DECENNIAL REPORT, 1922-31  

    1TRADE.--business conditions during the period under review have been any thing but normal, and it is in all the factors of these conditions that abnormality has prevailed: political disturbances, civil wars, strikes, boycotts, failures of crops, fall in the value of silver, fall in the prices of foreign goods, etc.

    There was hope, when the last Decennial Report was compiled, that the trade of the Lappa district would maintain a tendency to rise, but this hope has not been fulfilled. Statistics show that, as far as honest trade under our cognizance is concerned, the predictions expressed in the reports previous to 1922 have proved true, and that the raison d'tre of the Lappa Customs is primarily that of a preventive post whose work cannot be fitly recorded by the general statistics.

To understand fully the changes in the trade during the last decade one must remember that only cargoes carried in sailing vessels (there is only one inland steamer) are dealt with by the Lappa Customs and that the goods may be said to pass through in transit, as nothing is either consumed or produced in the stations.

Lappa is one of the distributing centres of the trade in the delta as are Canton, Kowloon, and Kongmoon. The chief factors affection the trade during the decade were: changes in the tariffs, smuggling, strikes, bad harvests, fall in exchange, world-wide trade depression, civil wars, piracy, etc.

Higher tariffs have greatly revolutionised the junk trade routes since the roundabout way via Macao on longer offers the special advantages of the lower Hoppo Tariff. Junks from Hongkong to China take now their natural direct routes, and the Lappa Customs Suffer thereby. There are no brokers or agents of vessels trading at Lappa, and this fact makes it necessary to detain a junk sometimes for a long period until its accounts are closed.

The net value of trade during the decade was as under, as compared with the amount of Hk.Tls.30,854,147 recorded in 1921:

                        Hk.Tls.              Hk.Tls.

               1922.......26,316,415     1927......21,585,043

               1923.......22,218,573     1928......27,897,494

               1924.......27,398,467     1929......22,679,610

               1925.......22,470,368     1930......16,842,073

               1926.......10,391,394     1931......15,221,747

In some years the decline in the net value of trade was due to the diminution in the import of rice and paddy. The depreciation in the value of the tael has also to be taken in consideration. At the beginning of the decade in 1922 the slump that followed the great trade boom in China of 1920 was still felt.

In 1922 an exceptional amount of cotton yarn was imported. Owing to the failure of the local crops, there was an increase of 45 per cent. in the import of rice and paddy. Trade was much affected by the strike of the Hongkong seamen from January to March and also by the general strike and blockade of Macao after the incident of the 29th May 1922. Piracy and political unrest prevailed; Malowchow was attacked for the first time; the s.s. Suion was pirated and Chienshan city raided.

In 1923 there was a further increase of 3 million taels from rice and paddy; but the disinclination to buy Japanese goods made cotton yarn fall by 6 millions. trade reverted partly to its former channel through Canton.

Renewed activity in trade was seen in 1924, while piracy declined as a result of more stable political conditions. Junks resuming their normal trade were convoyed by guard-boats and picket junks.

The second part of 1925 brought an interruption of exchanges between Hongkong and China direct or through Macao. Trade was at a standstill until the end of October, when there was a veritable boom here on account of Kongmoon remaining closed.

Not since 1895 were such low figures recorded as in 1926, the result of the anti- Hongkong boycott up to October. As soon as the boycott expired the Nationalist Government began to levy an inland consumption and production tax of 2 1/2 per cent. on all imports and exports.

1927 was relatively tranquil and in 1928 there was a considerable advance with record figures for the decade, in spite of surtax on general cargo, a luxury tax on specified commodities, and the anti-Japanese boycott. Conditions were quieter than in any year since 1911. The markets being depleted during the previous three years, dumping of cargo on a large scale took place before the introduction of the new tariff. Peace between the South and the North restored confidence.

The improved conditions, as far as the political situation is concernedthe civil strife on the West River being left out of accountlasted until the introduction in February 1929 of the new higher Import Tariff in place of the Hoppo tariff. It is to be remarked that besides the ordinary Customs duties, likin and chingfei were still collected on behalf of the provincial authorities up to the 1st January 1931,and this circumstance caused imports to be more heavily taxed here than at any other port. Some merchants started direct shipments to Canton, Kongmoon, and Kwangchowwan, and some others resorted to heavy smuggling. The shortage of freight brought a keen competition amongst the junk traders.

