Page
CHINA'S NEW FACTORY
ENTERPRISES
British
Dr. Louis Beale, the Commercial Counsellor at Shang- bal, is in England for the purpose of discussing with manufacturers and merchan'a interested in the expart of United Kingdom goods to China the present and future prospects of trade in that country.
China continues to display re- markable recuperative power in defiance of adverse circumstances. In spite of depression brought about by various and widespread causes, and in the face of higher ariffs, some of which might well be regarded as prohibitive of im- port, and many of which have re- sulted in extensive smuggling.. the total customs revenue during the Arst 10 months of 1934 was very little below that of the corres- ponding period of 1933.
Not many years have passed since it was sald of China that the adoption by its teeming millions of some article of Western civ- ilization would result in a vast ac- cession of activity to European factories. Goods with which this prophecy was cigarettes.
linked included rubber-soled shoes. safety razors and electric torches. But great changes have taken place in the Far East since those optimistic views were expressed Not only have the manufacturers of Japan increased greatly in vol- ume and variety and obtained a strong and extensive foothold in China, but factory development in China itself has proceeded apace. · As a result the foreign trade of the
country-has gradually been transformed.
What happened in the cigarette business is to some extent sympto-
PROSPECTS AGAINST JAPAN
It will be interesting to see to what extent the new Chinese en- trants into the field of industry will be able to compete with their Japanese rivals, Their labour is even cheaper, but much of their machinery. and practice is not equal to the Japanesa. Further, in China a large amount of im- ported semi-finished material has to bear duty. But there is no doubt that in exporting to, ter- ritory where their countrymen have settled the Chinese have à great advantage.
With the support of the Chin- ese Government and, the banks an association of Chinese manu- facturing exporters recently dis- patched a mission for the pur- pose of extending their trade in southern and south-eastern Asta. Encouraged by the succcess at- tained in Malaya special attention has been given to markets where the Chinese are numerous and prosperous. Among the samples cartled were fabrics of silk, cot- ton, rayon and mixtures, hosiery, knitted goods, umbrellas, mats, toilet articles, small hardware, electrical appliances. optical ware, and preserves.
In the case of a large bum- ber of manufactures, exporters are handicapped in their sales abroad because their costs are unduly increased not only by the
on the- charged Import duties semi-finished material but also by, the export levy on goods which have, mot been entered by the Customs on its "privileged" Hist. It proves very difficult, if not im-
complicated regulations connect- ed with obtaining inclusion in this list.
matic. The success of the import-possible, to comply with all the ing interests in years gone by was followed by local manufacture, which grow rapidly-bringing with it a large Import of cigarette- making machines. An export trade was built up which reached its zenith in 1928, when cigarettes to the value of over £3,000,000 were sold abroad. In the ensuing year, however, owing to taxation, labour "troubles, and competition from fore'gn-controlled concerns, many of the Chinese cigarette factories close their were compelled to
doors, and exports fell in value by about 40 per cent. Home con- sumption and distribution also were adversely affected by Inter- nal disorders.
FARLY SUCCESSES There is not space here to give details of the numerous branches of manufacture which have been introduced in China. Among early successes, apart from the many well-known textile manufacturers, may be mentioned tinned meats and fruits, pickles, sauces, etc.. Disculta, soap, scent, imitation je- welry, suitcases, shocs, spectacles. and toys. Noteworthy recent ex- amples of advance include furn- ishing fabrics, curtains, electric fans with locally manufactured motors. fractional horse-power
circuit ***metal fl'ament lamps,
breakers and transformers.
The attitude of the "Nanking. Government to the question of Importations versus the establish- ment of manufacturing industries" w.thin the country is indicated in the announcement of the ap- proved proposals that have been referred to various departments for examination. They include the erection of an automobile fac- tory with the object of "checking economic, leakage due to the im- portation of foreign cars." and the adoption of a protective policy for the promotion of home indust- ries. An equally interesting and more practical proposal that has been approved is to utilize mit- ary labour for water conservancy.
