Description of valley from Hsia Kuan [Xiaguan] to Shang Kuan [Shangguan] and city of Tali [Dali]. Hsia Kuan is a customs station and the most important business centre in Western Yunnan, with population of over 12,000, all of whom are engaged in trade; important centre of opium production, with some trade in Szechuanese, Cantonese and foreign goods; Litton advocates establishment of a Chinese agency at Hsia Kuan by some foreign firm. Tali plain narrow and fertile, densely populated mainly by Minchia people, very mixed with Chinese; description of their dress and customs, temple of the Goddess of Mercy and legend of the monster Yao Kwei. Principal officials and administration of city of Tali, its main buildings, walls towers and streets, insanitary conditions and prevalence of disease; population c.5,000; much of city in ruins following ‘the rebellion’ [Mohammedan [Muslim] rebellion]; rough sketch of earthen city wall with brick facing. Details of goods for sale include gold, some from Tibet but mainly obtained from the Yangtse.