of Tang-chow-foo, is one of the largest sea-port towns along the whole of that province. It lies on the north-western shores of the promontory of Shan-tung in latitude 37° 47′ north, and 170 miles from the mouth of the River Peiho. It is the seat of residence of the chief local authorities of that department. The harbour is exposed to the eastward and westward, and only partially defended to the north by the Miatau Islands. The bottom is rocky. This harbour cannot, in consequence, be frequented by vessels of heavy draught, and even communication with the shore in boats is frequently difficult and precarious in rough weather. The establishment of her Majesty's consulate at this port, therefore, so ill-suited for shipping, was evidently inexpedient, and the small town of Yentai, at the bottom of the harbour of Che-foo, was selected as in every respect the best situated for trade on this part of the coast of China. At a distance of about thirty miles to the eastward of Tang-chow-foo, upon the same northern shore of the promontory, is the harbour of Che-foo, sheltered from the east by an island at its entry, and affording excellent anchorage-ground, much resorted to by native vessels. Here, also, the French squadron found a secure anchorage during the last winter (1860-61). In the north-western corner of the harbour is the large open town or village of Yentai, beautifully situated at the foot of sloping hills, covered with rich vegetation. The population is estimated to number about 10,000, and the port is much frequented by the traders of the province.

Her Majesty's consul left Tien-tsin to proceed to his post in January of this year (1861), and travelled by land to Tang-chow-foo, the distance by the direct road being about 450 miles. Having made the necessary arrangements with the chief authorities, he proceeded to Yentai, where the consular flag was hoisted on the 18th March (1861), and the port was opened to trade. This consulate retains, however, the designation adopted by treaty of "Tang-chow-foo," for the harbour of Che-foo and town of Yentai are within the jurisdiction of that department, as, indeed, is the whole of the Shan-tung promontory running eastward to its point from Hwang-hien on the northern side, and Lai-yang-hien on the south, such being in perfect consonance with the Chinese interpretation of the limits attached to the opening of Tang-chow-foo to foreign trade.

this

In respect to the actual trade which has taken place since the opening of port to foreign shipping, no precise information has as yet been attainable, but it is not as yet considerable. In imports, it is well known that, in addition to the usual Southern Chinese manufactures and products brought in junks, British cotton goods and other articles usually imported into China were, even heretofore, habitually sent here from Shanghai, both this port and that of New-chwang being the safety-valves of Shanghai when surplus imports lay there heavily on merchants' hands, owing to interrupted communications with other outlets arising out of the Taeping rebellion or other causes. But the direct trade with the north of China is now in course of rapid development. The carrying trade, by British and other foreign bottoms, from the southern ports to Che-foo, of Chineseowned goods will, in any case, to a great degree supersede the junk trade. The extent to which this latter trade has hitherto been carried on between the south and north coast of China is exhibited by the fact that, in ordinary times, from 14,000 to 20,000 junks are employed between Shanghai alone and the northern ports; and in respect to their cargoes, it should be added that in 1856 it was stated, upon good authority, that two-thirds of the

manufactured goods imported into Shanghai went in junks to the ports in Shan-tung and to Tien-tsin. The description of articles imported into the province of Shan-tung through Yentai partakes of the same character as those already enumerated as imported into Tien-tsin. But an important import into Shan-tung from Shanghai consists in native-grown raw uncleaned cotton, of which 150,000 bales, of 100 catties each, are calculated to be received there annually.

In exports from the province of Shan-tung through Yentai, or through any of the other ports in that province, nothing is derivable suited for European consumption. But, as at New-chwang, pulse and bean cake offers in sufficient quantities, and serves as a profitable medium of barter for return cargoes to the southern ports, were it not that, as again in the case of New-chwang, its exportation is prohibited by the rules attached to the treaty. This prohibition, which has an undoubtedly injurious influence on British trade in this quarter, in a great measure originated in the desire of the Chinese Government to protect the junk trade against the overwhelming competition of foreign vessels, as well as to check the exportation of grain, arising out of over-prudential motives; for both these prohibited articles are produced greatly in excess of local consumption. But, practically, the exportation of these two articles is partially carried on in foreign vessels by the connivance of the authorities not only at Yentai, but by the official invitation and encouragement of the local Chinese authorities at the ports of Hwang-hien, Lai-yang-bien, Shyh, and Li-tao, all situated around the Shan-tung promontory. But these adventures are made at the serious risk of the cargoes so laden with the connivance of the local authorities, for they are refused permission to be landed at Canton or elsewhere in the south, according to the severity or indulgence of the custom-house at each port. This matter, however, is under the serious consideration of her Majesty's minister in communication with the Prince of Kung.

