the Canton Government long ago--has dispatched a squadron of
gunboats to the salt station and notified Peking that if
$3,000,000 (about L400,000) arrears of pay were not immediately
forthcoming the amount would be forcibly recovered from the
revenue. Meanwhile the immense salt traffic on the Yangtsze has
been suspended. The Legations concerned have now sent an Identic
Note to the Government warning it of the necessity for
immediately securing the removal of the obstruction to the
traffic and to the operations of the foreign collectorate.

The second telegram is equally interesting. It is as follows:--

The question of interference with the Salt Gabelle is assuming a
serious aspect. The Chinese squadron of gunboats referred to in
my message of the 10th is still blocking the salt traffic near
Chingkiang, while a new intruder in the shape of an agent of
Wu-Pei-Fu [the Liberal military leader] has installed himself in
the collectorate at Hankow, and is endeavouring to appropriate
the receipts for his powerful master. The British, French, and
Japanese Ministers accordingly have again addressed the
Government, giving notice that if these irregular proceedings do
not cease they will be compelled to take independent action. The
Reorganization Loan of L25,000,000 is secured on the salt
revenues, and interference with the foreign control of the
department constitutes an infringement of the loan agreement. In
various parts of China, some independent of Peking, others not,
the local _Tuchuns_ (military governors) impound the collections
and materially diminish the total coming under the control of the
foreign inspectorate, but the balance remaining has been so
large, and protest so useless, that hitherto all concerned have
considered it expedient to acquiesce. But interference at points
on the Yangtsze, where naval force can be brought to bear, is
another matter. The situation is interesting in view of the
amiable resolutions adopted at Washington, by which the Powers
would seem to have debarred themselves, in the future, from any
active form of intervention in this country. In view of the
extensive opposition to the Liang Shih-yi Cabinet and the present
interference with the salt negotiations, the $90,000,000
(L11,000,000) loan to be secured on the salt s