must not be supposed that the Chinese run railways badly. The Kalgan
Railway, which they built, is just as well built as those constructed by
foreigners; and the lines under Chinese administration are admirably
managed. I quote from Mr. Tyau[101] the following statistics, which
refer to the year 1919: Government railways, in operation, 6027
kilometres; under construction, 383 kilometres; private and provincial
railways, 773 kilometres; concessioned railways, 3,780 kilometres.
Total, 10,963 kilometres, or 6,852 miles. (The concessioned railways are
mainly those in Manchuria and Shantung, of which the first must be
regarded as definitely lost to China, while the second is probably
recovered. The problem of concessioned railways has therefore no longer
the importance that it had, though, by detaching Manchuria, the foreign
railway has shown its power for evil). As regards financial results, Mr.
Tyau gives the following figures for the principal State railways in
1918:--

Name of Line. Kilometres Year Per cent, earned
Operated. Completed. on Investment.

Peking-Mukden 987 1897 22.7
Peking-Hankow 1306 1905 15.8
Shanghai-Nanking 327 1908 6.2
Tientsin-Pukow 1107 1912 6.2
Peking-Suiyuan 490 1915 5.6

Subsequent years, for which I have not the exact figures, have been less
prosperous.

I cannot discover any evidence of incompetence in Chinese railway
administration. On the contrary, much has been done to overcome the
evils due to the fact that the various lines were originally constructed
by different Powers, each following its own customs, so that there was
no uniformity, and goods trucks could not be moved from one line on to
another. There is, however, urgent need of further railways, especially
to open up the west and to connect Canton with Hankow, the profit of
which would probably be enormous.

Mines are perhaps as important as railways, for if a country allows
foreign control of its mineral resources it cannot build up either its
industries or its munitions to the point where they will be independent
of foreign favour. But the situation as regards mining is at present far
from satisfactory. Mr. Julean Arnold, American Commercial Attache at
Peking, writing early in 1919, made the following statement as regards
China's mineral resources:--

China is favoured with a w