The chief items of expenditure in 1904 were the following:--

Public Works £385,680

Customs and "régies" 618,654

Naval and Military Services 527,663

Loans[3] 417,421

_Shipping._--The following table shows the total tonnage of shipping

entered and cleared at the ports of French Indo-China in 1905 and its

distribution over the countries of the Union:--

+--------------+-----------------------+

| | Tonnage. |

| Country. +-----------+-----------+

| | Entered. | Cleared. |

+--------------+-----------+-----------+

| Cochin-China | 1,117,054 | 1,007,510 |

| Tongking | 242,119 | 348,947 |

| Annam | 28,065 | 26,406 |

| Cambodia | 2,520 | 2,012 |

+--------------+-----------+-----------+

| Total | 1,389,758 | 1,384,875 |

+--------------+-----------+-----------+

Over half the tonnage was French (698,178 tons entered); the United

Kingdom came second (284,277 tons); Germany, third (205,615 tons).

_Commerce._--The value of the trade of French Indo-China increased

from £6,796,000 in 1896 to £16,933,000 in 1905, its average annual

value for the years 1896-1905 being £12,213,000.

The following table shows the movement of commerce in 1905:

+------------------+------------+-----------+------------+

| | Imports. | Exports. | Total. |

+------------------+------------+-----------+------------+

| | £ | £ | £ |

| France | 4,314,586 | 1,233,295 | 5,547,881 |

| French colonies | 163,568 | 76,855 | 240,423 |

| Foreign countries| 5,704,257 | 5,440,156 | 11,144,413 |

+------------------+------------+-----------+------------+

| Total | 10,182,411 | 6,750,306 | 16,932,717 |

+------------------+------------+-----------+------------+

In 1905 the principal foreign countries from which goods were imported

were:

Hong Kong for £2,473,882[4]

Singapore " 598,449

China and Japan " 1,473,704

Burma and Siam " 289,542

The British Isled " 141,381

The United States " 126,425

The principal countries to which goods were exported were:

Hong Kong for £1,706,597[4]

China and Japan " 497,288

Singapore " 360,510

Burma and Siam " 80,071

The British Isles " 55,539

The principal imports were:

Wheat for £214,156

Rice " 226,755

Raw opium " 271,582

Raw cotton " 167,020

Wine " 340,027

Pit coal " 206,221

Petroleum " 388,163

Gold " 203,369

Iron and steel " 353,214

Tin " 526,428

Cotton thread " 672,040

Jute tissues " 254,255

Cotton tissues " 922,250

Silk tissues " 241,113

Paper " 344,633

Metal-work " 1,170,576

Arms, powder and ammunition " 170,882

The principal exports were:

Dried fish, salt and smoked for £151,415

Rice " 2,848,389

Pepper " 214,297

Pit coal " 182,077

Tin " 553,914

Cotton thread " 421,162

The customs tariff is substantially the same as that of France, severe

import duties being levied on foreign goods. French goods pay no

import duty and goods exported thither are exempt from export duty,

with the exception of sugar, which is regulated by special

legislation, and of various other colonial products (e.g. coffee,

cocoa, tea, vanilla, pepper) which pay half the duty applicable to

similar foreign products according to the minimum tariff. Goods from

French colonies pay no import duty. About 53% of the imports,

comprising nearly all manufactured goods of European origin, come from

France. China, Japan and Singapore are the other chief sources of

imports. The Bank of Indo-China (capital £1,440,000) besides receiving

deposits and discounting bills, issues bank-notes and has, till 1920,

the privilege of lending money on security.

_Communications._--The railway communications of French Indo-China

comprise lines from Hai-Phong to Lao-Kay, continued thence via the

Nam-Te valley to Yun-nan; from Hanoi northward to Lang-Son and south

to Vinh; from Tourane to Kwang-Tri via Hué and from Kan-Tho

(Cochin-China) to Khanh-Hoa (Annam) via My-Tho, Saigon, Bien-Hoa and

Jiring with branches to Phan-Tiet and Phan-Rang. The three last are

the completed sections of a line which will unite Tongking with

Cochin-China. The towns in the deltas of the Mekong and Red river are

united by a network of canals. The mandarin road following the coast

line of Annam connects Tongking with Cochin-China, but the easiest

means of communication between these two territories is by sea, the

voyage from Saigon to Tourane lasting three days, that from Tourane to

Hai-Phong, thirty hours.

