(a.)  Owing to the close proximity of Canton, Kowloon, and Lappaall in the Kwangtung, Province, and for the sake of avoiding repetitions, this Report Will be confined to recording the chief occurrences in Macao and the immediate Chinese districts. The Lappa stations being , so to speak, Pulses of Macao, What affects the latter is immediately reflected in the former. A Report not taking into consideration the “happenings” in Macao would necessarily be incomplete; and this must be my excuse for mentioning so much about the Portuguese Colony in what follows.

The 1O years under review have been, generally speaking, peaceful and uneventful ones, and trade has not been stopped or interfered with to any great extent by unusual occurrences. The war between China and Japan passed almost unnoticed in these parts, as was likewise the case when the Boxer troubles broke out up Morth in 1900. What interfered slightly with trade was the first epidemic of bubonic plague during the spring and early summer of 1895, which for a time, while the panic lasted, brought business almost to a standstill. Every succeeding year has, More or less, seen a recurrence of the disease; but as it is now accepted as the “inevitable”, little attention is any longer paid to it, and nothing of a panic takes place on its appearance. Droughts and typhoons, which destroy crops, are immediately followed by a diminished trade, for the purchasing power of the country is thereby affected; but epidemics carrying off thousands of victims have no visible effect. On the contrary, it may be argued that epidemics prove advantageous to Export trade, inasmuch as there are fewer months to feed, and therefore more local produce available for sending elsewhere. There is always, under all circumstances, an abundance of labour, so the productiveness of the country is in no way diminished.

One of the most curious and instructive occurrences that happened during the decade was a “boycott”, instituted by the Chinese, as a protest against what they considered an infringement on their personal rights by the Macao authorities. In the spring of 1892 the Macao authorities, with a view to give effect to peremptory orders form Lisbon to increase the revenue, proposed and obtained permission form the Home Government to establish a farm for the sale of Liao-pan(), a cheap kind of samshu distilled from rice, much used by workmen and the poorer classes. The farm was eventually purchased by a Hongkong Chinese, for $7,800, and, under the conditions prescribed by the authorities, a tax of 3 candareens per catty (almost 5 cents) was leviable form 1st May. As this meant an increase in the price of this wine of 16 per cent., on an average, great discontent was caused, especially as reports were circulated that this was but a beginning and that taxes were to be levied on all the necessaries of life, one after, the other. Petitions form the Chinese poured into the Leal Senado praying that the farm be cancelled, and that body, after, a careful inquiry into the circumstances, forwarded them on to the Governor, on the 11th May, with a strong recommendation that the prayer be granted. No reply having been given, the Chinese community determined to suspend business. On the 20th almost every shop in Macao was closed; nothing could be bought; no one would work; and no cargo could be landed or shipped. So general a suspension of business was said to have been unprecedented during three centuries. The Government telegraphed over to Hongkong for rice, with which to open a depot for the sale of it to poor Portuguese; but convicts had to be employed to land it. Things continued in the same stated on the 21^st -except that the excitement among the populace had been largely increased by the ill-advised action enjoined on the soldiers and marines in forcing shops to open, when it was generally found that the stock-in-trade had been entirely removed; and that, scenting mischief, large numbers of the Triad Society had flocked into Macao. Arrangements were said to have been made to fire the town at several points that evening , and the lives of prominent Chinese merchants had been threatened. The following day the Government had to back down, and the shops all reopened. It was stated that this was brought about by a prominent Portuguese making himself responsible for the taxes leviable by the farm for six months, so as to permit of the case being referred in its entirety to Lisbon. On the 28^th the farmer was bought out, $8,000 being paid him to abandon his concession. The Government afterwards adopted a system of licensing the wine shop, which brought in about the same revenue as the farm would have done, but was minusin the eyes of the Chinese the objectionable features of a monopoly . Since that time many monopolies have been started, and no longer are efforts made to combat the principle. In fact, the prediction made thenthat the farm for the sale of liao-pan was but a beginning , and that taxes were to be levied on all the necessaries of life, one after the other-has come true. These monopolies are all managed by Chinese, who pay fixed sums for the privilege and make large profits for themselves. Such monopolies certainly increase the cost of living in Macao, and keep down competitionthe soul of trade; but they bring in necessary revenue, and as a fair proportion of this is spent in making improvementssanitary houses, roads, etc.,the system has some advantages.

Towards the close of 1892 the Companhia Metropolitana de Rio Janeiro, for the promotion of Chinese emigration to Brazil, opened an agency in Hongkong; but the legislative enactments there being unfavourable to such an enterprise, the locus operandi was removed to Macao and the German s. s. Tetartos chartered to convey the emigrants, to their destination. The steamer was arrested in Hongkong in July 1893, on a charge of infringing the Chinese Emigration Ordinance of 1889; but was acquitted by the jury and released. In September she came to Macao, and left on the 17th October for Rio, with 474"emigrants." She was reported to have reached her destination, but the actual date of arrival was variously stated. The Chinese authorities protested against this emigration; and the objections to it were many and serious. A Treaty was negotiated, it is true, between China and Brazil in 1881; but no provision was made in it for emigration, and its inadequacy and the necessity for a supplementary special Convention, in order to secure the labour desired, had been recognised by Brazil, by the despatch to China, for this purpose, of a special Envoy, who was then en reute. Brazil had no representative in China, and China had no accredited agent in Brazil to watch the emigrants interests; the latter country was in the throes of revolt; and the fact that the company refused to await the Envoy and the conclusion, by him, of the negotiations its own Government acknowledged to be necessary, naturally raised suspicion of its bona fides, especially as the terms offered the emigrants contained a most objectionable clause, transferring the emigrant and his contract to third parties. The Macao authorities virtually maintained that, so long as the emigration was conducted in conformity with Portuguese law, China had no ground of remonstrance. As a matter of fact, Portuguese law provides only for free emigration, i.e., emigration under which each emigrant pays for his own passagean impossibility when the passage is as costly as it is to Brazil. But waiving this point, and admitting that emigration to Brazil under suitable conditions night be desirable, China would, under the circumstances detailed aboveand seeing hat the emigrants were not residents of Macao, but subjects of China,have failed in one of the primary duties of a self-respecting Government to its subjects had she remained silent. Her protest was ignored; but no second steamer has been despatched.

Early in 1893 proclamations were issued by the Chienshan Magistrate, in accordance with instructions received form the Viceroy, prohibiting Foreigners  form shooting in the Heungshan district. The reason of this prohibition was said to have been owing to the carelessness on the part of Portuguese, often mere boys, who roamed about the neighbouring districts shooting at everything they saw, regardless of what might be in the line of fire. Several accidents to Chinese had occurred, and on these being reported to the Viceroy, he decided on total prohibition of shooting in the Heungshan district. Considerable correspondence followed between the Chinese and Portuguese authorities, the Governor of Macao declining to admit the right of the Chinese to prohibit Foreigners entering China form Macao for any purpose whatsoever. He expressed a willingness to see that any regulations regarding sport which existed in China were complied with; but as, under the Treaties, Foreigners were allowed to freely travel within the 100-li radius, he claimed that Macao must stand, in this respect, on at least an equal footing with a Treaty port. He suggested to the Viceroy that shooting regulations, applicable to Natives and Foreigners alike, should be drawn up, as had been done in Japan, and that he would see that they were complied with by the residents of Macao. This suggestion was rejected by the Viceroy, on the ground, it was said, that as the Treaties made no mention of shooting, Foreigners could not claim the right to shoot at all, and therefore the authorities were justified in prohibiting it and refusing to grant, in this connexion, extra-Treaty privilegesthe right of Foreigners to move about freely without firearms not , of course, being contested. Not with standing the prohibition, sportsmen form both Hongkong and Macao still continued shooting in the proscribed Chinese territory, and, as long as they avoided the immediate neighbourhood of Chienshan met with no interference of any kind. Towards the end of august 1893, however, four Portuguese, shooting in the vicinity of Chienshan, were surrounded by Chinese soldiers and had their fowling -pieces taken away from them . They were not molested in any other way. The guns were reported to have been confiscated and sent to Canton. The affair caused an extraordinary amount of ill-feeling in Macao, and the local press was full of articles and letters on the subject. The prohibition was evidently withdrawn shortly afterwards, as shooting has gone on since without any attempt on the part of the Chinese authorities to stop it.