1930 and 1931 were uneventful. The unprecedented slump in the value of silver in 1930 affected Chinese traders badly as far as imports were concerned and ,on the other hand, did not give any expansion to the export trade. Drastic measured were taken against piracy, and ,under peaceful circumstances, legitimate trade would have developed more had it no been for the large drop in the silver market and the effect of the world-wide depression.

 Imports. Beans and peas, medicines, groundnuts, groundnut oil, chinaware, macaroni, and vermicelli showed a marked falling off towards the end of the decade. they are all of Chinese origin and ,in order to avoid payment of direct import duties, were brought in via Canton instead of being transhipped at Hongkong and sent to this district. Cotton Yarn and piece goods decreased to insignificant amounts as compared with the figured for 1922.The decrease in the import of piece goods was partly due to the establishment of factories in the interior, but it is well known that they were smuggled in large quantities since the introduction of the new tariffs. This remark about smuggling applies to sugars of all kinds, which have considerably decreased. Imports of molasses, on the other hand, amounted to 44,887 piculs in 191 as compared with 16,730 piculs in 1922. Matches (179,725 gross in 1922) decreased to 33,948 gross in 1931 since the introduction of higher tariffs and the competition of the factories in the interior. Rice and paddy, on account of typhoons and bad crops throughout the decade, dropped considerably. there was a brisk trade in stone, cement, timber, metals, and minerals, thanks to the great demand for semi-foreign buildings and the construction of roads and bridges. Gasolene, after the opening of the road to Shekki, became a very important item, rising from 51 American gallons in 1922 to 216,375 gallons in 1931. The import of salted and dried fish from Macao has continued on a large scale.

    Exports.Most of the articles of Chinese origin declared for “ abroad ” were for consumption in Macao or Hongkong. During the period under review the export of Chinese products was much affected by the political conditions prevailing in china and by the state of the local crops. The diversion of the tradeto and from the lower prefecturesto Kwangchowwan was detrimental to Lappa and affected many articles, among which were tea mats and pottery. The unsettled conditions along the West River brought a decrease in the export of poles, foodstuffs, firewood, charcoal, cassia-leaf oil, etc. Native paper and hardwood sometimes fell off considerably owing to compete with cheap Japanese varieties. The export of limestone from Shiuhing followed the demand by the cement works at Green Island and the official restriction occasionally put on it. Bricks and tiles increased from 1,478 mille in 1922 to 3,141 mille in 1931. Fresh fruits decreased from Hk.Tls. 88446 to Hk.Tls.76799pigs, from 32,060 to 16,388 head; poultry, from 317,725 to 146,079; eggs, from 6,814 to 1,665 mille. Raw silk (Hk.Tls.387,960 in 1922 ) no longer appears in the 1931 returns but, instead, piece goods to the value of Hk.Tls.4,860 were exported. Since the merging of the extra and intra50-li Native Customs into Maritime Customs stations from the 1st January 1931, exports abroad from  inland places came under the cognizance of the Canton and Kongmoon Customs, bringing corresponding diminution in the Lappa figures.

    The following table supplied by the Portuguese colonial authorities, shows the extent of the Macao trade carried by steamers and junks during the years 1922-30:

      2SHIPPING.As remarked above, only junks (and small towing steam-launches)are dealt with here, with the exception of one old inland steamer. Another steamer had been specially authorised by the Chiao-t’ung Pu in 1926 to ply between Hongkong, Malowchow, and Kwonghoi. Unable to compete with junks, she ceased running in 1930.The only concession made to steam traffic is to be found in the small steam-launches used for towing the local type of tows, a kind found nowhere else out of the delta. there are two principal routes for junks: Macao to shekki viaChienshan station; Hongkongor Macaoto the West (Toishan, Yeungkong, Chkkai) via Malowchow station.

