Directory_and_Chronicle_1941 — Page 248

A14

CHINA

the interests of other Powers. A few days prior to this it had been made known that, on advice from the Law Officers of the Crown, the British Government had decided to hand over the four Chinese in asylum in the British Concession to a local Chinese court for trial. Meantime there had been no relaxation in the blockade imposed at Tientsin by the Japanese military, many foreigners suffer- ing indignities, there being frequent incidents, the foreign occupants of the two Concessions suffering indescribably, and the trade of the port, other than Japanese, being brought to a practical standstill. To add to the appalling conditions already existing, there occurred in August the worst inundation of the Concessions and the whole of the surrounding country of Tientsin in living memory. All normal means of cominunication were cut off as a result of the flood waters, which rose in certain areas to a depth of over 10 feet. The floods are believed to cover vast areas of Hopeh, Northern Honan and Westein Shan- tung, while nearly 2 million people are threatened with famine, and the damage is estimated at close upon $100 million, if not more. The subsidence of flood waters in the Concessions brought no relaxation of the blockade, and at the time of writing negotiations in Tokyo have not been reopened.

In connexion with the International Settlement of Shanghai, Japanese wishes for reforms were officially conveyed to the British and United States Ambassadors in Tokyo on the 3rd May. The United States Government on the 17th May formally rejected Japan's request for a revision of the Land Regula- tions of the International Settlement. The American note warned Japan. against taking any advantage of developments which originated elsewhere and were prejudicing the international character of the Shanghai Settlement, urged Japan to return Settlement areas north of Soochow Creek to the authority of the Shanghai Municipal Council, stressed the point that conditions in Shanghai were so far from normal as to preclude any basis for a discussion looking towards an orderly settlement of the complicated problems involved which would be reasonably fair to all, and, as regards revision of the Land Regula- tions, expressed the belief that this should await the development of more stable conditions. The British reply supported the arguments contained in the Ani- erican memorandum. Japanese replies to British and French protests regard- ing the boarding of the British liner Ranpura and the French liner Aramis outside Hongkong were conciliatory in tone.

With the blockade of the China Coast, the closure of the Yangtze and West Rivers to navigation, and the Japanese in control of practically all China's ports, the volume of trade is still a matter of some surprise. While admittedly the Japanese were in control of the coast and the main lines of communication, it is equally true that this control was limited with no great effect on the vast interior regions. In North China, especially, particular attention has been paid to Western industrial properties. The Kailan Mining Administration had to increase its coal output for shipment to Japan; the Kwantung army seized the Tatung Coal and the Lungyan Iron Ore Mines for its improvised state of "Méng-chiang" and entrusted their exploitation to the South Manchuria Railway Company and the Fushun Collieries. The Tayeh Iron Mine in Cen- tral China was given directly to the Japan Iron Manufacturing Company. In Shanghai Japanese industrial pre-war property was energetically reconstructed. Reconstruction of the Tsingtao mills was also completed. Repairs have been carried out to the various Chinese coal mines in Shantung, but production is still far below pre-war level. In Tsingtao only some 40 per cent of the textile mills are yet in operation. Determined efforts to place the Tayeh Iron Mines on the Yangtze into working order after their being completely blown up by the Chinese have not yet met with success, while in Shanghai, despite recent prosperity in the cotton industry, the number of spindles working is still far below the pre-war total of 4,000,000. Notwithstanding the limited success achieved on their own behalf, the many restrictions in the form of exchange control, military currency media, various monopolies and restrictions generally on transport, etc., are having a disastrous effect on the foreign trade of other countries, many foreign traders being gradually driven out of their businesses.

In an attempt to control China's railways the Japanese organised two rail- way companies. The North China Traffic Company, in April, was to operate