in the loan, and that, in the event of misunderstanding, Belgium might not be left to settle matters singlehanded.
As I close this review of the position and prospects of China, news has arrived of the opening of the West River of Canton, and for this great boon to commerce we are in a great measure indebted to the energy and diplomacy of Sir Claude Macdonald. The opening of the ports on the west branch of the Pearl river, has not been secured for ourselves alone, but for all foreign nations, and this I may say is truly characteristic of the liberal spirit of British diplomacy. The opening of this route is a step which must have a far-reaching influence, not only on foreign trade, but on the future of this part of the Chinese Empire. Steamers now run from Hongkong to Wu-Chau-fu three times a week, carrying passengers and produce.
I have alluded to the cession of Maung U, in the valley of the Nam U, to France in violation of the understanding with Great Britain. This breach of faith has been atoned for under the new Anglo-Chinese Convention ratified in Peking on June 5th of this year. By this agreement the Chinese cede to Great Britain the Shan State of Kokang on the South of Yunan. The State appears to be in form triangular, its base resting on the British Shan States, and its apex piercing Yunan. The Salwin flows through its centre, from the northern limit to Kun-lung ferry, thus opening a route from the ferry, a point to which the Mandalay railway will soon be completed. From Kun-lung to the Yunan frontier in a straight line, is about sixty miles. Gold is said to exist in the country, but the interior of Kokang is practically unknown to Europeans. In addition, a small territory has been added to the west of the Swali river, which ought to prove important, as it points to a possible trade route from Bahmo, by Kwitu, to the Shewli.