The delimitation of the frontier between Macao and China was not proceeded with during the decade under review, and, as, was to be expected, several small disputes about boundaries resulted. What is known as the “Macarira incident” occurred towards the end of 1896 and in the beginning of 1897. Macarira is the island just south of the Macao peninsula, and its northern shore forms the southern bank of the Malowchow Pass; it is undoubtedly Chinese, as the Portuguese have never attempted to function in any way in the adjacent waters. The incident was brought about by the Macao Government attempting the construction of a military post on the eastern end of the island, opposite Taipa. The local Chinese authorities objected to this; but no attention was paid to their objection, They consequently reported the matter to the Canton Viceroy, who referred it on to the Tsungli Yamen at Peking . The Yamen at once sent a protest against this encroachement on Chinese territory to the Governing Board of Macao(the Governor being then absent), and at the same time instructed the civil and military officials of Chienshan to whose jurisdiction Macarira belongsto take the necessary steps to cause the removal of the unauthorised buildings. When these officials tried to visit the spot for an inspection , their landing was forcibly opposed by two armed Portuguese launches. The Chinese retired before this show of force majeure, and reported to the Viceroy for further instructions. For a time it looked as if serious trouble would result; but in the end wiser counsels prevailed, and an arrangement was arrived at by which both sides agreed to withdraw from the island and all building operations were to cease. This arrangement is still in force. The appointment from Lisbon, towards the end of 1901, of a special Envoy and Minister Extraordinary to Peking would seem to indicate that an attempt will shortly be made to delimitate the boundaries. It would certainly be much more satisfactory, form every point of view, if some definite understanding could be arrived at.

In March 1899 what is known as the "rice junk case" occurred. On the morning of the 7th March the Customs launch Lungtsing seized a junk laden with rice, the exportation of which had at that time been prohibited. The seizure was made in the vicinity of Kiao Island, about 19 miles north of Macao, where, on the approach of the Lungtsing, the crew of the rice junk deserted her. The junk was towed to the Nine Islands Customs station, where she was left in charge of four Customs sailors, in uniform, whose orders were to sail the junk to Malowchow via Water Island. Towards 6 o'clock of that afternoon the junk started for Malowchow, but shortly afterwards was becalmed. The calm lasted all night and the following morning, when, in addition, there was a heavy fog. Owing to the fog and strong current, the junk drifted into Portuguese waters off Cabrita Point, and was there seized by a Portuguese Government launch sent purposely to look for the junk. It seems that some of the crew, who had abandoned the junk on the approach of the Lungtsing, had come to Macao and reported that their vessel had been pirated by the Lungtsing in Portuguese waters. The rice junk, after being re-seized by the Portuguese, was taken to Macao, and the four Customs sailors found on board her were thrown into prison. An investigation, with closed doors, was held, and the Governor's decision was that the junk and her cargo were to be handed back to the Chinese consignees. The case. However, was referred to Lisbon, and is still unsettled.

The following extracts form the "Echo Macaense" of 26th March 1899 will show that the Governor's action was not approved by the editors of that paper:

    “The ‘Lusitano’ comes to the charge, dashing its arms in defiance, flaunting our lack of patriotism in our faces with these words, ‘The “Echo” was fully aware that the junk was seized in our waters and that a real piratical act was practised by the seizing cruiser.’ etc. The occurrence took place in quite a different manner, and a careful inquiry shows that the facts were as follows:Export of rice form China is under prohibition, by order of the Viceroy of Canton, In compliance with this order the Chinese revenue cruisers chase smugglers. While engaged o this duty on the 7th March, the cruiser Lungtsing was boarded by three informers, who stated that, abreast of Kiao, 19 miles north of Macao, there was a fishing junk laden with rice. The cruiser proceeded to the place indicated and seized the junk, whose crew had just fled ashore. The junk was towed to Nine Islands, where there is a Customs station; but on the way, and before arrival there, the three Chinese informers were put on board a passing fishing junk. The Lungtsing placed four of her sailors on board the arrested junk and went away north. The junk was to proceed to Malowchow station, at the entrance of Macao Inner Harbour, keeping  to the south of Taipa and Colowan Islands; but, owing to a strong in-setting current, she drifted into the Macao roadstead. The consignees of the rice were informed of the fact, and immediately made a complaint to the Capitainerie, whereupon a Macao police launch was sent, and met, in Portuguese waters, the junk in charge of the four Lungtsing sailors: the police launch arrested the sailors and detained the junk. Such are the facts that we have minutely investigated and heard form those who can give a faithful and reliable account of the occurrence. It is evident, therefore, that the appearance of the junk in Macao waters was an unexpected incident, which, while no doubt capable of giving rise to a delicate question, could in no sense be interpreted as a deliberate attempt against laws and rights, this incident being unexpected and the result of force majeure." 

The article then gives a long dissertation on the laws applicable to the case, and finally criticises the Governor's decision: 

"There was no trial. There was but one-sided evidence. The decision was not based on any law. There was only an investigation, that lasted for three days, with closed doors, in the Procaratura Administration of Chinese Affairs; and we know that in this investigation they failed to prove that the seizure had taken place in Portuguese waters. After this investigation, the four sailors of the Chinese cruiser were released; but, by order of the superior administrative authority of the Colony, the junk and cargo were handed to those China men who presented themselves as consignees …… Further, we must bear in mind that the four sailors were released without being punished, which shows that they were not guilty of any crime, nor even of breaking any regulation. The release of these four sailors without any punishment proved that the crossing through the Portuguese waters by the arrested junk, in charge of the four sailors of the a Lungtsing, did not constitute any crime nor breach of regulation. Consequently, if that incident was lawful, it could not invalidate the seizure nor destroy the legitimacy of the possession. If it is true that the seizure took place outside Portuguese waters, and if the officers of the Chinese Customs were already in Possession of the junk when she met the police launch, it seems to us that the question is extremely simple and cannot offer any ground for doubt, as the incident of the prize crossing Portuguese waters did not invalidate the seizure nor destroy the legitimacy of the possession. This was our first impression, and we expressed it very frankly, with the desire to assist in clearing up this matter; and now, having studied the question more attentively, we maintain our original opinion, because we do not see any fact, law, or rule that can persuade us to change it."

(b.) During the decade (1892-1901) the net annual value of the trade in junks passing the Lappa stations has been as follows:

     In comparing the figures of 1901 with those of 1892, the increase in the value of the trade would seem to have been over 54 per cent. This, if really true, would nave been most satisfactory; but, unfortunately, it is not so. The increase is principally due to a change in the Kowloon Customs stations around Hongkong, owing to the extension of British territory in 1899, which resulted in the withdrawal of the Changchow station. All the trade passing the latter to and from Hongkong, and previously included in the Kowloon statistics, in October of that Year (1899) came under the supervision of the Lappa Customs, and has helped to swell our statistics to no inconsiderable extent. Up to that time the Lappe statistics only took into consideration the trade to and from Macao. During the last three months of 1899 this Hongkong trade increased the Lappa values by Hk.Tls.847303; in 1990 the increase amounted to HK.Tls.3794327; and in 1901, to HK.Tls.4399186, after ducting, for purposes of comparison, the Hongkong trade during the past three year form the Lappa statistics, the net value of the trade of each year was as follows: 

The increase, therefore, of 1900 over 1892 shrinks to the insignificant sum of a little more than Hk.Tls.700,000not 8 per cent.

The first four years of the decade present no marked changes; but in 1896 there was the big increase of over Hk.Tls.3,000,000 in the value of the trade. While the trade of that year did increase, it did not do so to the extent indicated, a portion of the increase being due to a change in the system of valuation of articles. Prior to 1896 the values of the Lappa Customs were too low, and led to an under-valuation of the traffic passing though the Lappa stations; consequently, a readjustment of values to correspond with those prevailing at the Canton and Kowloon Customs was made. This revision, while bringing Lappa in line with the neighbouring Custom Houses, had the effect of introducing the element of an exaggerated increase in respect of comparisons instituted between the values of the trade prior and subsequent to that year. The best year of the decade was, undoubtedly, 1897, when the total value was more than HK.Tls.13,000,000. The year 1899 came pretty close to 1897, with HK.Tls.12,900,000. The following year1900saw the value decline to HK.Tls.9,700,000; and 1901, to HK.Tls.10,200,000. Viewing the trade of the latter two years form a Macao point of view, a large decrease has taken place compared with the trade of the previous four years, and the slight increase in value over of commodities.

