In 1905 the principal foreign countries from which goods were imported were:

   Hong Kong for £2,473,882[4]
   Singapore ” 598,449
   China and Japan ” 1,473,704
   Burma and Siam ” 289,542
   The British Isled ” 141,381
   The United States ” 126,425
The principal countries to which goods were exported were:
   Hong Kong for £1,706,597[4]
   China and Japan ” 497,288
   Singapore ” 360,510
   Burma and Siam ” 80,071
   The British Isles ” 55,539
The principal imports were:
   Wheat for £214,156
   Rice ” 226,755
   Raw opium ” 271,582
   Raw cotton ” 167,020
   Wine ” 340,027
   Pit coal ” 206,221
   Petroleum ” 388,163
   Gold ” 203,369
   Iron and steel ” 353,214
   Tin ” 526,428
   Cotton thread ” 672,040
   Jute tissues ” 254,255
   Cotton tissues ” 922,250
   Silk tissues ” 241,113
   Paper ” 344,633
   Metal-work ” 1,170,576
   Arms, powder and ammunition ” 170,882
The principal exports were:
   Dried fish, salt and smoked for £151,415
   Rice ” 2,848,389
   Pepper ” 214,297
   Pit coal ” 182,077
   Tin ” 553,914
   Cotton thread ” 421,162

The customs tariff is substantially the same as that of France, severe import duties being levied on foreign goods. French goods pay no import duty and goods exported thither are exempt from export duty, with the exception of sugar, which is regulated by special legislation, and of various other colonial products (e.g. coffee, cocoa, tea, vanilla, pepper) which pay half the duty applicable to similar foreign products according to the minimum tariff. Goods from French colonies pay no import duty. About 53% of the imports, comprising nearly all manufactured goods of European origin, come from France. China, Japan and Singapore are the other chief sources of imports. The Bank of Indo-China (capital £1,440,000) besides receiving deposits and discounting bills, issues bank-notes and has, till 1920, the privilege of lending money on security.

Communications.—The railway communications of French Indo-China comprise lines from Hai-Phong to Lao-Kay, continued thence via the Nam-Te valley to Yun-nan; from Hanoi northward to Lang-Son and south to Vinh; from Tourane to Kwang-Tri via Hué and from Kan-Tho (Cochin-China) to Khanh-Hoa (Annam) via My-Tho, Saigon, Bien-Hoa and Jiring with branches to Phan-Tiet and Phan-Rang. The three last are the completed sections of a line which will unite Tongking with Cochin-China. The towns in the deltas of the Mekong and Red river are united by a network of canals. The mandarin road following the coast line of Annam connects Tongking with Cochin-China, but the easiest means of communication between these two territories is by sea, the voyage from Saigon to Tourane lasting three days, that from Tourane to Hai-Phong, thirty hours.

History—The beginning of French influence in Indo-China dates from 1787, when a treaty was concluded between Gia-long, king of Annam (q.v.), and the king of France, whereby Tourane and the island of Pulo-Condore were ceded to the latter. The successors of Gia-long were averse from French influence and instituted persecutions of the Christian missionaries and natives, which led, in the reign of Tu-duc in 1858, to the arrival at Tourane of a French and Spanish fleet. The capture of that town was followed early in 1859 by the storming of Saigon, which Rigault de Genouilly, the French admiral, chose as his base of operations. The French and Spanish were, however, too few to take the offensive, and were forced to submit to a blockade, conducted by the Annamese general Nguyen Tri Phuong, at the head of 20,000 troops. It was not till February 1861 that reinforcements under Admiral Charner reached Saigon, and the Annamese were defeated and My-Tho taken. A revolt against Tu-duc in Tongking, and the stoppage of the rice supplies from Cochin-China, obliged the king to submit, in 1862, to a treaty by which three provinces of Cochin-China were ceded and other concessions accorded to France. However, it was only after further military operations that Tu-duc consented to the ratification of the treaty. In 1863 Admiral de la Grandière was appointed governor of Cochin-China and in the same year France established her protectorate over Cambodia. It was under La Grandière that the exploration of Mekong was undertaken (see [Garnier, M. J. F.]) and that in 1867 the three provinces of Cochin-China left to Annam were annexed. French intervention in Tongking, which began with the expedition of François Garnier to Hanoi in 1873, culminated after a costly and tedious war (see [Tongking]) in the treaties of 1883 and 1884, whereby Annam and Tongking passed under the protectorate of France. The latter treaty, though its provisions were subsequently much modified, remains theoretically the basis of the present administration of Annam.

