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the Chinese settler. This year the princes who still enjoyed vestiges of their former feudal powers have handed over their lands to the Government in return for bonds the interest on which will be paid them annually. No doubt these lands will be settled and brought under more intensive cultivation.

47. The main rôle of the Japanese, apart from officials, is big-scale manufacturing and trading, for which their restless energy well fits them. There is room then for all, and, so long as the individual Chinese refrain from provocative conduct, the racial dislike that undoubtedly exists need not be brought to the surface.

48. Friction there is bound to be. The higher Japanese civil officer has a strong sense of duty and takes a pride in the efficient working of his department. The lower official is on the whole equally zealous, but the less important his office the more overbearing he is apt to become. Particularly is this true of the police, in whom are vested great powers which are frequently exercised in very arbitrary fashion. The Kwantung Army also occupies a dominating position, and assumes duties and powers that are more properly the province of the civil government. Finally, there is in the Japanese civilian population a considerable number of pioneers who are little better than professional bullies and trade on the dominant position of their country. On the ability of the Administration to deal drastically with such men will depend its success in keeping racial dislike within bounds.

49. A possible source of future friction is the large-scale Japanese immigra- tion which has now been planned. This subject is important enough to demand a section to itself,

VII-JAPANESE IMMIGRATION.

50. Frequent attempts were made by Japanese to colonise Manchuria under the old régime. One and all ended in failure. Roughly speaking there were two reasons. One was the lower standard of living of the Chinese farmer. The other was the hostility of the Administration. Now that the second contributing cause of failure is removed, it may be that the first can be overcome.

51. The problem is not an easy one. The Japanese colonist has to face a harsher climate, totally different living and working conditions, and the competition of the Chinese farmer who is at home on the soil. As if these handicaps were not sufficient, he is to be planted in frontier and relatively out- of-the-way districts where he is subject to bandit raids. Clearly then he requires special assistance and protection. But since from Japan's point of view his settlement in Manchuria achieves the two-fold object of relieving rural depression in Japan and of creating a dependable bulwark against external, and possibly internal, enemies in Manchuria, it is only reasonable that Japan should take every precaution to ensure that he has a fair chance to make good. As far as possible this is being done. The initial cost of settlement is borne by the Japanese Government, facilities are given by the Manchukuo Government and details are handled by the Manchuria Čolonisation Company.

52. The scheme was initiated in the autumn of 1932. When the land had been paid for and marked out, pioneers were sent who made all preparations, the main body of settlers were next sent for, and, finally, their families were brought over. In this manner five settlements were made in the north-east salient of Manchuria between 1932 and 1937.

53. In the latter year there were 2,367 families and a population of 4,245 persons cultivating an area of about 7,500 hectares. The cost of settlement averaged 1,400 yen per household, so we may take it that the initial costs of the experiment are about 3 million yen. When it is considered that the Chinese settler costs the Government little or nothing, it must be admitted that the experi- ment is a costly one. If, on the other hand, the first settlers prosper, successive waves of immigrants can presumably be brought over more cheaply. The Japanese Government is reported to be vastly pleased with the results to date, and to be planning to settle 1 million households in the next twenty years.

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