A420
CANTON
The Pearl River is closed to trade, and navigation is permitted only by Japanese vessels, men-of-war, and one British ship between Hongkong and Canton once a week, and Portuguese ships run twice weekly to and from Macao. There is no longer telephonic communication between Canton and Hongkong.
A full postal service has now been resumed; a Japanese airmail service runs twice weekly to Shanghai.
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TRADE IN 1939
The outlook at Canton at the beginning of 1939 promised no change from the desolation, lawlessness, and business stagnation obtaining at the end of 1938. Looting and hold-ups in broad daylight occurred daily, and all streets were deserted by civilians after dark. The population was insignificant, and only a few hundred small shops were open. The whole city still wore a war- time atmosphere. In March regular steamer traffic between Canton and Hong- kong and Canton and Macao was established. In consequence, more people returned and more shops and some small factories were reopened. Locally manufactured goods, and cheap foreign goods were exchanged for the products of neighbouring districts. More refugees returned when the tow-boat service between Canton and inland places was resumed. By June the population was estimated to have risen to about 300,000, and a few thousand shops, new and old, were doing business. The increased cost of living in Hongkong and Macao caused by the fall of the Chinese dollar and the outbreak of the Euro- pean War had a serious effect on the poorer refugees in 'these two cities, who saw their resources dwindling as the exchange value of the Chinese dollar fell. They had no option but to return either to their old homes in Canton or to the country districts. A further growth in the population in Canton thus occurred and tended to create more confidence and better prospects for business. Un- fortunately, just when there seemed to be a turn for the better, a currency crisis. took place within the city itself. Money-changers took advantage of conditions to refuse to accept, or to discount at arbitrary rates, all kinds of national and local dollar notes, and monetary confusion continued for months. Unrest and uncertainty plagued the merchants, and business revival was practically halted. Because of the chaotic condition of Chinese currency, Japanese military yen notes became the chief currency in the city. All commodities were quoted in this new paper currency, and a general rise in prices ensued. Stocks of rice and firewood ran short on account of the increased, demand caused by the enlarged population, and prices rose, to unprecedented levels. By December rice had risen to about 6 catties per 1 military yen, while the same sum would buy about 50 catties of firewood. Many of the poorer classes were reduced to a state of destitution. At the end of the year, although the city's population was said to have reached some 700,000, business activity was but a small fraction of Canton's normal trade. According to a survey made by the local govern- nent and published in a local paper, a building area of some 32,500 square feet was destroyed by aerial bombardment in 1938, while the damage done by that year's fire was 10 times as great. Millions of dollars will be required to rebuild, but very little effort was made during the year towards reconstruction.
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From the Customs point of view the year 1939 was disastrous. Throughout the whole year the Pearl River was closed to legitimate commercial shipping, and movements of cargo were practically nil. At the beginning of the year the only vessels (other than Japanese) entering the port were foreign gunboats, which brought in provisions for foreigners and materials for the upkeep of foreign properties on Shameen. Through the assistance of foreign Consuls and the Shameen municipal authorities, the Customs were enabled to collect duty on these articles, but the revenue derived was trifling. Beginning with March, two regular river steamers, s.s. Fatshan and ss. Shingcheong, were permitted to ply from Hongkong and Macao respectively once a fortnight, but carried only passengers and household stores. Steamer-borne export trade was non-existent. What native produce was exported found its way to Hongkong through channels uncontrolled by the Canton Customs. Interport trade was also practically nil. The Canton Postal, Parcels Office was the only depart- ment of the Customs which functioned during the year. Large numbers of
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