Directory_and_Chronicle_1939 — Page 391

CHINA

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husbandry, the testing and standardisation of agricultural products, agricul tural credit, and rural industry; the National Health Administration, with its provincial and rural health services; and the Ministry of Finance, engaged in effecting the gradual abolition of irregular taxes and surcharges. Considerable improvement had also been achieved in communications and plans devised for a further extension of railways and highways. The recent currency reforms had done much to stabilise agricultural prices, while the expansion of the co- operative system and the establishment of the Farm Credit Bureau were having noticeable effect in the raising of prices and in the restoration of rural prosper- ity. The cotton industry showed healthy signs of development, while a survey into the vegetable oil industry indicated ample room for further expansion, especially in the provinces of Chekiang, Hunan, Szechwan, and Kiangsi. In addition to oil refineries already established at Shanghai. Hankow, and Wan- hsien, further refining plants were contemplated in Changsha, Changteh, Chungking, Wuhu, and Hangchow. The China Paper Manufacturing Corpora tion was inaugurated on the 1st July with the project in view of the establish- ment at Wenchi, near Wenchow, in Chekiang, of a large mill for the manufac- ture of newsprint, a similar mill being contemplated also in Canton. The establishment on the 1st May of the China National Tea Corporation, with a capital of $2,000,000, was another step having as its object the revival of the China tea industry, the improvement of facilities for production, transportation, and marketing of tea, with emphasis upon quality and standardisation. Tea factories were to be opened at Hankow and Foochow, and a British tea speicalist was engaged as technical adviser to the Corporation. A five-year franchise was granted to the proposed China Rayon Manufacturing Company, a semi-govern- ment enterprise, capitalised at $4,000,000, to be established at Wusih with exclu- sive manufacturing rights in the provinces of Kiangsu and Anhwei. The new three-year construction programme in Kwangtung included proposed ironworks at Canton, the erection of a fertiliser plant, expansion of the present Oong River Hydraulic Power Plant, establishment of a rayon plant, the development of the island of Hainan, and the reorganisation of existing provincial industries to ensure more economic and profitable operation. Many other commercial and industrial projects were either being carried through or contemplated, showing the general progress being made towards reconstruction and development in this country.

Following the arrangements made during 1936 for the resumption of service on the bonds of the Tientsin-Pukow, the Taokow-Chinghua, the Chinghua-Meng- hsien, and Lung-Hai and Canton-Kowloon Railways, as also the service of the 8% Ten-year Treasury Bills of £600,000 (Marconi Bills) and the 8% Ten-year Treasury Notes of £1,803,200 (Vickers Notes), the Ministries of Finance and Railways announced their offer for the continued service of the outstanding bonds of the Hukuang Railway Loan of 1911 amounting to £5,650,000, under which interest at the reduced rate of 2 per cent per annum was to be paid for the years 1936 to 1938 and thereafter at 5 per cent, repayment of the loan to start in 1941, and four-fifths of the outstanding interest to be cancelled. An almost identical arrangement was made regarding the Chicago Bank Loan of 1919, which was for U.S.$5,500,000. Interest was to be paid at the rate of 21 per cent per annum for the three-year period commencing 1st November 1936 and at the rate of 5 per cent per annum as from the 1st November 1939, repay- ment of principal of the notes and of instalments of the scrip to be made each year on the 1st November as from 1942 according to fixed schedule, and four fifths of the interest due up to the 1st November 1939 to be cancelled.

According to 1936 statistics, there were in China, excluding Manchuria and Jehol, 10,731 kilometres of railway, of which 7,858 kilometres were operated by the National Government and 1,606 kilometres were privately owned by provin- cial and municipal governments, with part of the stock subscribed by the public. During the year announcement was made by the Government of an ambitious five-year plan calling for the annual construction of an average of 1,700 kilo- metres a year or 8,500 kilometres in all, which would almost double the existing mileage. On the 1st May contracts were concluded with the British and Chines