There can be no doubt that the trade of Macao is decreasing, and will continue to decrease, with every increase of steam communication form Hongkong to inland places, The opening of the West River, as will be shown later, on has taken much trade form Macao; and the opening of the French port of Kwangchowwan, in the Luichow peninsula, has also injured her junk trade. This injury will go on increasing, unless the Chinese Government takes steps to ensure that the trade entering and leaving her districts in the neighbourhood of Kwangchowwan pays the same Dues and Duties as the trade passing the Lappa stations. The establishment, too, of regular lines of junks toward by steam-launches, trading from Canton to places down the south-west coast(i.e., Yeungkong, Tinpak, and Shuitung), is taking away trade that fomerly passed through Macao. Transhipments of Foreign goods from Macao have fallen from an average value of Hk.Tls.3,050,000 during the first four years of the decade, and HK.Tls.3,550,000 during the second four years, to Hk.Tls.2,190,000 in 1900 and Hk.Tls.1,840,000 in 1901. Transhipments of Native Imports during the latter two years, on the other hand, show considerable increases over the first four years of the decade, and but a slight decrease when compared with the second four years.

    Since the trade passing the Changchow station has come under the supervision of

the Lappa Customs, our statistics prove that both Foreign and Native Imports are arriving from Hongkong in annually increasing quantities. This seems to indicate that the Chinese are going to the fountain-head for supplies, and have found out the folly of taking water from the wayside tap. No doubt high steamer freight rates and the additional cost of transhipping after arrival in Macao have led to this change. With many cargoes, a day more or less en route has no disadvantages, while the saving in freight is considerable, and in these days of keen competition every cent must be looked after. Exports to Macao during the first four years of the decade averaged Hk.Tls.4,026,000 and during the second four years, Hk.Tls.5,660,000, while the average for the last two years was Hk.Tls.4,908,000. The direct Exports to Hongkong for 1900 and 1901 averaged Hk.Tls.1,035,000.

Coming to the changes that have occurred in articles of import during the decade (see comparative table of principal Imports given as Appendix No. 1 at the end of this Report), the serious decline that has taken place in Cotton Piece Goods is most noticeable. The importation of 1892 was 359366 pieces, representing a value of Hk.Tls.696,000. The following year1893the importation dropped to 290,586; and in 1894 there was a further drop, to 217,636 pieces. In 1895, 1896, and 1897 the trade in Cotton Piece Goods revived somewhat, the total import having been, respectively, 269,914, 256,642, and 245,377 pieces. In 1898 there was a big decline, to 128,138 pieces; and the three succeeding years saw a further drop, the figures for 1899, 1900, and 1901 being, respectively, 93,021, 85738, and 71,969 pieces. The falling off in 1894 was largely due to the serious drought which prevailed till late in the spring of that year, which reduced the harvest and diminished the purchasing power of the surrounding districts. Furthermore, the war with Japan withdrew a considerable amount of money from the people of this province. To crown the misfortunes, four typhoons, in quick succession, were experienced towards the end of September, inflicting great damage both ashore and afloat. The decline in 1989 and the following years was, no doubt, due to the opening of the West River, which event book place on the large consuming centressuch as Kongmoon, Chantsun, and Shuntak, formerly customers of Macaoto draw supplies from Hongkong and Canton, notwithstanding the fact that via Macao a reduction of 40 per cent. is allowed on the Duties leviable, The merchants of Macao made an attempt to retain this trade, by putting on two small Portuguese steamers between Samshui and this place; but the venture met with little success. It is impossible for Macao to compete against Hongkong for the trade of places in direct communication with both places, the mere cost of transhipment landing and reshipping:putting the former at a great disadvantage.

Taking the principal items under the Cotton Piece Goods heading:White Shirtings the importation of which in 1892 amounted to 161,207 pieces, have been decreasing year by year with accelerated rapidity, falling to the puny figure of 5,379 pieces in 1901. Grey Shirtings in 1892 registered a total of 95,020 pieces; the tale of nearly every succeeding year is one of constant and abrupt decline, till they sank in 1901 to the comparatively insignificant total of 6,752 pieces. Dyed Shirtings (Figured, etc.) have remained fairly steady, with an importation of 12,798 pieces in 1892, 13,326 pieces in 1896, and for the last three years of the decade have averaged 12,000 pieces, or practically the same as that of 1892. T-Cloths have receded from 72,709 pieces in 1892 to 13,067 pieces in 1901; the decline since 1893 has been steady and continuous. Cambrics, Lawns, and Muslins had an importation of 7,602 pieces in 1892, the following year showed a small decrease, while in 1894 there was a big drop, to 3,606 pieces; the succeeding six years importations show but little variations from the 1894 figures; during the last year of the decade the quantity rose to 4,976 pieces. Unclassed Cotton Goods is the only item under the Cotton Piece Goods heading which shows an increased importation during the decade. In 1892 the quantity was 10,030 pieces, and though the demand somewhat slackened, importations having reached 32,414 pieces in 1901. The leading items included under the Unclassed heading, arranged in the order of their present importance, are Japanese Cotton Flannel, Damasks, Chintzes, European Cotton Flannel, and Japanese  Cotton Cloth. In 1901 the aggregate value of Unclassed Cotton Godds was Hk.Tls.69,249. of which Hk.Tls.62,675 represented the value of the leading items as enumerated, to which fabrics of Japanese origin contributed more than half, namely, Hk.Tls.39,418. Japanese Cotton Goods, by reason of their comparative cheapness, have gained a strong hold on the market, and are steadily supplanting English, American, and German goods of a similar class, notwithstanding the superior quality of the latter. Japanese Cotton Flannel appeared for the first time in our statistics in 1894, when 87 pieces arrived; in 1895 it was imported to the extent of 4,507 pieces; and thenceforward, with the exception of an unimportant lapse in 1898, it increased rapidly and gained a solid footing in the market, the importations amounting to 16,063 pieces in 1900 and 15,037 pieces in 1901. Dyed Cotton Damasks, having fallen off continuously form 830 pieces in 1892 to 380 pieces in 1898, Rose from 982 pieces in 1899 to 2,322 pieces in 1901; the explanation of this increase is reported to be due to this fabric being more glazed during the last couple of years and lending itself to lining purposes. While the demand for Chintzes has fluctuated somewhat from year to year, comparison shows that the importation of , roughly, 4,000 pieces in 1892 has been generally speaking ,fully maintained. European Cotton Flannel has had a checkered career. In 1893 arrivals amounted to 762 pieces, and speedily declined to 260 pieces in 1895, falling the following year to 22 pieces; they vanished entirely form our statistics in 1897, and assumed in 1898 nearly their original proportions, to fall heavily in 1899; in 1900 the importation amounted to 1,135 pieces, and in 1901 to 1,494 pieces. The quantity of Japanese Cotton Cloth received in 1892 was 3,036 pieces. On the whole, the trade in this article has been characterised by an upward tendency: in 1899 the importation amounted to 1,305 pieces; but in 1900 there was a sharp elapse to 4,813 pieces; in 1901 it partially recovered, with 8,087pieces. This Cloth is largely used for under-clothing by the well-to-do and for outer apparel by the poorer classes.

The decline in Indian Cotton Yarn began during the first year of the decade, the importation of 1892 – 62,656 piculs showing a decrease of nearly 40,000 piculs under that that of 1891. This heavy fall was reported to be due to Chantsun and Tungkun drawing, from 1892, the bulk of their supplies from Canton instead of Lappa. Importations decreased in the following year to 34,896 piculs, and fluctuated but slightly till 1898, when they rose to 44,014 piculs. Decline set in again in 1899, and continued to the close of the decade, when the total importation amounted to only 26,517 piculs, against an annual average of about 34,000 piculs for the years 1893 to 1897.