_History_--The beginning of French influence in Indo-China dates from

1787, when a treaty was concluded between Gia-long, king of Annam

(q.v.), and the king of France, whereby Tourane and the island of

Pulo-Condore were ceded to the latter. The successors of Gia-long were

averse from French influence and instituted persecutions of the

Christian missionaries and natives, which led, in the reign of Tu-duc in

1858, to the arrival at Tourane of a French and Spanish fleet. The

capture of that town was followed early in 1859 by the storming of

Saigon, which Rigault de Genouilly, the French admiral, chose as his

base of operations. The French and Spanish were, however, too few to

take the offensive, and were forced to submit to a blockade, conducted

by the Annamese general Nguyen Tri Phuong, at the head of 20,000 troops.

It was not till February 1861 that reinforcements under Admiral Charner

reached Saigon, and the Annamese were defeated and My-Tho taken. A

revolt against Tu-duc in Tongking, and the stoppage of the rice supplies

from Cochin-China, obliged the king to submit, in 1862, to a treaty by

which three provinces of Cochin-China were ceded and other concessions

accorded to France. However, it was only after further military

operations that Tu-duc consented to the ratification of the treaty. In

1863 Admiral de la Grandière was appointed governor of Cochin-China and

in the same year France established her protectorate over Cambodia. It

was under La Grandière that the exploration of Mekong was undertaken

(see GARNIER, M. J. F.) and that in 1867 the three provinces of

Cochin-China left to Annam were annexed. French intervention in

Tongking, which began with the expedition of François Garnier to Hanoi

in 1873, culminated after a costly and tedious war (see TONGKING) in the

treaties of 1883 and 1884, whereby Annam and Tongking passed under the

protectorate of France. The latter treaty, though its provisions were

subsequently much modified, remains theoretically the basis of the

present administration of Annam.

From 1884 onwards the history of Indo-China may be divided into two

distinct periods, characteristic of the political conception and

governmental system adopted by the French government. In the first

period, 1884-1891, the French agents in Tongking and Indo-China

generally proceeded under cover of the treaty of 1884 with the definite

conquest and annexation of Tongking and also Annam. Cochin-China itself

openly designed to seize the southern provinces of Annam, upon the

borders of which it lay. This policy, momentarily checked by the war

with China, was vigorously, even violently, resumed after the treaty of

Tientsin (June 1885). The citadel of Hué was occupied in July 1885 by

General de Courcy. The Annamese government forthwith decided upon

rebellion. An improvised attack upon the French troops was led by the

ministers Thu-yet and Thu-ong. The revolt was promptly suppressed. The

regent Thu-yet and the king Ham-N'ghi (crowned in August 1884) fled. At

this time the French government, following a very widespread error,

regarded Tongking and Annam as two distinct countries, inhabited by

populations hostile to each other, and considered the Tongkingese as the

oppressed vassals of the Annamese conqueror. To conquer Annam, it was

said, would liberate Tongking. This misconception produced the worst

consequences. With the flight of the king civil war commenced in Annam.

The people of Tongking, whose submission the court of Hué had not dared

to demand, began to rise. Taking advantage of this state of anarchy,

pirates of the Black Flag, Chinese deserters and Tongkingese rebels

devastated the country. The occupation of Tongking became a prolonged

warfare, in which 25,000 French, compelled to guard innumerable posts,

had to oppose an intangible enemy, appearing by night, vanishing by day,

and practising brigandage rather than war. The military expenditure, met

neither by commerce, which had become impossible, nor taxation, which

the Annamese could not pay nor the French receive, resulted in heavy

deficits. The resident-general, Paul Bert, who hoped to gain the

confidence of the mandarins by kindness and goodwill, did not succeed in

preventing, or even moderating, the action of the military régime.

Than-quan, Hon-Koi, Lao-Kay, Pak-Lun and Kao-Bang were occupied, but the

troops were driven back to the delta and almost invested in the towns.

