The increase of trade after the Russo-Japanese war was not limited to the banks of the Yalu River. A similar increase was also shown in Northern Korea, and a sufficient equipment to meet the customs demands of this increase was lacking. As a means of meeting the present requirements, the reconstruction of the Song-chin Customs Godown, which had been destroyed by fire during the war, was commenced in June last, and completed in the following October. In September last, the construction of the Customs Wharf at Song-chin was commenced and completed in November. The Wonsan Customs had not been provided with sufficient sheds, and consequently damage to the goods was an affair of frequent occurrence. Sheds were newly built there in December last. Steam launches were provided in the Customs of Chemulpo, Fusan, Wonsan, Chin-nampo and Mokpo, for purposes of inspection. Though Japanese have now been appointed as Commissioners at Chemulpo and Fusan, the customs business is being managed in essentially the same way as when those offices were being held by Europeans, but not without some changes. From the first of September last, the institution of new customs regulations was undertaken. In October the service rules for customs officials were issued, and uniforms were prescribed for officials of the outdoor service. In November the jurisdiction of each customs office was clearly defined. Uniformity of taxes was arranged. The work was divided into several departments and sections. Various procedures in the collection of customs were altered. The new arrangements are intended both to regulate and to expedite the work of customs; but the before-mentioned concern matters of internal administration only. As to the reform of more fundamental matters, this must be undertaken in connection with the reconstruction of harbors, customs, accommodations on land, and the building of lighthouses. The Customs Maritime Works Department has been organized for this purpose—the first stage of the work to be concluded in 1911. As the port regulations now in force do not fit the present conditions in each port, alterations are now being planned. In February last the method of quarantine inspection was altered. The accounts of the Korean Customs Department have hitherto been separate from the Korean Government accounts—the revenue and expenditure of the former not being entered in the annual budget. [On the last item the Report of the Residency-General upon Administrative Reforms remarks that the impropriety of this omission is obvious.] They are, however, entered in the budget of 1907 for the first time.