From 1884 onwards the history of Indo-China may be divided into two distinct periods, characteristic of the political conception and governmental system adopted by the French government. In the first period, 1884-1891, the French agents in Tongking and Indo-China generally proceeded under cover of the treaty of 1884 with the definite conquest and annexation of Tongking and also Annam. Cochin-China itself openly designed to seize the southern provinces of Annam, upon the borders of which it lay. This policy, momentarily checked by the war with China, was vigorously, even violently, resumed after the treaty of Tientsin (June 1885). The citadel of Hué was occupied in July 1885 by General de Courcy. The Annamese government forthwith decided upon rebellion. An improvised attack upon the French troops was led by the ministers Thu-yēt and Thu-ong. The revolt was promptly suppressed. The regent Thu-yēt and the king Ham-N’ghi (crowned in August 1884) fled. At this time the French government, following a very widespread error, regarded Tongking and Annam as two distinct countries, inhabited by populations hostile to each other, and considered the Tongkingese as the oppressed vassals of the Annamese conqueror. To conquer Annam, it was said, would liberate Tongking. This misconception produced the worst consequences. With the flight of the king civil war commenced in Annam. The people of Tongking, whose submission the court of Hué had not dared to demand, began to rise. Taking advantage of this state of anarchy, pirates of the Black Flag, Chinese deserters and Tongkingese rebels devastated the country. The occupation of Tongking became a prolonged warfare, in which 25,000 French, compelled to guard innumerable posts, had to oppose an intangible enemy, appearing by night, vanishing by day, and practising brigandage rather than war. The military expenditure, met neither by commerce, which had become impossible, nor taxation, which the Annamese could not pay nor the French receive, resulted in heavy deficits. The resident-general, Paul Bert, who hoped to gain the confidence of the mandarins by kindness and goodwill, did not succeed in preventing, or even moderating, the action of the military régime. Than-quan, Hon-Koi, Lao-Kay, Pak-Lun and Kao-Bang were occupied, but the troops were driven back to the delta and almost invested in the towns. Disappointed in his hopes and worn out rather by anxiety than work, Paul Bert succumbed to his troubles in November 1886, seven months after his arrival in the country. His successors possessed neither the strength nor the insight necessary to grapple with the situation. M. Constans, however, appointed “provisional” governor-general after the death of M. Filippini, succeeded to a certain extent in reviving commerce in the towns of the delta. MM. Richaud, Bihourd and Piquet, successors of M. Constans, were all powerless to deal with the uninterrupted “bush-fighting” and the augmentation of the deficit, for no sooner was the latter covered by grants from the mother country than it began to grow again. At the close of the financial year in 1890 France had paid 13,000,000 francs. In April 1891 the deficit again approached the sum of 12,000,000 francs. The rebels held almost all the delta provinces, their capitals excepted, and from Hanoi itself the governor-general could see the smoke of burning villages at the very gates of his capital.