The movement to establish fac- torles will undoubtedly grow, un-? der the initative of Bino-foreign concerns as well as purely Chinese enterprise, and the consequent changes in import trade are likely to be so rapid and extensive as to demand the keenést attention of those interested. Some time ago undertook the Chinese Arms construction, to European and American designs, of so-called standard types of machine tools, and also of cigarette-making and gambar machines. Although in quality these are far below the Imported machines they serve their purpose, more particularly as they are relatively cheap. But under the pressure of competition in the sale of the finished goods: manufacturers in China will be forced to purchase and install the more effective type of equipment and consequently there are rea sonable prospects of increase in the sale of imported machine tools and fartory equipment st meny kinds
An exporter, writing in the North-China Herald." gives in- "stances of goods made in Shang- hal which he finds too dear to sell in neighbouring countries in com- petition with either the Japanese He says or European article.
British-made that in Manila a electric "fan can be sold more cheaply than the Shanghal-made article, and German nails more cheaply than Shanghal nails; in Singapore and Manila, Chin- ese enamelled goods are undercut by both German and Swiss manu- factures; Hong Kong Aashlights are at least 50 per cent chea- per than Shanghai flashlights.-
CHINESE STATE
WORKSHOP
and
Among recent contract tender advertisements ls on an nouncing that the Chinese Gov ernment Purchasing Commission in London is prepared to receive tenders from British manufac- turers for the supply of ma-. chinery for the equipment of an engineering workshop on a a nite not far from Shanghai
The workshop will be erected" by the Chinese Government, and will be run, it is understood, as a State concern. It will be used to produce iron and steel" tubes and a variety of spare parts of machinery for commercial use. As an engineering workshop" will be industrially complemen- tary to an "iron and steel work at Hankow, in which the semi- Government and commercial in- terests are concerned.
Item sspecified in the invita- tion to tender include foundry equipment, plant for manufactur- to 20-in, ing cast-iron pipes up diameter. air and electric furn- aces, and a variety of processing machinery,
́JAPANESE" INDUSTRIAL
DEVELOPMENTS
The Japan Saivage Co. has been founded in Tokyo with a capital of X.1,500,000. as the result of a merger of the Tokyo Salvage. Co. and the Talkoku Salvage-Co. Showa Rayon Co. has decided to erect a factory in Tbarnici Pre fecture. It has also purchased a large tract of land in the same prefecture to put up" another factory.
HONG KONG DAILY PRESS, SATURDAY, AUGUST 31, 1935.
ENGINEERING AND BUILDING
ENGINEERING
NOTES
RAILWAYS
·Szechuan's Only Bailway Work has started on the third section of the Pal Chuan Ra
the Klangpel district. way in This is Szechuan's only railway in and it is about 150 miles length.
A
Nanking-Wubu Railway The Nanking-Wuhu Rallway, 98 kliometers in length, is nearing
trial run for completion. freight traffic was made on April. 1, while a regular service will be opened. Twelve locomotives par- chased from the United States have arrived at Shanghai..
Chita-Urga Railway Construction of a rallway be- tween Chita, In the USSR., and Urga, in Outer Mongolia, has been decided upon by the "Transport Moscow Commissariat of the
Provision for the Government. project are said to be contained in an agreement with Mongolia. The line between Chita and Urga, a distance of about 1,250 miles, will run via Kolulun. Materials for construction are already being forwarded from various stations on the Trans-Baikal Railway...
Light Trains For Japan Spurred by the successes in the United States, France and Ger- many by steam lined, aluminium- alloy trains, the Japanese Ministry of Rallways announced plans for the construction of similar conve- yances. The trains will be driven by Diesel-electric power plant, that will give them a maximum speed of about 120 kilometers an hour, a high figure for Japan's narrow- cost They will gauge tracks. Y.90,000 each, and consist of three connecting coaches.
་་
SHIPPING
Work For Boxer Funds The Standing Committee of the Board of Trustees for the British Boxer Indemnity Refund has dis- cussed a request of the Kiangsu Provincial Government for a loan of $1,000,000 for the purchase of motor fishing vessels; and the joint application of the Ministry of Industry and the Cheklang Provincial Government for a loan for the establishment of a paper Wenchi. The Finance mill at Sub-Committee of the Board ex- amined the request by the Minis- try of Railways for the remittance of a further sum of $1,250,00 for constructional expenses of the Chu-shao section of the Canton- Hanow Railway.
