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There was nothing the Miao could do. Centuries ago, pressed by the expanding population of China, they had retreated from Kweichow to these wild and empty valleys and gorges where they could hide themselves from their aggressive neighbours. But now they found themselves pressed again: and this was the last frontier. There were no more empty spaces, no further retreat, nowhere to hide.

Even going to Likiang they avoided the people on the road. Huddled in small groups they gazed fearfully at any approaching group of strangers or a caravan and made a long detour to escape meeting them face to face. A harsh look or a loud word sent them scampering in unreasoning panic. Sometimes they called at my house but never stayed long. The way my cook looked at them, and the people coming and going through my office, terrified them.

After two or three days' stay at the Iron-mining Co-operative, I used to ascend to my Paper-making Co-operative at Upper Ngatze. Its manager, my good friend Aiya Aiya, usually came down the night before to fetch me. He was an extremely nice, capable young Nakhi and a very hard worker. To avoid the day's heat, which was unbearable in the fold of these tremendous mountains, we started early in the morning. The Heipaishui was crossed by a stone bridge a little way upstream from the Iron-mining Co-operative. Then the path started climbing sharply along a low ridge running by another stream which was a tributary of the Heipaishui. This country was rather dangerous as it was a sort of no man's land, covered with great forests, and peopled by many comparative newcomers such as the Szechuanese squatters, Tibetans from Chungdien, Miao, White Lolos and displaced Nakhi and Boa.

There were two tea-shops on the way and we rested there. On one occasion Aiya Aiya looked rather anxiously at another table where some tribesmen were sitting. I noticed that he was trying to isolate me from them. I asked him what was the matter. He said that many of the local tribesmen, including the Miao, were adepts in casting evil spells. It was accomplished not by occult methods but by throwing a microscopic pellet of poison called ndouk, by a flick of the finger, into the person's cup of tea or wine. Without anything being apparently wrong with him, the man's health steadily declined and he died in a couple of months. I pointed out to Aiya Aiya that I was not a likely subject for such poisoning as I had not done anything wrong to these people, but he was not persuaded. He said they had a different mentality from ours and often followed strange, irrational fancies, doing many abominable things just for the fun of it.

Further up the mountain we passed a village called Sadowa, populated by Szechuanese squatters who were peaceful farmers by day and, it was alleged, ruthless robbers by night. The climb from this village became more arduous and we entered a vast forest, which enclosed a little village in a hollow, surrounded by a thick fence made of tree branches. It was a leper enclave in which several families of the Szechuanese Chinese and others, afflicted with the dreadful disease, were living. Then, past midday, we made one last effort and climbed, at an incredible angle, through a thick wood, to the small platform on which the Paper-making Co-operative was situated. It was a long, rather low building begrimed with the smoke of wood fires which were burning in it day and night owing to the cold. In front there were three large and deep square stone tubs. Further down there were two huge vats with furnaces underneath and a shallow, stone-lined oblong pool. A small, surprisingly powerful and noisy, ice-cold stream rushed from the top of the mountain, past the building, revolving a wooden wheel connected to a crusher. In a tiny fenced field a few cabbages and turnips grew; a few big pigs and some chickens roamed at large and there were two fierce Tibetan mastiffs chained to the log fence.

The co-operative had eight members. Aiya Aiya was the manager and he was assisted by his old father who never left the place. The rest were mountain Nakhi and Szechuanese, one of whom was the technician. The material for the paper was a kind of mountain bamboo called arundinaria. It was slender, of purple colour, and grew in dense patches at an altitude of not less than 15,000 feet. Several members had gone early on the morning of our arrival to cut it and would be returning with large bunches of it slung over their shaggy horses. After lying on the ground for some time open to the elements, it was put through the water-power crusher and dumped into the oblong pool; lime was heaped on it and there it stayed until properly processed. When soft, it was loaded into the vats and boiled with chemicals. The resulting pulp was transferred to the stone tubs, where a juice from the roots of a species of dwarf pine was added; it was then ready for making into paper. A frame of horsehair was dipped carefully into the tub and lifted with a thin layer of the pulp which was deftly deposited on a clean wooden board. This congealed almost at once. Then another layer was added on to this initial sheet and so on until a stack was formed which was taken away and a new one started. All the time more pulp solution, water and root chemicals were added into the tub. The stacked paper was separated and the sheets hung on long poles in the building to dry with the help of braziers. When the sheets were dry they were stacked again in reams and were ready for sale. The paper was yellowish in colour, thick and too rough for writing on. It was used for wrapping and other household purposes; but its main use was in childbirth, fulfilling the function of sanitary napkins and towels. It was very cheap and the margin of profit on its production was extremely meagre.

I nicknamed the Paper-making Society the 'Co-operative above the Clouds.' The view from the place was breathtaking. It was like looking from an aeroplane. Its height was 14,000 feet and one could see for miles around: as far as the dark trench, where the Iron-mining Co-operative was, and to a series of mountain ranges which, like colossal waves, ebbed away and melted into the blue haze of distant horizons. Sometimes clouds came, but they did not reach us. They floated below like a limitless silvery sea out of which the peaks protruded like purple islands.

The furthest co-operative society I had was at Erhyuen, about eighty miles south of Likiang. It was in real Minkia country. Erhyuen was the capital of that small kingdom whose beautiful queen committed the ceremonial suicide by immolating herself on a pyre after her husband had been murdered by the Nanchiao king.

The road to Erhyuen branched off the main caravan trail from Likiang to Hsiakwan at Niukai, where there were so many hot springs. Erhyuen was a small town but very picturesque as it lay in a perfect amphitheatre of green, forested mountains behind a large lake which completely isolated it from the plain except for a narrow causeway, spanned at intervals by high camel-back bridges. Heavily loaded boats passed underneath the bridges along the channels cut through the vast growths of rushes and lotus plants.

The countryside around Erhyuen was green and full of lush pastures, and here I had formed a Butter-making Cooperative. It was under the patronage of a very influential and powerful local family, named Ma, which was very progressive, patriotic and was determined to improve, through the introduction of new industries, the lot of the local Minkia, with all of whom they were more or less related. It was wartime then and Kunming, with its swollen foreign population, hungered for good butter, which it was very difficult to procure from abroad. Some butter was of course already being made at Erhyuen, but it was made in the wrong way, was dirty and went rancid almost at once.

About twenty young Minkia men, all from good farming families, who had cows of their own, joined together. I wrote to friends in America and they promptly donated a good-sized cream separator, which was flown out to Kunming and which I brought, with great trouble, to Erhyuen. A very creditable churn was made by our Minkia Carpenter Co-operative and the cans and other containers were made by the Copperware Co-operative out of solid copper duly lined with tin. The Ma family provided a clean building for the purpose. The downstair rooms were devoted to butter-making and upstairs we lived together. It was impossible for the members to start the process of butter-making by themselves, for they had some very funny ideas about hygiene and machinery; so I had to spend more than a month at Erhyuen, working like a slave, and teaching them the art of making butter in European style.