The demand for Woollen Goods has never been great in this semi-tropical climate; but what little demand there was has been consistently decreasing. The total arrivals in 1892 were 14,495 pieces, and in 1901 the figure had steadily declined to 5,123 pieces.

The trade in Metals of all kinds has continuously increased, the value of importations in 1892 amounting to Hk.Tls.46000 and to Hk.Tls.149,334 in 1901, nail-rod Iron rose from 1,915 piculs in 1892 to 6,527 piculs in 1901; Bar Iron from 1,864 to 4,417 piculs; Iron Wire, from 186 to 1,830 piculs; Old Iron, from 13,966 to 18,830 piculs; and Unclassed Ironware, reom 2,950 to 6,464 piculs. Lead in Pigs increased from 1241 to 1489 piculs; and Steel from 459 to 526 piculs.

    In Foreign Sundries, Raw Cotton has fluctuated cons9iderably during the decade.

In 1892 18,426 piculs were imported; in the following three years importations fell to an average of 6,000 piculs, when an upward tendency asserted itself, which reached to 16,100 piculs in 1899; then an abrupt fall took place, reducing the 1900 total to 5,055 piculs; a slight recovery occurred in 1901, the quantity rising to 8,504 piculs. Another article of raped growth and raped decline was Matches. The importations of 1892 were 160,563 gross; in 1895 they had risen to 509,914 gross, consisting almost exclusively of Japanese make; and in 1896, notwithstanding a rise in price from $14 to $19 per case, they reached the record figure of 746,431 gross; the quantity in 1897 fell to 394,187 gross, and has continued to decline during the following four years, the importations of 1901 aggregating only 118,576 gross. The marked decrease since 1897 is undoubtedly due to the opening of the West River. American Flour averaged over 20,000 piculs during the first five years of the decade, when the consumption fell to an average of 15,000 piculs in the three following years; in 1900 it rose to 2,853 piculs, and 1901 saw a further increase, to 27,450 piculs.

There has been a big jump in the arrivals of Kerosene Oil during the decade: in 1892 the quantity was 658,427 gallons, while in 1901 there were 1,747.360 gallons. But this large increase is in the direct trade with Hongkong; the Macao trade in this article is slowly being extinguished, owing to the ill-advised action of the Macao authorities in allowing a Kerosene Oil monopoly to be started in 1894. No one but the farmer is allowed to buy and sell this commodity, and he, in his haste for wealth, raised the price to such an extent that traders were forced to go to Hongkong for supplies. In 1893 the quantity of Oil shipped form Macao was 878,603 gallons. The monopoly was started on 1st April 1894. During the ante-monopoly first three months of 1894 large shipments of Oil were made, and consequently the year's figures show only a slight reduction, to 751,360 gallons, amounted to but 310,000 gallons. Such have been the results of the monopoly in Macao: with an ever-increasing trade, shipments have declined from over 878,000 gallons to 310,000 gallons. This is the direct loss to the Macao trade caused by the establishment of the monopoly; but, indirectly, forcing traders to go to Hongkong for supplies of Oil has brought heavy losses in other respects. As regards the different varieties of Kerosene Oil, the American takes the lion's harein 1901 the quantity was 1,334,735 gallons. Sumatra, which first appeared in the Lappa statistics in 1895, with an importation of 15,675 gallons has increased steadily to 412,625 gallons in 1901. Russian Oil, which in 1892 had an importation of 55,689 gallons and 1899 and 1900 of 100,215 and 85,370 gallons respectively, has disappeared in 1901.

The arrivals of Foreign Rice and Paddy are, to a certain extent, indications of the state of the Rice crops and prices of this article in the Kwangtung province. When the harvest has been bad and prices are high, Foreign Rice comes in in large quantities. Judging by this gauge, the years 1894, 1895, and 1986, each with an importation of over Hk.Tls.500,000 in value, could not have had very bountiful harvests; while 1900, with and importation valued at Hk.Tls.1,162,377, and 1901, valued at Hk.Tls.792,489, must also have had comparatively poor harvests.

The value of Native Sundries imported has risen form Hk.Tls.2,474,184 in 1892 to Hk.Tls.4,733,905 in 1901. The trade formerly reporting at the Changchow station accounts for Hk.Tls.1,532,000, and the balance of the increase can be ascribed to the appreciation in values, as the principal items in the comparative table show but little improvement in quantity. Bran(used for feeding pigs), with an importation of 25,846 piculs in 1892, reached 200,834 piculs in 1901 . Native Cloth *Nankeens), during the decade, rose from 1,763 to 3,629 pculs; Fresh Fruit, Form 8,047 piculs; Hemp, from 7,300 to 11,952 piculs; Ground-nut Oil, form 106,835 to 112,434 piculs; Soy and Sauce, Form 3,830 to 18,128 piculs; and Sugar, from 20,757 to 33,049 piculs. White Sugar, during the same period, decreased from 26,334 to 22,678 piculs; Vermicelli. from 20,300 to 17,336 picus; and Dried Prawns, from 6,136 to 2,694 piculs. While the value of Silk Piece Goods shows the big drop of from Hk.Tls.17,875 to Hk.Tls.67,739,the value of Old Clothing (often Silk)has increased form Hk.Tls.171,875 to Hk.Tls.67,739, the value of Old Clothing *(often Silk) has increased form Hk.Tls.8,566 to Hk.Tls.108,441. Medicines have also declined, from a value of Hk.Tls.169,437 to Hk.Tls.128,139. The importations of Salt Fish varied considerably during the decade, the highest figures being reached in 1893 and 1899, with 279,219 and 274,187 piculs respectively; the lowest were in 1895 and 1898, with 230013 and 219341 piculs; the decade began with an importation of 259,611 piculs and ended with 248,224 piculs. The value of this necessary article of diet for the Chinese has increased from Hk.Tls.2.60 to Hk.Tls.5.40 per picul.

Tuning to Exports, the comparative table of principal articles of export given at the end of this Report (see Appendix No.2) will show the course of this branch of trade during the decade. The value of Exports has increased from Hk.Tls.3,831,051 in 1892 to Hk.Tls.6,146,617 in 1901. In the latter increase, over Hk.Tls.1,000,000 is due to the direct trade to Hongkong which since October 1899 (date of removal of the Changchow station )has come under the supervision of the Lappa Custonms. Deducting the direct trade with Hongkong, the increase in the trade of the last year of the decade would seem to have been over Hk.Tls.1,300,000 in excess of that of the first year of the decade. Had it been so, the increase would have been a very satisfactory feature; but a study of the lappa statistics will reveal that, with but a few exceptions, Exports have not increased in quantity. The values of certain commodities have gone up considerably, and a very large proportion of the above-noted increase is due to this fact. Of course, it must be remembered that the opening of the West River has attracted to steamers a fair amount of cargo witch formerly found an exit through the Lappa stations, and there can be no doubt that if circumstances were the same as then, the Export trade of Lappa would present much pore favourable returns.

Mats (Tea, Sugar, etc.), for packing purposes, which now stand first in order of importance, are a speciality of the west coast districts. They are made in the Luichow prefecture, whence they are shipped to Macao, Pending reshipment to Hongkong. In the first year of the decade they took fourth place in the list of leading Exports, when the total quantity exported amounted to nearly 17,000,000 pieces, value Hk.Tls.306,000, against 25,500,000 pieces, value Hk.Tls.842,000, in 1901.

Silk of all kinds, which was the principal Export in 1892, dropped to second place towards the end of the decade, although the quantity shows a slight increase. The following table gives the export during the 10 years:

The figures show some fluctuation, but the tendency ,on the whole, has been somewhat to wards an increasing rather than a decreasing exportation. The serious decline in 1894 was due to the Silk crops having suffered severely from the effects of a drought in the spring of that year, and the marked advance the following two years was owing to an exceptional yield in both quality and quantity. The record exportation of 1899 arose from the production being greatly encouraged by the advance in prices. The principal Silk fields are at Shuntak and the vicinity.

