Financt—The financial position he in Poking has if possible gone from ad to worse and the default of the Peking Government in payment of interest on certain loans has crile minated in the London Stock Ex~ change refusing to allow on official quotation for 1896 amd 1893 Gold Loans and the Hukuang @aioway Loan.
During the past year ported a considerable quanuty of silver amounting to 77,00} 0"0 e2s. 'This silver to a great' extent coined into dollars at the Navi and: Hangchow Mints. Inese due Jays were largely absorbd in the interior by shipments to Yangtze and Northern ports, and the heavy shipments made caused a serious shortage of cash in Shanghai at the end of the year. There has been fa good deal of talk regarding the fineness of the dollars coined in the Nanking Mint, but at a recent public analysis the dollars which were assayed wore found to be up to standard. The Shanghai Mint has not yet commenced operations: despite the loans that have been. granted by the Chinese banks for that purpose and it is still impos sible to say when that Mint will commence to function as further funds are still wanted. It is to be hoped that when this Mint does open it will be under satisfactory control and that there will be ho question in future regarding the fineness of dollars coined.
The Customs revenue for the year amounted to Hk. Ts, 63,978,000, an increase of Hk. Ts. 4,744,000 over 1922. The increase is disappointing in view of the new tariff having een in force for practically the whole year. There would appear therefore to have been a falling off Sri overseas trade which is likely to continue so long as China remains in the present state of unrest.
The Unhappy South SourH-CHiNA—The position affairs in South China would not seem to be any brighter than in any other part of China. Ever since the autumn of 1922 the pro vince of Pukien as is the case of nearly all the Southern provinces has been in a state of unrest and disturbance. The contending so-called armies have harassed the people terribly and the local ban-lits, self styled "Peoples Army," "Self Governing Army," ote, ete, have treated them even worse. ig well known that hundreds of men have been impressed to act as transport coolies thout either pay or|~ even food. Piracy has prevailed. The likin and native customs sta tions have been seized and administered by whatever. military. body happened to be in the neighbourhood. Many additional taxes: have been imposed and every trade has suffered heavily. Large cities, usually through the Chambers of Commerce, have had to pay contributions towards the support of the troops. Even Amoy on one ocean sion had to pay $80,000. In coun-districts the people are forced to cultivate opium. In fact the collection of the opium tax has caused more fighting than political issues.
Tt would appear as if every se-atate commander of troops or men-of-war acts with complete independ ence, and that he concerns himself largely with what personal benefit he will derive from the operations in which he is engaged. The result of this habit is that nominal allies will often act in a manner that would appear to indicate that they are not in harmony. On occasions one military commander has treated with a common enemy, unknown to an allied general, and even proposed an alliance! On another occasion a general assisted another general, then fought against him and finally assisted him to achieve victory. Again two separate allied forees were in disagreement as to wifich of them should obtain possession of a coveted town in order to enjoy the revenue to be raised from it. On another occasion the force which gained the place did so by a Payment of money and ammunition, though it was known that the ammunition would be used against the troops of the allied general Such is briefly the state of affairs in the South.
Cliques v. Centralism.
Your Committee is of the opi that the present state of affairs China both politically and finanel chaotic.
'The upheaval in 1911, when the Central authority of the Throne was discarded for vaguely understood Republican ideals, presented an opportunity for the' self advancement of innumerable cliques. Some were ded by men of statesman-like lity and others by adventurers, all struggling for power and.) plums of office, There are sti statesmen and leaders in China of forceful character and ability, but for time being most of thei iven to consolidating mins. whilst. innumerable satellites attaching to them are fostering present disorder to provide opportunities for filling their own pockets. The power is now crystal Hung round three or four well di fined groups and it remains to be seen whether a workable compromise can be established amongst Te is hardly conceivable that the whole country can be subdued and brought under one Central Government for many years to come. There much jealousy, intrigue and disloyalty" lat civil warfare ound' to continue, and auch could not be readily subdued without better means of communication than those existing at present.
'The Peking Government is but a shadowy' pretence maintained in ofice by the war lords to stave off the demands of Foreign Governments, Behind this screen, illegal taxation is levied with impunity and Treaty vights ignored. It must be admitted that such a state of affairs provides serious difficulties for the Diplomatic Body to deal with." The only possible policy under" such fireumstanees is for foreign nations to act in the closest co-opera tion, as any dissension in their ranks!
mediately noted and taken full advantage of by the Chinese our Home Government. through We must continue to. urge upon
every available channel, the necessity of maintaining' all' rights and] privileges secured by' Treaty. Wel would like to feel that this cond be" done harmoniously, reasonably and in a friendly spirit, but une fortunately all efforts in this direction are Tegarded as weakness, by the Chinese offeial, and met by reactionary tactics. Such an attitude can only be successfully. countered! by'united action on the part of all the Powers. We can rest. assured! that any action taken by them eolleetively would not be detrimental to China's interests, and would meet with the hearty, though unvoiced approval, of the vast majority Chinese who are now silently sulering'all the evils attendant upon Givi" War and Hdiseiplined mie
Text read from the printed page and cleaned; old type leaves the occasional error.