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under Japanese management were responsible for nearly 3,500,000 tons, and Japanese mines in Shantung for 1,000,000 tons and in Kiangsi for 500,000 tons. Important coal and iron concessions in nine places in Manchuria were secured under the 1915 treaty with China.
Of Chinese exports, next to silk, the most valuable are beancake (44,000,000 taels in 1919) and raw cotton (30.000,000 taels in 1919): both of these are almost entirely taken up by Japan. Japan also took in 1919 about one-third of the export of flour and one-half of the export of wheat. Japan, therefore, in 1919 was the principal purchaser of Chinese produce,
yarns. Of yarns, The principal imports into China are cotton goods and cotton Japan provided over a third (value 30,000,000 taels). The exact import of Japanese cotton goods into China is difficult to estimate, but out of a total cotton import (including yarns) of 210,000,000 taels, the Japanese share cannot be less than one-third Japan in 1919 was the principal provider of foreign imports,
The boycott of 1919, according to the figures given by the Imperial Maritime Customs, did not have nearly so serious an effect on Japanese trade as had been expected. China is too dependent on Japan to boycott her goods effectively; and too Chinese ports are in Japanese hands. Appendix XV shows the steady increase of the trade of those ports which chiefly handle Japanese goods, viz.: Dairen, Antung and Kiaochow (Tsingtao).
Japan: Railways,
The railways in Japanese control are principally to be found in the “special spheres" of South Manchuria and Shantung. In South Manchuria Japan has some 850 miles in operation, some 580 miles under construction, and some 900 miles projected under concession. In Shantung Japan has the Tsingtao-Tsinan railway (510 miles), with concessions for 430 miles more. The Japanese also have a financial hold over the Kiukiang-Nanchang railway (86 miles) in the Yang-tsze valley, with a promise of the support of Great Britain in obtaining a continuation of the line to Foochow and a Japanese loan has been advanced to the Peking-Suiyuan railway( 266 miles), which for many years had been China's pride as her one purely national railway.
Japan: Propaganda.
In the Twenty-One Demands, an attempt was made to secure for Japanese Buddhist missionaries a footing in China like that allowed to Christian missions: this demand, however, was shelved. Mr. Carl Crow's Memorandum (see Confidential Print 151232 of the 12th November, 1919) shows how persistent and widespread is Japanese newspaper propaganda in China. These Japanese-controlled newspapers have been consistently and vituperously anti-British. A Japanese propaganda society runs a school at Shanghai for teaching Chinese language and customs to Another propaganda Japanese, and for teaching Japanese to Chinese students. society runs three or four Japanese hospitals in China.
Japan: Industries-Manchuria,
Similarly with Japan's industrial interests in China, they are centred chiefly at Dairen, Mukden and Tsingtao. At Dairen there is the Kawasaki dockyard and four ironworks, six bean-oil and cake mills, factories for sulphuric acid and dye stuffs, seven brick works, one cement works, one rice mill, one bone-dust mill, throe soap (bean-oil) works, two salt works, one tile factory, one ice factory, one cold storage works, &c., all in Japanese hands. At Mukden there are two woollen-yarn and weaving mills, oil mills, saw mills and rice mills, a sugar refinery, chemical works, glass factories, match factories and candle factories, under Japanese or under joint Sino-Japanese control. There are two tobacco factories of the To-A Tobacco Company at Mukden and at ewchwang. At Harbin, in the Russian sphere of North Manchuria, there is at least one Japanese flour mill, and the Japanese Govern- ment have installed a commercial museum as general headquarters for their commer cial offensive. There are electric light works, Japanese and Sino-Japanese, through- out South Manchuria, which is certainly the province of China, best equipped with modern conveniences. There is the important Penhsifu coal coalfield and ironworks managed by Okura and Co., and there are the numerous undertakings of the South Manchurian railway, which include the Fushun and Yentai coal mines, the Anshan- tien iron mines and foundry, harbour, gas, electricity works, glass works, tile factory,
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hotels, schools, hospitals, &c. Important companies have been recently floated in Japan (1) to develop cattle-raising in Manchuria and Mongolia, (2) for rice cultiva- tion in Manchuria. A Japanese authority values Japanese interests in South Manchuria at £30,000,000.