The average annual export of Brown Sugar for the last 10 years has been over 112,000 piculs. The yearly figures show considerable fluctuation. In 1892 the total was 91,659 piculs. In the following year the yield of the Sugar Cane plantations was exceptionally good, the demand for the Japanese market very Keen, and prices particularly remunerative ,with the result that the total departures reached the record figure of 152,660 piculs. The lowest point for the decade was touched in 1895, when the amount was only 70,474 piculs; the crop of that year was, however, said to have been fully 40 per cent. better than the 1894 one, owing to the absence of typhoonsthe decrease, in spite of the improved crop, of the Sugar passing the Lappa stations was attributed to much of this staple being sent direct to Hongkong during the plague panic which prevailed in Macao in the spring and early summer of 1895. The following years witnessed satisfactory advances; but in 1898 a falling off took place, due to the smaller yield of the plantations, owing to an exceptionally dry season, especially in the chief producing dituicts Luichow and Hainan. In 1899 crops again suffered from a drought, and departures were reduced to 96,027 piculs. For the last year of the dcade the total exprortation, which takes second place, amounted to 137,415 piculs.

    The trade in Leaf Tobacco, which is cultivated in the district of Hokshan and the west coast region, shows improvement, the quantity shipped being 27,346 piculs in 1892, against 36,434 piculs in 1901. the shipment of Prepared Tobacco amounted in 1892 to 403 piculs, and at the close of the decade it will be seen to have reached 24,141 piculs. The increase, however, is not to be ascribed to any development in the trade, but only to the assumption by the Lappa Customs of the control of the trade formerly passing the Changchow station.

The value of Timber (Hard-wood and Soft-wood Planks) in 1892 was over Hk.Tls.300,000; but in 1895 it rose to Hk.Tls.585,000 in 1896 to Hk.Tls.840,000, and in 1897 to Hk.Tls.904,000. In 1898 the value fell to Hk.Tls.215,000 rising slightly the next two years1899 and 1900to Hk.Tls.224,000 and Hk.Tls.247,000 respectively. In the last year of the decade it again dropped, to Hk.Tls.183,000.

Ground-nut Oil which had an average export of nearly 34,000 piculs during the first five years of the decade, fell to 20,000 piculs in 1897, 12,000 piculs in1898, 5,000 piculs in 1899, and in 1900 to only 628 piculs; in 1901 there was a small increase to 1,700 piculs. The cause of this decrease during the past five years is said to be due to unproductiveness of crops. Ground-nut Cake has also declined, form 43,000 piculs in 1892 to 3,000 piculs in 1901 .

Palm-leaf Fans advanced slowly during the first half of the decade, but with great rapidity during the second half. In 1892 the figures were nearly 11,000,000 pieces, and in 1901 they totalled over 41,000,000 pieces.

The following table shows the export of Tea of all kinds during the decade:

While the quantity of Tea exported during 1892 and 1900 shows very little difference, there was a serious drop of about 7,000 piculs in the last year of the decade. The Tea now being exported is almost exclusively sent to Hongkong, for sale to Chinese there and in the Straits Settlements. The one remunerative business with Great Britain, and to a certain extent with Australia and America, causing shipments up to 5,000,000 lb. a season, has, in the face of the competition of British-grown Teasthe popular article of the day in the United Kingdom, faded away until now it is almost nil. This is partly due to want of care on the part of the cultivator in China and partly to the superior strength of the British-grown article. The silver price of Tea has changed very little during the past 1O years, while exchange has fallen heavily; and consequently, one would suppose China Teas could hold their own in Foreign markets. Owing, however, to strength being demanded nowadays, China Tea has gone out of favour with the majority of Foreign buyers, notwithstanding the fact that many eminent medical men recommend its use in preference to Ceylon and Indian Teas.

Among the Exports of minor importance, Samshu shows an increase, from 27,000 piculs in 1892 to 37,000 piculs in 1901; Silk and Cotton Shoes from  27,000 to 114,000 paris; Bricks and Tiles, from 2,800,000 to 4,400,000 pieces; Charcoal, from 41,000 to 71,000  piculs; Pigs, from 26,000 to 31,000 head; and Salted Turnips form 5,000 to 8,000 piculs. On the other hand, Fresh and Salted Eggs have decreased , during the decade, Form 10,700,000 pieces to a little over 10,000,000 pieces; Poultry, From 383,000 to 119,000 head; Firewood, from 348,000 to 340,000 piculs; Fresh Fruit, from 79,000 to 58,000 piculs; and Fresh Vegetables, from 27,000 to 8,000 piculs. 1st and 2nd Quality paper also both show slight decreasesthe former form 3,000 to 1,700 piculs, and the latter from 18,000 to 16,000 piculs.

    The shipment of rice and Paddy for export abroad, allowed under special regulations by the Viceroy of the Two Kwang in August 1889, was again prohibited early in the spring of 1899 Rice to the value of only Hk.Tls.2,000 was shipped , and none at all during 1900; during the remaining part of 1901 the value of shipments amounted to Hk.Tls.107,000.This Rice, the best quality of the Native article, is sent to America and Australia. for sale to the rich Chinese living there. The Chinese abroad believe that Rice from their own country possesses more nutritious properties, goes farther, and agrees with them better than Rice From elsewhere. They are ready and willing to pay good prices for it, and there being a demand, ways are found for meeting it, in spite of all prohibition. During 1899 and 1900 smuggling was very rife in this article: as prohibition did not prohibit, the present Viceroy was wise in withdrawing the restriction in the spring of 1901. The export since then has been allowed on the payment of a Granary Tax amounting to 83 1/3 cents per picul. The biggest export of the decade took place during 1897, when the value of shipments reached nearly Hk.Tls.400,000 in 1892 and 1896 the value was in the neighbourhood of Hk.Tls.300,000; during 1893, 1894, 1895, and 1898 the value averaged Hk.Tls.194,000.

    (c.) REVENRE.The Revenue collected by the Lappa Customs during the past 10 years has been as follows:

In addition to above, there were collected as Granary Tax on Rice and Paddy of export abroad the following amounts:

With the exception of 1895, the collections of 1900 and 1901 were the lowest of the decade, notwithstanding the additional trade that fell to Lappa on the closing of the Changchow station. The decline was due to decreased arrivals of Opium, the ordinary Duties and Likin having shown no falling off. During the decade the Ching-fei tax has dropped from Hk.Tls.48,315 (in 1892) to Hk.Tls.17,998 (in 1901). This tax is levied, for coast defence Purposes, in a few Foreign articles, such as Piece Goods, Cotton and Yarn, Kerosene Oil, Matches, Wax, and Coal. The large decrease in Cotton Piece Goods since 1897 accounts for the greater part of the decline. In 1898 the tax on Kerosene Oil was reduced from 20 cents to 5 cents per case; but no other reductions seem to have been made during the decade.

(d.   )OPIUM TRADE. Foreign Opium. The amount of Foreign Opium paying Duty and likin at the Lappa Customs during the decade has been as follows: 

    The  statistics of the opening year of the decade record a heavy decline when compared with the figures of the preceding years; the cause of this decline was attributed to the competition of Opium received direct from Singapore, which , by its evasion of Duty, threatened to drive the Duty-Paid article out of the south-western districts of this province. The increase in the following year (1893) was attributed solely to the energetic measures adopted by the territorial officials in checking smuggling operations. The importation of 1894 showed a further marked advance; the chief causes which brought about this increase were the system of selling on credit introduced in the previous year by the Macao Opium merchants, the outbreak of plague and consequent stoppage of trade with Canton, and the practice adopted by the Lapped office of accepting the fixed weight of 120 catties for each chest of Opium  for the retail trade. In 1895 there was a serious decline, which was partly attributed to the high prices ruling throughout the year for the drug. Importations afterwards rose steadily, until they reached the record figure of 2,549 piculs in 1898. The following year saw a small decrease; but during 1900 and 1901 the importations fell rapidly, and the quantity for the last year of the decade was only 200 piculs in excess of the 1892 figure.

