consul-general at Shanghai has pointed out, that "the customs credit the trade to the country from which and to which the carrying ship clears, without taking any note of the country in which the goods originated or for which they are destined." For example, goods shipped via Hong Kong are credited to Hong Kong, via London to Great Britain, via Japan to Japan, etc.

The reported value of the imports of cotton goods fell from $74,457,406 in 1899 to $54,519.603 in 1900. Some of the principal items included in these totals were, for 1899 and 1900 respectively: Indian yarn, $26,205,428 and $13,847,900; Japanese yarn, $12,177,203 and $7,239,082; gray shirtings, $8,108,850 and $8,116,424; white shirtings, $5,838,728 and $5,704,660; American sheetings, $6,924,070 and $4,494,469; American drills, $3,037,631 and $1,694,711; lastings, $2,386,797 and $3,636,661; T cloths, $1,675,166 and $1,247,366; English sheetings, $1,364,302 and $1,157,161. Other leading imports were valued in 1899 and 1900 respectively: Opium, $25,788,689 and $22,366,905; woollen goods, $3,008,550 and $2,466,700; raw cotton, $2,504,299 and $1,321,019; machinery, $1,099,879 and $1,045,081; tin in slabs, $1,054,856 and $1,374,128; American kerosene, $4,684,539 and $4,543,570; Russian kerosene, $3,524,239 and $3,710,183; Sumatran kerosene, $858,906 and $1,804,035.

The movements of gold and silver bullion recorded by the customs between China and foreign countries in 1900 showed a net import of gold worth 1,202,315 haikwan taels ($866,508) and a net import of silver worth 15,442,212 haikwan taels ($11,129,202). Large amounts of British, French, and Mexican silver coin were brought by the foreign military. It was reported in 1901 that in Manchuria dollars were taking the place of sycee as currency.

China's most valuable export-raw and manufactured silk-which amounted to $59,195,781 in 1899, seriously decreased in 1900. The crop was satisfactory, but the anticipated consumption resulting from the Paris Exposition was not fully realized, while "overproduction in Europe and America caused a weak demand and low prices," and at the same time Japanese competition was severe. In 1901 there was little prospect of an immediate improvement in the silk market. The export ranking second in value is tea. In 1885 the shipments amounted to 283,833,800 pounds; the export fell to 204,286,700 pounds in 1897, increasing slightly in the following year, and in 1899 reached 217,439,300 pounds. In 1900 the shipments declined to 184,382,110 pounds. The last amount was made up as follows: Black tea, 115,016,533 pounds; brick, 42,245,836; green, 26,716,652; tablet, 403,089. Of raw cotton nearly 95,000,000 pounds were exported in 1900, and the exportations of hides, horns, tallow, oils, nutgalls, rush hats, and straw braid increased.

Some idea of the relative importance of foreign trade carried on at each treaty port may be gained from the following table, which states in American gold the imperial customs revenue for 1899 and 1900; the total amounts, $19,209,582 and $16,485,281 for the two years respectively, correspond to 26,661,460 haikwan taels and 22,873,985 haikwan taels, the figures reported by the customs.

According to a statement appearing in the United States consular reports under date of April 4, 1901, the foreign firms and residents in China were as follows:

The Boxer uprising of 1900 almost destroyed, temporarily, foreign trade in northern China. Since this part of China is practically the field of American trade, perhaps no country in the world suffered more than did the United States. The year 1900 began with the greatest increase in American trade in China on record, and "ended with the most serious losses." The greatest American loss was in piece goods and in kerosene. Some idea of the disastrous effects on trade of the Boxer outbreak may be gained from the following figures comparing the amounts of American importations at the three northern ports of Chifu, Tientsin, and Niuchwang for quarters ending June 30 and September 30 in 1899 and in 1900. The first table relates to quarters ending June 30 and the second to quarters ending September 30.

The increase of the kerosene import for the quarter ending June 30, 1900, was due to the trade at Chifu, where the other articles enumerated also showed advances for that quarter, but in the following quarter there was a general decrease. And the returns at Tientsin and Niuchwang for the quarter ending September 30, 1900, showed almost the annihilation of trade at those ports. For the last-named quarter the customs receipts at these three ports amounted to 238,506 haikwan taels, against 809,308 haikwan taels in the corresponding period of 1899; and the customs revenue for all China during the one quarter was 5,163,795 haikwan taels and during the other quarter 7,623,386 haikwan taels.

