CHEFOO
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Ja
most likely that this article will cease to be a staple of Chefoo's foreign trade. Against continued increases in the past few years, linen for embroideries also suffered a temporary set-back, due principally to the dislocation of shipping following the outbreak of the Sino-Japanese hostilities. Total imports fell off from 967,632 metres in 1936 to 687,524 metres during the year. Sugar, excluding sugar candy, was, however, in good demand and was imported to a total quantity of 15,802 quintals, out of which 13,649 quintals were legally imported, Tapan and Hongkong being the principal suppliers, Hongkong supplying 5,751 quintals and Japan 9,701 quintals. It is noteworthy that sulphate of ammonia has lately found favour with Shantung farmers and is gradually displacing beancake, 44,191 quintals being imported mainly from Great Britain and Japan, as compared with 22,385 quintals in 1936. In spite of the adverse effect of the Sino-Japanese conflict on trade, imports of mineral oils showed improved figüres. Gasolene increased from 329,423 litres in 1936 to 478,075 litres during the year, liquid fuel from 2,580 to 3,605 metric tons, and lubricating oil from 432,759 to 456,155 litres. Kerosene oil, however, declined from 1,580,980 to 1,073,690 litres, due entirely to the decrease in imports of Japanese kerosene oil, of which only 53,586 litres were recorded as against a total quantity of 559,255 litres in 1936. The world demand for the products of the port was brisk and the hostilities proved an added incentive to exporters, who could not afford to risk holding stock, resulting in a 27 per cent increase in the value of direct exports. Except for fresh fruit, all staple exports either increased or maintained the previous year's level. Fruit was handicapped by the closure of its Manchurian markets during the latter half of the year. However, merchants recovered much by deli- veries to Hongkong and southern ports. Exports totalled 84,379 quintals as against 116,194 quintals in 1936. There was an excellent crop of groundnuts, and the area under cultivation was again large. Both dealers and farmers enjoyed a most profitable year. In this connexion it should be added that large quantities of groundnuts, which under normal conditions would have been shipped abroad via Tsingtao, were sent to this port for exportation due to the more peaceful conditions prevailing here. Of the hand industries, drawn-thread work and cross-stitch work and embroideries other than silk increased from $1.4 million in 1936 to $1.9 million, while lace and trimmings increased from $1.2 million to $1.7 million. Pongee increased from 160,490 to 249,260 kilogrammes. Hair-nets declined slightly from 709,744 to 684,423 gross. Great difficulty was experienced in obtaining beans from Manchuria for the making of vermicelli, an important industry of the district and one on which a large number depend for subsistence. It is, however, gratifying to note that while exports declined, merchants were adequately compensated by a rise in price consequent on the brisk demand both from abroad and domestic markets.
The dredging and blasting operations, which were continued throughout the year under the management of the Chefoo Harbour Improvement Commission, have considerably improved the harbour, while the new harbour ice-breaking tug, commissioned in June, has proved of great assistance to shipping. The winter was mild and there were no difficulties experienced with ice as in the previous year, both the inner and outer harbours and the approaches to the port being ice-free throughout the year.
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