(2) Severest punishment for their crimes to be inflicted on Princes Tuan and Chuang, Duke Lan, Chao-Shu-Chaio, Yangyi, Ying-hien and others.

(3) Reparation to Japan for the murder of M. Sugiyama. (4) Expiatory monuments to be erected in foreign cemeteries where tombs have been desecrated.

(5) Importation of arms and materiel to be prohibited.

(6) Equitable indemnities to be paid to States, societies and individuals.

(7) Permanent legation guards to be maintained.

(8) Taku forts, and those between Peking and the sea to be razed.

(9) Military occupation of points to ensure safety of communications between Peking and the sea.

(10) Viceroys to be held responsible for anti-foreign outbreaks or violation of treaties.

(11) Revision of commercial treaties.

(12) The Tsung-li-Yamên to be reformed, and the Court ceremonial for the reception of foreign ministers to be modified.

III. HONG-KONG.

Bubonic plague was prevalent in Hong-Kong during the summer. In one week in June there were sixty-three cases and fifty-seven deaths from this malady, but on September 13 there were reported only five deaths from this cause.

A band of rebels attacked the town of Sai-wan not far from the border of the new territory, and detachments of Indian troops left Hong-Kong on October 6 to protect the frontier of Kaulung against invasion by armed refugees, whether Imperialists or rebels.

Great destruction of property was caused by a typhoon on November 10. The gunboat Sandpiper was sunk, and the Admiralty dredger Canton River was capsized in the storm. Many houses in course of erection in the colony were destroyed, and a number of seafaring men were drowned.

The new territory around Hong-Kong was divided into districts and sub-districts, and admirable police arrangements were giving quiet and protection to the Chinese population hitherto subject to attacks from bands of armed robbers and pirates. Steps were taken to suppress the Triad Society which was promoting disturbance. The territory was found to be very malarious, and the police suffered severely from fever. Improved communications had already led to an increase in traffic, and new industries it was expected would be started to develop the extended colony.

IV. KOREA.

Negotiations for the acquisition by Russia of an exclusive settlement at Masampho, the finest harbour of Korea, were

pending in March, and agreements were signed, but Japan had sufficient influence with the Korean Government to cause them to repudiate the contract. Russia, it was said, wished to apply the amount of her pending claims against Korea towards the price of the concession. Russia, desiring to exclude Japan from acquiring similar advantages, asked Korea to engage not to cede the island of Ko-je-do to any foreign country. Russia gave notice that she intended to make Masampho the winter harbour for her war ships.

The Korean Government declined to grant gold mining concessions to an American syndicate in May, although agreeing to fulfil its promise to engage French mining experts to explore the mining region. French engineers also secured the contract for the construction of the Seoul-Wiju Railway which was about to be commenced.

Two former Korean officials who had held Cabinet rank in Seoul, and who had taken refuge in Japan, one for being implicated in a plot against the Emperor in favour of the Prince Imperial, and the other for complicity in the murder of the Queen of Korea in 1896, trusting to promises given by the Government that their punishment would be light if they returned to Korea, were put to cruel torture, and finally strangled to death. The Japanese Minister asked for audience to protest, but was refused by the Emperor, who said he preferred not to see the Japanese Minister till the affair was disposed of-a procedure contrary to international usage. The Japanese regarded one of the victims as a high-minded patriot, and a great sensation was caused in Japan by the barbarous conduct of the Korean Government.

V. JAPAN.

It was a quiet, uneventful year in Japan. Public opinion was somewhat disturbed by the condition of Chinese affairs, and the deepest interest was felt by Japanese statesmen in respect to the complications that might arise through the action or inaction of the Western Powers. Japan was not in favour of the partition of the Chinese Empire, and her leading statesmen hoped that China would be at peace with the outside world, and that the Emperor Kuang-Hsu would be enabled to carry out his reforms, thus aiding Japanese development in trade and industrial pursuits. There was, it was true, a strong military sentiment in the country, but this was subordinate to the desire to excel in commerce.

Japan watched with a jealous eye the encroachments of Russia in Korean affairs, but kept the peace with her formidable rival.

Financial questions were discussed by leading men in public speeches in the summer. Count Malsakata, the Finance Minister, addressing a group of provincial bankers, considered the payment of the China war indemnity and its expenditure

in Japan as the chief reason for the rapid rise in the price of commodities and the price of labour. He was opposed to any resort to foreign loans to relieve the pressure in the money market which he deemed would intensify the trouble. He thought that the people should learn economy, for they had fallen into luxurious habits since the war with China. The leaders of the Liberal party, on the other hand, issued a manifesto advocating the idea of a foreign loan to redeem the existing internal debt.

Count Okuma, who was for many years Finance Minister, held the opinion that the country was prosperous, and advised the Government not to meddle with trade or the so-called outflow of gold, but, on the other hand, Count Inonye urged that the heavy balance of trade against Japan was alarming, and that home industries should be fostered to prevent the necessity of buying foreign goods.

In Japan great developments have taken place in recent years in the coal industry, and merchant ships, and even ships of war, can now obtain practically all the coal they require from Japanese sources. The main coalfields are in Kynshu in the south of Japan, and in the Hokkaido or Northern Island.

The Crown Prince of Japan was married on May 10 to the Princess Sadako, the daughter of a noble family.

