which reference has been made, was agreed to in the previous session, it was distinctly understood that there would be no increased taxation the following session; great economy would therefore be necessary. It was also urged that the cash in hand was insufficient, and that it ought to amount to 10 per cent. of the annual expenditure. The national debt amounted, on April 1, 1902, to 262,000,000 kr., the year's expenditure for interest on the same amounting to 8,500,000 kr. and the amortisation to about 3,000,000 kr. The Budget Committee was strongly against any further increase of the national debt, of which perhaps 200,000,000 kr. was for railway construction and other means of transport.

CHAPTER V.

ASIA (SOUTHERN).

I. PERSIA.

IN Persia itself there has been no change of visible importance during 1902. The Shah made another tour in Europe, visiting most of the great capitals, including London and Paris, and he was received by the King at Portsmouth in August. If he settled any matter of importance during this tour, the fact has not been made known to the public. A Special Mission, with Viscount Downe at its head, was despatched at the close of the year to invest the Shah with the Order of the Garter.

As regards events below the surface, the struggle of the rival Powers, Russia and England, France and Germany, to gain "influence" or commercial advantages, rumour has been as busy as usual. Russia appears to have strengthened her financial hold on Persia by making to it a loan of 10,000,000 roubles through the Russian bank, branches of which have been established at Meshid, Teheran, Tabriz, and Reshd. This loan is said, like the one of last year, to have caused much discontent amongst the people, who wished to see their country independent. Russia has obtained a concession for the construction of a road from Tabriz to Teheran, and in the latter part of the year there have been frequent reports, followed by semi-official denials, of her having constructed or being about to construct railways in the Eastern Provinces of Persia. It is now stated in the Press that a new Commercial Treaty between Persia and Russia has just been signed, which confers on Russia important advantages; if this proves to be correct, the matter will be noticed in the review of 1903.

Early in the year a force, under Major Showers, captured the fort of Nobiz, in which a band of raiders from Persia, under Muhamed Ali, had established themselves. Muhamed Ali was killed and his band broken up. The Persian Governor-Genera

of Seistan and Major Showers then made a tour together along the Perso-Biloch border, which it is anticipated will have an excellent effect in quieting that country for the future. Later in the year a boundary dispute between Persia and Afghanistan broke out on the Helmund. One account of it is that it arose from the natural shifting of the course of the river. Another is that the Persians accuse the Afghans of improperly damming up the river, and so depriving the Persians of the water required for the irrigation of their fields. Major MacMahon is starting with a considerable escort to meet the Persian and Afghan representatives, and settle the dispute on the spot. This step has been taken with the full consent of Persia and Afghanistan, but it is denounced by the Russian Press as another instance of British aggression.

In last year's volume it was pointed out that although the quarrel between Mabarik, the Sheikh of Koweit, on the Persian Gulf, and Bin Rashid, who claims to be King of Arabia, was of no importance in itself, it might be used by greater Powers as a pretext for raising some very serious questions. But 1902 has passed away without any material change in the status quo. Mabarik and Bin Rashid have remained as they were, and although there have been rumours of the capture of Nejd by a kinsman of Mabarik, and of his subsequent defeat by Bin Rashid, nothing is certainly known about this. As regards the greater Powers the Sultan undoubtedly called on Mabarik to acknowledge his suzerainty, but on meeting with a refusal he took no further steps to enforce the demand. A large Russian warship is said to have appeared in the Gulf in January, but she soon left, and nothing resulted from this visit, or from that of a smaller warship a little later. Koweit itself appears to have been under the protection of one or more British warships stationed there, or within call throughout the year. There was a report that the Russian Consul had made large purchases of land in the Island of Bahrein, but no overt attempt appears to have been made by Russia, or any of the Western Powers, to obtain a port, or to permanently station a naval force, in the Gulf.

II. BALUCHISTAN.

The capture, or dispersal, of the Persian raiders by Major Showers, and his march through the border with the Persian Governor-General, and the deputation of Major MacMahon to settle the Perso-Afghan dispute on the Helmund, have been noticed above. The Peshin section of the railway from Ruk to Chaman has been completed, and the Secretary of State has sanctioned the construction of the line from Quetta to Nushki, a distance of eighty-two miles. The estimated cost is 70 lakhs of rupees, of which 47 lakhs have been provided in the Budget of the current year. It is very probable that after the line

has been completed to Nushki it will be extended to Seistan. Colonel Yate, the Governor-General's agent, held a Durbar at Quetta on October 2, at which khillats were distributed to those who had done good service, and he also took representative chiefs to the Coronation Durbar at Delhi. The figures of the census taken in 1901 have now been published, with a very interesting report by the Census Superintendent, Mr. Hughes Buller. Although the area of Baluchistan is 132,315 square miles the population according to the census is only 810,746, but as some parts of the country were omitted, the total is estimated at 1,050,000. It is curious to find that the Baluchis, according to the census of 1801, are eleven times more numerous in the Punjab and Sindh than they are in the country to which they give their name. There they are only 80,000, whilst the Afghans number 200,000, the Brahois 300,000, and the Ladis 40,000.

