since the creation of the colony, a small surplus was remitted to Lisbon. It is questionable whether this possession will ever prove profitable to Portugal. At the present day nearly two-thirds of the trade is in the hands of non-Portuguese (Indians and Europeans). The bulk of the wholesale commerce between Ibo and Quelimane is carried on by German, Dutch, and French firms; and the retail trade is conducted by British Indians, or by natives of Goa and other Portuguese Indian possessions. The Chartered Company of “Nyassa” has a virtual monopoly of the hinterland trade between Lake Nyasa and the Ibo coast, and administers the country between the Lurio river on the south and the Ruvuma on the north. In Portuguese Zambezia exists the Zambezia company with a number of minor concessionaires; and most of these hold _prazos_ or leases of prescribed areas, in which they have exclusive trading rights and a virtual mastery over the natives, who are consequently at times rebellious when exactions of labour in lieu of or in addition to taxes are levied on them. There is and has been very little real Portuguese colonization of the Moςambique and Zambezia provinces. The vicious spirit of the old slave trade days still taints the local administration. The Angoshe region between Moςambique Island and the northern vicinity of the Quelimane river is almost independent of Portuguese authority under powerful Arab-Negro Muhammadan “Sultans,” who until quite recently shipped over many dau-loads of slaves to Madagascar.