The following is a summary of shipping during the decade: 

      The following important factors directly affected the junk traffic:

    From January to March 1922,during the Hongkong seamen's strike, when the Hongkong junk traffic was gradually disorganised and the daily steamers stopped running, Portuguese gunboats carried mails and passengers to Hongkong.

    Macao was blockaded by strikers after the incident of the 29th May 1922.

    In 1925, in order to interrupt exchanges with Hongkong, organised groups of strikers took up positions near our land stations and Chienshan, and launches manned by strikers appeared at Malowchow. Junks were seized, cargo confiscated, and fines imposed. The junks sought refuge at Hongkong or Macao up to the end of October.

    In 1926,up to October, during the boycott against Hongkong, sailings were suspended and the regular towed junks to and from inland were not permitted to carry goods or to enter Macao waters, and were obligefed to land or embark passengers at Chienshan.

  3. REVENUE.The following table gives a summary of the Lappa decennial revenue (including Hk.Tls.9400 for Chung Shan Port,1931): 

  The lowest figures recorded were in the year 1926,when the Hongkong strike was at its zenith, and the highest in the year 191,when,with the introduction of the revised Import Tariff, most commodities paid a high rate of duty. The appended

diagram shows the relation between the net value of trade and the revenue since

the opening of the port, and the remarkable change in their relative proportions.

More than anything else it makes obvious the tremendous increase in the revenue, especially when compared with the decrease in trade since the cancellation of the Hoppo Tariff and the introduction of higher Import and Export Tariffs.

     4CURRENCY AND FINANCE.In view of the constant depreciation of provincial bank-notes, caused by political changes, it has long been the practice amongst the people to adopt Hongkong bank-notes as the medium of exchange. These notes are accepted by everyone, while the Kwangtung silver 20-cent piecesthe only metal currency in the marketremain in use as subsidiary coins. The newly-minted 20-cent pieces, bearing the image of Dr. Sun Yat Sen, were only put into circulation in 1931, and the old coins minted several years ago were gradually driven to inland districts.

The following table shows the rates of exchange for Kwangtung subsidiary coins (per 100 Hongkong dollars):

The general slump of silver in 1930 and 1931 greatly stimulated remittances from overseas Chinese, especially from America. These funds were invested chiefly in land in canton and elsewhere. The city of Toishan, whence hail most of the emigrants to America, is almost entirely built from these funds.  

    5AGRICULTURE.During the last two years of the decade two model farms and a school of forestry were started in the Chungshan district, and though they are still in the experimental stage and have not yet given much help to the farmers in that district, they bid fair to become useful.

    Coming under the control of the Agricultural department of the Construction Bureau, the experimental farm of the Canton Provincial Government, with an area of 2,009 mou of land, came into being in 1931. Modern farming machines are being used. The Canton Agriculture College opened a branch farm in the Chungshan district, with an area of 4,000 mou of land, in March 1931,experimenting with chemical manure. Machine instead of animal power is used for tilling.

    In May 1930 the Construction Bureau of the Chungshan district planted more than 200,000 trees on a piece of ground measuring about 700 mou. Fruit-growing is also part of the venture, which is called the ChungShan Model Forestry. 

    6INDUSTRIAL DEVELOPMENT. Prices and Wages.cost of living has gone up considerably during the decade under review, and the price of labour has increased proportionally. However, there was a slight decrease in October and November 1931. Wholesale prices have had a general tendency to decline lately, while in particular the index number of imported goods has also dropped at the end of the decade. To deduce the cost of living from the rise or fall in wholesale price is misleading, as the cost of living depends largely upon retail prices. Food prices showed a decidedly declining tendency since September 1931; but clothing materials were slightly dearer, as orders for these goods have to be placed so far ahead that, in a place distant from the manufacturing centres as is Chung Shan, it must take a very long time for any benefit in price to be felt. The year 1926 was not especially cheap in regard to the cost of living when compared with other years of the decade under review. It has, however, been taken as the basis for comparison. There is ample room for further reduction, considering the slump in world wholesale prices during the last two years.

