it enjoys free trade, as place of shipment for through traffic it possesses at least the advantages, the privileges and rights of a Chinese port.

A free port is thus founded without troublesome duty restrictions. As emporium and place of manufacture, Tsintau is without rivals on the Chinese coast; it possesses the advantages of both the foreign and the treaty port. Without paying duty, the merchant can gather a large stock of foreign goods which he receives from his native land. Mineral products-coal, iron, and ore-the basis of a new industry, are entered free of duty. The raw products of the Chinese ports-cotton, silk cocoons, hides, wool, etc.—are imported there, consumed, or manufactured and reexported as new manufactures, without paying duty. Food products from the interior-rice and barley, corn and wheat-whose export is otherwise forbidden; hundreds of other products and articles, such as burning and food oils, fruit and eggs-in fact, everything that is necessary for the daily use of the population of Tsintau-straw mats, furs, felt, silk, and tobacco; in short all the indigenous products and goods, can be imported into the German territory without paying duty.

Owing to the special customs advantages granted, the influence that the opening of a German port on the Chinese coast will have on the direct importation of Chinese products to Germany is not to be foreseen at this moment.

CHINESE MINING REGULATIONS.

Minister Conger sends from Pekin, August 12, 1899, copy of amendments to the regulations governing railways and mines in China, sanctioned and promulgated on July 30. The regulations were printed in CONSULAR REPORTS No. 223 (April, 1899), p. 556. The inclosure in the present dispatch is in the form of a memorial drawn up by the bureau of railways and mines in conjunction with the Tsungli Yamên. It reads:

In the matter of railways, on the 13th of December, 1898, the Yamên, conjointly with the mining and railway bureau, memorialized the Throne in reference to a thorough consideration having been given to the management of railways and to the need of making a distinction between those that are urgent and those that can be delayed. The suggestions made received the imperial sanction and were duly promulgated and are a matter of record.

As to mines, however, since permission was given to work them, it has been found necessary to make additions to the regulations which are here explained. The formation of stock companies by Chinese and foreigners and the permission of the Government to work mines show that the Government's desire is to treat all with the same kindly feeling, irrespective of nationality; and that not one merchant alone, but all merchants, may share in the profits of mining. Recently, Chinese and foreigners who have applied for mining concessions have (as the regulations permit all companies to survey and locate mining property) selected and located mines in a reckless manner in the prefectures and districts, without clearly defining the place or places, the district, and the extent or area of the mining property; hence, under this regulation dishonest merchants, in league with others and by false representations, could get the better of others and monopolize the mining lands, while the honest, upright, and worthy gentry and merchants would be at

a disadvantage and not be able to devote themselves to .nining. This would be greatly at variance with the original purpose and intent of the law governing mining operations. It should therefore be explicitly made known that such a system must be regulated and restricted. In future (concessions already granted, which must be carried out according to the terms of agreement, excepted), when mining concessions are applied for, they will only be granted for one place in a district, not several places, and thus prevent mining operations from getting into the hands of greedy persons by their locating mines in whole prefectures and districts. Such a course will give to all a chance to reap benefits from mines.

In the former regulation (article 13) it is stated that "the control of mining companies, irrespective of the foreign capital concerned, must remain in the hands of Chinese merchants," and (article 9) "there must be at least a proportion of threetenths of the shares owned by Chinese." When this proportion is raised, foreigners may be invited to buy shares. Although this rule was for the purpose of encouraging the people to embark in the work of mining and to open up a new line of business, still the difference between the proportion of three-tenths held by Chinese and seven-tenths held by foreigners should be taken into account, as it is to be feared that the control of mining interests would gradually get into the hands of foreigners. It is right, therefore, that the regulation should be modified and regulated in this respect.

Hereafter (existing concessions exempted), Chinese and foreigners should have equal proportions of the shares in mining companies-i. e., each to hold one-half of the shares-before mining operations are commenced, thus avoiding partiality. The direction of mining companies must rest, however, in the hands of the Chinese merchants. If foreigners object to this system and ask that the direction be placed in their hands, the request will not be entertained.

Further, in the former regulation (article 6) it states:

"When applications are made by Chinese gentry or merchants to the local officials for permission to engage in mining enterprises, if their applications are not in opposition to the regulations, they may be submitted to the Government board. The local officials have no power to grant such applications. If such applications are made to the board direct, inquiries must be made through the local officials of the applicant's district, and only such applications will be granted in which the report of the local authorities is of a favorable nature."