Japan: Industries—Shantung.
At Tsingtao, the Japanese have taken over from the Germans their brewery, railway repair shop, shipyard, cotton-spinning mill, silk filature, flour mill, and salt works (this salt industry is expanding rapidly, and the Japanese set great store by it). They also have two match factories, tanneries, four oil refineries, two albumen factories, two canneries, an ice factory, a glass factory, a lumber mill, brick and tile factories, a cement and coke works, a glycerine factory, two soap factories, a rice mill and smelting works. According to a United States of America commercial handbook, 1919, Japanese capitalists seem to be inaugurating a vigorous develop. ment of the manufacturing possibilities in Tsingtao, chiefly along the lines indicated above, raw materials for such enterprises being obtainable both cheaply and abund- antly in the hinterland of the leased territory." No less than five new cotton-spin- ning mills, with .155,000 spindles, have been projected by Japanese companies in order to make Tsingtao one of the centres of this great new industry of China. ironworks is projected at Chin-Ling-Chen, 180 miles from Tsingtao; and coal mines have been acquired at various points in Shantung. Japanese undertakings (two glass factories and an albumen factory) have been started at Tsinan, the capital of Shantung.
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It is not difficult to foresee in these activities the formation in Shantung of a second Japanese enclare like South Manchuria.
Elsewhere than in these protected spheres Japanese industrial enterprise is less to the fore. However, in Shanghai the Japanese have obtained control of at least three cotton mills, one flour mill and one paper mill. At Hankow they have, through loans and through the 1915 treaty with China, acquired a preponderant interest in the great undertakings of the Han-Yeh-Ping Company, which is the overshadowing industrial concern of Hankow (see Appendix I). At Tien-tsin they have a cigarette factory, an oil mill, a flour mill and an ironworks.
Japan: Population, Special Rights, &c.
It may be added that the Japanese population in China is given by the Maritime Customs as 171,485; of these about 75,000 are in South Manchuria and about 65,000 in the Kwantung Peninsula. The Japanese population of Shantung is over 25,000, of whom about 20,000 are in Tsingtao itself. There are probably some 10,000 Japanese in Shanghai, The Japanese have thirty-two consulates in China and fifty-three post offices. They own residential concessions at Hankow, Tien-tsin and Amoy, and settlements at Chungking, Hangchow and Scochow. They maintain a large force of railway guards along the South Manchurian railway and in Shantung, and a garrison of about 1.000 men in Hankow. By the treaty of 1915 they acquired exclusive rights for residence in South Manchuria, and for industrial and agricul tural undertakings in Eastern Inner Mongolia, with extra-territorial privileges. Japan: Formosa and Fukien.
Finally, the great and rich island of Formosa should not be lost sight of, which Japan took from China as a result of the war of 1894. It has an area of 13,839 square miles, a population of 3.600,000 and an import and export trade (1918) of £25,000,000. It is peculiarly rich in sugar, tea, rice, camphor, coal and other minerals, including petroleumi. After the acquisition of Formosa, the attention of Japan was first attracted towards expansion in China, and her first attempt to carve out a sphere of influence was in the direction of Fukien. In 1898, China gave Japan an assurance of non-alienation of this province. But after the Russo-Japanese war. Japanese development in Korea and Manchuria began. The Fukien sphere has been left in abeyance, but it has by no means been forgotten.
Japanese and British in the Yang-tsze Valley.
Japanese competition has established itself practically to the exclusion of all other in the spheres of South Manchuria and Shantung, where Japanese interests are paramount. In the Yang-tsze valley, it meets the competition of other nations on equal terms. For a full and interesting investigation of the question Sir J. Jordan's
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