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August 1, 1941.

CHINA'S MAJOR PROBLEM:

Feeding its people is China's most pressing economic problem. On the solution to this OFproblem future political developments may well

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ACKNOWLEDGMENT

FOOD

ting it on the market. Ac~ ..., cording to a sample survey made recently by the Uni- versity of Nanking, 80 per cent. of agricultural pro- ducers are, tenants or part tenants. Tenants pay most

hinge. Already econo-which the Government being issued every five of their crop-over 80 per mic maladjustment has planned to take, as outlined months.

'root of the problem.

He proposed:

cent. in the Chengtu Plain,

produced far-reaching by the Director of the Na- Rice, however, led the 50 per cent, as an average- social and political con- tional Food Administration general price level last fall, as rent, and part of the rest sequences. In the in his speech before the The reason seems to have as interest on loans (the opinion of many obser-People's Political Council, been the insufficiency of the survey found that the inter- vers, it was one of the seemed to neutral observers 1940 crop, particularly in est for three months was 26 prime factors which to indicate that perhaps a Szechwan. According to theler cent.). Consequently conditioned the Central shortage of rice was the statistic of the Provincial they have little or no rice to Government, the crop of sell; in fact they are usually Government's decision

hulled rice in Szechwan, buyers themselves. to launch an attack on the Chinese Com- munists. Many see in with demand.

of the major 2. Promotion of it one causes of the recent up-tion of cereal other than

rice. surge of political repres- sion in China, pointing 3. Reduction of the out that scarcity usual-ing of rice wine.

4. Increase in food ly brings policemen.

1. Adjustment of supply Kuomintang China's "key" It is estimated that only economic area," was 45,000,-19 per cent. of rice pro- 000 piculs, about half of the ducers have rice for sale. consump-consumption requirements. Thus the landlord class has The Central Government's an excellent opportunity to estimate was more gener-hoard and profiteer; and if brew-ous: 88,000,000 piculs of un-no actual scarcity exists, to hulled rice, a deficit of about create one on the market. 50,000,000. Even if the sur-The problem is politically pluses of 1938 and 1939 complicated by the fact that (officially estimated at about the landlords are powerful- 5. Construction of irriga- 23,000,000 piculs), were de-ly represented in the Kuo-

The food problem began duction. to grow serious about a

pro-

ducted, a largè deficit would mîntang, China's ruling

the late Mrs. The Family of

Gullhermina Leong fling-kee ex- res their deep gratitude to all year ago. Up till that time tion works. friends and relatives fur heit the price of rice had been In November, and Deceni- remain. Of course rice re-party.

fairly stable, at least in ber the Government made presents only about half of comparison with the prices serious attempts to halt the China's food supply. In part

expression of rympathy, floral tributes and altendance at the

funeral. A ligh Requiem Mas will be celebrated at the Roman on Saturday, 2nd August, 1941,

Catholic Cathedral, Caine Road, at 7.30 am. All relatives and friends are cordially invited.

The

of manufactured goods

which had been soaring

ever since the fall of Can- ton and Hankow. Before

Hongkong Telegraph. the war a picul (133.33 lbs.)

Friday, Aug. 1, 1941.

Wyndham St., Hongkong Telephone: 26015

In used by the tongkong Telegraph" ta

By HUGH DEANE

who has observed conditions in war-torn China for a year and a half as correspondent of the "Christian Science Monitor"

Season's Prospects

While the crop prospects for this summer are report-

ed to be fairly good, the food problem in the long run seems likely to grow in- of rice in Chungking cost rise in food prices. Chiang the shortage of rice was creasingly serious. Torn by four years of war, beset with floods and drought, about $9.50. In the winter Kai-shek himself made a compensated by an increase

'forced to feed armies num- of 1939-40 it cost $17; in powerful speech attacking in the winter crops, wheat,

the "rapacious gentry" who corn and vegetables--and by bering millions, crippled were hoarding the rice. In a general tightening of the and constrained by a primi- tive semi-feudal agrarian

tired rice fields are with

THE presx "Epecial to the Telegraph" the summer, $30. Late in Indicate news whless is strictly coprint the summer and throughout later weeks a few profiteers helt.

under the provisions of the Telecommuni-

cations Ordinance, 1916. Buch mewn the fall it rose as rapidly were even executed, includ-

bears the indiestion "U is received in Itongkong on the ante of publication by the United Preu Asociation's, who re-

all and forbid

arrangement

WAR'S BIG LESSON

and dramatically as stocks ing Yuan Chuan-yu, a for- Localisni Complication economic structure, China's either wholly or in part wisnout previous fell in 1929, to $185. In De-mer mayor of Chengtu. A The food problem in growing difficulty providing cember one saw rice queues number of hsien (district) China is complicated by the food for Chinese stomachs. in the streets of Chungking, magistrates were dismissed. localism of the economy, China's,food problem is part lines of people holding bas-A series of new regulations which makes distribution of that of the whole of Asia. kets and bags standing rice holdings, set up an in-

required the registration of difficult, and by the concen- Asiatic food production has tration of rice stocks in a steadily shrunk, especially patiently along the curbs tricate system of licensing few hands. The high cost of since the Sino-Japanese war, Although recent Ministry re- Gendarmes kept them in for rice dealers, projected transport (gasoline now a factor which will intensify food surveys and set up costs about 23 Mexican dol-the strains now rending the local price control commit-lars a gallon), together with continent.

