This page needs to be proofread.

358] FOBEIGN HISTOEY. [1899.

When afterwards it was found that the French settlement did not imply any special privileges to French citizens to the detriment of other residents, the British protest was withdrawn, and an increase which had long been desired was also granted in May by the Viceroy of Nanking to the area of the Interna- tional Settlement at Shanghai.

The Tsung-li-Yam6n on February 3 consented to the open- ing of Nanning-fu on the Yu-kiang Biver as a new treaty port.

Hu-Yu-Fin, chief director of the Northern Bailways was accused of maladministration (Jan. 26) and superseded by Chang- Yi, a great speculator, and one of the richest men in North China. Sir Claude Macdonald, the British Ambas- sador, refused to recognise this appointment until the charges made against Hu-Yu-Fin were investigated. A commission of inquiry was appointed, and in consequence of their report an imperial edict was promulgated (March 7) discharging the prisoner. Nevertheless Chang- Yi was finally recognised. No salary attached to the appointment, and Chang- Yi expected profits from the handling of the earnings of the line and by compelling the use of inferior coal from his own coal mines. Despite British opposition increasing favour was shown to Chang- Yi, and he received an honourable court appointment in June.

The prospectus of the Chinese Imperial Bailway five per cent, gold loan for 2,300,000Z. was issued in February. The loan was to be secured in part by the earnings of an extension line to the port of Niu-Chwang. The Bussian Minister, M. de Giers, protested, alleging that the clause providing that the chief engineer should be British conflicted with the conditions of the Busso-Chinese agreement given to M. Pavloff in August preceding. The Tsung-li-Yamfen replied that it did not conflict, and asked whether, if they gave way, Great Britain would reckon with Bussia, or hold China alone responsible. The Bussian Minister renewed his protest, objecting to the chief engineer being British, and that the loan should be secured on the earnings of the new line. England renewed her emphatic declaration that the contract could not be altered. Finally, in April, Bussia withdrew her opposition to the loan, although still protesting.

The petition of Liu-Kun-Yi, Viceroy of Nanking, addressed to the Throne, and asking to be relieved from the duties of his office on account of his age and failing health, was refused. He had previously recommended in another memorial the proper training of military officers and the use of modern weapons and forms of drill. For this presumption he was severely censured by an imperial edict issued in January.

The Italian Minister on February 28 presented demands to the Tsung-li-Yamen for the lease of Sammun Bay on the coast of Che-kiang as a coaling station and naval base, including the concession of three islands off the coast, with the right to