Formosa.-The Island of Formosa, called by the Chinese "Tai-wan,” lies between 20° 58′ and 25° 15′ north latitude, and between 120° and 122° east longitude, and extends from south-by-east to north-by-east about 240 miles. In width it varies from 100 miles at 24° north latitude to 4 miles at its most southern point, but maintains a width of about 60 miles near its northern extremity. The surface is calculated at about 14.000 square miles, or about half the area of Ireland. A mountain range called "Ta-shan," or the "Great Mountain," runs across Formosa from north to south, forming a barrier between the Chinese on the west and the independent and savage tribes inhabiting the eastern side. The highest point of this range is estimated by Humboldt at about 12,000 feet above the sea. The mountains have a steep declivity on both sides, but on the western side they terminate at a considerable distance from the sea, so as to leave a wide tract between them and the shore. On the eastern side, the mountains, gradually descending from their crest, cover nearly the whole space to the sea.

The Chinese inhabitants of the civilized side of Formosa, as opposed to the savage aborigines of the eastern side, are partly emigrants from the Province of Fuh-keen, situated opposite, on the mainland of China, a most industrious race of colonists, and proverbially well-disposed towards foreigners. Some are also descendants of those who lived in relationship with the Dutch when they possessed this part of the island, between the

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years 1624 and 1662. The rest of the population on this side is chiefly made up of aborigines who submitted to the Chinese rule in 1662 upon the expulsion of the Dutch, but who preserve their primitive customs. These are by far the most numerous.

The population of this, the Chinese side of Formosa, covering an area of about 8,000 square miles, is now calculated to contain 2,000,000 inhabitants. It should be observed, however, that the Chinese Government discourages emigration from the mainland to this island, as they are derived from the more unruly classes; and relieved, in a measure, from the immediate control and authority of the mandarins, they have, on more than one occasion, broken into rebellion. The Chinese Imperial Government, indeed, pretends to sway and government over the whole island, but its authority is actually restricted to the western side, from the sea to the base of the mountain range, and extending from Kelung in the north to Pongli in the south. Further south of the latter point are independent villages, and still further south are a tribe of aborigines, called by the Chinese "Callee" or "Junglemen." These are governed by a Queen, who resides in the hills, and are altogether independent of the Imperial Government.

The savage tribes on the eastern side of Formosa are rarely in communication with the Chinese. In some districts a partial trade is carried on between them by bartering skins and cloths made from the bark of a tree for Chinese cotton, and cloths imported from the mainland. The hills among which they live are thickly wooded to the crest, and are full of the camphor-tree, even the boats of the natives being made of that wood. They subsist chiefly on sweet potatoes and deer's flesh. Towards strangers who, from shipwreck or other causes, may approach their coast, they have been found hostile and menacing, and to such as unfortunately fall into their hands, they are barbarous and cruel. The encroachment of the Chinese colonists from the west, however, is gradually driving these wild tribes towards the sea. Foreign trade is, therefore, necessarily confined to the Chinese side of the island, and it is to that part exclusively to which my remarks on the trade and prospects of Formosa hereafter in this report will refer. The northern and western coasts of Formosa afford many advantages for trade. The channel which separates the island from the mainland of China does not exceed from 75 to 120 miles. Japan is only distant about 150 miles, between the nearest points, and the Philippines are nearer still. These are the advantages of Formosa in respect to position. The products of this fertile and rich island are as follows:-wheat, dyes, millet, hemp, maize, oil, rice, oil-cake, sugar, tobacco, camphor, pepper, sulphur, aloes, coal, dried fish, skins, rice-paper plant, timber, together with most of the East Indian fruit, as the pine apples, mangoes, guavas, areca nuts, cocoa-nuts, as also peaches, apricots, figs, grapes, pomegranates, chestnuts, melons, and oranges.

Swatow. This port, now fairly opened to foreign trade by treaty, is situated in 23° 19' north latitude, 116° 40′ east longitude, at the mouth of the River Han, which disembogues into the sea in the northern part of the sea-coast of Kwang-tung Province. It is in the port of Chin-hai-heen, from which it is distant about two miles. The Han communicates by a branch stream with the Tong-leang river, which in its turn falls into the Pearl at Whampoa, and thus Swatow is in direct water communication with Canton. A considerable trade had sprung up at this port within the last five years, and from the numerous advantages it presented for the

extension of foreign trade in that quarter, a hope had been expressed by some of the principal British houses established in this country at the period when the new treaty was about to be negotiated in 1857 between Great Britain and China, that Swatow might be one of the new ports opened to trade. The cities of Chow-chow-foo, Keih-yang-hien, Chow-yang-hien, Hai-yang-hien, Ta-poo-hien, and Chang-lin, all places more or less of considerable trade, are situated at short distances from this port. The anchorage is excellent, and at half a mile to the south-west of the town there is a depth of eight fathoms.

The staple export from Swatow, as it had long been known, is sugar, which was not only shipped in considerable quantities to Hong Kong, to Singapore, and to Shanghai, but some cargoes had even been sent to California, to the United States, and in one or two instances to Great Britain. But in numerous other articles of import and export the trade was becoming very considerable, although not hitherto brought by public channels into general notice.