   Fishing Industry.The number of junks engaged in the fishing industry, as registered at Macao at the end of 1931, was about 1,500(800 large and 700 small ones),with crews aggregating about 20,000 of both sexes, who are paid in advance a yearly lump sum of $96 in small coins, or $8 a month each. A big junk usually catches about 370 piculs of fish a year, valued at $5,200; and a small one,150 piculs, valued at $2,100. There are at Macao and adjacent Portuguese islands 17 native docks, each of which can turn out 10 junks a year. At Taipa and Colowan Islands there are 12 oyster-beds which producer annually about 1,200 piculs of oysters,  yielding oilwhich is sold at $1.50 per catty, and 240 piculs of dried oysters, valued at $12,000. 

    7 Mines and Minerals,No remarks. 

    8Communications.Railways.At present no railway has been built in the Lappa district. The government projected one in 1930 with a view to connecting the prosperous district of Chungshan with Canton. Engineers and experts were despatched by the Yueh-Han Railway Administration, Canton, under instructions from the Ministry of Railways, to survey the proposed line from Chung Shan Port to Fatshan and thence to Canto via the Canton-Samshui Railway, the extent of the line being 70 miles. It would pass through the wealthy towns of Shekki, Siulam, Taileung, and Chanchuen before it reached its terminus at Fatshan.

 Roads and Motor Transport.About 10 years ago there was a project to build a motor road between Macao and Shekkia town 8.37 miles distantin order to supply better and shorter communication by land through the Chungshan district between the two places. Owing to the disturbed condition of the country and to the difficulty of raising sufficient funds, work could not be started for a long while. In November 1927 a Chinese company, styled Kee Kwan Highway Company, Ltd.,conceived by the villagers through whose district the road was to pass was formed under the management of Mr. Cheng Tze-sheung, with a capital of $200,000 divided into 40,000 shares of $5 each. The first stage of the road was formally opened to the public on the 18th March 1927,at a ceremony at which the Governors of Macao and Hongkong assisted, when a service of four motor-omnibuses began to ply between Macao and Tsuimi, a rich village at one time but now fallen into decay. For years the Portuguese authorities had favoured the construction of this road, which would aid the development of both Macao and Shekki alike. A monopoly for an unlimited period of time of all public vehicular traffic on the road has been secured from the Canton Government. The highway is 7 feet wide generally, in no place less than 24 feet, and has proved to be one of the best cross-country roads in the province of Kwangtung. At the end of 1931 this road had been extended as far as Saiah,13.19 miles from Macao, where a steel bridge, crossing the Taiwan river, is now under construction and which, according to the company's estimate, will be completed by the end of January 1932.As soon as the building of the bridge is finished, through traffic between Macao and Shekki will be open to the public. the Shelkki section of the highway has already been completed, and motor services are running there daily. A branch road, 3 miles long, connecting Hachak, a stage of the highway, with Chung Shan Port, and another one connecting Siukachuen with Samheung, have been built also. There are about 80 omnibuses, 12 motor-trucks, and about 60 to 80 motor-cars passing this road daily, all belonging to the company. The annual licence issued by the government for a car using this road costs $60,and the company's annual licence $ 8. Besides these charges, the tolls levied by the company are from $2 to $6.50 for a single trip and from $3 to $9.50 for a return trip, according to distance and number of persons carried by each car.

    Aviation.The Canton government in 1931 decided to inaugurate a regular air-mail service linking Canton with Chung Shan and Kongmoon, 50 miles and 40 miles distant respectively, to convey both passengers and postal matter, but this service is not yet in operation.

    Post Office.There has been distinct progress since the last Decennial report was written. Second class offices have been established at Shekki, Siulam, Chienshan, and Pinglam, and third class offices at Chung Shan Port, Hachak, Lampinhui, and Namlong. Altogether there are 49 postal agencies in Chungshan district.

    Telegraphs and Telephones.the Kwangtung Telegraph Administration have established telegraph stations at Chienshan, Chung Shan Port, and Shekki to transmit official and public messages. A telephone service was provided at the beginning of this decade at Shekki, and an automatic telephone service was provided at the beginning of this decade at Shekki, and an automatic telephone system has been in use at Macao since December 1929.

