the growth of the poppy and the use of opium, the action of the provincial authorities differed widely. In Yun-nan, where the importance of opium to the revenue and trade and its use as a convenient form of currency seemed to promise the greatest difficulties in its suppression, the most thorough measures were carried through. In other provinces too the same thoroughness was manifested, but in parts of the Yangtse Valley and in KueiChou the officials showed great supineness. The Government's movement was furthered by the Indian Government's undertaking to reduce the amount exported by 5,100 chests yearly, and also by the closing of opium dens in Hong-Kong and in the foreign settlements in China. But the establishment of an official monopoly of opium was opposed by the British Government and discontinued shortly after its introduction. On the motion of the United States Government an International Conference was arranged to meet at Shanghai in February, 1909, to investigate the opium trade and habit.

The visit of a Nepalese Mission to Peking, the reception of the Dalai Lama, the departure of Sir R. Hart from Peking and the appointment of Sir W. C. Hillier as Chinese Adviser were among the interesting events of the year.

But the prominent events of 1908 were the deaths of the Emperor and Empress-Dowager in November. Disquieting reports as to the condition of the Emperor's health had appeared in July, but His Majesty had in August so far recovered as to be able to attend to business again, and the celebration of the Empress-Dowager's birthday (Nov. 3) on an unusually large scale had been marred by no anxiety on her account. The Emperor at the time was ill, and his death, which was stated to have taken place on November 14, excited little surprise, but the announcement of the Empress-Dowager's death on the following day was unexpected, as it was known she had taken part in the choice of the successor to the Throne and that the Emperor's valedictory edict had been drawn up under her supervision. As the new Emperor, a son of Prince Chun, is a child of only five years of age, his father was named Regent. The reins of power were transferred without any serious disturbance. The only outbreak was at Nganking, where some troops mutinied and had to be suppressed by force. It was evident that the rapidity with which events had followed on each other had taken the people by surprise. From the south and from abroad came telegrams urging the nomination of a Chinese to the Throne, but the Regent was supported by Chang Chih-tung and Yuan Shih-kai, the most prominent of the Chinese members of the Government in Peking, and thus a split between Manchus and Chinese, the contingency most to be feared, was averted. The Regent, though only twenty-six years of age, showed great capability as well as promptitude. Two divisions of the Chih-li troops were placed under Tieh-liang, the Manchu Minister of War, and the third directly under the command of

the Throne. The widow of the late Emperor received an intimation that though the Imperial Household was under her control, her power did not extend further. An Edict confirmed the promise of the grant of a Constitution after nine years. Chang Chih-tung and Yuan Shih-kai received the honour of the title of Grand Guardians of the Heir, and the Foreign Ministers attended the lying-in-state ceremonial within the Palace, by invitation. On December 2, the young Emperor was enthroned with the usual rites, but the power of the Regent was strengthened and his position as de facto Emperor determined, and the year closed with the apparent assurance that no change in the Government was likely to occur, a promise rudely dispelled by the dismissal of Yuan Shih-kai from office on January 1, 1909.

Prince Chun, the father of the new Emperor, who has been appointed Regent, is a younger brother of the late Emperor and third son of Prince Chun, better known as "the Seventh Prince," who during his early life was regarded as very anti-foreign, but after being brought into contact with foreigners through the post which he held of Head of the Admiralty manifested a very different disposition and died much regretted by all in 1891, after having displayed considerable ability and taken a prominent part in the Government. The present Regent came into prominence in 1901, when he was sent on a mission to Germany to convey the regret for the murder of the German Ambassador in Peking in the troubles of It was the first time that a member of the Imperial Family had been sent on a foreign mission, and he distinguished himself greatly by his conduct of the mission and his outspoken refusal to proceed to Berlin if, as was rumoured after his arrival in Europe, it was expected of him that he should kotow to the Emperor. The humiliation of his country at the time and his own youth made his conduct the more striking. Since his return to Peking he has shown himself friendly to foreigners and to progress.

The succession of the late Emperor to the throne had been irregular, as he was of the same generation as his predecessor, who died in 1875. On his appointment he was therefore adopted as posthumous heir of his uncle Hsien Feng (1850-61). The semi-illegality of his position had probably assisted the EmpressDowager in superseding Kuang Hsû in power and seems to have been borne in mind at his death, which took place in a hall other than that reserved for such occasions, and in the fact that no mausoleum had been prepared for the reception of his body. No heir has hitherto been adopted to pay him the rites of a son to a father, and the new sovereign succeeded as heir to the Emperor Tung Chih, who died in 1875. Apart from the difficulties arising from the introduction of an interloper into the succession from 1875-1900, the nomination of the new Emperor is quite regular, and has been recognised as such by the foreign representatives at Peking.

As regards trade, the year 1908 was unfavourable to China as to most countries. The Customs revenue decreased by about 1,000,000 taels. No substitute for the falling off in the opium revenue had been found and the Court mourning interfered with the livelihood of several of the humbler classes, while imposing an immediate outlay of several millions of taels. But the most dangerous feature (commercially considered) consisted in the issue of banknotes without restriction and without any adequate security by numerous banks, semi-official and private, in the North and elsewhere. Representations were made on the subject by the Shanghai Chamber of Commerce, but strong interests were involved in maintaining their issue and the Government showed much reluctance to interfere.

