Hulutao is an ice-free and deep-water port, situated on the west side of the head of Liaotung Gulf, about 60 miles from Yingkow. As a winter port for Manchuria, it is in a more advantageous position than Talien for it is about 200 miles shorter by rail to the sea than the latter and is on the edge of a rich coal field. When this coal field and the surrounding mineral resources are developed, Hulutao will become the first of the third-class ports and a good outlet for Jehol and Eastern Mongolia. This port may be projected as an alternative to Yingkow, as the sole port of Manchuria and Eastern Mongolia, if a canal could be constructed to connect it with the Liaoho. It is only by inland water communication that Yingkow could be made the important port of Manchuria in the future and it will be the same in the case of Hulutao. So if inland water communication could be secured for Hulutao it will entirely displace Yingkow. If it is found to be economically cheaper in the long run to construct a Hulutao-Liaoho Canal than to construct a deep harbor at Yingkow, the Hulutao harbor will have to be placed on the northwest side of the peninsula instead of on the southwest as at present projected. For the present site has not enough room for anchorage without building an extensive breakwater into the deep sea, which will be a very expensive work. Furthermore, there would not be room enough for city planning on the narrow peninsula, whereas on the other side, the city could be built on the mainland with unlimited space for its development. I suggest that a sea wall be built from the northern point of Lienshanwan to the northern point of Hulutao to close up the Lienshan Bay and make it into a closed harbor, and an entrance be opened in the neck of Hulutao to the south side where deep water is found. This closed harbor will be over 10 square miles in extent but only some parts need to be dredged to the required depth at present. On the north side of the harbor, another entrance into the neighboring bay should be left open between the sea wall and the shore, and another breakwater should be built across the next bay. From there, a canal should be constructed either by cutting into the shore or by building a wall parallel with the coast line until it reaches the lowland from where a canal should be cut to connect with the Liaoho. If a canal is thus constructed for Hulutao, then it will at once take the place of Yingkow and become the first of the second-class ports. b. The Hoangho Port