    Wireless.A wireless station the only one in Chungshan district was established at Chung Shan Port in 1931 under the control of the Air Force headquarters. No messages are accepted from the public.   

    9Lights and Aids to Navigation.No remarks.  

   10Administration.There have been many changes in the local government of the Chungshan district during the decade under review as the following list of Magistrates denotes: Lu Chia-chCh`n Yung-an, Li Fan, Chng Tao-shih, Liang Hung-kwang, Li Lu-ch`ao, Wongg Kue-so, and T`ang Shao-i. Being the birthplace of Dr. Sun Yat Sen, the leader of the Kuo-min-tang, the name of this district, originally Heungshan, has been changed to Chungshan by order of the National Government in memory of the party leader. It is also known now as the Chungshan Model District. The administration is vested in the hands of an Executive Committee composed of 15 members. His Excellency T`ang Shao-i was selected as the Chairman and formally inaugurated on the 29th April 1929. With the approval of the committee for developing Chung Shan Port, the Magistracy was removed from Shekki to Chung Shan Port, i.e., the village of Tongka, the home of Mr. T`ang Shao-i, on the 15th May 1930 by order of Mr. Wong Kue-so, the then Magistrate. With the exception of the Judicial Bureau, which still remains at Shekki for the convenience of the public, the following bureau have been moved to Chung Shan Port, viz., Finance, Education, Construction, and Land Tax. A year later an amendment of the regulations governing the administration of Chung Shan Executive Committee was made, the principal one being that the Chairman of the Committee should also be concurrently the Magistrate. Mr. Wong Kue-so resigned from the post, being succeeded by Mr. T`ang Shao-i, who assumed office on the 16th March 1931. The town of Shekki, being the old capital, still keeps most of the trade of the district. Among the recent improvements at Shekki may be mentioned the pulling down of the city walls, the widening of the roads, and the construction of a modern hospital, called the Chung shan Hospital, built by the subscriptions of wealthy Chinese overseas.   

    11JUSTICE AND POLICE; and 12.MILITARY AND NAVAL CHANGES.No remarks.   

13HEALTH AND SANITATION.Great strides have been made in this direction during the last few years, as can be judged by the great number of wide and modern roads built throughout the district. The old -style buildings with poor ventilation are gradually disappearing and high structures of several stories, with plenty of windows, are taking their place.

The proposed leper settlement on the Daikum Island, as described in the last report, owing to the death of Mr. Wu T`ing-fang and the frequent changing of the Canton government, was not established until 1928. More than 260 lepers are being cared for at present, and as there are still thousands remaining at large, the management of the institution cannot be a complete success until the provincial government takes the matter up. 

    14EDUCATION.Chungshan district.Thanks to the publishing houses in Shanghai that now pour out millions of excellent textbooks in all branches of teaching at a low cost, tremendous progress in education has taken place in this district. Ten years ago the number of pupils in the whole Heungshan hsien was too insignificant to be mentioned, while at present the model district of Chungshan can boast of having more boys and girls under tuition than any other hsien of the same size in the country. The number of schools has increased from less than 100 to 503, and the number of enrolled students has swelled to 46,979,as the following list shows:

As there is practically no institution for secondary education in the whole district, thousands of boys and girls of the wealthier families are sent away to Canton and elsewhere for better training.

  Macao.The number of schools established by the Portuguese Government for the Chinese is only 11,with students numbering less than 1,000, but special mention should be made of schools of arts and crafts which enable members of poorer families to get an immediate means of earning a living.

There are seven middle schools, 59 primary schools, 15 free schools, and two kinder-gardens supported by the Chinese, the students totalling 4,726 boys and 2,355 girls.

Toishan.In 1926 an imposing middle school was inaugurated at Toishan, built at a cost of $400,000. Most of the money was subscribed by rich Toichan emigrants in America and Canada. this school has better and more modern equipment than any Government college or university. Another is to be established there shortly, the building alone costing $100,000. 

    15LITERATURE.Newspapers and Periodicals.No improvement was recorded under this beading. At present there are two vernacular papersthe "Macao Timesand "Ping Man Paoat Macao and four at Shekki, and they have a very restricted circulation. 

16POPULATION.No remarks. 

17CIVIL DISORDER.Smuggling is an important contributory cause of the decrease in trade as recorded by the Lappa statistics. The bulk of the junks frequenting Macao and places on the coast and on the West River pass through one or other of the six mouths of the delta, and a careful study of the coast-line and the river-ways of this part of the province of Kwangtung shows how difficult it is to control the traffic. The preventive scheme in this region must take into consideration the Canton and West Rivers, the Canton River, through which an enormous traffic in junks from Macao ( and in junks and steamers from Hongkong ) is continuously borne, cannot be easily watched. The estuary of the West River and Macao delta does not consist of creeks but of four outlets which are themselves broad and imposing rivers, branching from the West River somewhere near Kongmoon and entering the sea at Motomoon (Broadway, Naiwanmoon, Futiaomoon, and Gaemoon, which are navigable channels for practically all kinds of Chinese boats. The shallow flats at Naiwanmoon, barring entrance for steam-launches, offer protection against pursuit to any suspicious native craft, and for this reason a great deal of smuggling from Macao is done through this gate. Control from the shore is almost impossible in these four broad arteries ,but as the mouths at Gaemoon and Futiaomoon are scarcely a mile apart there is a Customs station established at the bead land between these two entrances.

    The Hongkong-Macao regular trading junks report at the Lappa station of Malowchow, and those trading between Hongkong and the ultra-modern towns on the south West River also call at Malowchow, attracted by the old and lighter Lappa Customs Hoppo Tariff, but since the increase of the rates smuggling has developed to a large extent. To check effectively the doings of Macao smugglers in the direction of the West River the establishment of more Customs stations at various points has been contemplated. Broadway called for special attention. The favourite routes followed by West Coasters to its entrance in order to avoid Malowchow station have been traced. Much of the overland smuggling from Macao was found to be carried to the upper reaches of the creek north of Chienshan and thence by shallow-draught boats to Broadway. At Hakkao Channel and Haimun Baythe two well known passages for Macao smugglersthe control of the traffic has been a great problem. In the old days, by placing Chinese guard-boats at commanding points inside the six mouths of the delta and keeping one small steamer moving about, it was possible to control successfully the Hongkong-Macao junk trade, but since the opening of the West River to foreign trade and the introduction of inland waters steam navigation the Lappa Customs have had to contend with something more than native craft traders. A strong preventive system is being evolved.

    Piracy and Banditry,At the beginning of the decade the conditions in Lappa district were considered to be the most unfavourable to trade since the opening of the Lappa Customs in 1887,owing to piracy ,political unrest, and strikes of workmen. A large portion of the trade which has for many years passed through Lappa was diverted to other channels and carried by steamers from Hongkong and Canton. Vessels lay idle for long periods in places of safety, unwilling to run the risk of being commandeered by soldiers or captured by pirates. During the last few years, however, conditions improved, as the Government adopted strong repressive measures, with the result that many bandit chiefs fled to Hongkong and Macao or were caught ad their gangs disbanded.

    In the beginning of January 1922 a strike of Chinese seamen started at Hongkong for a general increase of wages. The regular steamer service between Macao, Hongkong, and Canton was suspended, causing great inconvenience to the inhabitants of these places and seriously affecting the conveyance of foodstuffs to Macao. Fortunately, as mentioned elsewhere in this report, the Portuguese government's gunboats kept up communication with Hongkong for the carriage of mails and passengers. An agreement was reached between the strikers and the owners of shipping companies on the 5th March 1922,and trade and traffic resumed their normal course. In the long list of piracies which occurred in the waters adjacent to Lappa none has caused a greater sensation than the seizure of the s.s. Suion, a steamer plying between Macao and Hongkong, on the 19th November 1922 by a gang of about 50 pirates. In December of the same year Chienshan, a walled city opposite Lappa, was raided, the garrison overpowered, arms and ammunition seized, shops looted, and a number of young students carried off to be held for ransom.

