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5
Mr. Kaku Tei Shun, a Formosan millionaire.
Mr. Kyo Shin Jo, Formosan member of the Governor-General's
Advisory Council.
Mr. I. Nakamura, director of the Taiwan Warehousing Company
and president of the Takao Chamber of Commerce. Mr. S. Umeno, president of the Higashi Taiwan Shimbun."
The following also were due to go, but were prevented by illness :— Mr. K. Matsuki. president of the Taiwan Electric Power
Company.
Mr. T. Matsuoka, president of the "Taiwan Shimbun."
47
Mr. Miyamoto, president of the Taiwan Nippo.'
(iv) An investigation party under Viscount Inouye, containing scientific experts from Japan as well as Formosa, left in late January. (v) Dr. Shiratori, another scientist. left with assistants about the same time. (vi) Mr. Miura, of the Tainan Agricultural Experimental Station, with two assistants have gone to inspect the farms of the Chuzan University.
Of the above. the last three parties would appear to be still in China. Viscount Inouye has stated that the sugar interests are heavily represented on the expert missions. Of the parties that have returned. Mr. Ida and Mr. Morioka have made public statements.
11. The director-general's statement consists largely, but not entirely, of civilities addressed to the army, and political platitudes. Mr. Ida's statement has a good deal more meat. Mr. Ida stresses that a good deal of time will be needed for the restoration of factories in Canton, but both statements emphasise that the nearby city of Fatshan (300.000 inhabitants) has suffered very little damage, and there seems to be a suggestion that its development may precede that of Canton. Evidently the motor road between the two cities is in passable condition, as Mr. Morioka visited Fatshan by car, while Mr. Ida stresses the existence of numerous creeks in the immediate vicinity of Fatshan, which provide excellent facilities for water transport. He also states that there are three sugar mills at Fatshan; according to him, all are somewhat damaged, but in this connexion it should be noted that a press statement in Part IV of this report alleges that the Formosa Development Company has found a sugar mill which can be operated immediately (whether in Fatshan or elsewhere is not stated). Mr. Morioka states that in Fatshan public order is good, and that the Japanese soldiers are fraternising with the inhabitants. The surrounding district is said to be rich in rice and sugar, though food production has hitherto been insufficient for the population, making import necessary. Mr. Ida further states that the silk industry has good prospects, though hitherto it has been depressed by maladministration. He also claims that there are minerals, which will be developed, and that subsidiary industries (presumably for refining the ore. &c.) will be established locally.
12. As regards political conditions in Canton, Mr. Morioka claims that 400,000 citizens have returned, though they are mainly of the lower classes, and that there is a great desire for the study of the Japanese language among the populace. He states that two Japanese schools were opened on the 11th January, with an intended capacity of 200 to 300 students, but 700 presented themselves on the first day; it was thought inexpedient to turn any away, and, despite over- crowding, all were admitted. He also claims that the Hakuai Hospital. which was reopened from the 20th December. is filled above capacity; as a result of which a second medical party was to arrive shortly.
IV. Canton Development.
13. Reports are still slightly conflicting, but there has been no contradiction so far of the report that the Central Government has no intention of establishing a separate development company for South China; and it would appear that general development plans at Canton are to be in the hands of the Formosa Development Company, although a fairly recent report states that its subsidiary, Fukudai Koshi, which was to have been relegated to Fukien, is running a hotel in Canton, the " Taiwan-kan" and operating bus services and electric light at
Fatshan. The grip of the Formosa Development Company over Fukudai Koshi has, however, been tightened by the purchase by the former of the 500,000 yen's worth of shares in Fukudai Koshi, previously held by Kochu Koshi.
14. Mr. Takayama, a director of the Formosa Development Company, was sent to Canton in the middle of November to work out schemes of development, and Mr. Retsu Kawada, a member of the House of Peers, and ex-Vice-Minister of Overseas Affairs, has been appointed a financial counsellor to the company, with the special duty of advising on South China development. To meet the various schemes proposed, there was talk of quintupling the nominal capital of the company to 150 million yen; but the only responsible admission so far is Mr. Morioka's statement before the Budget Committee of the Diet, that the Formosa Development Company will issue debentures for 15 million yen, to he guaranteed by the Formosan Government. The reception of this statement suggests that any several-fold increase of capital would be most difficult of realisation.
15.
For the lighting of Canton, two engineers from the Government- General, and sixty-one electricians from the Taiwan Electric Power Company were sent to Canton in November and early December. They reported that the attempted destruction of the lighting plant by the Chinese army had been inefficiently executed, and the plant was to be working again at its full capacity of 22,000 kilowatts before the middle of December. The history of the waterworks is similar, and it also was to be restored by the same time. Both these enterprises appear to be in the hands of the Formosa Development Company; the Taiwan Electric Power Company tried to obtain control of the lighting, but it appears that the Government-General of Formosa stepped in, and insisted on the enter prise going to the Formosa Development Company.
16. It appears that the Japanese intend to make a big thing of sugar in Kwangtung Professor Hashimoto of the Kyoto Imperial University, a member of the Special Committee for the Control of Formosan Staple Products, was the first oracle, declaring, as early as October, that the Formosan sugar companies should expand their activities to South China and the Formosa Development Company is reported to have secured a mill with a capacity of 500,000 bags of sugar per annum, which is fit to be operated at once. It has been reported that Mr. Ida, after his return from Canton, was to negotiate with the sugar companies for the formation of a joint organisation for activities in South China.
17. A small company, the Taiwan Boeki Kaisha, with a capital of 100,000 yen, has been formed at Takao by one, S. Shoji, for trading with South China and the South Seas. The capital is one-quarter paid up.
18. The Bank of Formosa lost no time in reopening its branch in Canton, but the president of the bank, Mr. Yasuda, has sounded a note of warning, emphasising the need for retaining plenty of liquid capital within Formosa.
19. As the reports so frequently suggest that sugar is to be a main Japanese interest in Kwangtung, it may be well to examine this question a little more closely. Formosa supplies Japan's requirements in sugar. which has for a good many years past been the island's most valuable export crop. The following have been the exports in the last six years :—
Year.
1933
1934
1935
1936
1937
1938 (eleven months)
(Unit: 1,000 piculs.)
To Japan. Abroad. Total.
9,830
101
9.931
11.023
23
11,045
14.249
935
15.184
14,274
392
14,666
14,901
367
15,268
13,782
1,242
15,024
It may be argued that the sugar interests will not be keen to assist the growth of
CC
a child within the yen bloc," who may eventually challenge their own supremacy. But in reply to this it may be argued that-
(i) Apart from the merest trifle sent to Siam, all the foreign exports have
gone to countries which are now to form the "yen bloč.”
J
(ii) A gradual closing of the " open door through exchange control or
other means will suffice to reduce, as may be required, the supplies of Java sugar which have hitherto been sent to China.
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