A408
FOOCHOW
kerosene oil from Formosa is no longer a factor of importance. The year witnessed further decline in the import of cotton piece goods, while the steady fall in the import of cotton yarn is due to the large increase in the Shanghai production of cotton piece goods at low prices, resulting in the gradual elimination of local small-scale production of cotton cloth. Direct imports of foreign coal, chiefly from Formosa, declined. Arrivals of Chinese coal, almost exclusively from Chinwangtao, amounted to $226,910 as con- pared with $179,462. Legitimate imports of sugar increased as a result of the marked decline in smuggling, Local producers of sugar cane enjoyed a good year, and the modernisation of the industry, which is at present run on old-fashioned lines, is being studied by the provincial government. The comsumption of dyestuffs showed little change from the previous year. Japanese manufacturers have secured a virtual monopoly of the trade in sulphur black, while Japanese direct blacks and direct blues are competing strongly with similar European products. The local authorities assisted farmers by providing large quantities of sulphate of ammonia on credit terms, and sales of this commodity increased from 42,000 bags in 1935 to 57,000 bags in 1936. Domestic imports of Yunnan tin, in the shape of ingots and slabs, totalled $225,926 as against $240,798 during 1935. A large proportion of this tin is used in the manufacture of tin-facing for joss paper, which is much in demand locally. In addition, considerable quantities of tin are used in the preparation of tin and lead ingots for shipment to Shanghai. These ingots, the trade in which seems to be increasing, are composed of tin and lead in equal proportions and are of a standard weight of 800 grammes. It is satisfactory to be able to report a substantial improvement in the tea trade. The quieter conditions prevailing in the tea districts in the north-west of the province and around Santuao enabled farmers to pay greater attention to their plants. In addition, the local authorities conducted a campaign aiming at reduction of dust, and more careful and stronger packing. A marked improvement in these respects resulted, and it is confidently hoped that further progress will be achieved next season, as teamen now appreciate the benefit to be derived from practical government advice and assistance. Arrivals of congou totalled 74,400 half-chests as compared with 43,930 half-chests in the previous year. Souchong arrivals amounted to 26,600 half-chests as against 14,670 half-chests in the 1935 season. At the opening, a brisk business was done in congou, no fewer than 32,500 half-chests being settled in the first month. The quality of the teas slowed considerable improvement over that of the previous year, and tea prices at the opening were approximately 25 per cent. higher than at the beginning of the 1935 season. Due to the drop of some 35 per cent in the exchange rate on London as compared with the same period of the previous year, sterling prices were in favour of foreign buyers. At the close of the season there remained unsold only 4,200 half-chests of congou and 4,000 half-chests of Souchong. In view of the large increase in available supplies during the season, this result may be regarded as highly satisfactory. Greater activity was witnessed in the timber trade. A forest replenish- ment plan covering 2,000 acres of mountain land in the interior was inaugurated. Exports of paper increased appreciably over the figures for 1935. Shipments to other Chinese ports were valued at $2,520,647 as compared with $1,928,761, while exports abroad amounted to $162,072 as against $78,754. The increase in coastwise shipments was due largely to a revival in Manchurian purchases of 2nd and 3rd quality paper through Newchwang. Smuggling from Formosa by junks and "puff puff" boats declined very considerably during the year, thanks to the increased Customs preventive activities. The introduction, furthermore, in July 1936 of Conveyance Certificates to cover certain specified goods on shipment into the interior had the effect of discouraging local merchants front dealing in smuggled goods. Vessels entering and clearing the port totalled 1,912 of 2,084,513, tons, as compared with 1,852 vessels, of 1,890,009 tons, during 1935. The Tai Chiang Hsun Wharf provided by the Provincial Reconstruction Bureau with in a stone's throw of Foochow city, has proved a boon to local merchants, who, by arranging to have their goods shipped in vessels tying up at the wharf, save the time and trouble involved in discharging into cargo-boats from vessels moored at Pagoda Anchorage, some 13 miles distant from Foochow. The largest vessel to proceed up the river to Nantai was the Chinese s.s. Chingan, 265 feet long, 40 feet in beain, and drawing 12 feet. A new wharf with three large godowns was inaugurated by the Reconstruction Bureau of the Provincial Goverament on 3rd October 1936 at Pagoda Anchorage. Good progress was made with the construction of the Foochow-Kienou highway, completion of which is expected about the middle of 1937. This important road should do much to speed up trade with the interior, which at present follows a leisurely pace along the only available line of communication-the Min River and its tributaries. The Central Bank quoted $1 per $1,000 for remittances to Shanghai