Directory_and_Chronicle_1940 — Page 806

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CANTON

has been largely destroyed. The Canton-Shamshui. Railway has however been completely reopened to traffic. The Pearl River is closed to trade, and naviga- tion is permitted only by Japanese vessels, men-of-war, and one British and one Portuguese passenger ship a fortnight. There is no longer telephonic communication between Canton and Hongkong.

TRADE IN 1938

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Trade conditions at Canton during 1938 were largely governed by military and political events due to the Sino-Japanese hostilities. The Japanese coastal blockade throughout the year was responsible for the absence of coastal vessels. flying the Chinese flag. All traffic was suspended when the military authorities closed the Pearl River between the 3rd, February and 15th, February, 1938. At the end of March the standard dollar and Kwangtung dollar, which had remained stable throughout 1937, began to depreciate, the former reaching its lowest point in mid-October when St. $230 was being quoted for Hongkong $100. The railways to Hankow and Kowloon as well as roadways were con- tinually being bombed from the air. On the 28th, May an intensive bombard- ment from the air of the city of Canton commenced and lasted some 10 days, causing much loss of life and damage to property. A heavy exodus of the population followed, but after a few weeks the evacuees began to return. During the rest of the year, until mid-October, Canton was frequently visited by hostile aircraft, which bombed railways, power and other industrial plants, government buildings. etc., causing much destruction. The invasion of South China materialised on the 12th, October, 1938, when a landing of troops was effected at Bias Bay, and thereafter events moved with startling swiftness. The Pearl River was closed on the night of the 13th, October, 1938, and a wholesale evacuation of the population took place. When the vanguard of the Japanese forces entered Canton on the 22nd, October, 1938 the city was almost completely deserted, while considerable sections of it were afire. In the meantime fac- tories and industrial plants of all kinds in Canton and neighbouring districts were being blown up and either completely or partially destroyed. For the remainder of the year trade was at a complete standstill, the Pearl River being closed to all but Japanese traffic. As the year drew to an end a number of the poorer section of the population returned to Canton.

The comparative values of the trade recorded in the statistics for 1938 and the preceding year were: direct foreign imports, $56.9 million as against $45.2 million; coastwise imports, $105.7 million as against $114.8 million; direct exports abroad, $106.7 million as against $63.8 million; and coastwise exports, $23 million as against $27.5 million. The large increase in exports may be attributed entirely to Yangtze Valley cargo passing through Canton. Actual sales of petroleum products in the Canton area were poor, but statistics show increased importation due to shipments to Central China. Gasolene imports improved from 9 million litres in 1937 to 14.7 million litres; liquid fuel from 3,200 to 11,400 metric tons; kerosene, from 10 million to 17.4 million litres; lubricating oil from 1.2 million to 1.9 million litres; and paraffin wax from 9,300 to 15,500 quintals. Central China demands were also responsible for the increased importation of cotton yarn, which rose from 13,000 to 80,000 kilogrammes, and for aluminium foil, which rose from 12,000 to 71,500 kilogrammes. Due to the hostilities, and especially to the invasion of South China in the autumn, sulphate of ammonia sales were little more than one-half those of the previous year. Despite all difficulties the silk industry had a satisfactory year, while there was an increased demand from America. White raw silk exports showed a conspicuous increase from 47,900 kilogrammes in 1937 to 64,000 kilogrammes, but steam filature raw silk sagged from 1 million to 957,000 kilogrammes. Indo-China was the chief purchaser, followed by India and France. Waste silk showed little change, 1 million kilogrammes being exported, the United States of America taking over 50 per cent, followed by France and Great Britian. There was, however, a heavy falling-off in the export of silk embroideries and natural silk piece-goods. Wolfram ore (tungsten) exports represented over one-third of the total value

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