CHEFOO
A123
Chinese merchandise, 22.1 million dollars as against 21.7 million; direct exports abroad, 7.9 million dollars as against 7.9 million; and coastwise exportations of Chinese produce (a part of which was actually destined for abroad via Shanghai), 12.8 million dollars as against 13.3 million dollars. Thus the combined import sections of trade show a decrease of 8 per cent. and the combined exports a decrease of 2 per cent., both in terms of the dollar, in comparison with the figures for 1934. The port enjoyed an orderly and peaceful year under the efficient administration of the pro vince by General Han Fu-chu, though apprehensi on was felt as a result of the very uncertain political situation in North China, more especially towards the end of the year. Although Chefoo had no reason to complain of political conditions in the immediate neighbourhood, it was only to be expected that anxiety should prevail in trade circles. As a result of restrictions imposed on immigration into the so-called state of "Manchukuo," the usual exodus of emigrants to northern districts declined considerably. An exceptionally good fruit crop-a very important item in local trade helped the rural districts and resulted in large shipments to Shanghai and Hongkong. The Manchurian market also revived during the year as a result of the good crop and consequent reduction in price. In spite of the decline in value of direct imports, many increases were recorded under staples. The depreciation in Japanese yen, more especially at the beginning of the year, cnabled Japan to continue her predominance in the cotton piece goods market. Under other importations, linen for embroideries was in good demand by the local handword industries; petroleum products, with the exception of liquid fuel, also advanced on account of the more extensive use of machinery and motor-cars. Good crops in the producing districts within the country helped to reduce the importation of foreign rice, and other local harvest were also satisfactory, with the exception of the bean crop, which is reported to have amounted to only 10 per cent. of the normal. A noteworth feature of the year was the decline by 70 per cent. in the value of seizures as compared with that for the preceding year, which amounted to 2 million dollars. Artificial silk yarn continued to be favourite commodity under this heading and constituted about 45 per cent. of the year's total value: piece good's ranked second with about 15 per cent.; and sugar, which was smuggled in large quantities during 1934, came third and amounted to only 12 per cent. of the total value. The reduction in the value of seizures was mainly attribu- table to the falling-off of those made at sea by the perventive craft, since political conditions in the North had brought about a radical change in the usual routes of illicit trade, and motor vessels engaged in smuggling had practically vanished from the Chefoo district during the latter half of the year. A slight increase was recorded in the collection of import duties during the period under review; what was lost in seizures, therefore, was probably gained in collection of duties on legal importations. In addition to increased exports of fruit, a good crop of groundnuts resulted in large shipments of this commodity to Europe and the United States of America. Trade in the local embroideries was also brisk, especially towards the end of the year. On the other hand, the vermicelli and hair-net industries did not come up to expectations. Exports of silk pongees also declined, though weavers and dealers are reported to have had a fairly satisfactory year. An outstanding feature in this trade was the improved quality and quantity of "machine-made pongees" The Silk College con- tinued its research work, but though lack of funds will become available to continue the good work, as Ninghai and Shantung silks have always held their position in spite of depressions and competition from artificial silk and therefore deserve every support. The year witnessed the construction of a new motor road connecting Wei- haiwei with Tsingtao, which was opened to the public in December. This highway, which prolongs the Chefoo-Weihaiwei road, should help considerably in tapping the staple products of those coastal regions traversed en route. A request early in the year to have Chefoo included on the Shanghai-Tientsin air line was not granted for strategic and military reasons. There was a very favourable reaction locally as a result of the currency reform in November, which overcame fluctuations in exchange. Prospects for 1936 are considered good, and the new currency regulations should materially assist trade in general..
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