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TIENTSIN
A35
to apply only sheep skins; slink skins, with hair exceeding 25 millimetres; lamb skins, tanned or untanned; and lamb plates, "Mongolian" and Turkestan" type. Even in their modified form the restrictions constituted a great handicap to exporters. Seeds of various kinds exported during 1938 were valued at $8.8 million as against $6.3 million, German and British purchases of apricot seed exceeding those of 1937, with the export of cotton seed, practically all to Japan, totalling 463,540 quintals, the duty on this article as on linseed being abolished early in the year. Linseed, however, failed to react to this measure of encourageraent only 72,303 quintals being shipped as compared with 121,791 quintals in 1937 and 368,100 quintals in 1936. Australia, the principal buyer, disappeared from the market, while shipments to America were negligible. Japan, on the contrary, monopolised the trade by taking 99 per cent of total shipment. Groundnuts, in shell and shelled, showed substantial increases, the former advancing from 14,526 to 16,229 quintals and the latter from 7,834 to 17,389 quintals. The Netherlands was the principal consumer of groundnuts in shell, taking 9,451 quintals, with Hongkong taking 90 per cent of shelled groundnuts. Exports of wool through Tientsin amounted to 4 million kilogrammes only, as compared with 11.6 million kilogrammes in 1937 and 16.4 million kilogrammes in 1936. The export duty on all kinds of wool was reduced from 5 to 21 per cent. The major decline occurred in sheep's wool, which fell from 10.5 million to under 3 million kilogrammes, shipments to the United States of America falling from 7 million to 60,000 kilogrammes. American carpet mills continued to be pathetic towards North China wool, while a virtual monopoly in the interior militated against other than Japanese and German interests. In spite of adverse conditions the export of woollen carpets and rugs fell off but slightly, being valued at $5.6 million as against $6.9 million in 1937. The abolition of the export duty on bristles, the fall in exchange, and the interruption of trade at other centres favoured the export of this commodity, of which 16,699 quintals were exported, the United States of America taking 9,511 quintals, Germany 3,176 quintals, and Great Britain 2,148 quintals. Cotton production turned out to be in excess of expectation, exports of raw cotton totalling 1,165,290 quintals valued at $86 million, as compared with 284,070 quintals only in 1937. As was to be expected, Japan took the lion's share of 824,335 quintals, followed by the Kwantung Leased Territory with 143,630 quintals. Next in order of importance followed the United States of America with 82,574 quintals, Korea with 64,049 quintals, and Germany with 35,997 quintals. The area under cotton cultivation in the province of Hopeh during 1938 was estimated to be 7,272,177 mow, with a total annual production of 1,813,990 piculs. Regulations promulgated by the "Provisional Government" on the 30th, November affect not only cotton exports to foreign countries but also those to places outside the area controlled by the "Provisional Government," while all exports must be accompanied by permits issued by the Ministry of Industry. Cultivation of raw cotton in North China on an enlarged scale is one of the foremost objectives of the Japanese authorities. Exports of salt to Japan totalled 3,431,300 quintals as against 1,994 quintals during the preceding year. The export of straw braid to France and the United States of America showed an improvement.
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The total output of Kailan Mines. was estimated to be 4,803,000 tons. With increasing demands from Japanese, the administration has decided to increase output from 5,500,000 to 6,500,000 tons. The increased production of coal is one of the ultimate objects of the Japanese authorities in North China, the operation of nearly all important coal mines, with the exception of the Kailan and Tatung Mines, being entrusted to the North China Development Company. Similarly with other industrial development, the North China Development Company is intended to take the leading role, being capitalised at Yen 350,000,000, of which Yen 175.000,000 is to be invested by the Japanese Government.