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200 Fusan call daily, local produce being brought round by native junks. There is a large fishing industry off the harbour; it is, however, quite controlled by Japanese fishermen from Fusan. The principal industry on shore is the construction of the settlement, some little agriculture, and no little gossip.

Since the failure of her efforts to secure Ma-san-po, Russia has endeavoured to obtain the lease of Ching-kai-wan, sometimes called Chin-hai or Shin-hai, a bay situated in the extreme south of the Korean peninsula, as a naval station. The position of this harbour is exactly midway between Vladivostock and Port Arthur. Owing to its geographical situation, the presence of Russia in sole possession of Ching-kai-wan would be certain to give rise to even greater demonstrations of hostility from the people and Government of Japan than did the Ma-san-po incident. Nam-pu, which it was then Russia's object to secure, is about twenty miles outside the limits of the treaty port of Ma-san-po. While the Japanese Government could not prevent Russia from obtaining a coaling-station for the Russian Steamship Company within the boundaries of the foreign settlement of Ma-san-po, she most strenuously protested against a grant of land for Russian naval purposes twenty miles away. Japan likewise resists the establishment of a Russian naval depot at Ching-kai-wan, where there is no treaty port, and to which, were the "lease" confirmed, only Russia would have a right of access.

Ching-kai-wan is within a few hours' steam of that Port Hamilton which Great Britain was induced to relinquish, upon the understanding between Russia and China that Russia would not seek to acquire territory in Korea. The excuse, since put forward by Russia for the flagrant violation