The large decrease corresponds with the opening of the French port of Kwangchowwan. Large shipments of Opium are made direct to that place from Hongkong. From the advice of shipments supplied to the Kowloon Customs by the Hongkong Harbour authorities, no less than 592 piculs were forwarded to Kwangchowwan during the latter six months of 1900, and 974 piculs during the year 1901; the 18 months shipments therefore aggregated 1,566 piculs, and this amount is very close to what the Lappa statistics show has been the falling off in the districts that can be supplied form Kwangchowwan. the Viceroy of the Two Kwang has attempted to stop this great loss to China’s Revenue by establishing Custom Houses around the French port; but, having to trust entirely to a Native staff, the attempt has not been very successful, and smuggling still continues on a rather large scale. Opium merchants in Macao complain that the smuggled drug can be sold $3 per ball (weight, 3 catties ) cheaper than the Duty and Likin paid article passing the Lappa stations. The Kwangchowwan business has become so lucrative that Chinese in both Macao and Hongkong have started steam-launches and steamers, flying either the French or Portuguese flag, trading to that place, and large profits are made over the venture. It seems a pity that some arrangement can not be arrived at by which China’s legitimate Revenue cold be protected from the inroads made against it by her own subjects.

The districts under the immediate control of the Lappa Customs have, during 1900 and 1901, continued taking Opium in undiminished quantities, even when gauged by the record figures of 1898. The table of Opium movements given at the end of this Report ( see Appendix No. 3 ) gives Particulars of all arrivals and departures during the decade. It will be seen that merchants imported 15,886 chests and exported 15,895 chests, while the Macao Opium farmer received 26,398 chests and boiled down for local consumption and export abroad 1,056,491 balls ( 26,412 chests ). The excess of exports over imports is accounted for by stocks remaining over from the last year of the previous decade. For local consumption the Macao farmer reported having boiled down 250,466 balls, which equal 7,514 piculs, or a yearly average of 751 piculs. Of course, the Macao wants are nothing like so much20 piculs a month. or 240 piculs a year, being more than ample for her requirements; so the balance must have been smuggled into China. Of the quantity reported to have been boiled down for export abroad, 787,347 balls were shipped, leaving a balance of 18,678 balls (560 piculs) remaining in the farmer's godown for subsequent shipment.

Native Opium.With the exception of a few small lots seized when attempting to be smuggled past our stations. no Native Opium has come under the cognizance of the Lappa Customs. That it is used for mixing with the Foreign drug, by boiling-down establishments at Wanchai ( just opposite Macao, in Chinese territory ), there can be no doubt; but the quantity is not large, What is used comes, in Chinese territory), there can be no doubt; but the quantity is not large. What is used comes territory), there can be no doubt; but the quantity is not large. What is used comes principally by steamers from Canton. Small quantities are sometimes brought in junks and overland from Shekki. The total, however ,cannot exceed 50 piculs a year. The products of the Wanchai boiling-down establishment are sold chiefly to the fishing population in Macao Harour, and as the Native Opium has undoubtedly paid Likin and other charges in the interior, but little loss occurs to the Revenue, more especially as the Foreign Opium used with it pays Duty and Likin at the Lappa Customs. From inquiries made, it appears that the amount of Native Opium grown in the neighbourhood is utterly insignificant.

(e.) The average rate of exchange for the Haikwan tael into sterling, during each year of the decade, has been as follows:

As regards the exchange of the Haikwan tael into copper cash, the rate in 1892 was 1,587 cash, and at the present time it varies from 1,425 to 1,450 cash. Very few cash are used at Macao and in the immediate neighbourhood copper cent pieces having taken their place.

From the following lists, showing values of import and export commodities at the beginning and end of the decade, it will be seen that the purchasing power of the Haikwan tael has greatly diminished during the period: 

                             * 1 case = 10 gallons.       

           Average Value Of Principal Exports, 1892 and 1901.

      In Imports: the price of Opium has almost doubled, and that of Piece Goods has risen, with but few exceptions, from 30 to 50 per cent; Indian Cotton Yarn, however, only shows an increase of about 6 per cent, while Indian Raw Cotton has increased 18 per cent.; Metals show an average rise of over 46 per cent; Salt Fish more than doubled its price, while American Flour almost did so; the different kinds of Kerosene Oil increased in value took place in Ground-nut Oil and Cassia-leaf Oil, the First showing 140 and the second 136 per cent. advances; Charcoal, Fresh and Salted Eggs, Silk and Cotton Shoes, and Fresh Fruit about doubled the 1892 prices; Firewood and Mats both show increases of 80 per cent./ and Pigs of 70 per cent.; Bricks and Tiles, Fans, and Fresh Vegetables increased about 50 per cent.; Poultry, 43 per cent.; and Samshu and 2nd Quality Paper, 40 per cent. 1st Quality Paper only advanced 20 per cent. in value. Native Cotton Cloth increased about a third in value. While Leaf Tobacco shows a rise in price of 85 per cent., Prepared Tobacco shows an increase of but 43 per cent. Under Silk, the only item that advanced in value was White Raw Silk, which rose about 23 per cent., Wild Silk being the same price in 1901 as in 1892, while Cocoons and Refuse Silk actually decreased by 16 and 30 per cent. respectively. Green Tea rose 22 per cent. in value; but the increase in Black Tea was only 7 per cent. Unfired Leaf Tea decreased from Hk.Tls.11 to Hk.Tls.9 per picul in valuea fall of 18 per cent.

    (f.) The values given in the statistics take no account of Duty and charges inwards, but include both Duty and charges outwards. The values called for under this heading stand, therefore, as given in the statistics:

      The aggregate value of Imports during the decade was Hk.Tls.66,491,683; and of Exports, Hk.Tls.51,003,371the excess of Imports over Exports being therefore Hk.Tls.15,488,312. How this excess was paid for there is nothing to show, as no Treasure was exported by junk during the decadeat least, none was declared. It is well known, however, that Chinese (probably through fear of robbery) conceal, as much as possible, the fact of having money in their possession, and no doubt important sums have often been taken out without any declaration having been made at the Customs.

    (g.) the only change worthy of noting that has taken place at any of the Lappa stations is an increase in the number of opium-boiling establishments, Native docks, and a few other trades at Wanchai, just opposite Macao. across the Inner Harbour. The Chinese there are free from certain restrictions imposed on them in Macao, and the cost of living is also much less.

large Chinese hospital was started at Wnchai during the plague epidemic of 1895, and is still in use whenever Chinese are suffering from contagious diseases in Macaothey are at once carried over to Wanchai; and this fact reduces the mortality statistics of Macao considerably. The Chinese object to following the sanitary measures required by the Portuguese medical authorities, and consequently, patients are sent to Wanchai on the first indication of either plague or cholera.

(h.) No improvements of any kind have been made in the shape of bunds, roads, etc., in the vicinity of any of our stations.

(i.) The water approaches to Macao, and, consequently, to the Lappa stations as well, have continued shoaling during the decade, and nothing has been attempted in the shape of deepening or dredging them. The San Francisco Bank, I am told by a reliable authority, has, at the least, a foot less water than in 1892, and the bank between Nacao and Malowchow has grown even more. The Malowchow Pass has banks forming at both ends. At the western end a large bank has developed between Maonshan and Pirates Creek, and, jutting out in a southerly direction, is gradually filling up the wide angle under which the channel used to effect its junction with the Broadway current; another bank is making out towards the north from Mongchao Island. At the eastern end the large banks between Lappa and Taipa are extending to the entrance of the channel. The deep-water channel in the pass itself has narrowed considerably during the decade. The slow but steady influences that are at work in the surrounding waters of Macao will, unless something is done to check them, gradually make the approaches unavailable except for very shallow draught steamers and medium-sized junks.

    (j.) The only aid to navigation added in the Lappa district, during the decade, was a buoy, moored in position in August 1897, to mark a rock discovered by the Customs launch Lungtsing in the Malowchow Channel. This buoy is painted black.

    (k.) In February 1892 a considerable body of men, under the leadership of T'AN YUNCH'ING and other members of the Triad Society, established themselves on the borders of Sanning ( ) and raised the standard of revolt. They attached to themselves so many recruits that they were reported at one time to number many thousands. They bobbed and plundered much of the neighbourhood, and even threatened the important city of Yeungkong. Troops were despatched from Canton to co-operate with local train-bands in attacking them by land, and gun-vessels were sent to protect the coast and prevent them from escaping to sea. Though the insurgents appear to have been well provided with Foreign arms, the contest was an unequal one, and after some severe fighting, in which the government troops had many killed and wounded, the movement was entirely crushed before the end of March.

