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colouring matter. This should be one of the important resources of Lower California. Some years back the merchants here sent this wine to the States and shortly afterwards bought back the same article greatly diluted and coloured and in bottles bearing a fancy name. The practice of the growers in latter years has been to make a small quantity of wine, resembling port wine, and to dry the remainder of the grapes into raisins, which seems to be a much better business for them.

In the trade report for 1907 mention is made of French capital attempting to breed the mother-of-pearl oyster artificially. This, after all, does not seem to have been much of a success, and it is understood that no remarkably fine pearl has been obtained from this undertaking.

On the contrary, in 1909, the company had to face many difficulties such as storms, attacks of starfish, devil fish, &c., all of which hampered their operations considerably. Much capital has been spent in this undertaking (about 30,000l.), and it would be a great pity to see these efforts fail after so many years of hard work and study.

There are many details in this undertaking that to the casual reader may appear very simple, but it requires many years of study, combined with a greater amount of practical experience.

Wireless telegraphy.-During the year 1909 the wireless telegraphic service between San Jose del Cabo and Mazatlan gave excellent results. This was very much doubted at first owing to the many difficulties usually encountered with this apparatus, and the excep tional climatic influences at certain seasons of the year.

Shipping. No British ships entered or cleared from this port during the year 1909.

RETURN of Shipping of all Nationalities Entered and Cleared in the Foreign Trade of the Port of La Paz, Lower California, Mexico, during the Year 1909.

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Vessels. Tonnage. Vessels. Tonnage. Vessels. Tonnage.

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ENTERED (with Cargo) and Cleared (in Ballast).

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MAZATLAN.

Mr. Vice-Consul Gardner reports as follows:

While in point of importance as a seaport, Mazatlan still lays claim to first place on this coast, it cannot be said that she has yet reaped the expected benefits from her railway communication with the outside. For a year now we have had regular daily trains arriving from and leaving for the United States border, while for some months past the line has been open to the public as far as Acaponeta in the south, a distance of 163 kiloms. (102 miles). Altogether 1,361 kiloms. (851 miles) of railroad are open to the public along this section of the coast. Railhead is to-day at Santiago Ixcuintla, 254 kiloms. (159 miles) south of Mazatlan, and it is improbable that work will continue after March until the month of October, when the rainy season should be over. The intention is, I am informed, to suspend work of general construction about the end of February, continuing only work on the bridges, which are so necessary for the speedy transportation of material. There is some reason to believe that the continuation of this line through to Guadalajara will be deferred indefinitely and that Tepic is likely to become the southern terminus for some time to come. From the actual end of the line to Tepic, the distance is but 47 kiloms. (29 miles), but the line will run through some rough country and construction must be comparatively slow.

Mazatlan may not equal her last year's population of close upon 22,000 inhabitants, since there has been a heavy exodus of labourers during the year just ended; indeed it is estimated that 19,000 to-day would be liberal figures.

Industries.-Mining is still the chief of these. There are, however, no new developments to report. The lead property I referred to last year is still being worked in a small way, and regular, if small, shipments of ore are received from Cosala, also mentioned by me in connection with British interests.

Mazatlan has a well-equipped iron foundry capable of turning out all kinds of quite heavy work, and there are besides carriage, wax match, candle and soap, boot, mosaic and aërated water factories, also a tannery and a brewery.

I have nothing to add to my report of last year covering the following subjects:-Public works, wireless telegraphy, Chamber of Commerce, banks, port of Altata and samples for exhibition at this Vice-Consulate.

Tracts of agricultural land ranging from 5,000 to 250,000 acres have fallen into the hands of foreigners during the past year. These lands have not been virgin, but well improved under cultivation and stocked. Under the modern methods applied by their new owners, these lands are being laid out in maize, beans, sugar, cotton, tobacco and orchards.

Maize this year is selling at 9 dol. Mexican for 250 litres (say about 11. per quarter). The crops have failed in many parts of this coast year. It was the reverse last year.

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Beans (Frijol) are selling at 28 dol. per 200 kilos.

Tobacco is selling at 32 dol. per 138 kilos. picked.

Sugar, bananas and cotton are fully covered in my report of last

year; there is nothing to add.

MAZATLAN.

Peaches, apricots, apples, lemons, oranges and grapes are being planted in the vicinity of Culiacan, where some attention to irrigation has been given.

Shipping conditions remain practically unchanged since last year as regards this port, the only variation being that the Jepson line of steamers have taken the place of the steamers of the Canadian-Pacific Steamship Company, which no longer make this a regular port of call on their run between British Columbian ports and Salina Cruz. The Kosmos steamers still pay their monthly visits, and the Amiral steamers touch here occasionally. The Mexican steamers of the Cia. Naviera del Pacifico, South America, now run to San Diego, United States of America, and it is rumoured that a further extension is contemplated. While the actual heavy freight rates over the new Southern Pacific Railroad are favourable to the Cia. Naviera's steamers, the railway company have, of course, broken in upon what was for the Naviera Company almost a monopoly until a year ago, and it is but natural that the steamship company should seek to extend its relations.

General. I have to correct the statement I made in connection with the mining in this district, and mention the fact of the Copala Mining Company's mill at Copala having been closed down owing, it is said, to the scarcity of ore.

The erection of this costly and up-to-date mill had only just been completed, it may be said.

The German and Spanish houses continue to absorb three-fourths of the trade of Mazatlan, the balance being in the hands of Chinese merchants, who appear to be gaining strength each year.

The use of modern farming implements is becoming more general each season, and so far this trade has fallen to the United States manufacturers, as has also the mining machinery, about 45 per cent. of the grocery and perhaps 20 per cent. of the small ironmongery.

The United Kingdom still monopolises the sheet iron, tin plate and corrugated iron trade. About 60 per cent. of the cutlery and 75 per cent. of the brass and iron bedsteads are British, while in fancy cloths, cashmeres and broadcloths a decided preference is shown to British makes.

We have only about 25 per cent. of the woollen goods business. More than 50 per cent. of these goods come from Germany, I understand.

A falling-off in the importation of calico is but natural when the increasing output of the local factory at Villa Union is considered. Their plant has been enlarged this year, and they have planted cotton to some extent. Most of the Mazatlan merchants are shareholders in this concern, and as is to be expected take as much of its product as possible.

I am given to understand that the fishing privileges are to be leased to some United States citizens. This lease covers also the taking of alligators for their hides; these reptiles are quite numerous along this coast.

MOVEMENT of Shipping at the Port of Mazatlan during the Year 1909. STEAM Vessels.-ENTERED.

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