The import of Japanese cotton cloth, which in 1902 and 1903 taken together was about 20,000 yards, rose to 18,000,000 yards in 1909, and was over 13,000,000 yards

in 1910.

7. If the figures for 1902 and 1903 are contrasted with those for 1909 and 1910,

>> which for the reasons given above would seem to give a fairer comparison, the decrease is less marked, and is more than balanced by the increase in the import of jeans.

The tables given in connection with the previous question are applicable in this instance.

That there can be no particular advantage for Japanese in importing viâ Dairen is clearly shown by the following figures :-

5

12. It is held that the opening statement of this paragraph is not strictly accurate. Consideration of the footnote, to which allusion is here made, does not suggest irregularity in the slightest degree. While being in agreement that strict accuracy in returning actual arrivals of commodities would be of considerable benefit, it is felt that the question is one for submission to the inspector-general of customs, under whose authority or sanction the present method is adopted.

year.

13. It is well known that imports were rushed into Dairen in the early part of 1907 in view of the opening of the custom-house which took place in July of that It must be remembered that throughout 1907 and the first half of 1908, i.e., until the completion of the broad gauge, few railway facilities were given by the South Manchurian Railway for the transport of goods, and consequently during this period there was an accumulation of stocks at Dairen. The organisation of the Mitsui firm at this time was by no means so perfect as at present.

1909.

1910.

Pieces.

Pieces.

Japanese Sheetings.

Imported via Dairen..

43,254

358,174

**

Newchwang

185,585

244,544

Japoneze Drills.

Imported via Dairen

J

13

Newchwang

10,218 102,375

38,393 149,509

8. It should be remembered that a large proportion of the shipping value of Dalny is credited to the steam-ship lines providing passenger communication with Shanghai and Japanese and Corean ports. The two connecting steamers of the South Manchurian Railway Company alone take some 200,000 tons of the total annual shipping trade. The foreign passengers to and from Dairen during 1909 were over 44,000.

In view of the facts pointed out in the final clause of the immediately preceding paragraph it seems unnecessary to discuss the question in detail.

9. These figures are apparently taken from the returns for the year 1908. The following table will show that similar discrepancies occur in other years :-

IMPORTS from Japan to China.

1906

1907

1908

1900

AVERAGE.

1899 to 1904 (excluding 1900).

Pieces.

Sheetings Shirtings Drills Jeans

1,096,520

187,256

502,076

85,692

Total

1,871,544

Sheetings Shirtings

Drills Jeans

::::

Total

Japanese Figures.

Chinese Figures.

Newchwang Dairen Antung Suifenho

£

£

12,023,327

10,047,812

10,822,000

9,337,000

7,988,551

9,114,492

7,000,000 7,793,875

Total

Grand total

:::::

:::::

1903.

::::

::::

:

::::

Pieces.

1,112,709 221,929

477

f

586,815 117,720

2,039,173

}

1908.

Sheetings.

Shirtings.

Drills.

Jeans.

Pieces.

Pieces.

Pieces.

Pieces.

682,243

242,881

248,610

188,986

108,118

186,047

20,831

10,892

75,072

25,025

23,254

21,856

4,216

10,513

9,075

8,325

869,640

464,466

301,790

229,559

1,865,404

1909.

Sheetings.

Shirtings.

Drills.

Jeans.

Pisces.

Pieces,

Pieces.

Pieces.

818,361

437,529

416,822

331,458

77.605

125,565

13,794

27,967

104,317

49,583

14,413

22,624

38,033

40,214

16,386

3,691

Manchouli

764

2,467

488

Total

1,037,080

655,458

461,903

385,748

Grand total

2,540,184

and similar results will be obtained by comparing Japanese and Chinese figures for the exports from China to Japan. The reason for this constant discrepancy is probably to be found in the fact that the Chinese figures are compiled on a basis of fixed silver valuation, whereas the Japanese figures correspond with market fluctuations. It is, in any case, unreasonable to suppose that there could be an evasion of duty on a value of nearly 7,000,000 Raikwan taels at the Dairen customs when the total import was only 18,900,000 taels.

10. The abolition of the free area is a scheme which has been strongly advocated by the commissioner of customs for some time past. The question is being favourably considered by the Kwantung Government in conjunction with certain responsible officials of the Colonial Office at Tokio, and there is every reason to suppose that Dalny will be placed on a customs footing similar to that obtaining at Tsingtau at no very distant date.

11. Branch offices of the Dairen customs have been, for some time past, in operation at Pulantien, Chinchou (Kinshü), Pitzewo, and Port Arthur.

Newchwang

Dairen Antung Suifenho

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