Not many miles from the scene of this brutal attack on a gallant British "officer, villagers of the border-districts have in more recent years erected stone tablets on which they have spontaneously borne public testimony to their gratitude for the peace and security enjoyed by them under British rule. One of the inscriptions fs to the effect that during the troubles of the first year} of the Republic (1912), when flames were going up from burning villages just beyond the frontier, those who had the. good fortune to dwell on the British side of the border continued to enjoy uninterrupted tranquillity and safety. Similar testimonials to the benefits received from British rule have been erected by grateful refugees in Port Edward, The economic prosperity that was referred to in the last Annual Report was maintained throughout the year under review, and the revenue was the highest in the history of the territory. "There was a serious] drought in the early part of the threatened not only a failure of crops but also water famine." For three months—April to June—the rainfall amount to only a quarter of an inch, and many of the village wells ran dry. Fortunately the rain which begat to fall on July 6 saved the territory from disaster, though it did not come soon enough to prevent a failure of the wheat harvest.
There has been no cessation ing activity in Port Edward, ris beginning to assume the appearance of a busy and populous Tittle town. In 1898 it consisted of two or three streets of mean hovels, and its only importance lay in the fact that it was the port of the wall-t}ed town of Well wei. That s0- called "city"—which, as stated" in the Prefatory. Note, was left. treaty under Chinese jurisdiction—is completely stagnant, and is no larger than it was thirty years ago. Most of the merchants have abandoned it and have built business premises and private houses in Port Edward.
Text read from the printed page and cleaned; old type leaves the occasional error.