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New Nanking Wharf Construction work on the new Nanking wharf (a Hsiakwan) of the Tientsin-Pukow Raliway, is nearing completion.
New Wharf of Llenyunkang The engineering work for the No. 1 Wharf at the new port of Lenyunkang, the eastern ter- minus of the Lung-Hal Railway, in north-eastern Kiangsu, has been completed, according to a message received by the Lung-Hai Railway Administration.
to
Grand Canal Improvement Plans to tender the northern section of the Grand Canal navigable for large vessels in order promote shipping in Shantung province, have been drawn up by the Provincial De- partment of Reconstruction. The scheme includes diverting of the waters of the Yellow River into the Grand Canal at Taochengpu and the construction of two water sluice and locks at Lintsing and “ Chouchtatten, in the Tiaocheng district, to regulate the current. The total ocst is estimated at over $200,000. The Provincial De- partment has instructed Messrs. Taso Sul-chih and Kung Lin- yung to Troceed to Nanking to submit the plans to the National
Eeonomic-Council,
erphosphorites. Japan Surgar, It
AUTOMATIC TELEPHONES
FOR CEYLON
Details have been published of a project to replace the existing manual telephone Aystem iri Ceylon with an up-to-date aut- omatic service and the project has been placed before the State Council at Colombo in the form of a report by Mr. E. C. Villiers, Acting Minister of Communica- tions...
The following are material ex- tracts from the report:
It will doubtless be realized that the whole of this project will cost a considerable amount of money. An estimate prepared by the Post and Telegraph Department places this figure at nearly three million rupees.
It is the proposal of the Execu- tive Committee that this expend)- ture should be spread over a për- lod of five years. Owing to the fact that the provision of auto- maties in Colombo to replace the antiquated and worn-out sys- tem now
installed will form a considerable portion of the ex- penditure required, it will be ne-
The plant-and in particular this refers to the Central Tele- phone Exchange in Colombo- which was seriously out of date and adequate at the time of the depression, has been growing oldercessary that the provision to be and more effective ever since.
The present system generally adopted in Colombo is known as' the Magneto Manual System "Tt is hardly necessary to point out that this system, besides being antiquated, is expensive in regard to the wages which have to be paid. The equipment itself is mostly over 20 years in service. and has had constantly to he patched up.
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But in addition to this the cap- acity of the existing switch- board is insufficient for the in- creasing needs of Colombo, and it is anticipated that by the end of the current year, or possibly early in 1936, it will be necessary to refuse further applications for
connection, Such a position is: one which should be avoided at all costs. To remedy, this state of affairs it is proposed to install automatic equipment in the Co- lombo Central Exchange, with subsidiary automatics at "Have- lock Town and Maradana.
To modernize the system in Co- lombo it is proposed to replace the existing manual system by sutomatics. By this latter sys- tem the person calling up an other subscriber manipulates dial on his instrument. This imm
made in the first year or so should be" very much farger than that It required in subsequent, years. is anticipated that the sum re- quired up to the end of the in- ancial year 1935-36 will amount to Rs. 1,372,000, while in the follow- ing three years the expenditure will be in the neighborhood of four lakhs. In 1939-40 this will drop to under three lakhs.
Owing to the great urgency for.. steps to be taken to prevent a breakdown and to meet anticipat- ed applications for connection to the telephone system in Colombo, the Executive Committee proposes placing before the State. Council an application for supplementary provision, subject to the State Council agreeing with its pro- posals in this report. It must be emphasized that this scheme will prove remunerative from the mo- ment of installation.