At the end of September the Cabinet tendered their resignation, and the Emperor summoned the Marquis Ito to form a new Ministry. M. Kaats Takaaki, formerly the Japanese Minister to Great Britain, was made Minister of Foreign Affairs. He was in favour of following the policy of a combined action of the Powers in Chinese matters. The late Premier, Marquis Yamagata, it was said, resigned so that Marquis Ito might be placed at the head of the Government on account of his superior qualifications for dealing with Chinese questions requiring the highest diplomatic skill.

The views of the Emperor of Japan regarding the Chinese situation were expressed in his answer to the apology of the Chinese Emperor for the murder of Sugiyama Akira, the Chancellor of the Japanese Legation at Peking by Chinese soldiers on June 11, which was as follows:

"It is with satisfaction that we have received your Majesty's telegram in which your Majesty expresses regret for the event whereby Sugiyama Akira, the Chancellor of the Imperial Legation, came to his death in consequence of cruel and barbarous acts committed on him by your Majesty's soldiers. Your Majesty also announced that in order to testify your sense of such regret your Majesty has commanded the Vice-President of the Board of Ceremonies to perform religious ceremonies for the deceased and to present 5,000 taels for funeral expenses, and has, moreover, ordered the secretary of your Majesty's legation in Tokio to perform the ceremony of libation on the arrival of the coffin of the deceased in this country. Your Majesty adds BB

it is your Majesty's earnest wish that we should endeavour to induce the Powers concerned to speedily conclude peace, so that the safety of your Majesty's Empire may be assured and many benefits secured. As to the restoration of peace, not only your Majesty but we ourselves earnestly desire it, and if your Majesty is really anxious for peace we should strongly recommend your Majesty to issue the edict formally announcing the discontinuance in office of all bigoted and conservative persons and appointing at once in their place as Ministers those persons who are able and highly respected both at home and abroad, thus organising an entirely new Government. Finally, if your Majesty will speedily return to Peking instead of proceeding to Shen-si, thus composing the apprehensions of your Majesty's subjects, and by these measures afford practical evidence of regret for having given offence to friendly Powers, we do not see any reason why the Powers should not agree to the conclusion of peace, and we earnestly desire that our sincere suggestion may meet with acceptance at the hands of your Majesty."

Japanese troops took an important part in the capture of Peking in August, and the amount paid out by the Treasury on account of the campaign was about 1,300,000. The total expenditure for the army in China it was estimated would be almost 20,000,000 yen, or 2,000,000l. sterling. The money expended was taken from a reserve fund of 50,000,000 yen, set aside from the Chinese war indemnity for naval maintenance and other purposes, and it was a problem what should be done to replace the fund.

In December General Kodama, Governor of Formosa, was appointed Minister of War in the place of General Katsura, who resigned.

The Imperial Diet met in December, and bills were introduced imposing additional taxation.

VI. SIAM.

Siam was making steady progress, and there were many new openings for the investment of capital which were being taken up by Danes and Germans. British interests were not advancing because little effort was made to further them, although hitherto they had been predominant. Nearly the entire British shipping interest at Bangkok was transferred to German control in 1899.

Public works were being carried out in the interior. A very large sum was devoted to this purpose, and roads, bridges and better public buildings were in process of construction by the Government.

The railway from Bangkok to Korat was formally opened on December 21 by the King himself. The line was begun ten years ago, and is the pioneer railway of the Siamese Government system.

CHAPTER VI.

AFRICA.

I. EGYPT AND THE SOUDAN.

THE year 1900 in Egypt was singularly and fortunately barren of events. The relations of the Khedive with his English advisers became friendlier and stronger. The old irritating friction between the British officials and the native and foreign interests showed once more signs of diminution. Lord Cromer,

on whom the well-earned honour of a seat in the Privy Council was conferred at the beginning of the year, was once again able to report encouragingly on the progress of the country. The policy of saving wherever it was possible, while at the same time generously helping schemes of irrigation which may increase the productiveness of the land, was again adopted in the Budget for the year. The revenue returns amply justified the cautious estimate of between ten and eleven millions adopted in the previous year, and the income from the administration of justice, from the cotton crops, and from the land assessment, all bore witness to good management and to wise finance. The financial progress of the country was still, of course, to some extent arrested by the inevitable action of the Caisse de la Dette, which laid hands, as usual, on the surpluses secured. that system is modified or abolished, Egypt can never enjoy the full advantage of the prosperity she gains. But owing to the purchases of Egyptian stock by the Caisse, the total amount of Egyptian indebtedness in 1900 stood no higher than 95,500,000l., and there was no floating debt; while the Caisse, of course, continued to increase the substantial accumulations arising from the economies arranged in previous years.

Until

In judicial matters the record of the year, though devoid of any special significance, was satisfactory enough to those who were content in so difficult a matter to expect only very gradual results. The efforts made to keep down costs in the native courts, the beginnings of reform in the religious tribunals, and the increased jurisdiction in petty matters of the village chiefs, tended again to encourage the advocates of progress, though the development of European ideals of equity and justice must under such conditions be infinitely slow. More interesting, perhaps, was the development of Lord Cromer's plan for lightening the heavy burden of debt borne by the fellaheen, who, like the peasant cultivators in other Oriental countries, are crippled by the sums they have to borrow, and by the exorbitant interest which the usurers ask. The Government, through the Egyptian Bank, determined to try the experiment of lending small sums of money to the peasants in the spring, which they agreed to repay in the autumn, and of