Many of the tribes between Zimmé and the Chinese frontier are Karen, and in a pamphlet published in 1881 by Dr Cushing, he states that “the Karens in this direction, towards Zimmé and beyond towards China, are very numerous, probably more numerous than all the Karens in British Burmah.” It is therefore likely that a very large field for missionary work will be opened up by our assuming control of the Shan States lying between the Salween and Meh Kong rivers. When saying good-bye to the Chow Phya, we asked him to send the Chinese monopolist to us, so that we might learn something of the taxation and trade of the State. On his arrival he told us that he paid the Government of Lakon 12,000 rupees for the right of levying taxes, amounting to 10 per cent of the value, upon all exports from the State, other than timber; and one of his employees informed us that the bargain left this monopolist a clear gain of 10,000 rupees. His district includes Muang Ngow, Muang Penyow, and the other provinces of Lakon. The value of the exports, outside teak and other timber, must be about 300,000 rupees. The principal exports from Lakon to Bangkok consist of teak, sapan-wood, hides, horns, cutch, ivory, and stick-lac; to China, raw cotton, rhinoceros-horns, soft deer-horns, which are used for medicine, gold-leaf, saltpetre, ivory, and brass tinsel-plates. Lakon imports from Muang Nan rock-salt; from Kiang Tung, lead, steel swords, steel ingots, walnuts, lacquered utensils, and opium; from Zimmé, cloth, crockery, betel-nuts, and pickled tea; from Muang Peh, raw cotton, tobacco, cotton cloth, betel-nut, and cutch; from Luang Prabang, gum-benjamin, stick-lac, raw silk, and fish spawn; from the Chinese province of Yunnan, opium, bee’s-wax, walnuts, brass pots, ox bells, Chinese silk piece-goods, silk jackets and trousers, silk jackets lined with fur, figured cloth, straw hats with waterproof covers; and from Muang Penyow, paddy and rice. Nine or ten Chinese boats leave Bangkok for Lakon monthly, each bringing goods to the value of between 9000 and 10,000 rupees every trip. This implies an import trade from Bangkok, chiefly in English goods, of 90,000 rupees a month. The monopolies for opium and gambling were farmed by another Chinaman, who pays the Government 3000 rupees, and is said to make a clear profit of 10,000 rupees. The only tax levied direct from the people is one basket of paddy for each basket that is sown. Mr Carl Bock, who visited Lakon in 1881, states in his book that “the country about Lakon is apparently rich, not only in timber, but in minerals. Near the town are some very rich iron-mines; and I also saw a quantity of galena ore, of which I was assured the mountains in the neighbourhood were full. Copper is also found in the district. The natives are skilled metal-workers, and make their own guns.”