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CHEFOO

with warm days, cool winds and cold nights. Strong northerly gales are experienced in the late autumn and through the winter, and the roadstead gives but an uncomfort- able, though safe anchorage for steamers. In 1909 nearly two months were lost to trade through stress of weather: The Netherlands Harbour Works Co. started the construction of a breakwater in 1915. Further harbour inprovement works were completed in 1921, the new breakwater, mole and quay being formally inaugurated on September 14th, 1921. The breakwater is 2,600 feet long, the height from the base of the foundation mound to the top of the parapet is 513 feet, and the width of the base of the foundation mound ranges from 117 feet to 133 feet. A railway track has been laid over the mole. In 1933 Chefoo was made a Special Area by the Provincial authorities, and the City limits now include a number of surrounding towns and villages. The population of this Special Area is estimated at 230,000.

The Chefoo-Wehsien motor road was opened to traffic in 1923 and a regular and express service of cars operate daily between Chefoo and Wehsien, connecting at the latter port with the Kiao-tsi Railway. During the past several years, additional motor roads have been opened throughout the province and practically all important towns are now connected by road with Chefoo, including Tsingtao and Weihaiwei. None of the roads are metalled, as it has been found impracticable to adopt this surfacing but, generally speaking, they are kept in first class condition, and due to the long periods of dry weather in Chefoo the earth surfacing thereof has proved eminently satisfactory for conditions in Shantung. However, after heavy rains the roads are unusable for a period of from twenty-four to forty-eight hours.

Amongst the main exports of Chefoo_are Pongee Silks, Silk Waste, Vermicelli, Ground Nuts, Fruit, Hair Nets, Handmade Laces and Embroideries, and there are also considerable exports of locally distilled wine. Amongst other industries is the Chefoo Brewery and several Clock factories which enjoy a brisk business with all China ports, as well as with the Straits and Java. The port was connected in 1900 by telegraph cables with Tientsin, Port Arthur, Weihaiwei, Tsingtao and Shanghai, in addition to telegraph land lines with all large interior cities.

TRADE IN 1937

The trade statistics recorded for Chefoo were as follows, according to value: direct imports from abroad, $5.8 million as against $6.8 million in the preceding year; coastwise importations of Chinese merchandise, $18.1 million as against $23.1 million; direct exports abroad, $12.3 million as against $9.7 million; and coastwise exportations of Chinese produce, $13.4 million as against $14.8 million. Thus the combined import sections of trade show a decrease of 20 per cent, and the combined exports an increase of 5 per cent. Expectation of improved econo- mic conditions foreshadowed by the armament programmes of various nations, the strengthened position of the Central Government consequent on the satisfac- tory settlement of the Sian incident, and the peaceful conditions prevailing locally under the Shantung Provincial Government, were fully realised during the first half-year. The climatic conditions prevailing during the year proved favourable to farmers, who experienced another profitable year, and world market conditions proved equally favourable to local hand industries, on which depend the port's prosperity. In July the Marco Polo Bridge incident occurred, which rapidly developed into open hostilities severely affecting trade. There was no slackening of demand from abroad, and prices obtainable remained on a high level, but the extreme seriousness of the situation brought trade to a standstill. Communication of all kinds was dislocated. Manchuria, one of the main markets for the produce of the district, was closed. Both postal and tele- graphic communications became most undependable. Chinese vessels and junks were unable to put to sea due to the Japanese naval blockade of the coast. Only foreign shipping was able to operate, consequently the demand for tonnage exceeded the space obtainable and freight rates rose abnormally. It was soon realised that the port would not become directly involved, and business cautious- ly reopened. Merchants as a whole did not suffer to the extent expected under the almost impossible trade conditions of the last five months, as an analysis of the statistics shows. Of staple imports, cotton piece goods continued to decline, and, in view of the keen competition of the native piece goods and the increasingly large trade with Tsingtao in duty-paid Japanese fabrics, it appears

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