- 5 -
distribution at Hong Kong of its "foreign" rice. The purchases are made here and financed here. This is entirely due to our superior credit and security. There are very big shipments at present. The 1926 local crop is reported to be finished and it is highly improbable that Canton has much rice
stored.
But the local crops are of less importance
to Canton than two other Chinese sources, viz.
Wuhu and Kuang-si. The Wuhu crop may this year be disregarded, for (apart from political troubles
on the Yangtsze) Wuhu had a bad crop last year and
has actually during recent months been importing
Bangkok rice. The Kuang-si crop usually comes
down the West River through Wuchow and would there-
fore, be cut off by a blockade. Moreover, owing
to recent disturbances Kuang-si is not at present
sending rice down the West River. Canton, there-
fore, is this year more than ordinarily dependent on "foreign" rice, and even normally is at this
season of the year always greatly so dependent. Accordingly we conclude that the stoppage of rice- imports by blockade would have a rapid political
effect at Canton.
Canton also depends entirely on imports for
kerosine, mainly on imports for piece goods, and
has to import large quantities of coal, sugar,
flour and tobacco. Economic pressure would soon
be
107