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but it has occurred to me that if, as the Formosan authorities hope, the function of Formosa in the development of these areas should show signs during the next six months of becoming substantial and permanent, I could write with greater under- standing and usefulness if it were possible to allow me to gain some personal acquaintance with the areas involved by making a personal visit to Amoy and Canton (and Hong Kong), as a preliminary to my official visit to Tokyo in the latter part of this year.
I have, &c.
Enclosure 2.
C. H. ARCHER.
Japanese Activities in South China and Fukien, as seen from Formosa.
I. Introduction.
THE interest of the Government and Japanese residents of Formosa in Japanese naval and military activities on the mainland during the past year has been intense. In the case of Amoy, the distance of the occupied territory from Formosa is only about 150 miles: the native language used on both sides of the strait is the same; there has for many years been a heavy traffic of Formosans and Chinese in both directions, both for short visits and for permanent residence; and economic ties had by August 1937 become exceedingly close. All these were abruptly severed by the outbreak of hostilities, the evacuation of all Japanese nationals from Amoy to Formosa, and of half the 59,000 Chinese residents of Formosa in the opposite direction.
2. In the case of Canton, the ties before the war were comparatively slight, but the army commander from Formosa was appointed to command the expedi- tionary force, the troops were largely, if not entirely, embarked from Formosa, and, whereas the Amoy occupation has been purely naval, the Canton expedition has in a very special sense come to be regarded locally as Formosa's special contribution to Japan's war effort. In regard to both places officials and business men in Formosa share a natural hope that, in view of geographical propinquity and racial ties, a large share of the privileges and profits of Japanese political and economic expansion will fall to them.
3. Since the occupation, especially in the case of Canton, there has been much coming and going of leading officials and industrialists from Formosa: and it has become clear that, in the opinion of the Government-General, Formosa should be used as a base. It is, however, doubtful how far these views are shared in Tokyo. During the last few days Mr. Morioka, the director-general, has under- gone a somewhat severe heckling at the hands of the Budget Committee of the Diet. The overseas expenditure of the Government-General is reserved for a special supplementary budget, and so no detailed criticism was possible, but it is generally known that the Government-General wishes to use the Formosa Develop- ment Company as a main instrument of policy, and this choice was sharply criticised. Mr. Ogasawara, a member of the committee, claimed that the Formosa Development Company was a failure, which had muddled its enterprises, and lost its prestige with the banks to such an extent that it could only raise the proposed 15 million yen of debentures when supported by a Government guarantee. How could such a company be regarded as an adequate instrument for the execution of the national policy in South China? Mr. Morioka quoted particulars to show that the affairs of the company were not in such a bad state as had been suggested: but it is clear that a strong under-current of criticism and distrust both of the Formosa Development Company and of the Government-General remains in the minds of several members of the committee.
4. When roundly asked what the Government-General was doing in South China, the director-general replied that it had shown activity in radio (presumably referring to the new 100-kilowatt station under construction at Kagi), and in electric enterprises and communications; and that it was ready to co-operate with the Central Government when its plans were decided after conclusion of peace-a hint probably that the Formosan authorities had at least been more active than their Tokyo critics.
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5. The conclusions that seem to emerge are: first, that the Government- General would like to play a leading part in South China development, but there is in Tokyo a feeling of doubt as to its competence for this mission; and, secondly, that all plans for such development, whether formed in Tokyo or in Taihoku, are still in a very nebulous form.
II.-Official Appointments.
6. Amoy. In the second half of 1938 the Government-General sent a number of its officials to Amoy, and the activities of the Foreign Bureau of the Government-General are said to include co-operation with the navy in local administration. The Governor-General has himself stated that officers sent included administrative secretaries. inspectors and police officers, all attached to the navy as non-regular staff.
7. "Canton. In December and January officials were sent to Canton as well, the principal being :-
Mr. Kokei Nishimura, lately chief of the Local Government Section of the Department of Internal Affairs, sent to Canton in a civil, administrative capacity.
Mr. Shunsuke Morita, lately chief of the Internal Affairs Section of the Shinchiku Provincial Government, appointed to a financial post in Canton.
It is stated that both officers will, under Imperial edict, be regarded as extra- ordinary personnel of the Government-General of Formosa.
8. General. It must be regarded as significant that Mr. Taro Ozawa, of the Foreign Affairs Bureau of the Government-General, has been appointed to the Asiatic Planning Board in Tokyo. Mr. Ozawa has during the past two years acted as head of the Bureau (or Section as it used to be) of Foreign Affairs. during the more and more frequent absences of his chief, Mr. Kato. Since the latter part of November it seems doubtful if Mr. Kato has been at his post in Taihoku for an aggregate of a fortnight. He has certainly been in Tokyo more than once, but a certain childish air of mystery which has been imparted to his movements clearly indicates that much of the time has been spent in China.
9. A month or two ago there was a rumour that Mr. Y. Imagawa, one-time Governor first of Tainan and then of Taihoku Prefectures, was being coached for eventual appointment to a vice-regal post in China. but it is impossible to judge whether this is to be seriously regarded or not. At all events, the latest reshuffle has left him in undisturbed charge of the Monopoly Bureau.
III. Visitors to Canton from Formosa.
10. The extent, and in some degree the nature, of local interest in the future of South China is shown by the visits recently paid to Canton by persons prominent in government or industry in Formosa. The following have been reported :--
(i) Mr. Ida, head of the Section of Commerce and Industry of the Govern-
ment General, was in Canton during December.
(ii) Mr. Morioka, Director-General of the Formosan Government, went by air
to Canton on the 11th January, returning apparently next day. (iii) A large party of persons of first-class importance in Formosa left Takao for Canton by sea on the 21st January, arrived about the 23rd, left on the 27th and were back again in Takao on the 29th January. The party were made up as follows:-
Mr. Yamagata. Director of the Bureau of Internal Affairs. Mr. Ishikawa, chief of the Civil Engineering Section of the
Government-General.
Colonel Murata, attaché to the Government-General.
Mr. J. Yasuda, president of the Bank of Formosa.
Mr. K. Kato. president of the Formosa Development Company. Mr. T. Kawamura, president of the "Taiwan Nichinichi
Shimbun."
Mr. Miyoshi, director of the Taiwan Tea Association. [558 -1]
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