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practica lly disappeared.

It seems to me that this will

apply to Japanese goods in the future, as well as the

When and if the river opens to foreign goods,

present.

it should how ever not apply to the latter, since passage

up country through the Japanese lines appears to present

no great difficulty.

A few days ago a member of the staff of this

Consulate-General extensively visited shops selling Japanese

He found for sale all kinds of Japanese foodstuffs

(tinned and fresh), cigarettes, beer (Kirin & Asahi)

goods.

ma tches, toilet articles, a small amount of table glass,

and in two shops, Japanese bicycles. There were no

luxury goods and no textiles. Bales of Kimonos were sto red,

but not on sale, in one shop.

Cheap Japanese food stuffs,

such as dried fish a mi fresh apples are also on general

sale either in the market or in retail Chinese shop s.

3.

It is true that goods normally sold locally by

foreign firms are being retailed at prices far lower than

those quoted by their local agents. In the case of kero-

sene, the Asiatic Petroleum Compa ny state that at the

present rate of sale their stocks will last for 20 months

as against four months at full existing sale rates of

there were no smuggled competition owing to the fact

that smuggled kerosene is being sold at a lower price than

that at which the firm can sell it.

4.

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The Asiatic Petroleum Company inform me that

this kerosene

comes from Formosa and, efter military re-

quirements have been met, the balance of each shipment

is sold on the open market for military yen by Idsumitso

Shokai, a Formosan firm. They have sold different con-

signments at Military Yen 11.50, 13.00 and 14.00 per unit

resp ectively, in accordance with the fluctuations in the

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