THE FAR EAST.

Dominion, Volume 2, Issue 544, 26 June 1909, Page 15

THE FAR EAST.

-« HOW CHINA USES THE BOYCOTT. : Hong Kong, Juno 17,1909. Macao, that little- burlesque city which lvas tho locus Vivendi of the Tatsu Maru incident, has been tho scene of another contretemps between tho Chinese and tho Portuguese. At an early hour on Juno 9 a Chinos© gun-boat entcicd tio port, tho oldeat foreign port m China, and took up her anchorage in tho inner harbour nitfar.from tho Rio Lima According to port regulations, the Runboat was boarded by ofhoers of the Harbour Dopartment for tho usual Information Hating to tho vessel's last port of departure, etc. Tho commander of tho gunboat iefused to comply with tho customary formality. Whereupon tho request on thei part of the Portuguese harbour officials was repeated. The Chinese naval officer again refused, and was obdumto. A report was accordingly lodged with tho harbourmaster, by whom the matter was rcforrcd to tho officer administering tho Government, Captain Diego da Sa. Tho ActingGovernor caused to bo courteously intimated to the Chmose gunboat that the port's requuements must bo complied with by vessels of any nationality seeking its fiospitahty. In spite of tho extremely civil communication, the Chineso officer maintained his attitude of passive resistance. When reason failed to prevail upon common sense, his Excellency ultimately submitted what was tantamount to an ultimatum to the Chinese commander It was to tho effect that (I) tho gunboat must supply tho formal information demanded by tne harbour authorities; failing which (2) she must promptly quit the waters of Macao; and failing compliance ivith either of tho foregoing requirements (3) tho Portuguese will enforce respect of its rights by nso of force Two or three hows woro allowed for tho observance of any ono of tho Portuguese terms, r Simultaneously with the issuance of tho "ultimatum," tho gunboat Rio Lima was cleared for action Two companies of artillery with two fiold guns wore ordered to bo posted on tho waterfront m tho inner harbour. Obrerving tho determination of tho Portuguese administrator, and considering discretion the better part of valour, thr» Chinese gunboat weighed anchor and put out to sea. Now the Clnncso are talking of boyDotting tho port of Maeao altogathor, and have formed a company for transferring all Macao's Chinese trade to Wanohai. Rebellion In French Territory. The trouble in Annam. (French Territory) havo reached a stago at which tho Government has had to resort to military iorco with great loss of Jifo to tho rebels. Tho agitators at first tried passive resistance by organising crowds to protest against tho heaviness ef the taxation levied. But, as tho Government contonted itself with dispersing tho assembled mobs, and only resorted to force when driven to it, the seditious movoment grew m strength Tho rebels mustered in great numbers jn tho Province of Khay-hoa, and took post at a placo called Phuyon There the troops mrt tho enemy, and defeated them with heavy loss, the killed alone amounting to 313 The latest news is that the district was quiotening down In the Province of Quinlion, where the movement started, the bloodshed has simply enraged the discontented people, and there is no check to tho agitation. The moro modorato section still hope for justice from the Government by lessoning the weight of the crushing taxation. Tho leaders see clearly that passive demonstrations will not'benefit them, and that armed resistance is out of the question, and thoy havo taken to a more formidable weapon—the boycott. They gave the order, and at once all tho markets in tho disturbed districts were forsaken, there , being neither buyer nor seller. Guards posted en the roads turn back all tho dealers. AH business and trade have stopped 1 from the strict enforcement of orders not to sell any. thing to Frenchmen, and not to work on any account for Europeans. It is, in fact, a fierce war waged to starve out all tho French residents, and to ruin all tho colonists and merchants. The boycott is a real thing, and to join receive, no *Foi 'instanco? v at Quang, a carpenter,' who persisted in working for a Euiopean, was seized and beheaded. Several boys and coolies, -who remained in tho employ of Europeans, have'disappeared altogether, it, being conjectured that they hav6 shared the fate of the carpenter. The rebel movement is managed by clevor loaders, who seem to obey orders issued by a supreme authority. One thing) certain is that the guiding spirits who order tho boycott and compel servants and workmen to leave tho employ of Europeans, are Nationalists who havo been to Japan, and havo been fired by the Japanese victories over' Russia. Japan's Finances. ' Between tho heavy boycott of Japan's goods by Ohina—hor best customer—tho strained relations betwocn Japan and Ameriica,' and the heavy taxation of her people, Japan is m a bad way financially.' Tho flotation of loans was easy while the war with Russia was m progress, bu "he who goes aborrowmg (too heavily) goes a-sorrowmg " To-day the Japaneso press is crowded with articles on two subjects—tho deplorable state of the nation's finances and the heavy taxation of lts'peoplo. Tho ready response that \vaa_ accorded to tho Japanese loans by the foreign capitalist during the progress of the war may b& regarded moro in the nature of a passing phenomenon, brought about by the brilliant feats of arms achieved by Japan. When Japan sought to raise foreign loans i after tho conclusion of peace tho markets I were already overflowing witn Japanese scI cunties, and the publicists repeatedly called the attention of tho Government to tho neccssitj of a change in its financial policy and tho readjustment of the debt. The Government, however, has paid little hood to the warning, and has been eagerly watching an opportunity to bolster up its finance by securing more loans from abroad. This has led tho foreign oapitahst to doubt tho soundness of Japan's finance, and has resulted m tho present difficulty in tho introduction of foreign funds. Judging from,tho result obtained by the South ManchUrinn railway in its recent the difficulty to bo met with by less influential parties in similar ventures may well be imagined. The object lesson so patently brought home to the Government siioujd open its ejes to tho gravo responsibility incurred by tho present policy. Tho faot that despite the raising of the South Hanchunan railway loan tho future of tho introduction of foreign capital remains as gloomy as ever, and no particular impetus seems to have been given to economic ciicles, must be attributed to the want of confidence in Government finance. British capital that a few months ago seemed comparatively easy to obtain for undertakings offering a fair measure of success, or having influential Japanese backing, is now extremely shy. All this indicates the misgivings that exist in tbo muids to foreign capitalists as to Japan's ability to go on increasing her expenditure nil ' nlar 6ing her taxation without disaster. Tho first step towards restoring tho credit of Japan and encouraging the growth of confidence must bo a policy of rigid retrenchment.