The total imports from the United States in 1900 were valued at 16,724,493 haikwan taels ($12,053,342) and the total exports to the United States at 14,751,631 haikwan taels ($10,631,500). These totals, however, on account of the method of recording used by the customs, which was pointed out in a foregoing paragraph, are far from showing the true value of American goods bought in China and vice versa. Careful estimates made by the United States consul-general at Shanghai led that official to believe the value of American imports in 1900 exceeded $18,000,000, while the difference with regard to the exports was proportionally even greater. It may be fairly assumed, then, that "the United States buys more goods from China than does any other nation," and that the total American trade with China exceeds that of any other country except Great Britain. In the spring of 1900 the most rapidly growing trade in China was the American, but a year later German trade was proportionally increasing faster.

Railways and Telegraphs.-In China proper there are three lines of railway in operation: the Chinese Imperial Railway (built by British capital); the line from Peking to Pao-ting-fu (built by British capital, but since January, 1900, in the hands of a Belgian syndicate, which some suppose is acting for Russia); and the line from Shanghai to Wusung (British). The last named is only 12 miles long. The Chinese Imperial Railway extends from Peking to Tientsin (80 miles), thence to Tong-ku (27 miles), to Shan-hai-kwan, on the Manchurian border (147 miles) total, 254 miles. The railway from Peking to Pao-ting-fu is 88 miles long and has a branch of 10 miles. From the foregoing it appears that the completed railways in China proper have a total length of 364 miles. Two railways are under construction: the so-called Peking-Hankow line and the Shantung line. The former line, which is being built by the same Belgian syndicate that controls the line from Peking to

Pao-ting-fu, will connect the latter town with Hankow. At the end of 1901 work on this line was progressing steadily; though much damage had been done by the floods of the preceding summer, rails had been laid in November a distance of 165 kilometres (103 miles) north from Hankow, and the work was advancing at the rate of about half a kilometre a day. The Shantung line is being constructed by the Germans inland from Kiao-Chau. In September, 1901, about 100 kilometres (62 miles) were completed, and it was expected that by May, 1902, the line would be in operation as far as Weihsien, where the great land routes of the southern part of Shantung converge.

Among the more important lines projected in China proper, but not begun at the end of 1901, are: Hankow to Canton (projected by an American syndicate); Canton to Woochang (American and British); Shanghai to Nanking (British), 250 miles; Lao-kai to Yunnan-sen (French), 291 miles. See INDO-CHINA, FRENCH.

Outside China proper are the extension of the Chinese Imperial Railway and the Russian lines in Manchuria. The former runs from Shan-hai-kwan (193 miles) to Niuchwang, there connecting with the Chinese Eastern Railway (Russian); near Chen-chou, 113 miles from Shan-hai-kwan, there are two branches, 7 and 30 miles in length respectively. The Chinese Imperial Railway, with the 254 miles in Chili, has a total length of 484 miles. The section of the Russian Siberian line from Vladivostok across Manchuria was opened November 3, 1901 (see RUSSIA). Harbin, on the Manchurian railway, is to be connected with Port Arthur, 653 miles distant. In 1900 318 miles of this line, running north from Port Arthur through Niuchwang to Telin, near Mukden, were completed.

All the principal cities of China are connected by telegraph, and Peking has overland connections with Europe. The telegraph lines have a length of about 14,000 miles, and new lines are being constructed.

HISTORY.

The Peace Protocol Negotiations. In the last days of December, 1900, the joint note, embodying the terms upon which the peace protocol was to be negotiated, was signed by the representatives of the powers at Peking, and presented to the Chinese commissioners, Li Hung Chang and Prince Ching. The United States representative, Mr. Rockhill, suggested that the consideration of the indemnity and the question of commercial treaties be transferred to some other capital than Peking, preferably Tokio or Washington, but the proposition was not accepted by the other Powers, and on January 12, 1901, the Chinese commissioners signed the preliminary note submitted to them, and negotiations began. The imperial edict authorizing the commissioners to sign the note, expressed the hope that the sections prohibiting the importation of arms or military goods, the demolition of the Taku forts, the establishment of legation guards, and the section relating to the indemnity would be modified. Early in the negotiations a request was made by Prince Ching and Earl Li for the transfer of the Forbidden City to the Chinese in order that preparations might be made for the emperor's return. The request was denied by the ministers on the ground of a previous decision that no concessions whatever should be granted the Chinese until they had shown by their deeds a compliance with the terms laid down in the preliminary note. The first joint session of the foreign envoys and the Chinese commissioners, whose number had been increased to four by the addition of Sheng, mayor of Shanghai, and Chou-fu, former Chinese minister to Korea, as advisory members, took place on February 5.

