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director of the Dai Nippon Sugar Manufacturing Company, Mr. Nakamura, secretary of the Sugar Association, and a Dr. Itokawa have given statements to the press.
2. From these it appears that there are altogether seven modern sugar factories in the occupied areas. One with a capacity of 750 long tons appears to be little damaged, but it is still near enough to the fighting to receive occasional bullets, and a final verdict is not yet possible. This seems to be the only one from which any early results are expected, and is presumably the one referred to in paragraph 16 of my last report. It is situated at "Tokan," which is described as being 25 miles up-river from Canton. At least two of the other factories are wrecked beyond repair.
3. The minerals which are arousing interest (see paragraph 11 of the report) appear to be tungsten and zinc, both said to be metals in which Japan and areas hitherto under Japanese control are deficient.
4. The population of Canton is now said to have risen to 700,000.
5. Dr. Itokawa discusses public health. He is shocked at the prevalence of diseases of the respiratory organs, and says that 80 per cent. of the phlegm spat out in the streets shows the presence of tubercular bacilli. Leprosy, para- typhoid, malaria and cholera appear to be endemic; and he personally found that 100 out of 120 prostitutes examined were infected with syphilis. But he says that the health of the Japanese troops is good, with nothing to note except one suspected case of small-pox.
6. He states that there is a need for high-grade hospitals charging corresponding fees, as the better-class Chinese do not care to visit public hospitals such as the Hakuai (see my report, paragraph 12). This would appear to suggest that the upper-class Chinese, whose absence was regretted by Mr. Morioka, have during the last month begun to return.
7. The occupation of Hainan Island has naturally figured largely in the press. The army appears to have found eight Formosan fishermen in a Japanese prison on the island. They are the remains of a crew of ten from the Pescadores, who drifted ashore a year ago after engine failure, and have been in gaol ever since. Of the original ten, one escaped and one died, and the remaining eight were in a greatly exhausted condition.
8. The local press describes Hainan as fertile with three crops of rice a year. The question of sugar is also being discussed. Apparently the alternation of a very dry and a very wet season is a handicap, but it is thought that this can be overcome by irrigation. The press assumes that Formosa will take a leading rôle in the development of Hainan, which occupies in regard to Formosa the position of a younger sister.
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I have, &c.
C. H. ARCHER.