This question, however, had no influence whatever on the work we were engaged in. I was able to reassure the Chinese and to make them feel that the Government desired to treat them with fairness and consideration. The Chinese in Burma behaved throughout these stormy years as loyal citizens. There were at first numerous reports of hostile gatherings on or near the Chinese frontier, especially in the north of Hsenwi and at Hpunkan, near Bhamo. They had little foundation in fact. The only case in which it is certain that an armed body of Chinese entered Burma was in January, 1889. A strong body of Chinamen, chiefly deserters from the Chinese army and outlaws, gathered on the Molè stream north-east of Bhamo. They were promptly attacked by the police and so severely handled that they were not heard of again.
Still less influence on the restoration of order had the Ruby Mines affair, which excited the British public and enabled parliamentary busybodies to create an absurd fuss. The whole question of these mines and their administration might well have waited until we had pacified the country. Even as a source of revenue they were of no great moment, and if we had left the native miners alone we should have saved the heavy expense of maintaining a strong force up in the hills and making a long and costly cart-road from the river. Mogok, the headquarters of the mines, lies nearly six thousand feet above the sea-level, and is distant sixty miles by road from the river port of Thabeikkyin, most of it lying through thick jungle, poisoned with malaria and, in 1887, infested with dacoits.
The mines were then worked by the Shans, who live on the spot and have hereditary rights. A proposal had been made by Sir Charles Bernard, and supported by the Government of India, to give a lease of the mines for three years to Messrs. Gillanders Arbuthnot, of Calcutta, at an annual rent of two lakhs of rupees, the equivalent then of about £14,000. This firm had been accustomed to trade in rubies with the Shans at Mogok. The proposal was judicious, and would have enabled the Government to learn the value of the mines before committing themselves for a longer term, as the firm's books were to be open to inspection.
This proposal, however, did not meet the views of the gentlemen who had marked down the ruby mines as a field of speculation. A parliamentary intrigue was got up. Questions were asked—jobs were hinted at. The enormous value of the mines—the richest ruby mines in the world—was talked about, until the British public began to see rubies and to suspect, I verily believe, Sir Charles Bernard and all of us, his official heirs and successors, of desiring to make dishonest fortunes. Some of the speculators went to Simla to persuade the Government of India that Gillanders Arbuthnot's offer was inconceivably ridiculous. Then they came on to Rangoon with letters of introduction, not unaccompanied by hints and warnings to be careful, to sniff about the mines and get the ear of the authorities in Burma. The Secretary of State trembled lest he should be suspected of favouring somebody; and if I had destroyed Mandalay or drained the Irrawaddy, I doubt if there would have been more disturbance than was caused by the grant to one of the prospectors of a few yards of worthless land at Mogok on which to erect a hut, and of an ordinary licence to mine.
Eventually an expert was sent out to inspect and value the mines. The gentleman deputed to this duty was no doubt a skilled mineralogist, even if he was without previous experience in ruby mines. It is possible that his report was worth the cost. It was, I take it, a means of getting out of a parliamentary difficulty. It served the Secretary of State for India as an excuse for delay, and gave the appearance at least of a searching and impartial investigation.
Late in 1889 a concession for seven years was granted to five lucky promoters; and then the course usual in such cases was followed. A company was floated in London under the auspices of a big financier. The success for the concessionaires was unexampled. The public, especially the small investors, in an enthusiasm of greed, tumbled over each other to secure shares. In November, 1889, the company began to work. Its history since has not been one of remarkable prosperity either for the Government or the shareholders. The terms have been revised several times. The receipts of the Government from the company in 1903-4 were Rs. 2,11,500, or £14,000.
The history of this matter is interesting only as an example of the futility of interfering with the Government of India in local matters. To the administration of Burma it meant more writing, more labour, more anxiety, when attention was needed elsewhere. When a man's house is on fire he does not want to spend time in polishing the handle of his door. I was compelled to keep at Mogok better men and a stronger force than the district needed. For some years there was much disturbance in the neighbouring country. But it was unconnected with the mines.
It is a defect in parliamentary government that so many members, avoiding the really important matters, fasten greedily on lesser questions, especially those which promise a scandal. As Parliament chose to look at this matter as one of imperial interest, the mines acquired an importance out of all proportion to their value. I found the ruby mines was a burning question, and I had to go there without delay. I left Mandalay on the 29th of March in a steamer for Kyannyat, which was then the river station for Bernard Myo and Mogok, with Mr. Herbert White and my private secretary. We rode the forty miles from the river to Sagadaung, the halting-place at the foot of the hills, taking as we went an escort of five mounted men (Gurkhas) from the military posts on the road, and stopped there for the night. From Sagadoung a mule-path (twenty miles) took us to Bernard Myo, where I halted, and next day rode into Mogok.
The regulations and conditions under which it was proposed to allow the mines to be worked were explained to the native mineowners and to the persons present on behalf of the applicants for the concession, and the way was cleared for a settlement.