MONTHLY BULLETIN NO. 15, DEPARTMENT OF ECONOMICS AND POLITICAL SCIENCES, AURORA UNIVERSITY

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• Publication Date: February 16, 1954
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CONFIDENTIAL
CENTRAL INTELLIGENCE AGENCY
INFORMATION REPORT
China
Monthly Bulletin No. 15, Department of 7conomics and
:Political Sciences, Aurora University.
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THIS DOCUMENT CONTAINS INFORMATION AFFECTING THE NATIONAL DEFENSE
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THIS IS UNEVALUATED INFORmAtION
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REPORT NO.
DOCUMENTARY
Available on loan from the CIA Library is a photostatic copy. of Monthly
Bulletin No. 15, dated February 48, prepared by the Department bf Aconomics
and Political Sciences, Aurora University, Shanghai. Chapter, titles are
as follows:
China's Foreign. Trade since the Victory.
The First Year of Revival of the Chinese Cotton Industry.
Three Large Iron. and Steel Works in. Shanghai.
Analysis,. with Comments, Of the New Regulations Governing the Renting
.of Houses (Concluded). .
.Coal Mining and Coal Policy in China 1938-1948.
The Chinese Cement Industry during the Year 1947.
_ANNEX
Methods for the Investigation and Collection of the Income Tax on
Profit-seeking Enterprises in 1948.
Table of the Starting Points and Rates of Taxation on. Incomes of
Various Classes for 1948.
Simplified Methods for the Investigation and Collection of the
Busines.?04on ShipPing Enterprises .7
nd-
itriar & ARRA COMM
D TR I BUT I ON/alo
STATE _XI
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s for the use within the USA of the Intelligence components of the DepartmentS far
4m4
ated above. It is not to be transmitte.d_oye -ettiFCAlaiblatatalfilie4W.Okii4 ?diA6,4' I. los/ Iv
on
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UNIVERS1TE L'AURORE
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FACULTE DE DROIT BUREAU DE DOCUMENTATION
ficatomis cuiNomil
ISCCTION DI SCIINCIIII
PO02100111 IT ICOM011121811
210 CHUNOKIMO NAN LLI (0101/11.)
TEL. 01711
MONTHLY BULLETIN
?
E.S. de BREUVZHY
Dean of the Department of iiconomics
and Political Scionces
Editor
Advisory Board
A. BONNICHON Dein of the Faculty of Law
K. THORNTON Dean of the Department of Sociology
A. SUNG CHIA-7j. Professor of Chinese Civil Law
MICHAEL W.Y.LEE .Research Assistant. Bureau de Documentation
JOHN T.S.CHEN Research Assistant. Bureau de Documentation
SECOND YEAR - Mo.XV ? February 20th. 1948.
Contents
-DOCUMENT MOS.
83. China's Foreign Trade since the Victory.
84. The First Year of Revival of the Chinese Cotton Industry,
85. Three Large Iron and Steel Works in Shanghai.
86. Analysis, with Comments, of the New Regulations Governing
the Renting of Houses. ?:concluded)
87. Coal Mining and Coal Policy in China 1938-1948.
STUDY NO.
XV. The Chinese Cement Industry during the Year 1947.
ANNEX NOS.
%LIZ. Methods for the Investigation and Colleotion of the
Income Tax on Profit-seeking Enterprises in 1948.
Table of the Starting Points and Rates of Taxation on
Incomes of Various Classes for 1948.
ILIV. Simplified Methods for the Investigation and Collection
of the Businels Tax on Shipping Enterprises.
SEE PAGE II & III
For three important notes.
1. On the Commercial Accounting Law:
Date of promulgation.
2. On the Rules governing the Application
of the Business Tax Laws
Revision of :.rt. 9 & 12.
3. On the Industrial Guild Laws
Transitional measures. -
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II
EDITOR'S NOTES
1. ON THE COMERCIAL ACCOUNTING LAW passed by the Legislative
Yuan on the 22nd. of December 1947 (see Monthly Bulletin
No.XIV - Jan1948. Annex XL)
It should be.noted that this Law was promulgated
by the Chinese National Government on the 7th. of January
1948 (tf. Weekly Review of Laws, Feb. 4th. 1948).
2. ON THE RULES GOVERNING THE APPLICATION OF THE BUSINESS TIC::
LAW promulgated by the Executive Yuan on the 4th. of August
1947 (see Monthly Bulletin No.X - August-September 1947.
Annex )UXVI).
A revision of Art. 9 & 12 was published by the
Executive Yuan on the 17th. of February 1948 (cf. Shang Pao,
Shanghai, Feb. 18th. 1948). The text of the revised articles
reads:
"Article 9. A business firm, subject to taxation
whether based on the amount of its receipts or of its profits,
shall, within five days from the end of every month, fill in
a Report for Assessment of Tax, setting forth the amount of
its business receipts or profits during the preceding month,
and submit it to the competent collecting office which sheIl,
according to the reported amount, fill in and iseue a
Notification of the Tax Based on the Reported Amount, request-
ing payment thereof. Also, within five days from the end of
March, June, SepteMber and December of every year, it shall
send its business account books as required by law to the
competent collecting office for auditing. /f the auditing
shows that the amount of tax already paid does not correspond
with the amount payable for the three preceding months, then
a Notification of Assessment Based on Auditing shall be filled
in and issued requiring that the deficiency be made up. If a
false return has been made with regard to the amount of
business receipts or profits, punishment shall further be
imposed according to the provision of Article 21 of this Lair".