The Executive Committee of Communications and Works ac- cordingly requests the sanction of the State Council to its proposal for modernizing and extending the present. Ceylon Telephone System over a period of about five
years.
mediately, and without the need THE OUTPUT OF
of any operator at the Telephone Exchange, connects him with the person he requires. This system is already in operation in a very" minor degree in Colombo. The Post Office telephones as well. as all those of the Public Works and Burvey Departments are con nected to such a system. It will be read 'ly seen that if this system is made general the following 'ad- vantages will result:-
(1) Reduction in the cost of management, as the need
4 for operators at the Cen- tral Exchange will be al- most entirely éliminated This will not entail throw- Ing employees out of work as they seldom stay for any length of time, and there will always be em- ployment for a few opera- tors to manage the Trunk System and Junction Lines. (2) Less delay in connecting one subscriber to another. and
(3) Automatic recording of the number of calls made by each subscriber.
MESSAGE RATE SYSTEM In connection with the third: item above it is considered advis able to point out that, with the in- troduction of Automatics in Co- lombo, it will be possible to intro- duce the "message rate" sytsem of payment. This system is now universally adopted throughout the modern world, and bases the cost of the telephone to the sub- scriber in accordance with the use made of it. By this method the subscriber pays an annual charge, and, in addition, is called upon to pay a small rate for every call put through, such calls being au- tomatioally recorded as stated above.
Apart from the position in Com lombo there is urgent need to ex- tend the Telephone System in various parts of the Teland. In
ance there are no telephonic facil many towns of sufficient Import
it'es at all, while in others the telephone system is under private control and is unsatisfactory in The Executive Com- mittee considers it should be the policy of Government to render. the availability of tele wide as possible, and also keep it under its own contr
"facturing alumina, as well as sup~ › operation. The Toyama Govern- ment's Electric Department plans to erect a power station capable of generating 18.000 or 20,000 kilo- waits on the Wada River. In cidental to the enterprise, the company will construct a reser voir, having a depth of 296-ft., at a cost of Y300,000. The Sumitomo A'uminium Co has decided in (undertak; a new method of manu-
is said. intends to co-operate
A company to exclusively manu- facture 15000 tons of kraft pulp annually has been mooted by Mr. Kelzaburo Sumlya, president of the Takasaki Cellophane Co. The proposed concern will be established in Korea with a capi- tal of 7.5,000,000,
end in view it is suggested that the various small telephone sys lage tems now under private ment should be taken over and standardized by Government
TUNGSTEN
in
The monopoly for tungsten ore which the Canton Government "established after seizing the poli tical power has now been operation for a year, so that it 15 a favourable time to review the industry. Tungsten is an element of the chronium group found in certain minerals, as wolfram and 'scheelite, and isol- ated as a "heavy steel grey metal which is very hard and Infusible. When alloyed in small quantities with steel it greatly increases its hardness.
Tungsten belongs to the group of commodities which azz very sensitive to business changes. Its consumption declined precipitous- ly during the depression, and as it was evidently disproportionate to the productive capacity, the world market price fel very heavily, The situation which the monopoly met, therefore, did not differ from the problems fac- ing other raw material industries. But the task of The Chinese Ad- ministration was facilitated by several circumstances particular to the tungsten trade, milk
Tungsten deposits are exploit- ed in a few countries only, Even during the war, when very large quantities were absorbed, the bulk. of supplies came from no more than six countries. In 1918 world production amounted to... 32,000 tons. In 1919, the best year after. the war, production was 16,000 tons, or which China supplied 10,000 tons, Burma 1,600 tons, Bolivia 1,500 tone. U.B.A. 750 tons, Malaya 500 Long and Portugal 350 toms.
China alone was able to main- am the war level, owing to low labour costs, the favourable geo- graphical distribution of the de- posits, good transport conditions and climatic advantages.
These circumstances give the Chinese-production a good start in international competition It has been calculated that most of thes, non-Chinese producers fre unable to work profitably below a market price of 25%. To-day, owing to currency depreciation and other causes, the gure may be estimated about 308, Actually the output of tungsten ord=32", did not er less than other countries during the depression, though the price fall to:108:
1
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SCALP
ERUPTIONS quickly heal DANDRUFF disappears
To eradicate, chronle Eczema, Ringworm, Landruff and disfigur- ing, hair-destroying éruptions of the scalp there is nothing to equal Cuticura for quick, complete healing. The soothing action of Cuticura instantly relieves irtita-
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