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purposes provided for up to March 28, 1904, was 576,000,000 yen, made up as follows:

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The public debt of Japan stood as follows on March 31, 1904 :-Internal loans (5 to 7 per cent.), 441,939,751 yen; foreign loans (4 per cent.), 97,630,000 yen; temporary loans (mostly free of interest), 125,349,200 yen ; total, 564,918,951 yen.

II. LOCAL.

The revenue of "Fu" and "Ken" for the year ending March 31, 1904, was estimated at 49,051,782 yen, and expenditure defrayed out of it 49,049,171 yen. Of the revenue 39,729,286 yen was from rates. The revenue of the cities in 1901-02 was 28,332,444 yen (10,924,789 yen from rates), and the expenditure was 22,112,079 yen. The revenue of the towns and villages in 1901-02 was 70,316,610 yen (44,246,131 yen from rates), and the expenditure was 65,300,730 yen. The total local debt at the end of 1903 was 67,111,747 yen.

Defence.

The principal ports of Japan lie at the head of gulfs, the channels leading to which are nearly all fortified. The Uraga Channel leading into Tokyo Gulf has the fortification of Kannonzaki on the west and that of Futtsu on the east, while just within the Gulf is the naval port of Yokosuka. The naval port of Hyogo-Kobé is protected by works at Yura on the Island of Awaji, and at Wakawama near the eastern entrance of the Inland Sea, while, near the western entrance is the naval port of Kuré with fortifications on adjacent islands. The Strait of Shimonoseki, between Nippon and Kiu Shiu, is commanded by batteries at Kokura. On the west coast of Kiu Shiu is the naval port of Sasebo. There are fortifications on the Tsushima Islands in the Korean Straits. On the Bay of Wakasa, looking to the north-west, is the naval port of Maizuru, only about 65 miles overland from Kobé. The Tsugaru Strait between Nippon and Hokkaido (Yezo) has defences at Omazaki on the south side and at Hakodate on the north side. There are arsenals at Tokio and Osaka; the former has works for the manufacture of rifles, the latter has iron and steel works for cannon, &c.

The

The Emperor has the supreme command of the army and navy. The army of the Empire has been organised on a uniform system on the basis of conscription. According to the present law, all male Japanese subjects of the age of 17-40 are liable to the military service. The army and the navy are divided into the standing army (navy), landwehr, depôt, and landsturm. The standing army is divided into the active army and the army of reserve. active army is levied from males of the age of twenty, and the term of the service is three years in the army and four years in the navy. The army of reserve consists of those who have quitted the active army, and the term of the service is four years and four months in the army and three years in the navy. The landwehr consists of those who have quitted the standing army, and the term of the service is five years. The depôt is divided in the army into the first and the second. The first depôt is levied from among those who

have not been enlisted for the active army, and the term of the service is seven years and four months; and the second depôt is levied from among those who have not been enlisted for the first depôt, and the term of the service is one year and four months. The depôt in the navy is levied from among those who have not been enlisted for the active navy, and the term of the service is one year. The landsturm is divided into the first and the second. The first landsturm consists of those who have quitted the landwehr or the first depôt; and the second landsturm of those who are not in other services. Those who are in the first year of the first depôt, or in the naval depôt, are called up to fill the deficiency of the active army or navy respectively. The men of the reserve and landwehr, both in the Army and Navy and those in the first depôt and depôt of the Army and Navy respectively, are called up in case of war or emergency. The second depôt and the landsturm are called up, the former when the levy of the first depôt, and the latter when the levy of the landwehr are found wanting. in number.

The army is composed of the Imperial Guard, the twelve divisions, Taiwan (Formosa) garrison, gendarmerie, the reserves, the landwehr, and the depôt. The following table shows the strength of the Imperial army on December 31, 1900 (no more recent statement is published) :

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In war the total

In 1900, the total number of horses was 31,057. strength would probably be about 1,000,000 men. There are a staff college, military academy, cadet school, model school, artillery and engineering school, cavalry application school, a gunnery school for field artillery, and a gunnery school for garrison artillery, &c., with the number of students above stated. The rifle now used in the army is the latest form of the 1897 system (calibre 6.5 mm.), which was invented in Japan.

The Minister of the Navy is a member of the Cabinet and superintends the administration. The chief of the Naval General Staff Office in Tokio is ap

pointed from the admirals on the active list, and is responsible under the Emperor for the operations of the fleet. The coast of Japan is divided into five maritime districts having their headquarters, with docks, arsenals, and barracks, at Yokosuka, Kure, Sasebo, Maizuru. The personnel of the navy in 1904 included 5 admirals, 14 vice-admirals, 26 rear-admirals, 68 captains, 122 commanders, 187 lieutenant-commanders, 324 lieutenants, 568 sublieutenants, besides engineers, medical officers, &c., and 32,019 sailors, the total being 36,080 officers and men. The personnel is trained as in the navies of Europe, and has given excellent proofs of bravery, steadiness, and discipline during the course of the conflict with China.

The development of the Japanese navy is one of the most notable elements in the politics of the Far East. During the war with China the squadron was handled with considerable skill and with very decisive effect. In the war with Russia uniform success attended the Japanese, the only disaster experienced being the torpedoing of the battleship Hatsuse (sister to the Asahi) and the Yoshino, coupled with the loss of the battleship Yashima (sister to Fuji) by mines. These mishaps all fell together, but the Japanese succeeded in still holding their own, and eventually defeated the Russian fleet in August at the battle of Round Island. The fleet was subsequently destroyed at Port Arthur during December, 1904.

Of the battleships, the Chin- Yen (captured from China) and Fuso, have little or no fighting value. The Fuji is an improvement on the British Royal Sovereign class. The Shikishima and Asahi reproduce the British Majestic type with improvements. So does the Mikasa, with the notable difference that her 6-inch guns are in a continuous battery on the main deck. The Kashima class are improved Mikasas of increased size, and carrying 10-inch instead of 6-inch guns at the angles of the upper deck battery.

The armoured cruisers of 9,800 tons odd, the Asama class, are notable vessels. In general design they closely resemble the Shikishima class. They are swift and very "handy" craft. The Chitose and Kasagi are heavily armed for their size, and exceedingly swift boats of a now expiring class of warship. The strength of the navy lies in its homogeneous armoured ships backed up by a large torpedo flotilla.

Japan now builds her own protected cruisers and destroyers, Armour factories are being founded. She will then be able to construct battleships also. A new large ship-building programme is in contemplation.

A statement of the Japanese fleet similar to that given for other navies is:

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The proposed expenditure for strengthening the Japanese Navy is as follows:

:

Yen

For the building of war ships

62,348,269

For war material and extension of the Kuré Arsenal 29,001,313

For buildings

Total

8,510,723

99,860,305

This sum is to be spread over 11 years beginning with the year ending March 31, 1904 (1903-1904).

Out of the total expenditure, the following is included in the account of the current year :

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Thus total expenditure to be incurred by the Japanese Navy for the 1903-4 (financial year) for warships and war material amounts to :

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The Japanese naval authorities intend to lay down the armour-plate making plant at Kuré; this absorbs a large portion of the above provision. The following table includes all the battleships built and building, armoured cruisers and principal protected cruisers.

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The Nisshin and Kasuga were built at Genoa for the Argentine navy, but were sold to Japan in 1903. New battleships ordered, 1904.

The water-tube boilers fitted are Belleville, 10; Niclausse, 5; Miyabara, 2.

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