The Discussion of Punishments.-The first section of the note, providing for expiatory missions to Japan and Germany, was accepted without debate, but the second, providing that the "most severe punishment befitting their crimes" should be inflicted by the Chinese on certain persons designated by the ministers as responsible for the outbreak and outrages of 1900, gave rise to prolonged discussion. At the first session the envoys submitted a list of twelve Chinese officials, guilty of crimes against international law, whose punishment was demanded. On February 6 the foreign ministers decided to demand the infliction of the death penalty on every man on the list presented, notwithstanding the fact that the wording of the preliminary note had been changed, at the instance of the United States, from "death penalty" to "most severe punishment." The Chinese commissioners were willing to give assurance of the execution of Prince Chuang, the commander-in-chief of the Boxers, and of Yu-Hsien, one of his chief lieutenants, but urged leniency for the others, particularly Prince Tuan, Duke Lan, and General Tung Fu-hsiang, the commanderin-chief of the Chinese army. After some discussion the envoys consented to a commutation of the death penalty in the cases of Tuan and Lan to perpetual exile, it being understood, however, that sentence of death should first be passed upon them. The final agreement, reached on February 20, was in the nature of a compromise. According to this arrangement the imperial court was to commute the sentences of Tuan, Lan, and Tung to life imprisonment, to allow Chuang to be strangled instead

of decapitated, and to allow the others to strangle themselves or be beheaded. A month later (March 18) an additional list of 96 minor officials, charged with complicity in the outrages, was presented by the envoys with recommendation that they be punished as the Chinese should see fit, both the United States and Japan recording themselves as opposed to any further "unnecessary bloodshed."

Indemnities. By far the most puzzling question before the envoys was that of the amount of the indemnities to be paid, both to natives and to private individuals and societies or corporations. Discussion of the matter was taken up about the middle of March, 1901, and immediately the greatest diversity of opinion was exhibited, both as to the amount to be demanded and the provisions for securing its payment. The question of the private claims, however, not being covered by the protocol was only discussed in a general way. At the outset there was radical difference of opinion among the representatives of the powers as to the amount that China could and ought to pay. The United States urged that the total indemnity be not more than $200,000,000, and in her stand for a low figure was supported by the Japanese and British ministers, whose minimum estimates, however, were somewhat larger than that of the United States. The demands of Russia, Germany, and France, however, were absurdly high. The United States, seconded by Great Britain, announced it as a part of her policy to favor a low indemnity, being willing even to reduce this amount in exchange for guarantees for the safety of foreigners and the extension of trade and commercial privileges. It was held by these nations that it would be for their own benefit as well as China's, not to demand an indemnity that would cripple China and leave her practically bankrupt, possibly rendering her even unable to complete the payment of the indemnity. Such a failure to pay would probably be followed by more international wrangling and even by seizure of territory in lieu of defaulted payment, an act which would open the way for a general partition of China among the Powers. Germany and France in particular were probably favorable to the plan for this very reason; but the position of Russia, which is not ready for a partition until her development of Siberia is more complete, was not so certain. The aggregate amount of the various claims, as originally submitted, amounted to between $400,000,000 and $500,000,000. The original plan for the payment of a separate sum to each country, according to its demands, gave way after discussion to the plan proposed by Mr. Rockhill, that payment be made in a lump sum, and the share of each nation be thereafter assigned by the ministers, an international commission, appointed for the purpose, or the Hague Tribunal.

A statement of the American policy, which was understood to be framed on practically the same principles as that of Great Britain and Japan, was officially presented to the other envoys. The statement favored the payment of a lump sum to be kept within the limit of $200,000,000, if possible, and to be afterward divided proportionately among the claimant Powers by the Hague Tribunal. This statement of policy was submitted as a formal proposition and was finally rejected, except so much of it as provided for the payment in gross. On May 9 the envoys addressed the Chinese government in a collective note, informing it that the Powers would require for losses and expenditures until July 1, 1901, the sum of 450,000,000 taels (at the rate of exchange then existing equal to about $337,000,000). An official admission of liability on China's part was requested. The Chinese reply was given on May 12. It accepted the obligation to pay adequate compensation contained in the preliminary note, but expressed amazement at the amount demanded and urged a considerable reduction. If the full amount were insisted upon, however, China would undertake, so the commissioners replied, to pay the 450,000,000 taels in 30 annual installments of 15,000,000 taels cach, payment to be made by raising 10,000,000 taels from the salt tax, 3,000,000 from native customs, and 2,000,000 from inland transit duties. The Chinese commissioners further proposed an average increase of 15 per cent. in import duties, a proposition which the envoys would not entertain, although all were willing that there should be some increase in customs duties. On this proposal, Russia, France, Germany, and the other nations whose commerce with China is comparatively insignificant urged an immediate increase of 10 per cent., while Great Britain, Japan, and the United States favored an effective increase of 5 per cent., holding that an arrangement to pay the indemnity by a large increase of the customs on imports would really mean that the Powers which demanded the least indemnity would pay those which demanded the most. The reply of the commissioners accepting the envoy's indemnity proposals was followed by an imperial decree on May 27, declaring China's unconditional acceptance. That point being settled, the envoys set themselves to determining how China should be allowed to raise the indemnity, and by what methods its payment should be guaranteed. Among the Chinese themselves there appeared to be no clear agreement as to how the money should be raised, the imperial government favoring an increase in internal taxes and transit and salt charges-in other words, the provincial revenues; while the Yang-tse viceroys not unreasonably replied that they took no part in the Boxer uprising, and