    Banditry in the inland waters was in full swing in the years 1923 and 1924,and no place along the coast or in the adjacent waters of Macao or Hongkong was entirely free from this menace. In the vicinity of Chukchowtou, a hotbed of bandits, many vessels were bombed and sunk and lives lost. After paying dues and duties on their cargo at our stations junks could only proceed to their destination under protection of the pickets at the end of 1926,conditions at Lappa improved considerably.

    18CHUNG SHAN PORT.About May 1930 it was proposed to open a “duty-free” port at Tongkawan. According to charts there is within the area of this propose free port a stretch of deep water called the Kumsingmun Harbour, between the mainland and the Kiau Island, where ships of ocean-going type may ride at anchor at some distance from the shore, or berth alongside wharves projecting into the channel from the base of the Bluff Head promontory. This channel is about half a mile broad, with a certain depth of water available at all states of the tide but not altogether clear of rocks, and if fully exposed to the easterly gales. That seems to be the only channel available in the whole scheme of an ocean port for the model districtin Kwangtung and, before a thorough official survey of the locality has been completed, no attempt could be made to determine the limits of the harbour and to assign anchorages and berths to various types of vessels, etc. Breakwaters and much dredging are required before the place can develop into a commodious modern seaport for deep-draught steamers to enter and remain in port comfortably. The port proper is situated at Tongka Bay, now renamed the Chung Shan Harbour, on the lower reaches of the Pearl River in the wealthy district of Chung-shan, formerly Heungshan. Between the shore and the village is a sandy piece of level ground sparsely overgrown with weeds and grass, about 1 mile long by half a mile wide, on which fishermen have built a few sheds. The Chungshan district is noted for extensive rice fields and abundant agricultural produce. It is the home of thousands of emigrants and has now acquired still greater fame as the ancestral home of Dr. Sun Yat Sen, whose birthplace is Choyhang, about 7 miles away on the broad Ki-Kwan motor highway where good bus services are running. To the west are paddy fields stretching some distance up to a rang of lofty hill. The harhour is unprotected from the north-east to the south-east and, during a typhoon or north-east monsoon, is practically an exposed road stead with a lee shore, the bay is very shallow, and at low water it is doubtful whether river steamers will be able to anchor within a distance of 1 or 2 miles from the shore, To discharge passengers and cargo into lighters at this distance may be a dangerous operation when vessels are exposed to the full force of the north-east monsoons. It is expected, however, that conditions will be better when the programme of improvements has been effectually put into practice. There is no valid reason to suppose that a good harbour bust be the sine qua non for the prosperity of a place. The harbour of a Macao was just as shallow as that of Tongka, and the Colony, possessing now an expensive artificial outer harbour, has not yet acquired the desired degree of commercial, economic, and industrial development. On the other hand, the towns of shekki, Kongmoon, Kungyik, Cheungsha, Tikhoi, etc., in the same province, possessing no harbours, are progressing so admirably towards modern development that the initial difficulties of carrying out the elaborate programme of improvements at Tongka need not give occasion for pessimism. It is probable that the trade will consist chiefly of imports from Hongkong and Macao such as eggs, charcoal, fishery products, groundnut oil, hemp skin, pigs, brown sugar, timber, flour, leather, etc., bamboo splits, mats, samshu, bricks and tiles, rice and paddy, etc. from China; and of exports such as salt fish, pottery, fresh vegetables, etc. The neat and prosperous village of Tongka is situated about half a mile from the shore, with a population of over 10,000 souls. With the shifting of the Magistracy from Shekki to Tongka on the 15th May 1930 the latter place is becoming more and more important very day, and it may soon become a large city, although it has as yet no industry of any kind and its water supply is from wells. Rice-milling by machinery will probably act as the pioneer to industries there, followed by silk-reeling. A plant and laboratory are already installed for extraction and distilling oil, naphtha, creosote, etc., from bituminous shale imported from Kwangchowwan and elsewhere. Much headway has been made with building operations, the village has a good and well-stocked market-place with all  modern improvements, banks, an up-to-date school with 800 students, offices of the Administrative Council, Managing Board of Port Promoters, etc. A new road connects it with Hachak on the Ki-Kwan or Macao-Shekki highway, which ranks amongst the finest in China, and there are minor branch roads  leading to the interior. As a whole, the roads in the Chungshan district, chiefly those on its northern section, bear favourable comparison with any roads throughout the whole of China, and there will soon be a network of roadways with motor vehicles traversing the length and breadth of the district, thereby helping and expanding its trade in no uncertain manner. Railway building will come afterwards. Tongka occupies a picturesque central position, can be made conveniently accessible by water, land, and air, has some historical associations, and offers possibilities for future industrial and commercial expansion. There is a prospect of attracting to Tongka the fishing industry of Macao, and the consequent sale of salt for fish and of commodities to numerous crews. It will not be easy to displace the large fleet of fishing junks from the cosy shelter it has found for centuries in the inner harbour of Macao unless similar or better accommodation presents itself elsewhere. The hope is that produce from Canton and from Kwangtung generally, which is now transhipped

