_Administration and Commerce._--The island is treated as an outlying territory; it has not been brought within the full purview of the Japanese constitution. Its affairs are administered by a governor-general, who is also commander-in-chief of the forces, by a bureau of civil government, and by three prefectural governors, below whom are the heads of twenty territorial divisions called _cho_; its finances are not included in the general budget of the Japanese empire; it is garrisoned by a mixed brigade taken from the home divisions; and its currency is on a silver basis. One of the first abuses with which the Japanese had to deal was the excessive use of opium by the Chinese settlers. To interdict the importation of the drug altogether, as is done in Japan, was the step advocated by Japanese public opinion. But, influenced by medical views and by the almost insuperable difficulty of enforcing any drastic import veto in the face of Formosa's large communications by junk with China, the Japanese finally adopted the middle course of licensing the preparation and sale of the drug, and limiting its use to persons in receipt of medical sanction. Under the administration of the Japanese the island has been largely developed. Among other industries gold-mining is advancing rapidly. In 1902 48,400 oz. of gold representing a value of L168,626 were obtained from the mines and alluvial washings. Coal is also found in large quantities near Kelung and sulphur springs exist in the north of the island. An extensive scheme of railway construction has been planned, the four main lines projected being (1) from Takau to Tainan; (2) from Tainan to Kagi; (3) from Kagi to Shoka; and (4) from Shoka to Kelung; these four forming, in effect, a main trunk road running from the south-west to the north-east, its course being along the foot of the mountains that border the western coast-plains. The Takau-Tainan section (26 m.) was opened to traffic on the 3rd of November 1900, and by 1905 the whole line of 259 m. was practically complete. Harbour improvements also are projected, but in Formosa, as in Japan proper, paucity of capital constitutes a fatal obstacle to rapid development. There are thirteen ports of export and import, but 75% of the total business is done at Tamsui. Tea and camphor are the staple exports. The greater part of the former goes to Amoy for re-shipment to the west, but it is believed that if harbour improvements were effected at Tamsui so as to render it accessible for ocean-going steamers, shipments would be made thence direct to New York. The camphor trade being a government monopoly, the quantity exported is under strict control.