The object of this regulation is, that Chinese merchants making application for mining concessions must first wait until a thorough investigation has been made and permission granted them before inviting foreigners to take shares in mining companies. If, before application has been made, or if application has been made and refused, they issue shares to foreigners and join them in mining operations, and on investigation being made it is found that there are difficulties in the way of carrying out the work, a useless expenditure of money for surveying, etc., will have been incurred, and a disturbance will inevitably result. It is deemed right, therefore, that this regulation should be revised as follows: In future, when Chinese merchants make application to work mines, they must wait until an investigation has been made by the officials, and if there is nothing to hinder work being carried on, and permission has been granted, they may invite foreigners to take shares and draw up a mining contract. The contract, however, must be submitted for the approval of the Government bureau before operations are commenced. Permission will not be granted to companies to work mines if they are formed before making application to the bureau to carry on mining operations.

Again, by regulation (article 8) "all enterprises sanctioned by the board must be commenced within six months of the date of the sanction, otherwise the sanction will be withdrawn, unless it can be shown that the delay was unavoidable." Under

this regulation, delays may occur on trivial excuses being brought forward, and in that case the working of the mine is done in name only, and not in reality. The time has now been fixed at ten months from the date of sanction, within which period, if operations are not commenced, the sanction will be canceled, and no excuses whatever will be considered. The local authorities will then find some other parties to undertake the enterprise, and no disputes will be allowed.

The other regulations (excepting the changes here made) are to remain in force. The mining concessions already granted will be carried out under the old regulations, in order to avoid confusion and trouble.

SILKWORMS IN CHINA.

In reply to a California correspondent,* the interpreter for the consulate-general at Shanghai, Mr. Barchet, on August 30, 1899,

writes:

The domesticated silkworm (Bombyx mori) is extensively reared in the provinces of Chekiang, Keang-su, Szechuan, and Shantung, and to a small extent in Hu-peh, Keang-si, and Honan.

The silk industry is carried on profitably in Chekiang and Keang-su, where soil and climate are adapted to the silkworm, though even in these provinces there are localities where the silkworm does not thrive and the cocoons do not attain the size or weight they have in Ningpo, Shao-hying, Hang-chow, Hu-chow, and Wusich-regions which are famous for their silk.

The cause of this difference is hard to explain, as the careful selection of eggs, the food, climate, and treatment are to all appearance the same.

Mulberry leaves form the staple food for the silkworm, and only when the supply gives out are the leaves of Cudrania iriloba resorted to, which the silkworms will eat, but not so greedily; and the silk produced is inferior in quality to that from worms fed on mulberry leaves.

Though the domesticated silkworm is liable to disease, the Chinese variety is worthy of repeated trials, as it is fairly hardy when raised from healthy eggs and is decidedly superior to that of India or Japan; but sound and well-selected eggs are of paramount importance to success in such an industry. It would pay to have the eggs examined microscopically by an expert to insure that none but healthy ones be hatched. It would also be well to secure eggs from different localities (Chekiang, Keang-su, and other provinces) to find out which will thrive best under new conditions.

The wild silkworm of China and Japan is larger and is said to yield a greater amount of silk; but this is coarse and yellowish in

*To whom Advance Sheets have been sent.

color, for which reason it only commands two-thirds the price of ordinary silk,

If eggs of the wild silkworm are wanted for experiment, they can probably be procured by applying to the United States consuls at Chefoo, Shantung, or at Chungking, Szechuan (the home of the wild silkworm).

Eggs from the domesticated silkworm in the silk districts of mid-China may, as an accommodation, be procured through the consulate-general at Shanghai, provided the order is not for large quantities.

REGULATIONS FOR NEW PORTS IN JAPAN.

Under date of August 11, 1899, Minister Buck, of Tokyo, sends copy of the regulations for the ports recently opened to trade,* as follows:

The boundaries of Shimizu port are inside of the line drawn straight north from Masaki.

Those of Takatoyo, inside of a line drawn straight east from Fudo village. Those of Yokkaichi, inside of the arc of a circle with a radius of 21⁄2 nautical miles, drawn from the light-house as a center.

