Directory_and_Chronicle_1941 — Page 359

LUNGKOW

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those places along the bus lines while the hinterland remained in the hands of guerrilla forces. The lifting of the Japanese naval blockade heralded a resumption of steamer traffic between Lungkow and Dairen and a revival, in consequence, of direct foreign trade. After a lapse of seven months the Custom House was reopened on the 6th March, and simultaneously the new Import Tariff, 1938, of the "Provisional Government of North China" was enforced. The Federated Reserve Bank agency was established on the 1st June, from which date the new currency regulations became effective, national legal tender notes being subjected to a discount of 40 per cent in exchange for Federated Reserve Bank notes, the circulation of the former being entirely prohibited as from the 9th August. Despite efforts to maintain the value of the Federated Reserve Bank note, depreciation was great, money became cheap, and commodity prices soared, with the natural consequence that the trading public preferred to increase stocks of capital goods rather than hold the new money. This tendency led to an increase in imports, both foreign and coastwise. In July the "Provisional Government's" exchange control system was extended to all articles of export abroad or to Central and South China with the exception of those of insignificant nature; consequently, merchants having business tonnexions with Shanghai and Southern ports were constrained to carry on their trade on a barter basis,

The trade statistics of the port were as follows in value: direct foreign imports, $5.8 million as compared with $0.3 million during 1938; coastwise imports of Chinese merchandise, $5 million as against $1.5 million; direct exports to foreign countries, $0.5 million as against $1.8 million; and coastwise exports, $4,2 million as compared with $1.6 million. The increase in value under the heading of direct foreign imports was in large measure accounted for by the fact that imports of Manchurian produce, hitherto treated as domestic imports, were classified as of foreign origin following the introduction in March of the reduced tariff rates. Imports of beancake showed a marked increase from 12,645 to 136,227 quintals, of which 30,545 quintals were imported from Antung. Imports of beans totalled 99,368 quintals. Due to the food shortage in the interior, the year witnessed large imports of maize and maize flour, aggregating 45,852 quintals and 4,544,361 kilogrammes respectively, the foregoing items contributing over 83 per cent of the total value of direct foreign imports. Sugar advanced from 177 to 1,137 quintals, kerosene oil from 0.05 million to 0.32 million litres, and coal from 919 to 2,038 metric tons. All other imports remained stagnant. Coastwise importations of native wheat flour rose from 6,938 to 59,346 quintals, whereas rice declined from 6,679 to 4,853 quintals, and cotton yarn fell from 4,322 to 1,300 quintals. Articles under the heading of cotton piece goods showed an all-round increase, aggregating 7,013 quintals as compared with 1,512 quintals in 1938.

Under exports abroad, the export of vermicelli, the mainstay of the port" dropped precipitately from 19,250 to 870 quintals, while groundnut oil declined from 24,672 to 1,085 quintals, Hongkong remaining the sole market. Due to exchange restrictions, trade in these articles was diverted from Hongkong to Shanghai, but ultimately the products were transhipped to the former port. Fresh vegetables rose from 5,077 to 22,166 quintals, mats and matting increased in value from $20,441 to $157,065, while joss sticks maintained their previous level. Of coastwise exports, vermicelli advanced from 32,297 to 66,768 quintals, groundnut oil from 3,763 to 10,581 quintals, and straw braid from 53 to 1,086 quintals, Importations of foreign rice and wheat flour leaped from 39 and 8 quintals to 1,033 and 7,846 quintals respectively, while as regards coastwise imports, rice showed a decrease, but wheat flour exhibited a marked increase in comparison with the previous year's figures. As already mentioned, importations of maize and maize flour from Manchuria reached as high as 45,852 quintals and 4,544,361 kilogrammes as compared with 75 quintals and 62 kilogrammes respectively in 1938. Evidently the heavy importations reflected an acute food shortage as a result of a lean wheat crop.

Reconstruction of the Chao Yuan Ling Lung Gold Mine destroyed by guerrillas on the 7th November 1937, was being proceeded with during the year, mining machinery and building_material valued at over half a million dollars being imported from Japan. None of the small flour mills resumed operation, while other small factories operating on a small scale prior to the hostilities had either been destroyed or remained closed. The Lungkow Electric Power Company was

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