Disappointed in his hopes and worn out rather by anxiety than work,

Paul Bert succumbed to his troubles in November 1886, seven months after

his arrival in the country. His successors possessed neither the

strength nor the insight necessary to grapple with the situation. M.

Constans, however, appointed "provisional" governor-general after the

death of M. Filippini, succeeded to a certain extent in reviving

commerce in the towns of the delta. MM. Richaud, Bihourd and Piquet,

successors of M. Constans, were all powerless to deal with the

uninterrupted "bush-fighting" and the augmentation of the deficit, for

no sooner was the latter covered by grants from the mother country than

it began to grow again. At the close of the financial year in 1890

France had paid 13,000,000 francs. In April 1891 the deficit again

approached the sum of 12,000,000 francs. The rebels held almost all the

delta provinces, their capitals excepted, and from Hanoi itself the

governor-general could see the smoke of burning villages at the very

gates of his capital.

At this point a complete change of policy took place. M. de Lanessan, a

Paris deputy sent on a mission in the course of 1887, made himself

acquainted, with the government and the court of Hué. He recognized the

absolute falsity of the story which represented the Tongkingese as the

oppressed subjects of the Annamese. He demonstrated the consanguinity of

the populations, and after intercourse with the regents, or ministers,

of Hué he realized that the pacification of the country depended upon

harmonious relations being established between the general government

and the court. Appointed governor-general with the fullest powers on the

21st of April 1891, he presented himself at Hué, concluded with the

_comat_ an agreement based on the principle of a "loyal protectorate,"

and reassured the court, up to this point uneasy under menace of

annexation. The _comat_ shortly issued a proclamation under the great

royal seal, never hitherto attached to any of the public acts imposed

upon the king by the governors, who had been unaware of its existence.

In this proclamation the king ordered all his subjects to obey the

governor-general and to respect him, and commanded rebels to lay down

arms. The effect was immediate--disorders in the delta ceased. The

pirates alone, in revolt against the king of Annam and all authority,

continued their brigandage. But the governor-general instituted four

"military districts," the commanders of which were commissioned to

destroy the pirates. At the same time he placed a force of native

police, the _linh co_, at the disposal of the mandarins, hitherto

regarded with suspicion and intentionally deprived of all means of

action. Order was restored within the delta. In the mountainous

districts infested by pirates roads were opened and posts established.

The chief haunts of the pirates were demolished, and during 1893 the

foremost pirate chiefs gave in their submission. The Indo-Chinese budget

regained its balance. On the Chinese frontier agreements were concluded

with Marshal Sou, in command of the Chinese forces, regarding the

simultaneous repression of piracy in both countries. But on the Mekong

difficulties arose with the Siamese. For centuries Siam had occupied the

right bank of the Mekong, and her troops had crossed the river and

occupied the left bank. Luang-Prabang was in the hands of the Siamese,

who had also established posts at Stung-treng and elsewhere. Friction

occurred between the French agents and Siamese soldiery. After the death

of Inspector Crosgurin on the 5th of June 1893 the French government

occupied Stung-treng and Khong. France demanded explanations and redress

at Bangkok, but the court refusing concessions, an ultimatum was

presented to the king by M. Pavie, French minister to Siam. The terms of

the ultimatum not having been complied with within the given time, the

French flotilla, consisting of the gunboats "L'Inconstant" and "La

Comète," crossed the bar of the Menam on 13th July 1893, forced the

entrance of the channel, and anchored at Bangkok, before the French

legation. A second ultimatum was then presented. It contained the

following conditions:--First the occupation of Chantabun by the French

until the Siamese should have entirely evacuated the left bank of the

Mekong; secondly, the Siamese to be interdicted from maintaining

military forces at Battambang, Siem-Reap, and generally from

establishing fortified positions within 15½ m. of the right bank of the

Mekong; thirdly, Siam to be interdicted from having armed boats on the

great lake Tonle-Sap. This agreement was executed immediately, the

Laotians being eager parties to it. On the 29th of September 1893 the

king of Luang-Prabang made his submission to the French government, and

besought it to use its influence with the court of Siam for the return

to their families of the sons of princes and mandarins then in schools

at Bangkok. The Siamese evacuated the left bank of the Mekong, and

France took possession of Laos, a treaty, on the basis of the ultimatum,

being signed on the 1st of October 1893. The disputes to which this

affair with Siam had given rise between France and Great Britain were

amicably settled by an agreement concluded on the 15th of January 1896.

