Directory_and_Chronicle_1939 — Page 390

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CHINA

ROADS

The last available statistics give the total mileage of highways completed, under construction, and projected as at the end of December 1936 as being 171,893 kilometres, of which 109,749 kilometres have been opened to traffic, 24,259 kilo metres of those being paved and 85.490 kilometres earth. Inter-orovincial trunk lines between the provinces of Kiangsu, Chekiang, Anhwei, Kiangsi, Hupeh, Hunan, Honan, Fukien, and the north-western provinces totalled 23,876 kilo metres at the close of 1936. Details of construction during 1937 are not yet available, but it is known that, up to the time of the outbreak of hostilities and even following thereon, still further progress has been made.

THE SUMMING UP

In his summing up on the conditions of trade in 1937, Mr. Osborne writes: Seldom has a year opened with brighter trade prospects than 1937. The satisfactory financial results of the previous year, with its unusually abundant crops, confidence in the new currency, Government reconstruction work, advance in industrial and agricultural spheres, improvement in communications, and the general soundness of the economic background, all gave promise of increasing prosperity, which was fully born out in the results of the first seven months of the year, for which period the value of imports was over 36 per cent higher than for the corresponding period of 1936 and the value of exports nearly 46 per cent higher. The outbreak of hostilities in the North in July and their subsequent spread to Shanghai and throughout the country, naturally, adversely affected the outlook, with the result that at the close of the year the value of imports showed an increase of 1.3 per cent only and exports of 18.7 per cent only over the figures for 1936, the monthly average total value of combined imports and exports for the last five months of the year being reduced to only slightly over 50 per cent of the average monthly total of the first seven months. In this con- nexion it may be remarked, however, that the tendency is for imports rather than exports to decline, a feature in China's balance of trade which has become more accentuated in recent years, the percentage of Chinese exports to imports having risen in 1937 to 87.93 per cent, the highest level recorded since 1919 and the exceptional Great War years of 1915 and 1916. As to trade in general, it is noticeable that in recent years the import from abroad of "consumers' goods," especially cotton goods, rice, wheat, etc., have considerably diminished, the bulk of foreign imports now comprising metals and machinery for the development of mechanical industries and communications, mineral oils for propulsion and lighting purposes in which China is deficient, and chemicals for industrial. medicinal, and fertilisation purposes. As regards exports, progress has been satisfactory, with a growing demand for many of the country's staple products. such as skins, wool, textile fibres, seeds. eggs and egg products, vegetable oils. ores, etc., for which there is little likelihood of a falling-off in demand. Though present hostilities must delay progress and necessitate large capital outlay. the progress of recent years and the unification of the country iustify the hope that. provided China is spared during 1938 additional suffering from natural calami- ties in the form of floods, drought, and epidemics, her economic recovery will not be long delayed.

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CONDITIONS IN 1937

Despite almost overwhelming difficulties, China had achieved much progress in the decade prior to the outbreak of the present hostilities. With the exten- sion of central authority, national unity was nearing fulfilment; following the various financial reforms, exchange remained more stable than ever before; the spread of the New Life Movement was inculcating a new spirit among the people. and the many activities of the Government towards national reconstruction and rehabilitation were becoming far-reaching in their effects. Among the various branches of the Government engaged in the work of reconstruction were: the National Economic Council, responsible for improvements in road-building. hydraulic engineering, cotton-growing, and sericulture; the Ministry of Indus- tries, entrusted with significant work in rice and wheat improvement, animal

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