of the Residency-General, when “seen from the economic, sanitary, or political point of view, one of the greatest needs of Korea at present is the rehabilitation of its forests.” The task involved in this matter of industrial reform and development of resources is, however, of the most difficult order. The rights of the people, not only to use as they please their own trees, but to plunder the hill and mountain sides of their fuel, regardless of ownership, are firmly established by usage. In the bitter weather of winter much suffering would ensue, and its consequent political disturbance, if these customs were suddenly and extensively controlled. Nevertheless, model forests have been established and instruction in forestation is given to Korean youths in a school founded for that purpose. Below are given the names of localities and the sizes of the model forests so far established, with their outlays:[62] “_Koan-ak-san_ and three other places in the vicinity of Seoul. Total area 2,060 _cho_. Outlay, about 152,000 _yen_, distributed over five years, commencing 1907. “_Tai-syong-san_ and two other places in the vicinity of Pyeng-yang. Total area 610 _cho_. Outlay, about 63,000 _yen_, distributed over five years, commencing 1908. [Nursery beds expected to be opened in 1907.] “_Oa-yong-san_ and one other place in the vicinity of Taiku. Total area 650 _cho_. Outlay, about 63,000 _yen_, distributed over six years, commencing 1908. [Nursery beds expected to be started in 1907.]” The more important resources of this class are, however, the existing forests along the banks of the Yalu and Amur rivers. Indeed, the desire to gain control of this wealth of timber was one of the more immediate causes leading to the Russo-Japanese war; it is still one of the more difficult points for satisfactory adjustment on the part of the three nations chiefly concerned. For the development of these resources an agreement between Japan and Korea was signed on October 19, 1906, by the Marquis Ito and the Korean Prime Minister, the Minister of Finance, and the Minister of Agriculture, Commerce and Industry. The text of this agreement and a brief introduction, stating its importance, is given in Mr. Megata’s last report.[63] “The banks along the Yalu and Amur,” says this report, “are rich in forests which have never been cut. Proper management of those forests would yield a considerable revenue to the treasury; but at the same time it would require not a little expense. In the present condition of the Korean finances it would not be wise to undertake this on the account of Korea alone, although the opening up of such a source of wealth is highly necessary.” An agreement was concluded between the governments of Japan and Korea in October last to carry on the forestry along those banks on their joint account, each government investing 600,000 _yen_. The agreement newly concluded reads as follows: