Directory_and_Chronicle_1941 — Page 351

CHEFOO

A117

exchange control on the fixed basis of 1s. 2d. to F.R.B. $1 for the exportation abroad or to Central and South China of 12 specified articles from the 11th March and of all exports, with minor exceptions, from the 15th July; the introduction of the "link" system from the 5th October under which exports were placed on a barter basis with imports, thus escaping exchange control; the change in the exchange basis from the pound sterling to the US. dollar at F.R.B. $100-U.S. $237 from the 25th October; and the reduction of import duties from the 16th May on silk and waste silk and silk yarn and thread from 30 per cent to 5 per cent, on cocoons from 12 per cent to 5 per cent for the manufacture of Shantung pongees, and also on linen piece goods for embroidery purposes from the 124 per cent to 7 per cent.

The trade statistics of the port according to value were as follows: direct, foreign imports, $28 million as compared with $13.4 million during 1938; coastwise importa- tions of Chinese goods, $31 million as against $28.9 million; direct exports to foreign countries, $10.8 million as against $15.1 million; and coastwise exportations of Chinese produce, $35.5 million as compared with $24.8 million. The rise in market values during the year ranged from 200 per cent to 300 per cent, the causes appearing to lie in the speculative activities of merchants and in the efforts of the populace to con- serve their capital in goods rather than in an unstable currency.

Under the heading of direct imports, the influx of wheat flour from the United States of America was the main factor attributing to the increase in the volume of trade. As compared with the import figures of 1938 and 1937, i.e., 47,625 and 2,233 quintals respectively, the import for 1939 amounted to 272,928 quintals valued at $6.1 million, representing 21.8 per cent of the total value of the import trade. The import of beans, chiefly from Manchurian ports and Dairen, figured as prominently as in the preceding year, having increased from 298,996 quintals in 1938 to 309,919 quintals. Beancake also occupied an important place in the import trade of the year, advancing from 46,472 quintals in 1938 to 316,498 quintals. Of the total value of the import trade, each of these commodities shared more than 10 per cent, beans being valued at $3.4 million and beancake at $2.9 million. In this connexion it may be noted that the bulk of these quantities were imported during the period from January to August and that practically no further importations were made following that date owing to restrictions enforced at Dairen and Manchurian ports. Sulphate of ammonia imported during the year totalled 116,012 quintals the value of $2.1 million as against 68,081 quintals in 1938, 44,191 quintals in 1937, and 22,385 quintals to 1935. The principal suppliers were Germany, Great Britain, Belgium and Japan in that order of importance.

Due to the lessened incentive to smuggling on account of the reduced duty rates from February 1933 and to the hoarding by local smugglers, a large quantity of sugar was imported, amounting to 61,895 quintals valued at $2.08 million and showing an increase of 22,066 quintals over the 1938 figure, which latter was counted a record. Another remarkable feature of the year's sugar trade was that, while 26,652 quintals of refined sugar were imported from Hongkong as against 6,819 quintals from Japan in 1938, the figures for 1939 were 5,630 quintals from Hongkong and 45,564 quintals from Japan. This change is believed to have been due to the high exchange of the Hongkong currency, which raised the prices of Hongkong sugar to a level proportionate to those of the Japanese product. Shipments of sugar to Chefoo took place during the period between January and September, after which export restric- tions were enforced at Dairen. With regard to petroleum products, with the exception of gasolene which showed a decrease of 90,736 litres as compared with 1938, all kerosene oil, lubricating oil, and liquid fuel recorded satisfactory increases, kerosene oil advancing from 992,198 to 1,301,975 litres, lubricating oil from 513,264 to 728,710 litres, and liquid fuel from 1,402 to 3,050 metric tons. While the decline in gasolene was accounted for by the unrest prevailing in the hinterland, which brought almost all bus services to a standstill, the growth in lubricating and fuel oil was primarily due to the increase in the number of fishing-trawlers basing their operiations on Chefoo. The import of both linen and cotton penelope canvas for embroidery showed an appreciable increase, 572,247 metres of the former and 319,621 metres of the latter being imported in 1939 as against 321,138 and 194,677 metres respectively in 1938. The embroidery industry of the port was favoured both by the low exchange of the local currency and by the reduction in the rate of duty on embroidery linen from 12 per cent to 7 per cent, as already mentioned. Cotton piece goods, artificial silk floss and yarn, Korean ginseng, construction materials, and metals and machinery were further relegated to inferior positions.