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CHINA,
ruption to business caused by the mobilisation of the city's volunteer forces, the cur- tailed transport and wharfage facilities, and even for long after the termination of the fighting, the dislocation of banking communications with the rest of the country, all helped towards a serious diminution of the trade of this most important centre that is clearly reflected in the Customs Returns for the months concerned. The trade lost to Shanghai and the country as a whole during these first few months had not been recovered at the close of the year. Again, the creation during the year of the so-called independent State of "Manchukuo" cost China the loss for the time being of three of her richest provinces, and through the subsequent failure of Japan to carry out the provisions of the Dairen Customs Agreement, the control of cargoes imported and exported through the Kwangtung Leased Territory was also lost. As the Man- churian ports and Dairen (situated in the Leased Territory) contributed 35.4 per cent. to China's foreign export trade in 1931 and no less than 42.6 per cent. of that trade for the first half of the year under review, these ports were a very considerable asset to China in the matter of balancing her trade with abroad.
Internally, the country has been suffering much from the after effects of the great flood of 1931, but the work that has been done by the Government in construction and repairing some 3,000 miles of dikes in the Yangtze Valley to guard against the repetitions of such a disaster must be ranked as a great achievement, while the unusually good rice harvest of the year under review has been some alleviation of the food problem of the more poverty-stricken sufferers. Success has also attended the Government's efforts towards the suppression of communists As Kiangsi was practically freed from this menace in 1931 as soon as the punitive operations came under the personal direction of General Chiang Kai Shek (although the work was afterwards undone through the necessity of recalling the troops for other work), so in 1932 a crushing defeat was scored against the "red" forces in Hunan, Hupeh and Anhwei through the efforts of this successful leader. An immense extent of territory was emancipated the rehabilitation of which is now engaging the attention of the Government. Civil warfare occurred in the Szechwan and Shantung provinces; but the hostilities were neither directed against nor sponsored by the National Govern- ment and the devastation caused by such unnecessary strife has at last aroused the open resentment of the people of China, who spontaneously organised an anti civil- war movement during the year that may yet prove to be of considerable importance in furthering the future internal peace of the country. Notwithstanding the economic depression, the cost to the Government of the anti-communist campaign, the military expenditure incurred in resisting invasion, and the expensive relief measures ne- cessitated by the calamities of 1931, the close of the year under review found China with her credit at a higher level than it has been for some years past.
The Maritime Customs revenue for the year (excluding flood relief surtax, 12.2 million taels) amounted to 188.03 million Haikwan taels, a decrease of 58.06 million taels as compared with the record collection of the previous year, but the decrease was due almost entirely to abnormal causes. The forcible ejection of the Chinese Customs staffs from the Manchurian ports and from Dairen, at which latter place the Customs functioned under a separate agreement, as already mentioned, accounted for nearly 15 millions of the decrease, while 33 million taels less than in 1931 were collected at Shanghai owing largely or altogether to trade lost during the “undeclared war" in the early months of the year. Allowing something for depressed foreign markets and other factors, a considerable share of the balance of the decrease may reasonably be ascribed to the saine causes, since nearly all ports throughout the country suffered in both import and export trade from the loss of their Manchurian markets. A great many ports also lost trade during the first half of the year owing to fear of the Japanese invasion being extended in their direction and to the disloca- tion of transport and banking facilities brought about by the hostilities at Shanghai.
AREA AND POPULATION
China proper, extending over 1,335,841 square miles, is divided into eighteen provinces. Considerable trouble and care has been taken by the Postal Administration to obtain an estimate of the population of China. Recourse was had to the assistance of the provincial officials, which in most cases was willingly accorded. Below is given a close approximation to actual figures. The footnote will show the limitations that have so far been imposed to a full record of the outlying districts:-