"Article 12. .The competent collecting office,
immediately after receiving the taxpayers' Reports for
Assessment of Tax as mentionedin the two preceding Articlas,
shall send officials to investigate and assess the amount of
tax to be paid, and fill in and issue a Notice of Investiga-
tion and Assessment requesting payment".
3, ON THE iNDUSTBIAL GUILD LAW promulgated by the Chinese
National Government on tie 27th. of October 1947 (see Monthly
Bulletin No.XII. Nov.104". Annex XXXII).
According to a despatch from Nanking dated Jan.
26th: 1948, published in Shang Pao (Shanghai), Jan. 27th, 1948,
the Ministries of Finance and Economic Affairs have recently
MONTHLY BULLETIN No. XV - February 1948 Editor's Notes
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jointly laid down transitional measures for facilitating the
settlement of matters relating to industrial guilds' these
will be effective until the promulgation of the Rules
Governing the Application of the Industrial Guild Law.
The essential points of these measures are as follows:
1. Important categories of industries, pending
a new classification, shall all comply with the old one.
2. Industrial guilds already founded1 shall be
governed by new laws only after the promulgation of the Rules
Governing the Application of the Industrial Guild Law and the
new Factory Law.
?
3. Both the organisation of new industrial
guilds now in process and the standards for examining memberdo
qualifications shall be governed by the new Industrial Guild
Law the'. that of Oct. 27th. 1247).
4. On the day when a factory or industrial guild
which complies with the provisions of the Industrial Guild
law, joins an industrial association, it shall cease to
belong to any chamber of commerce.
5. From the day of the founding of an association
organised in conformity with the Industrial Guild low, all
faotories and trade guilds whioh do not comply with the
Industrial Guild Law, shall either join it or organise their
own local commercial guild.
6. The title of a newly organised regional guild
shall begin by the name of the place where its business office
is boated.
(2nd )
MONTHLY BULLETIN No. XV - February 1948 Iditoes Notes .
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1
IV
The MONTHLY BULLETIN ib edited by The "BUREAU DE
DOCUMENTATION" of the Department of Economics and Political
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Part of the work of the "BUREAU DE DOCUMENTATION"
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economic and financial points of view expressed in articles in
the Chinese reviews. A certain number of these artioles are
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full translation or in the form of digests.
?
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written from widely divergent points of view the BULLETIN
summarizes these points of view under the name "STUDY, No...."
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? Though the selection, translation and summar-
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Topic 1 China's Foreign Trade Document No. 83
since the Victory. Natures Digest.
Authors Plea Shan. Number of pages:
Periodical: The New China Magazine
OWin Chung Hwa)
Date of Issues Jan. 16th. 1948. .
CHINA'S FOREIGN TRADE SINCE THE
VICTORY
The foreign trade of China since V-J Day may be divi-
ded into two stages: free trade in 1946 and strict trade control in 1947.
Despite their difference, these two stages share a common features o.1
the one hand, the import of foreign goods experienced a tremendous im-
petus owing to extreme shortage of materials resulting from war dev:-..:
tion, while on the other hand decreased production and soaring commodity
prices formed a great hindrance to the export trade.
,We shall mainly consider foreign trade problems ane
policy in 1947 but in order to have an adequate picture of them a few
words should- first be said on foreign-trade during the year 1946.
I - Foreign Trade in 1946.
The total amount of imports in 1946 was
ON. 1,501,200,000,000, while that of imports reached only 02$412,100,000,0V0
(the imports being 2.7 times as high as the exports) thus showing a triv6
Ca deficit of ON 1,099,000,000,000. These did not include smuggled goods
and WARRA's On 399,200,000,000 relief supplies. Converted into U.S. cur-
rincy the 1946 trade deficit was about US$ 382,000,000.
It should be pointed out that 57% of the imported
goods came from the USA; India taking the second plaoe with 8.75 % and
U.K. the third with 4.9%. USA also led in exports, with about 38.7% of
the total figure, followed by HonLong, 26.2% and then U.E. and USSR.
The IMPORTS in 1946 came under 32 groups among Whioh
seven aocounted for SO% of the total value:
(1) Raw cotton, cotton yarn and cotton thread.
CN, 336,900,000,000 22% of the total import.
?
(2) Candles, soap, oils, fats, waxes, gums and resins.
CN$ 174,000,000,000 12% of the total.
'or
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.1.
(3) Miscellaneous metal manufactures.
CPI 97,900,000,000 7% of the total
(4) Paper, maps and books.
ON$ 95,300,000,000 6% of the total
' (5) Machinery and tools.
Cli# 76,300,000,000 5% of the total
(6) Dyes, pigments, paints and varnishes.