    On the 22nd May 1892, in the midst of a continuous rain which had lasted two days, a tornado of great force, but of very moderate dimensions, started, about 11.40 A.M., from Macarira Island, passed near the Malowchow station, and struck Macao at the Barra Fort, at the entrance of the Inner Harbour. After half demolishing the fish-curing establishments there, it followed a somewhat zigzag course along the eastern shore of the harbour. It worked considerable havoc among the roofs, overturned many sampans and junks, and drowned many people, It then struck into the town at some distance to the north. As it swept along, tiles, bricks, the roof-mats of sampans, and such-like were caught and whirled upwards in the vortex of the storm nearly 100 feet. The heavy iron ventilators of the s.s. Heungshan were drawn out of their sockets (which were nearly 5 feet deep), and, but for the awning, would have been carried away. The loss of life was estimated to have been close on 100.

In January 1893 weather of exceptional severity was experienced. Snow, or a kind of soft hail, fell. which remained on the ground for several hours, and the hills in the neighbourhood were quite white. The thermometer at the frontier stations and on board the Customs launches registered as low as 30 F.

In 1894 a serious drought, during April and May, caused much damage to the rice and other crops. That year was also prolific in typhoons. The first one occurred on the 13 the and 14th June, the centre passing near St. John's Island, destroying and damaging a great many junks. On the 18th and 19th, on the 25th and 26th , and on the 30th September typhoons again occurred; the second one of these three did considerable damage to Macao and vicinity. Another typhoon began on the night of the 4th October and raged throughout the 5th, the centre passing over Macao. The barometer fell to 28.92 inches. The wind. first blowing from the north-east, afterwards backed round to the north-west, and as Macao is protected on that side, very little damage was done. However, much havoc was worked by this typhoon in Hongkong.

In April 1895 the plague, which had been so bad the year before in both Hongkong and Canton, made its appearance, and raged with great violence till towards the end of the following July. It was first observed in the least sanitary and most densely populated Chinese quarters, whence the germs were spread all over spread all over the place, chiefly through infected rats. The rats invaded some of the best-situated and thoroughly disinfected Foreign houses on the hills, where, in their hasty flight for safety, they had sought refuge, and were found dying or dead in the woodwork of the ceilings and in the roofs. In several cases observed, though disinfectants had not been spared and every care was taken, the Chinese servants removing these dead rats were attacked by the plague almost immediately, and succumbed. Other notable features of this mysterious disease were that, contrary to expectation, the number of cases after heavy rains, instead of diminishing, largely increased, and that the in sanitary quarter first attacked was free from the disease and reinhabited by the time the well-situated and clean Foreign houses were invaded. The appearance of the plague created a panic among the Native population which nothing could stop. In a short time the place was almost deserted and most of the shops closed. In spite of everything done in the shape of disinfecting, whitewashing, flushing the drains, etc., the disease did not cease until the poison had played itself out and several thousand victims had been carried off. During this period, of nearly four months duration, trade was greatly interfered with, and for a while was almost at a standstill. No sooner, however, had the epidemic abated than the people came flocking back, and in a very short time all signs of the dire calamity had been effaced and the place and the trade had resumed their normal aspect. The only typhoon recorded during 1895 occurred on the 27th and 28th July; it was of moderate force, and no damage resulted.

In 1896, during May and June, a few cases of plague appeared in Macao and the vicinity; but the disease did not become epidemic. On the 29th July a typhoon of exceptional violence passed over Macao, and made great havoc in the Portuguese Colony and its neighbourhood. The sea rose 10 feet above ordinary high-water spring tides, and each side of the narrow peninsula was in turn assailed by terrific wind and waves. The Praia Grande was ruined for a quarter of its length and the bund in the Inner Harbour badly damaged. In the shipping, numbers of junks got adrift and foundered, with loss of life. The barometer fell to 28.66 inches. This typhoon was said to have been the worst experienced since the memorable one of 1874.

During April and May of 1897 the plague again made its appearance, and claimed a few victims. No typhoons occurred during the year.

In 1898 the plague reappeared in April, and during that month and may raged severely. Several times, in the beginning of May, the number of burials coming under the observations of the customs stations was as high as 80 during the 24 hours. In June the epidemic disappeared rapidly, and was over by the end of that month. No typhoons occurred during the year.

In 1899 only a few sporadic cases of plague were reported, and again there were no typhoons.

In 1900 the plague began early in April and continued till the end of June; fortunately, it was not very severe. On the 21st August the first typhoon of the year made its appearance. The weather was very rough and the harbour completely deserted by shipping. No damage, passed to the south of Macao, and some damage was done to the Praia Grande by the high winds and high tide prevailing. No accident to shipping took place. On the night of the 9th and morning of the 10th November a severe typhoon passed over Macao. The wind blew first from the north-east, and then turned around to the north-west; owing to Macao and harbour being protected by the hill in that direction, no damage resulted. The peculiarity of this typhoon was its coming so late in the year.

During the last year of the decade the plague was very bad during April, May, and June. Since it appeared in 1895, every third year seems to see a return of the disease in an epidemic form. The exact mortality is difficult to find out; but judging from the burials passing our stations the disease made nearly as many victims as in 1898. Strange to say, although the Customs staff at neighbouring stations to Macao has been constantly surrounded by plague patients and plague dead, during the plague seasons since 1895, not a single case of the disease has occurred either among the Chinese or Indians living in Customs quarters. This immunity is ascribed to proper ventilation and the scrupulous attention paid to keeping quarters in a clean condition, During 1901 there were no typhoons.

(l.)to (p.).       *       *       *        *

    (q.) NATIVE SHIPPING.The table given as Appendix No. 4 at the end of this Report shows the number of junks entered and cleared at the Lappa stations for each year of the decade. The amount of tonnage in 1892 was the largest of the 10 years, and each succeeding year till 1900 saw a steady decrease. During the last two years, owing to the additional shipping reporting at Lappa through the closing of the Changchow station, there has been an increase, 1901 showing 140000 tons more than 1899. The table demonstrates in a striking manner how the tonnage to and from China decreased with the establishment of the Macao kerosene oil monopoly in 1894. That monopoly struck a serious blow at the prosperity of Macao, from which it will take a long time to recover. The tonnage employed in the hone trade increased from a total of 654,000 tons in 1899 to 834,000 tons in 1901a gain of 180,000 tons. This gain, as I have said before, is in no way due to an increased trade in Macao, but entirely and solely to the transference to the lappa Customs of the trade formerly passing the Changchow station. The junk trade between Macao and Hongkong has shown a continuous decline. The tonnage employed during the first year of the decade amounted to 229,000 tons, and during the last year to 129,000 tonsa decrease of 100,000 tons, or almost 44 per cent. To a certain extent this is due to an increase in steam facilities between the two places, as, in addition to the regular daily steamerthe s.s. Heungshan,a number of small steam-launches has been put on the line. The Native shipping to and from Foreign countries during 1901 shows a decided advance in numbers, but not much increase in tonnage. This is owing to small Chinese junks under the French flag, the junk masters stated that the Kwangchowwan authorities would not allow salt to be carried out in any but French vessels, and that, while they did not consider themselves French subjects, they were willing to fly that flag to obtain the job.

The value of the trade during the decade carried in junks between Hongkong and Macao, which  is not included in the Lappa statistics, has been as follows: 

      As regards the varieties of junks, they differ principally as to size. They are generally designated by the name of the place in which they are built. The sizes range from 200 tons down to 2 and 3 tons. The largest boats are chiefly passenger junks, called simply tu (), e.g., Shekki tu. These ply to the principal cities in the neighbouring districts, and rely more on the passenger traffic than on cargo. At present many of these junks employ steam-launches to tow them while in Chinese waters. Licenses to tow are obtained from the Canton authorities, on the payment of a fee amounting to $600 per year. The launches can only be used for towing purposes, and are not allowed to carry either passengers or cargo. They are, moreover, not allowed to pass out of Chinese waters, and consequently arrive and depart from the Malowchow station, other launches towing the passenger junks from that station into Macao. The stern-wheel man-power junk, so common at the beginning of the decade, has almost disappeared in these parts.

