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paid out of the revenues of the islands. The estimated expenditures were:

According to the original programme of 1898, the railways were to be completed within ten years, but the work of construction is not likely to consume much more than half that period. Part of the system is already open for traffic, and is affording complete satisfaction, and the revenue accruing therefrom is larger than was even anticipated. The latest returns show that the sections actually in operation measure 158 miles—viz.:

The line is in course of construction between Bioritsu and Kagi, viâ Taichu, 82 miles, work being carried on from both ends simultaneously, and when this section is ready for traffic there will be no break in the railway communication from Kelung in the North to Takow in the South, and ultimately it will extend the entire length of the island, as the line will be carried 66 miles further to Garambi, at the apex of the promontory in the extreme South.

It is likewise proposed to build an East Coast railway from Pinan, in Lat. 22° 46′ N., to Karenko, in Lat. 24° N.—roughly, about 85 miles—and to connect this by a cross-country line over the main mountain chain with some point on the western side of the island. Another cross-country connection 47 miles long is to be formed between Taihoku and So-o (Suao), situated on the East Coast near Dome Point, by the way of Giran (Gilan). Thus there are in Formosa 158 miles of railway in full operation, 82 miles in the course of construction, and 132 miles arranged for, to be built in the near future. Needless to say, the railway is proving itself to be a potent stimulant to industries of all kinds, and is becoming the prime factor in the general development of Tai-wan under Japanese rule.

Over 200 miles of narrow gauge tramway lines have also been laid in the island by the Government, partly for the