IV. HONG-KONG.

The finances of the Colony had been seriously affected in 1907-8 by a falling off in the opium revenue and an equally large loss in the postal department due to recent lowering of rates and the carriage of parcels at a loss by the Siberian route. In May, 1908, another and more serious blow was dealt by the Colonial Office which, in consequence of a resolution passed in the House of Commons on May 6 (p. 93), ordered the immediate closure of all opium dens within the Colony. Sir F. Lugard explained that he had asked that no statement should be made on the subject in the House until a despatch from him had been received, but that his request had been refused. The Chamber of Commerce at once protested, not against the prohibition of the trade but against the action of the Imperial Government in directing enforcement of the order without previous consultation with the Colony or any consideration of how the sudden deficit in the revenue might be filled up. But the Governor had to carry the order through, and as the Chinese Government had issued orders to prevent the exportation of prepared opium into Hong-Kong, the Hong-Kong Government responded by an Act

of a like character.

Another grave difficulty which faced the Government consisted in the cost of construction of its section of the CantonKowloon Railway, which seemed likely to be double the amount estimated. This was aggravated by disquieting reports as to the condition of the bridges, which led to a suspension of the works pending reference to a Committee of experts.

With an increasing public debt and a larger expenditure on the military contribution and its Volunteers, the Colony had a revenue in the first half of the year which though equal to the estimate was considerably short of that of 1907. The necessity for retrenchment and strict economy or of fresh taxation was apparent, but a tax on native and foreign shipping to provide the cost ($1,500,000) of a new typhoon shelter at Mong-kok-tsui was opposed by all the non-official members of Council, partly

on the ground of the inclusion in the Budget of a sum derived from the Widows and Orphans' Fund, and partly because any taxation of the kind is detrimental to the interests of the port and likely to drive trade away from it.

On August 3 a typhoon, of the approach of which warning had been given, did damage estimated at $5,000,000 and cost 643 lives. The s.s. Ying King was lost with her captain and a large number of passengers, but fortunately the warning had reached most vessels in time for them to take necessary precautions. A serious outbreak of plague in May completed the roll of disasters for the year.

In spite of adverse trade conditions, considerable liberality was shown in offers to endow a University if started in HongKong. The project was welcomed by the Governor, who advocated the College of Medicine and Technical Institute being housed in the building.

The unpopularity of the Japanese, excited by the conduct of their Government in the treatment of the "Tatsu Maru" case (p. 392), led to a boycott of Japanese trade, which culminated in November in a riot in which some twenty odd stores dealing in Japanese goods were looted, their contents destroyed, and three Chinese had their noses or the lobes of their ears cut off. The riot was renewed on the following day. Troops were called out to support the police and two of the rioters were shot. It was remarkable that during the riots no Japanese shops were interfered with. Following on the riot, the Hong-Kong Government banished several Chinese merchants and two editors of Chinese papers, a step which excited considerable uneasiness among the Chinese community and led to threats of a boycott of British trade.

V. FRENCH INDO-CHINA.

The ferment among the native peoples of the East, due to Japan's successes in her war with Russia, extended to French. Indo-China and was the cause in 1908 not only of seditious movements in the country but of much questioning in France as to the correctness of her policy in administering this possession. Since 1906, tentative measures had been taken to introduce a native element into the consultative bodies of the Government, and the position in 1907 seemed so secure that the military budget was reduced from 19,000,000 frs. to 15,000,000 frs. But in March, 1908, owing to scarcity of food and, as some alleged, to official maladministration, an outbreak occurred in Annam which was not put down until June. In Tong-king a plot of the native garrison was discovered to seize the arms and ammunition in their barracks at Hanoi, with a view to selling them to Chinese revolutionaries across the frontier. To prevent any active movement against the Government it was considered necessary to strengthen the army with a force of 8,000 men sent from France, but though no further rising took

place sedition was rife and needed all the ability of the Government to cope with it.

Besides these native troubles, difficulties arose with China on the Yun-nan frontier, where a revolutionary body, encouraged if not led by Sun Yat-sen, seized a small Chinese town and when driven back was pursued by Chinese troops across the frontier. This led to two collisions with colonial troops in which three or four French officers and some of their men were killed, and a demand was made for the punishment of the troops concerned and of the Chinese Viceroy. After some months of discussion the Chinese Government conceded the French demands with the exception of the punishment of Hsiliang, the Viceroy, whose administration of the province was generally recognised as most able.

The scheme of public works contemplated by the Government included irrigation on a large scale in Cambodia, measures of protection from inundation in Tong-king and the improvement of the Mekong River for navigable purposes. The railway from Tong-king to Yun-nan was practically completed as far as Meng-tzu, and the Government was authorised from home to raise a loan of 2,100,000l., guaranteed by the French Government for carrying on its extension.

M. Klobukowski, Consul-General in Egypt, was appointed to succeed M. Beau as Governor-General.

CHAPTER VII.

AFRICA (WITH MALTA).

I. SOUTH AFRICA.

SOUTH AFRICA has not yet emerged from the depression from which the region has suffered since the war, and, in a commercial sense, 1908 has not shown improvement on its immediate predecessors; but the year has been one of unusual political activity, and two questions of permanent Imperial importance have come to the front-that of Asiatics in South Africa and that of the organic union of the five States. At the close of 1907 the situation was that the Indian population of the Transvaal refused to register under the new Act. Mr. Gandhi, the leader, and other Indians who had refused to register, were arrested and ordered to leave the Colony. To these orders they offered a "passive resistance," and raised the legal point that the Government had no power to put them over the border by force. Mass meetings of Indians were frequently held in Johannesburg, and it seemed that the entire Indian population was resolved upon resistance. Natal, meanwhile, objected to Indians being put across the Natal border, and negotiations were opened by the Transvaal to arrange for the transit through the Colony to the coast ports. Simultaneously