at Hongkong, will come to the port of Chung Shan and thence be exported direct to all corners, of the world. The same with regard to foreign imports for many places in South China. Shekki is about 15 miles distant and is the nearest town of importance .It is hardly likely that junk trade between this place and Hongkong and Macao will pass through Tongka, as the expenses of transport would then be greater. There are regular steam-towed junks plying to Toishan, Sunwui, Shekki ,and Kongmoon, hat via Malowchow and Lintin; and whether the existence of Tongka is likely to interfere in any way with the already existing junk route, time alone can show. Unless it is intended to make Tongka an open, duty-free door to all the accessible hinterland of China, the expressionsfree portand open portare not very clear. If it were only the question of a duty-freearea to be set aside for the circulation and storage of cargo ,the fiscal control of tit would be comparatively easy, with a central or head office in the townand two or three barriers where they are most needed for the control of the land traffic. It would be better still if it were possible to fence in or to wall off an area for godowns, warehouses, etc., wherein in the Customs would have an effective, inexpensive, and concentrated supervision. It is in this one respect only and within this restricted area that Tongka would enjoy the privilege of a free port such as Hongkong. Since native produce transhipped at hongkong no longer loses its status of  native goods, Tongka will have no advantage over Hongkong in the duty treatment of coast trade from one treaty port to another. The privileges of a free port were originally granted to the whole of the 6th section of the Chungshan district, i.e., from Tongka up to and including a small portion of Choyhang, the birthplace of Dr. Sun Yat Sen, which is itself in the 4^th section. Taking this to be a distance of over 20 li, or 7 miles, from point to point as the crow flies, it is estimated that the 6^th area cannot be less than 30 square miles. Thefree area is to be operative only after its boundary along the shore ad land has been delimitated and the Customs frontier guards enabled to patrol the land-line of the proposed port, The movement of goods within the free area and at its exits should be easily controlled by the Customs. For the simplification and strengthening of Customs control, as well as for the convenience of trade, it has been suggested that the lines be shortened and restricted for the time being to the limits of the village of Tongka only. This precaution is necessary on account of the position and status of the place as a free trade port in the vicinity of Hongkong and Macao on China's southern coast, the hotbed of smuggling. It is neither necessary nor desirable to make elaborate and expensive Customs arrangements until the growth of trade justifies them. The port was placed provisionally under the Lappa Customs, with an Assistant in control of the office, but with Customs tariffs in operation, seeing that the place will trade mostly with foreign countries. On the 1st July 1930 Chung Shan Port was officially opened by His Excellency T’ang Shao-i, and a Customs station was establishes. On the 27th October 1930 two sub-stations were opened on the Ki-Kwan road to check smuggling. In view of the serious increase in smuggling the Government abolished temporarily, on the 28th October 1930,the duty-free privileges. The reopening of the port was being considered at the end of December 1931.

I have to acknowledge the help of the following members of the staff in the collection of the material used in this report: Mr. Lai Kampoo,2nd Assistant, A; Mr. L. A. Chretienne, 2nd Assistant, A; Mr. Ho Chan Hua,2nd Assistant, B; Mr. Liu Gut Ping,1st Clerk, A; and Mr. Lui Che Chong,4th Clerk, B. 

                           A.J.BASTO;

                                  Commissioner of Customs.

LAPPA1st December 1931.