CO129-502-8 China- general situation 27-4-1927 - 15-9-1927 — Page 103

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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

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