This "declaration," virtually ratifying the treaty concluded in 1893

between France and Siam, settled the limits of the zones of influence of

the two contracting powers in the north of the Mekong regions and on the

frontiers of Siam and Burma. Great Britain resigned to France the

regions of the Muong-Sing which she had previously occupied. The great

part of Siam included in the Menam basin was declared neutral, so also

the Me-ping basin in the north, Meklong Pechaburi and Bang Pa Kong

rivers in the south. The neutral zone, 15½ m. wide on the right bank of

the Mekong, was formally recognized.

In 1904, by a new Franco-Siamese treaty setting aside that of 1893,

Chantabun was evacuated and the neutral zone renounced in return for the

cession of the provinces of Bassac and Melupré and the district of

Dansai (comprising the portion of Luang Prabang on the right bank of the

Mekong) and the maritime district of Krat. By a further convention in

1907 Siam ceded the provinces of Battambang, Siem-Reap and Sisophon, and

received in return the maritime province of Krat and the district of

Dansai ceded in 1904. At the same time France abandoned all designs on

territory of Siam by giving up certain areas obtained for the purposes

of railway building on the right bank of the Mekong.

[Illustration: Map of French Indo-China & Siam.]

After the recall of M. de Lanessan in 1894 (see above), and before his

successor, M. Rousseau, was able to acquaint himself fully with the

condition of the country, military expeditions began again and the

deficit soon reappeared. Tranquillity, however, being restored,

attention was given to public works. On the 12th of October 1895 M.

Rousseau left to ask parliament to vote a loan of 100,000,000 francs. On

the vols., of February 1896 a law was passed authorizing a loan of

80,000,000 francs, and on the 14th of March 1896 an office for the

financial control of the government-general of Indo-China was

established. In the interval a French company had obtained from China a

concession to prolong the railway from Langson to Lungchow on a

tributary of the Canton river. M. Rousseau, who died on the 10th of

December 1896, was replaced by M. Dourner, previously minister of

finance, under whose government was realized, as has been before stated,

the union of Indo-China. On the 20th of December 1898 M. Doumer obtained

from parliament authorization to contract a loan of 200,000,000 francs,

the proceeds of which were appropriated to the construction of railway

lines.

AUTHORITIES.--M. J. F. Gamier, _Voyage d'exploration en Indo-Chine_

(Paris, 1873); J. M. A. de Lanessan, _L'Indo-Chine française_ (Paris,

1889); P. Doumer, _L'Indo-Chine française_ (Souvenirs) (Paris, 1905);

F. Bernard, _Indo-Chine_ (Paris, 1901), L. Salaun, _L'Indo-Chine_

(Paris, 1903); A. Girault, _Principes de colonisation et de

législation coloniale_ (Paris, 1907); M. Petit, _Les Colonies

françaises_ (2 vols., Paris, 1902); J. C. Gervais Courtellemont,

_L'Indo-Chine_ (Paris, 1902); A. Neton, _L'Indo-Chine et son avenir

économique_ (Paris, 1904); A. Pavie, _Mission Pavie Indo-Chine_

(1879-1895); _Géographie et voyages_ (Paris, 1901-1906); H. Lorin, _La

France: puissance coloniale_ (Paris, 1906); M. Monnier, _La Tour

d'Asie: Cochinchine, Annam, Tonkin_ (Paris, 1899); E. Bonhoure,

_L'Indo-Chine_ (Paris, 1900); R. Castex, _Les Rivages indo-chinois_

(Paris, 1904); L. de Reinach, _Le Laos_ (Paris, 1902) (this work gives

a very complete bibliography); _Annuaire général administratif,

commercial et industriel de l'Indo-Chine_ (Hanoi); _Revue Indochinois_

(Hanoi); C. Madrolle, _Guide-Books_ (Paris, 1904-1907); _Bulletin

économique de l'Indo-Chine_ (Saigon). (J. M. A. de L.; R. Tr.)

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