At this point a complete change of policy took place. M. de Lanessan, a Paris deputy sent on a mission in the course of 1887, made himself acquainted, with the government and the court of Hué. He recognized the absolute falsity of the story which represented the Tongkingese as the oppressed subjects of the Annamese. He demonstrated the consanguinity of the populations, and after intercourse with the regents, or ministers, of Hué he realized that the pacification of the country depended upon harmonious relations being established between the general government and the court. Appointed governor-general with the fullest powers on the 21st of April 1891, he presented himself at Hué, concluded with the comat an agreement based on the principle of a “loyal protectorate,” and reassured the court, up to this point uneasy under menace of annexation. The comat shortly issued a proclamation under the great royal seal, never hitherto attached to any of the public acts imposed upon the king by the governors, who had been unaware of its existence. In this proclamation the king ordered all his subjects to obey the governor-general and to respect him, and commanded rebels to lay down arms. The effect was immediate—disorders in the delta ceased. The pirates alone, in revolt against the king of Annam and all authority, continued their brigandage. But the governor-general instituted four “military districts,” the commanders of which were commissioned to destroy the pirates. At the same time he placed a force of native police, the linh co, at the disposal of the mandarins, hitherto regarded with suspicion and intentionally deprived of all means of action. Order was restored within the delta. In the mountainous districts infested by pirates roads were opened and posts established. The chief haunts of the pirates were demolished, and during 1893 the foremost pirate chiefs gave in their submission. The Indo-Chinese budget regained its balance. On the Chinese frontier agreements were concluded with Marshal Sou, in command of the Chinese forces, regarding the simultaneous repression of piracy in both countries. But on the Mekong difficulties arose with the Siamese. For centuries Siam had occupied the right bank of the Mekong, and her troops had crossed the river and occupied the left bank. Luang-Prabang was in the hands of the Siamese, who had also established posts at Stung-treng and elsewhere. Friction occurred between the French agents and Siamese soldiery. After the death of Inspector Crosgurin on the 5th of June 1893 the French government occupied Stung-treng and Khong. France demanded explanations and redress at Bangkok, but the court refusing concessions, an ultimatum was presented to the king by M. Pavie, French minister to Siam. The terms of the ultimatum not having been complied with within the given time, the French flotilla, consisting of the gunboats “L’Inconstant” and “La Comète,” crossed the bar of the Menam on 13th July 1893, forced the entrance of the channel, and anchored at Bangkok, before the French legation. A second ultimatum was then presented. It contained the following conditions:—First the occupation of Chantabun by the French until the Siamese should have entirely evacuated the left bank of the Mekong; secondly, the Siamese to be interdicted from maintaining military forces at Battambang, Siem-Reap, and generally from establishing fortified positions within 15½ m. of the right bank of the Mekong; thirdly, Siam to be interdicted from having armed boats on the great lake Tonle-Sap. This agreement was executed immediately, the Laotians being eager parties to it. On the 29th of September 1893 the king of Luang-Prabang made his submission to the French government, and besought it to use its influence with the court of Siam for the return to their families of the sons of princes and mandarins then in schools at Bangkok. The Siamese evacuated the left bank of the Mekong, and France took possession of Laos, a treaty, on the basis of the ultimatum, being signed on the 1st of October 1893. The disputes to which this affair with Siam had given rise between France and Great Britain were amicably settled by an agreement concluded on the 15th of January 1896. This “declaration,” virtually ratifying the treaty concluded in 1893 between France and Siam, settled the limits of the zones of influence of the two contracting powers in the north of the Mekong regions and on the frontiers of Siam and Burma. Great Britain resigned to France the regions of the Muong-Sing which she had previously occupied. The great part of Siam included in the Menam basin was declared neutral, so also the Me-ping basin in the north, Meklong Pechaburi and Bang Pa Kong rivers in the south. The neutral zone, 15½ m. wide on the right bank of the Mekong, was formally recognized.

In 1904, by a new Franco-Siamese treaty setting aside that of 1893, Chantabun was evacuated and the neutral zone renounced in return for the cession of the provinces of Bassac and Melupré and the district of Dansai (comprising the portion of Luang Prabang on the right bank of the Mekong) and the maritime district of Krat. By a further convention in 1907 Siam ceded the provinces of Battambang, Siem-Reap and Sisophon, and received in return the maritime province of Krat and the district of Dansai ceded in 1904. At the same time France abandoned all designs on territory of Siam by giving up certain areas obtained for the purposes of railway building on the right bank of the Mekong.

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