Directory_and_Chronicle_1917 — Page 768

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CHINA

But for this drawback it is quite plain that the year would have been one of very brisk trade, notwithstanding the unrest caused by the Japanese demands early in the year and the fears of possible disturbances when the announcement was made that a change- in the form of Government was contemplated. The indignation aroused by the demands led to a campaign against Japanese goods that lasted for four months in some provinces, in spite of the steps taken by the Chinese Government to stóp it, and must have resulted in serious loss to Japan, as the people not only refused to purchase Japanese- goods, but shippers refrained at some ports from sending cargo by Japanese vessels.

Foreign Trade -The value of the direct foreign trade was Hk. Tls. 873,336,883, a falling off of Hk. Tls. 52,131,128 as compared with the value in 1914, but was still higher than in any year previous to 1913. The value of the direct foreign imports was less by Hk. Tls. 114,765,663, but exports increased by Hk. Tls. 62,634,535, and the value of Hk. Tls. 418,861,164 was higher than any previous record.

Imports.-The net quantity of opium imported, that is, released from bond for con- sumption after payment of duty and likin, was 4,447 piculs, as against 7,484 piculs in 1914. The price at the commencement of the year was approximately Shanghai Tls. 7,000 to 7,400, which by the 31st. December had risen to Tls. 8,700 to 9,000. During the year the provinces of Kansu and the New Dominion (Sinkiang) were added to the provinces into which, as being free froni poppy cultivation, the importation of foreign and Chinese opiuin is forbidden under the Anglo-Chinese Agreement of 1911. Two- events of interest in connexion with the trade took place during the year. The first was that opium merchants agreed to pay to the Chinese Government a voluntary con- tribution of $3,500 per chest on a stock of 6,000 chests. The second was the sale by the opium merchants to the Kwangtung authorities of 1,200 chests at the rate of Shanghai Tls. 7,100 per chest: delivery to take place by monthly instalments during a period not exceeding 18 months. On the 1st November the Kwangtung authorities established an official department, known as the Government Prepared Opium Examination Department, with sub-offices in every district, where opium was sold at the rate of $15 per tael weight. The merchants having resigned their right to ship any further stocks to Kwangtung, this department practically constituted a monopoly, but the price charged was too high to attract the general public, who found it more economical to procure supplies through less legitimate channels.

As was to be expected, the prohibition of import and the difficulty of obtaining the drug led to smuggling on an extensive scale. Large seizures have been made in Hong- kong and Shanghai on British vessels, but the immense rise of the price in China yields profits that more than cover the loss of a good proportion of the consignments. The result has been that regular traders have found some difficulty in disposing of the stocks remaining on their hands. Another and more serious result of the prohibition of opium has been the spreading of the morphia habit, which has led to the development of one of the most profitable trades in the country. The importation into China of morphia and instruments for its injection is absolutely prohibited, except by foreign medical practitioners and foreign druggists for medicinal purposes and under special rules, but the drug is so easily smuggled that the prohibition is practically a dead letter. Morphia is manufactured chiefly in Great Britain, Germany, and Austria, and is sent to Japan by registered post via Siberia. It is released by the Post Office in Japan after payment of import duty, which is refunded on re-export to Korea or Dairen, and now presumably to Kiaochow. No refund of duty can be claimed on re- export to China, because the importation into China is forbidden. Large quantities of morphia are introduced into Manchuria, where the evil habit is spreading rapidly, and Shantung is now in a favourable position to obtain the drug; while the commencement of morphia manufacture in Formosa leads to the expectation that the province of Fukien will not be neglected. In Harbin the Russian authorities takes rigorous steps to prevent the sale of the drug, any Russian subject found in possession of the poison being sent to prison, while Chinese offenders are handed over to the Chinese authorities. But the Russian police cannot arrest Japanese without the consent of the Japanese Consul. In the Japanese Railway Settlement of Changchun the traffic goes on quite openly. The Japanese dealers employ Chinese agents, who carry a quantity of filled syringes and give injections in quiet corners and back streets for 3 or 4 cents. In this way the deplorable morphia habit is being rapidly spread, and its effects are much worse and much more quickly apparent than those caused by opium smoking, as the victim soon becomes incapable of work of any kind. It has been estimated that the annual profits of this disastrous traffic do not fall far short of £1,000,000.

The value of cotton goods imported fell from Hk. Tls. 183.328,473 in 1914 to Hk. Tls. 149,300,513, but this comparison gives quite an imperfect impression of what the