Swatow was accordingly one of the nine new ports opened to trade by the Treaty of Tien-tsin of 1858, but the treaty itself not having as yet, at the beginning of 1860, been ratified, the consul appoined to Swatow was not directed to proceed to his post until the operations connected with the renewal of hostilities which intervened were exclusively confined to the north. The American consulate had, however, already been established at this port, and British merchants and British ships frequented it without encountering any obstacles on the part of the local authorities. The British consul, therefore, proceeded to his post, and his office was opened on the 6th July, 1860, while at that very period (such are the anomalies connected with war in China), her Majesty's High Commissioner, accompanied by the British fleet and army, had arrived at Ta-lien-whan Bay to enforce redress for the bad faith of the Chinese Government.

Foreign trade was thus uninterruptedly continued at Swatow (as elsewhere at all the ports south of the Yang-tze-kiang) during the whole period of the renewed hostilities in 1860. The British consulate at Swatow, as before stated, was opened early in July of that year; but the Chinese custom-house, conducted by European employés, had been established from the beginning of the year, and the trading operations of the port for the first time actually recorded and published. The returns for the first six months of that year are amply supplied from that source, and the remaining period, from July to 31st December, are furnished by her Majesty's consul. These united, exhibit the import and export trade in British vessels for the whole year, and amply prove that the favourable anticipations expressed by the mercantile community in respect to the great trading resources and facilities of this port have been fully realized.

Hainan.-This island, the ninth and last on the list of new stations opened to foreign trade by the treaty of 1858, lies between 18° 10′ and 20° 24′ north latitude, and 108° 50′ and 111° east longitude. For governmental purposes it forms a department of the province of Kwang-tung, opposite to the extreme south-western coast of which it is situated, divided by the Looichoo Straits, a channel only fifteen miles wide. It is the most southern of all the places now open to foreign trade in China, and is 2,434 miles distant from Pekin. Having crossed the channel to the promontory opposite on the mainland, the distance by land to Canton is about 300 miles. No consular officer has yet been appointed to this port, nor are there yet

any British subjects residing there for the purposes of trade. The following is a summary of all that is known to Europeans or Americans respecting this island. Hainan is about 200 miles in length from south-west to north-east and 100 miles broad. It covers an area of about 20,000 square miles. The interior of the island is occupied by an extensive mountainmass, from which issue offsets which, towards the south-west and northeast, advance close to the sea; but a level and fertile tract in the centre intervenes from the south-east to the north-west shore of considerable width. The population is estimated at 1,500,000; of these, about 1,000,000 are the descendants of Chinese emigrants who have come here from the province of Fuh-keen, during the last three or four centuries. The language spoken is the dialect of the Fuh-keen slightly varied. Such portion of the inhabitants as are not of Chinese origin are aborigines, residing chiefly in the mountainous parts of the island, and yielding but an imperfect submission to the Imperial Government.

The products of the island are rice (three crops being produced in the year), sugar, the areca or betel-nut, timber, cotton, indigo, cocoa-nuts, salt, tanned hides, sponges, cocoa-nut oil. The sugar-cane and sweet potatoes are extensively cultivated, as also many of the tropical fruits; but the chief wealth of the island consists in its forests, which produce rare woods, as sandal-wood, ebony, braseletto, rose-wood, &c. The imports are Chinese wares and fabrics, English cotton manufactures and woollens, opium, furs, &c., all received from the opposite port in Kwang-tung. They are interchanged with the products enumerated. There is also a good deal of trading intercourse with Siam. The thirteen chief towns of the thirteen districts into which Hainan is divided, are situated at intervals all round the shores of the island: some of them are very populous. Kiung-chowfoo, the capital, is on the northern side opposite the mainland of China. This is the chief mart of trade, and is governed with great precision and order; it will most probably be the place of residence of the British Consul when appointed. The population is estimated at 200,000. Some of the streets are a mile and a-half long, flagged and kept clean, and covered with awnings of various colours in summer. In this city the markets are abundantly supplied with provisions, at extremely cheap rates. Some of the houses are two stories high at the river side, and the climate is not very hot, the island in general being exposed to sea-breezes coming over a large expanse of ocean. Fogs and heavy dews are frequent, maintaining a vigourous vegetation.

The inhabitants are represented as good-humoured and cheerful, and desirous of commercial intercourse with foreigners. Whatever may be the extent to which British commercial interests in China may eventually be benefited by trade with this island, British shipping interests will, it is anticipated, undoubtedly derive, as at Swatow and Formosa, a notable increase of business in the carrying trade, to the gradual exclusion of the

uninsurable native craft.

UNITED STATES.

Mr. Irvine, her Majesty's Secretary of Legation, prepared the following report: It is evident to any one who has studied the extraordinary and rapid advancement in commercial wealth and general prosperity that has been made by the United States of America, that this progress may, in a great measure, be attributed to the union of a wide expanse