupt than to facilitate the smooth working of the Additional Article to the Chefoo Agreement. In pursuance, therefore, of representations made in this connexion, the Viceroy issued orders to the Prepared Opium farmer to abandon work in the vicinity of the Lappa Stations. On the 18th November the farmer ceased to function and the importation of Opium resumed its normal course. The total quantity of Raw Opium paying Duty and Likin was 1,908 piculs, showing an increase of 143 piculs. In addition to the 1,406 piculs shown in our Returns, steamers plying on the Macao-Samshui run carried to Kongmoon and Kumchuk 480 piculs, and the Duty and Likin paid balance of 22 piculs had not entered China on the last day of the year. The following figures show, for a period of four years, the quantity of Opium taken by the two districts under the immediate control of this Customs, namely, Heungshan (香山) and Sanui (新會):—
　　
1899. 1900. 1901. 1902.
Piculs. Piculs. Piculs. Piculs.
946 1,086 1,127  1,364

It is thus seen that the districts which rely on Macao for their supply of the drug continue to increase their consumption. The districts which look to Kwangchowwan for their requirements, namely, Hoiping (閞平), Yeungkong (陽江), Kochow-fu (高州府), and Luichow (雷州),received through Lappa, during the same periods, as follows:—

1899. 1900. 1901. 1902.
Piculs. Piculs. Piculs. Piculs.
604 326 112 231

　　Though a partial recovery is noticeable during 1902, it should not be inferred that Lappa is beginning to resume the office of supplying these lower prefectures, as long as the drug passing through Kwangchowwan can, according to the statements of Macao Opium merchants, be sold $1 per catty cheaper than the Duty and Likin paid article entering by Lappa. According to the Hongkong statistics of Opium shipped during 1902, 1,020 chests, or 1,224 piculs, were declared for shipment to Kwangchowwan. It will be readily seen from these figures the dimensions to which the importation of the drug vi$a$ that port has attained: these shipments would have yielded to the Chinese Revenue $201,960. The wish of the Viceroy to put a limit to the machinations of his own countrymen in this particular has, so far, achieved nothing; it is to be hoped, however, that the subject will not be lost sight of, and that effectual measures will be adopted for the protection of authorised Revenue. The Macao Opium farmer received during the year 3,413 chests; of this quantity, his reported boilings down for local consumption were 965 piculs, that is, 77 piculs less than in 1901, and he reported 3,143 piculs as shipped to American and Australian ports, or 665 piculs more than in the previous year.
　　(b.) Native.—No Native Opium passed the Lappa Stations during the year.
　　10°. MISCELLANEOUS.—The dry weather in the spring tended towards an unhealthy season, and a number of cholera cases occurred in April; in May the disease became very rife in Macao, and in the latter part of the month there was an increase in the number of fatal cases; towards the end of June the visitation disappeared. Macao enjoyed immunity from the plague, but in the adjacent Portuguese possessions of Taipa and Colowan many deaths took place. In previous years when the Colony suffered, the islands in question escaped infection; the reason of this exemption is still unknown. Dengue fever was prevalent the greater portion of the year, and comparatively few escaped, but, as usual, it was not fatal. The rumour that the new Luso-Chinese Treaty provides for a railway, as mentioned in the opening remarks of this Report, has had an improving effect on real estate in Macao, and prices have advanced rapidly and are still on the upward move. Considerable building of an improved type is going on, and new roads continue to be laid out. A Beer brewery, under French management, is being erected; it is said that the water of Macao is of superior quality, an important point in the brewing industry. In 1902 12 merchant steamers, after taking in Prepared Opium, cleared from the outer roadstead—6 for San Francisco and 6 for Australian ports. The net value of the year's trade was as follows:—

Foreign Imports ..........Hk.Tls.  5,570,095
Native "........... 5,400,105
Exports ........... "  5,928,178
Hongkong to Macao Junk Trade ..... " 3,067,879
Macao to Hongkong " "....  1,225,181
 ————

TOTAL ..... Hk.Tls.

 21,191,438
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　　           　　W. NOYES MOREHOUSE,
　　Commissioner of Customs.


　　LAPPA, 13th February 1903.