Those of Shimonoseki, inside of a line drawn from Beshimachi-no-hana, on Hiko Island, to the southeast of Ganryu Island, and on north northeast, and a line drawn northeast from Amaura-no-hana, on Hiko Island.

Those of Moji, within the area limited by a line drawn from four chains northeast of Shiroki Cape to Moji Cape, and a line drawn straight southward from the same point.

Those of Hakata, inside of a line drawn from the north end of Nokori Island to Mitsukiri, and a line drawn from Odo-hana to the south end of Nokori Island. Those of Karatsu, between the two lines drawn straight east and west from the north end of Taka Island.

Those of Kuchinotsu, within the area limited by a line drawn straight south from Miyazaki-hana, and a line drawn straight east from Shirama Cape.

Those of Misumi, within four lines, one drawn from Seto-no-hana to Kompirahana, on Oyana Island; another drawn from Kiwazaki-no-hana to Nozaki, on Tobashiri Island; another from Usagi-hana of the same island to Rokushiro-hana on Chisuka Island; and another from there to Togasaki, on Oyano Island.

Those of Izuhara, inside of a line drawn from Torazaki to Yarazaki or Neshaka

hana.

Those of Sasuna, inside of a line drawn from Tateba Cape to Toroku Cape. Those of Shishimi, inside of a line drawn from Nagasaki Island to Too Cape. Those of Nawa, inside of a line drawn from Sakihara Cape to the north end of Hinose, and a line drawn from the mouth of Arigawa to the north end of Hinose. Those of Hamada, inside of a line drawn from Kurosaki to the west end of Uma Island and a line drawn from the north end of Uma Island (Senjojiki-hana) to Abumi Cape.

*See CONSULAR REPORTS No. 229 (October, 1899), p. 332.

Those of Sakai, inside of the arc of a circle having a radius of 1.5 nautical miles with the light-house as its center, and west of a line drawn straight north from the west end of Sotonoe.

Those of Miyazu, inside of a line drawn from Katashima-hana to Hiki Cape. Those of Suruga, inside of a line drawn from Akasaki to Hiruko Cape. Those of Nanao (south bay), west of a line drawn southeast from Matsugasaki, on Noto Island, and east of the Strait of Byobugasaki.

Those of Fushiki, within the arc of a circle with a radius of 11⁄2 nautical miles, with the light-house as its center.

Those of Odaru, inside of a line drawn from Hiraiso Cape to Kayashiba Cape. Those of Kushiro, north of a line drawn 2 nautical miles straight west from the light-house, and east of a line drawn straight north from the west end of the aforesaid line.

Those of Muroran, inside of a line drawn from Yenrumu Cape to Hotoeishi Cape, through Daikuku Island.

JAPANESE MARKET FOR WOOD PULP.

Consul Bordewich, of Christiania, under date of August 25, 1899, writes:

I inclose translation of a cutting from a Christiania paper of recent date, from which it will be observed that the Norwegian manufacturers of wood pulp are advised, by a very well posted authority, that Japan is likely to become a good market for their product. It will also be observed that competition from America is feared. It appears to me that American wood pulp from the Pacific coast should be able to control the Japanese market.

A NEW MARKET FOR OUR WOOD PULP.

[From the Morgenposten, Christiania, August 22, 1899.]

In a report from Minister Gude regarding his mission to China and Japan, he states that in the last-mentioned country there might be found a considerable market for our exports of wood pulp for paper manufacture.

The minister believes that our enterprising exporters of wood pulp might be able to accomplish something in this branch there, as it still is new and but little worked. But all now depends on getting ahead of the Americans.

In the statistics for 1895, however, he has not found wood pulp specified as an article of import from the United States. On the other hand, he discovered several orders for wood pulp to Norwegian firms, so he reasons that the market could easily be secured and increased, if our exporters would make efforts in this direction.

In Japan, both common pulp and chemical pulp are needed; both kinds are used even now in large quantities by the largest paper mill there. The Japanese, with their great facility for imitation, have, it seems, also become desirous of manufacturing a different and finer paper than the soft and porous article which they have so far made from a pulp consisting of rice straw, papyrus, bark, etc., the same as is used in China. But for this, European wood pulp is needed, as the attempts to make wood pulp from native Japanese wood have not met with success.