All receipts from forests and minerals belong to the general revenues of the Province, rights over forests and mines being reserved by Government. Subject to this reservation, Government levies no taxes on the people. Each State pays a fixed sum annually as tribute, the assessment being revised every ten years. The demand is moderate, and at the decennial revision pleas for reduction are indulgently considered. It need hardly be said that the chiefs are required to keep the peace among themselves. They are responsible for the good order of their territories, and maintain their own local police in picturesque uniforms. There is also a small body of regular police under the civil officers. The garrison consisted at first of troops, then of military police, then partly of troops and military police, now again of military police alone. Each group, the Southern and the Northern, has its own battalion. Such, briefly and in outline, is the way in which the Shan States were governed five-and-twenty years ago; such is the way in which they are governed now. Probably no dependency of so great an extent is administered so inexpensively or with so little display of force. As a study in administration the experiment is full of interest, and has been remarkably successful. In five-and-twenty years there have naturally been changes and improvements. At first the Chiefs lived for themselves, caring only for their own ease and comfort, while, as was graphically said, “the bloodsuckers around them were making hay.” Now they are becoming more enlightened, and beginning to realize their responsibilities. They are learned in the mysteries of budgets and taxation rolls. Some take a zealous interest in road-making, in digging canals, in promoting the growth of new staples, in sanitation and medical relief. Many of the Chiefs are courteous and intelligent gentlemen, who live on terms of easy friendship with British officers. Several have visited India, more are familiar with Rangoon and Mandalay. One Chief, formerly very shy and reserved, now gallops on our polo-grounds. His ambition was to visit Rangoon periodically for the purpose of gazing on the ball-room at Government House, which reminded him of Heaven. When all is said, it must be remembered that the chiefs are merely officers of Government of no very high position, like other officers, holding their appointments during good behaviour.