that the chief pecuniary burden properly belonged to Peking and the province of Chili

When the question of the guarantee of the indemnity came before the envoys, France and Russia proposed a joint guarantee, which was vigorously opposed by Great Britain and the United States, who also joined in opposition to Russia's tariff proposal, with the result that late in June an agreement was reached to the effect that the Chinese method of payment should be by issue of her bonds, and that the security should consist of an increase of the tariff on imports to an effective 5 per cent. specific duty on all articles then nominally subject to that rate by treaty, or which should be added to it by an international commission, it being understood that cereals should be free. Native customs, the salt tax, and maritime charges were to constitute a further guarantee. On July 26, after fully four months of discussion, the final terms of the agreement relating to the indemnity were decided upon. The amount of 450,000,000 taels will bear interest at 4 per cent., payable semi-annually, payment of the principal to begin in 1903, and continue in increasing installments until 1940, at which time the indemnity obligation shall have been satisfied. The total payments of principal and interest will amount to almost $700,000,000. Payments will be made to a mixed committee at Shanghai, to be known as the Committee of Encashment, and to be composed of representatives of foreign banks in that city.

The Protocol. The final draft of the protocol was signed by the representatives of eleven Powers at Peking on September 7, 1901. The signatory Powers were Russia, Germany, France, Great Britain, the Netherlands, Belgium, Spain, the United States, Japan, Italy, and Austria-Hungary. The text of the protocol consisted of a recital of the compliance of China with the conditions laid down in the preliminary note. It may be summarized as follows, the articles corresponding with those bearing the same numbers in the preliminary note:

Article I. (a) The agreement to atone for the assassination of Baron von Ketteler, the German ambassador. (Fulfilled by the mission of Prince Chun to Germany.) (b) Acquiescence in the demand that a memorial monument be erected to Baron von Ketteler in Peking.

Article 2. (a) Punishments inflicted in accordance with the demands of the Powers. (b) Suspension of official examinations for five years in all cities where foreigners were massacred.

Article 3. Atonement for the murder of Chancellor Sugiyama, of the Japanese legation, by an expiatory mission to Tokio.

Article 4. Agreement to erect expiatory monuments in desecrated foreign cemeteries.

Article 5. The importation of arms and war materials into China prohibited for two years

Article 6. Agreement for the payment of an indemnity of 450,000,000 taels, and provisions for its payment and guarantee, the value of the tael being fixed at 74.2 The fortification and garrisoning of the foreign legations provided for. Destruction of the Taku forts promised.

cents

Article 7.

Article 8. Article 9. to Taku.

Garrisons of foreign troops to be maintained on the road from Peking

Article 10. Provision made for the publication throughout China of imperial edicts providing (a) prohibition of membership in anti-foreign societies; (b) for public announcements of the punishing of the Boxers; (c) for the suspension of examinations; (d) for placing responsibility for disturbances on provisional governors and local officials.

Article II. Extension of treaties of trade and commerce.

Article 12. tion of Peking.

Reformation of the Tsung-li-Yamen and agreement as to the evacua

The Manchurian Question.-The attempt of Russia to establish a protectorate over Manchuria was, aside from the peace settlement itself, probably the most important and significant occurrence in the history of China in 1901. An agreement between the Chinese military officials and the Russians at Mukden, reported on the last day of 1900, provided for a resumption of Chinese civil government in FengTien, the southern province of Manchuria, under what amounted to practically a Russian protectorate with full military occupation. Count Lamsdorff, the Russian minister for foreign affairs, however, replying on February 17 to an inquiry of Lord Lansdowne, the British minister for foreign affairs, as to the nature of the agreement, disavowed any intention on Russia's part to establish a protectorate, and declared that "nothing beyond the terms of a temporary modus vivendi during the occupation of the Russian troops was being negotiated." The Russian idea of a "temporary modus vivendi” was made known to the world on the publication of the text of the proposed "agreement" on February 27. The agreement provided for a