The latest figures issued by the Ministry of Labour show in England no longer exists.

that the unemployment problem

cords indicate there were 310,-line. 000 unemployed in the middle

of July, at least one-third of the

inale workless were unsuitable

Rice Prices

tees.

Sun Fo, son of Sun the general lack of roads, Indo-China, Siam and Current reports received.

Yat-sen and President of makes shipment of rice. Burma have a normal an- for ordinary industrial work from China show that the Legislative Yuan, even ad-from an over-supplied to an nual surplus of 200 million and the rest were moving from stabilisation felt early invocated that the distribution insufficiently - supplied area

piculs of rice, whereas one job to another on the day 1941 has not continued. In of rice be undertaken by difficult, and therefore Japan's deficit alone is now China really requires a con- 180 million. Japan may be Szechwan the price is re-the State.

of the count. Of the women unemployed, one-third were not

suitable for ordinary work, and

ported to have reached $250 Profiteering Not Cause siderable surplus in order to forced to drain an increas insure a fairly even dis-ing amount of rice from Central China; further dis-

many more had been registered a picul, although in other for less than four weeks. It is districts the price remains Actually the basis of last tribution. probable the next figures will considerably less. Between year's dramatic price rise show an oven greater reduction, March and May the price at appears to have been a and that there will be no idle Kweilin, Capital of Kwang-combination of inflation and workers except those who, for si, rose from $30 per picul scarcity, a scarcity on the one reason or another, are not to $96. In- Kwangtung, a market if not in the ware- capable of being fitted into in-picul now costs $120, while houses. Profiteering was ad- in the mountainous regions mittedly rampant, but pro

dustry.

Even if an adequate locating Chinese agricul tural economy. In the val- supply of rice exists, the leys of Central Ching the fact that almost all of it is Japanese and Chinese are held by a few landlords battling for rice fields as brings the problem of get-well as for cities.

This result has been achieved of the same province it has fiteering is an effect rather GRIN AND BEAR IT by the concentration of the na-gone as high as $200. than a cause-profiteering

tion's productive power on the

task of winning the war. The

ment is intolerable in war; we

In crowded Chungking,

Shortage Crux?

can operate only on the

port, poor distribution and hoarding are part of the problem of scarcity on the Government officials stead-market--they help to cause fastly maintained that rice it. was plentiful.

ed the provincial notes in

same result was achieved in the the price for a picul of rice basis of scarcity. Such fac- war of 1914-18. After that has risen to as much as $400 tors as high cost of trans-] war the unemployment problem to $500.. again became part of the "normal" life of the country, because no steps had been taken to prevent it. That must not happen again after this conflict. As the memorandum of "The

They at- The extent of inflation] Peace", submitted to the annual tributed the price rise to approximates the increase conference of the Labour Party high cost of transport, in the general price level. expressed it: "Mass unemploy- maldistribution, profiteering The note issue was about must make it intolerable in and "psychological factors." six billion at the end of peace. Distressed areas are in- But some of the measures 1940. To this must be add- compatible with a full war ef- fort; the organisation which re- moves them for the purpose of kind must be rid of the fear of circulation, Japanese notes] war must remove them for the war, and that there must be aand foreign currency in purpose of peace. Finance is determination to abolish want Chinese areas, Government the servant, and not the master, and to realise for every citizen bonds, bank loans and other of political policy in war time; an "equal claim upon the com: forms of credit, all of which It must continue in that reintion mon stock of welfare." Neither when peace comes. In war our need the cynics boast, of scoring are part of inflation. The grent material resources are not a debating point by arguing that velocity of circulation is private empires to be adminis- the same ideals were bandied also a factor. It is esti- tered for victory; they must be about during the last war, and mated that the total note similarly administered as Wo came tonought. Not only turn from war to peace."

Britain, but the entire world is and credit circulation was Not only Labour, but practic-to-day learning from bitter and about ten billion by 1941, xperience the compared with 1.9 in June, ally all sections of the communi- unforgettable ty-political, financial and so necessity for a complete read-1937. According to the cial-In Britain have come to justment of Rocial, economic and

manager of one of the four express these sentiments, The political foundations; this war, generally accepted formula for in fact, will make them inevi Government banks, a billion dollars' worth of notes is post-war Britain is that mun- | table.

By Lichty

"While you're fixing the displays, pila that golf around the Prescription Counter-this time of year doctors

usually prescribe a lot of golf!!!!

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