The number of passengers entering and leaving China in junks passing the Lappa stations, during the decade, has been as follows: 

     Since 1897, when the West River was opened to steam navigation, there has naturally been a big drop in the number of passengers carried in junks. The small steamers put on the Macao-Samshui line in 1898 have carried, on an average, over 33,000 passengers yearly. That number added to the total of 1901 gives an excess of 20,000 over the figure for the first year of the decade.

All the regular trading junks passing the Lappa stations are provided with Pass Books and Armament Certificates. Those that only come in occasionally are given Customs Clearances, which must be shown to any overhauling Customs launch and to any of the outlying stations passed. Should these occasional vessels possess properly made out Armament Certificates, issued either in Macao or Hongkong, they are not interfered with; but the certificates are checked with the arms, etc., on board, and if any discrepancy is found , junk masters are punished accordingly.

The value of Native vessels may be said to have almost doubled during the decade. The additional cost of living, the increased wages of carpenters, and the higher prices that have to be paid for wood and all materials used are the cause of the increase. The typhoon of November 1900 in Hongkong destroyed a large number of junks, and since then builders have been kept busy filling orders.

No reliable particulars of the profits made by junks are obtainable, nor can any idea be formed of the per-centage of losses sustained through wrecks. There is no system of Native insurance. Probably more losses have occurred through piracy than through storms and stress of weather, for during the past decade piracy appears to have increased rather than decreased.

Attacks against junks are almost of daily occurrence, and the suppression of piracy has become a most important problem for the Native officials to solve. Its injurious effect on trade is becoming serious, and, although Hongkong and Macao are the chief indirect losers, the Governments of the two Colonies have adopted no effectual means to stop traffic in arms. It is true certain restrictions have been enforced against the traffic; but nothing short of actual prohibition of the sale of arms can prove successful. without the modern repeating rifle, which pirates are invariably armed with, piracy would soon die a natural death. The profits, made by a few persons from the sale of arms would be more than compensated for by the increased prosperity of the majority ,to say nothing of the security to life and property which would follow in the neighbouring Chinese districts. The blackmail levied by pirates on passing junks has contributed no little to the increased cost of provisions, etc., sold in both Colonies.

Not only have Native vessels been pirated, but Foreign steam-launches as well. The Perseverance, running between Hongkong and Macao, and the Kwonsing, running between Hongkong and Taishan, were both looted by pirates in the latter part of 1900. In both cases the pirates shipped as passengers, and at certain signal, rose up, overawed the crew and passengers, and steamed the vessel to a prearranged spot, where confederates were waiting with junks.

These pirates are often bold and daring, as the case of the capture of one of the Salt Commissioner's launches a few years back will illustrate. while the launch was at anchor at a certain place, two informers went on board and offered to point out some junks carrying a contraband cargo of opium, salt, and kerosene. The captain's eagerness to make a seizure caused him to fall into the trap. The launch started in pursuit of the supposed smuggling vessels, and, near Motomoon, caught up with a junk which was pointed out by the informers as one of the smugglers. As soon as the launch went alongside to board, a dozen or more well armed pirates suddenly appeared from the hold of the junk, jumped on to the launch, wounded the captain, shot the engineer, and drove the rest of the crew into the cabin, where they tied them up. They then took charge of the launch for their own purposes, and after pirating three trading junks, they steamed to the Bogue, where a small boat was in waiting ,transferred their loot, and made off. Apart of this gang was afterwards captured and promptly beheaded. Decapitation is the sure sentence on all pirates apprehended: but even this severe punishment does not seem to deter others.

During the summer of 1901 a number of junks were pirated, in quick succession, by a gang of pirates in the neighbourhood of our Gaemoon station, The local authorities made several feeble attempts to stop these depredations, but without much success. The Customs launch Lungtsing had to go there towards the end of August; and the day before her arrival at the station a junk had been captured by the pirates, and was being held for ransom at a place about 5 miles to the south. The local mandarin asked for the assistance of the launch to recapture the junk, which aid was accorded. As the Lungtsing approached the spot where the pirate junk and her prize were anchored, the pirates opened a hot fire with repeating rifles; but a couple of shells from the launch’s 6-pounder soon put them to flight. The pirates14 in all took to sampans, and were fowllowed by two gigs from the Lungsing, the result being that three of the pirates were captured, four killed, and the balance (seven) drownedat least, they jumped into deep water with their heavy cartridge belts on and never reappeared. On the trading junk four men of the crew were found shut in below, and on the pirate junk two Chinese, seized a fortnight before and held for ransom, were found tied up and almost starved to death. The Lungtsing did her job so thoroughly and the pirates were given such a severe lesson that the district has since been quite free of piratical attacks. The Viceroy was much pleased over the affair, and bestowed gold medals on each Foreign officer and silver medals on each Chinese member of the Lungtsing’s crew. If piracy is to be put down, there seems to be no better material at hand than Customs launches and the Customs Service. Native traders have confidence in the Customs, and will report attacks and ask for assistance, where they will refuse to impart any information whatever to the Foreign gun-boats endeavouring to keep down piracy in the Kwangtung province.

    The shipping table of 1901 given at the en of this Report (see Appendix No.5) will show the names of places, Foreign and Native, to and form which the junks passing the lappa stations traded during that year.

    (r.) and (s.).     *      *      *      *      *

    (t.) No important changes in Customs regulations have taken place during the decade under review. Owing to the increase of the frontier guard, the Customs staff was considerably augmented during the year 1894. Other increases followed in 1897, on the opening of the West River, when a guard-boat with a boarding staff had to be sent to the Wangmoon outlet of that river; and in 1899, on the withdrawal of the Changchow station, which necessitated the opening of a new station, at Tungho, under the Lappa Customs. then again, in 1900, the opening of the two checking stations, at Naiwanmoon and Gaemoon, further added to the number of the staff. In 1892 the staff numbered 247, and in the last year of the decade, 356an increase of 109. The In-door staff has remained unchanged, with the exception of the addition of four Chinese Clerks. In the Out-door staff a new grade of    employs, styled Station Watchers, A, B, and C. was added: the A class is for Foreigners, B for Portuguese, and C for Indians. Station Watchers, A, serve on frontier duty for 18 months, and then, if fitted, are drafted into the regular Out-door staff; Station Watchers, B, act more as interpreters than anything else; and the Station Watchers, C(Indians), do patrol duty in conjunction with the Chinese  "braves," the combination being more effective than either would be alone. In 1901 the Station Watcher class numbered 53. The officers and crews of the four patrolling launches attached to Lappa number the same as in 1892.

    (u.) to (y.).*****

    (z.) FUTURE PROSPECTS OF TRADEIndications seem to point to a continued decrease in the direct trade with Macao, and a probable decrease, as far as junks are concerned, with that of Hongkong. The number of steamers running form Hongkong to Kwangchowwan is steadily increasi9ng and these steamers are slowly but surely taking cargoes away from the Native junks-flying Foreign flags enables them to escape the payment of Dues and Duties that junks cannot avoid. On equal terms, however, owing to the nature of the cargo, and there being no necessity for quick despatch, junks could hold their own in the south-west coast trade.

There is considerable tale of Kongmoon being made a Treaty port; and should this come true, the present large junk trade with that place will no doubt be transferred to Foreign bottoms, and no longer appear in the Lappa statistics.

                        FRANCIS A. CARL,

                                    Commissioner of Customs

Custom House,

LAPPA 31st December 1901.

APPENEICES.

APPENEIX No. 1. PRINCIPAL ARTICLES OF IMPORT 18921901.

APPENDIX No. 2. PRINCIPAL ARTICLES OF EXPORT, 18921901.

APPENDIX No. 3. OPIUM MOVEMENTS. 1892-1901.

APPENMDIX No.4. NATIVE SHIPPING ENTERED AND CLEARED 1892-1901

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