III. AFGHANISTAN.

The first year of Habibullah's reign has passed without any internal disturbance, or event of importance. In October he held a great Durbar to commemorate the anniversary of his accession, and released 8,000 prisoners. General Mir Attar Khan, who was imprisoned by the late Amir, has been released and reinstated in his old post of Commander-in-Chief, or rather of Naib, or Deputy Commander-in-Chief, for this is the title by which the successors of the late General Ghulam Haidar Khan in the command of the Army have been designated. The Amir is said to be reluctant to confer the full appointment on any one, and there is a belief current that he is likely to keep it for Yahya Khan, whose daughter, whom he lately married, has become his favourite wife. Yahya Khan is at present in great favour with the Amir, and his position in Kabul not unnaturally excites the jealousy both of the Amir's own relatives and of the leading chiefs and Sirdars. There have been rumours of intrigues in favour of the Amir's youngest half-brother, Mohamed Umar, but these seem to have died away, and towards the end of the year Mohamed Umar was reported to be in delicate health. There have also been rumours that the Amir's full brother, Nasir Ullah Khan, had fallen into disgrace, and even that he had been imprisoned. These were, as usual, followed by complete denials, and assurances that the best feeling existed between the two brothers.

It is said that the Amir intends to put in force the plan of compulsory military service devised by his father, by which one-eighth of the male population will be passed into or through the Army. He also directed the Governor of Jallalabad to raise regiments of Afridis, some of whom were to be employed as a bodyguard at Kabul. But this intention caused so much discontent amongst the Afghans that it had to be

abandoned, and orders have been issued to stop recruiting. It is said that although many Afridis at first came forward as recruits they soon found that the promises of pay and allowances held out to them were not fulfilled, and the tribesmen who wish to take foreign service much prefer the certainties they can obtain from the British Government.

The Hadda Mullah, Najib-ud-din, who visited Kabul early in the year, was received by the Amir with great favour and distinction. We were first told that the Amir was completely under his influence; then it was said that he was virtually a prisoner, and that the Amir never visited him. Towards the

end of the year he was sent back to his own country, with an allowance of Rs. 16,000 a year.

The relations of Habibullah Khan with the British Government are reported to have been of the most friendly nature throughout the year, and he ordered his officers on the Frontier to prevent all outlaws from British territory from entering Afghanistan. He is reported to have said in Durbar that he had found by experience that a mild rule was unsuited to the Afghans, and that he has consequently ordered the revival of his father's Secret Intelligence Department.

But although the domestic history of Afghanistan during 1902 has been comparatively colourless, a very important move has been made or attempted by Russia in what may be called its foreign policy. The Russian Government suggested to the British Government that whilst it fully recognised the existing agreement between the two countries by which it was precluded from direct diplomatic intercourse with Afghanistan, it would be of the greatest convenience if the Russian and Afghan officials on the frontier were allowed to communicate direct with one another for commercial purposes only. To this proposal Lord Lansdowne gave the very natural answer that before expressing any opinion on it he would like to know exactly what it meant. As to what has taken place since, no information has been given to the public; we have been merely told that the correspondence has been still going on. But if there were any doubt of the true meaning of the Russian proposals this has been removed by the Russian Press, which has declared openly that the time has come when the agreement excluding Russia from Afghanistan should be set aside and that Russia should insist on as full commercial and political intercourse with that country as is enjoyed by England itself.

IV. THE NORTH-WEST FRONTIER.

In April the Viceroy held a Durbar at Peshawar which was largely attended by representatives of the Frontier tribes, to whom he explained his new policy. But neither the Viceroy's speech nor the creation of the new province has as yet worked any change in the state of the Frontier. Disturbances have

been at least as numerous as before, and the methods employed in dealing with them have been the same as those which Lord Curzon criticised so severely when the Frontier was under the Punjab Government. On January 1, for example, three punitive columns entered the Mahsud territory with the usual result, that is, the Mahsuds avoided the columns, who destroyed the towers and villages which came in their way and made a few captures. When the columns had withdrawn, the Mahsuds made a formal submission, paid the fine imposed on them, restored stolen rifles, and gave security for replacing stolen cattle and the expulsion of outlaws. On this the blockade was withdrawn, and a restoration of their allowances promised conditionally on their good behaviour. On February 9 between 200 and 300 Afridis raided a village ten miles from Jamrud and carried off some cattle. The Khaibar Rifles overtook them, recovered the cattle and took eleven Afridis prisoners. In June a picket at Ghalakot, in the Tochi country, was attacked by Mahsud Waziris. One Sepoy was killed, one wounded, and three rifles were stolen.

In consequence of a series of raids by outlaws between Bannu and Thal, four columns, each 700 strong, under General Egerton, entered the Darwesh Khel Waziri Territory, and met with no serious opposition, except in the case of the column starting from Gumati, which lost two British officers killed and three wounded in an attack on a tower held by some outlaws. The Jagi tribes from over the Afghan border encroached on grazing grounds in Upper Kurram, and came into collision. with Kurram Militia; a few casualties took place on both sides. There has also been some fighting in the Bajour Valley, where the Nawab of Dir and the Khan of Nawagai joined forces to coerce the Mahmands. A permanent bridge 900 feet in length has been constructed over the Kabul River at Nowshera; it will be protected by a fort at Dargai, where the railway line, a broad gauge one, will terminate.

V. BRITISH INDIA.

FINANCE.

In presenting his statement to the Legislative Council in March, 1902, the Financial Member dealt as usual with the figures for three years, viz.: (1) the accounts for 1900-1 as finally closed; (2) the Revised Estimates for 1901-2; (3) the Budget Estimates for 1902-3.

The Accounts for 1900-1.-The causes of the great difference between the figures of the original and of the revised Estimates, which resulted in an increase of the estimated surplus from 160,000l. to one of 1,640,000l., were fully explained to the Council in March, 1901. The closed accounts showed a further increase in the surplus of 29,000l. only, a sum too small. to require explanation.