On 61,300,000,000 4% of the total
(7) Sundry.
Clif 79,500,000,000 5% of the total.
The leading id:- .dual items were cotton, automobiles,
gasoline, medicine and drugs, tobacco, newsprint, fuel oil and ohemdcals,
The EXPORTS in 1946 came under 31 groups among which
ten a000unted for 80% of the total value.
(1) Animals and animal products.
CN$ 87,800,000,000 21% of the total export.
(2) Ogls, tallow and wax.
Ca 71,400,000,000 17% Of the total
(3) Textile fibres.
02# 39,600,000,000 9% of the total
(4) Ores and Metals.
CPI 23,200,000,000 6% of the total.
(5) Hides, leather and skins, (furs).
CP, 23,100,000,000 6% of the total
(6) Medicinal substances and spices
02$ 16,600,000,000 4% of the total
(7) Piece goods.
ONO 16,200,000,000
4% of the total
(8) Tea
ON# 15,300,000,000 4% of the total
(9) Yarn, thread and plrited and knitted goods.
CH/ 13,400,000,400 4% of the total
(10) Sundry
ON# f11,500,000,000 5% of the total
Among the individual items, the most important were
wood oil, 011$ 67,998,000,000; bristles, CPI 67,004,000,000; raw silk,
CMS 32,000,000,000; tea, CM# 15,-300,000,000; salt, CN$ 8,500,000,000;
erosestitch work, 014 8,200,000,000; weasel skins, ON# 8,000,000,000s
tin, 011$ 6,200,000,000; tungsten ore, CPI 6,900,000,000 and hair nets
ON$ 5,700,000,000.
The abnormal development of China's foreign trade as
seen above can be partly explained by the erroneous policy pursued by
her Government. At the end of the war, the Chinese Government Which hre
US$ 900,000,000 at its disposal should have been able to revitalise thc
national eoonomy by importing large quantities of machinery and by launch-
ing an export drive. But the authorities carried out a wartime policy
of dumping commodities, aiming at low prioes and especially at a low rate
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cf foreign exchangc. an exchange rate of CN $ 2,020 to US# 1 was maintain,-
ed from Larch to September 1946; and a rate of 3,340 tc 1 from Septer-ber
1946 tc February 1947. This was definitely favourable to importers who
obtained foreign goods et a low exchange rate and sold them at exorbitant
ericej. On the contrary export was being strangled, for after converting
the foreign exchange into Chinese cerrency, the exporters inevitably suff:r-
ed heavy losses. As has been said, the deficit in China's internatienal
trade balance reacaed US# 362.,00C,000 in 1946. Meanwhile, overseas rt.
tancee barely touched the US$ 31,000,000 level; and if we take into re:count
the expenditure for overseas dip2cmatie services end foreign exchange for
private uses it can be fairly estimated that China's deficit in intereetion-
al payments for the year of 1946 was ober US # 500,000,000.
It was in such circumstances that China's trade policy
began to turn from the "laissez faire" attitude to strict control, from
extreme lavishness to extreme thrift with the establishment of the Import
and opert Con:sass:ten at the end cf 1946.
II - Broad Lines of Foreign Trade
In 1947.
When the in pert quota system promulgated in the ? a-
',Jim of 1946, was enforced at the beginring of 1947, the foreign trade,
...gina came under strict control. This was scon followed by the premLl.r.-
tion in February 1947, of the Economic Emergency Measures prohibiting
blaqk market transactions in foreign exchange. Henceforth, all impoze
name ender the control of the Import Control Commission while exports w
submittd to the EXport EXtension Beexdi these two organizations bei17.
latei reorganized and combined into ;he Import and EXport Control Cor
sion. It was under such management that foreign trade began to show a
marked decline.
(Pub
Chinas Import and Export Values During
the Period from January to October 1947.
lished by the Office of the Inspector General
Month
Imports
of the Customs.)
( Units CM#1,000)
:Exports Trade Deficits
Ratio between
Import & Export
(airport = 1)
January
150,625,438
48,476,330
102,150,099
3.11
(-)bruary
216,888,781
81,882,144
135,006,637
2.65
larch
430,060,012
144,985,432
286,064,580
2.97
April
520,461,737
210,922,464
309,539,273
2.47
May
521,392,762
415,131,864
106,260,898
1.26
June
532,461,420
266,708,150
265,753,270
2.00
July
721,638,348
236,961,257
484,677,091
3.05
August
938,510,954
478,098,595
460,412,359
1.96
Sept.
1,440,528,398
285,725,778
1,153,802,620
5.(e
Oct.
1,746,766,278
530,040,429
1,216,725,849
3.60
Totals
7,219,324,128
2,699,931,452
4,519,392,676
As the period in question witnessed a oontinued
depreciation of the Chinese currency, it is advisable to convert the fore-
going data into U.S. currency in order to arrive at more comparable figu-
res
PPE.
MONTHLY BULLETIN No. XV - FcalxuRry 1948 - Document 83 - Page 3
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China's Import and Export -Values
in US dollars
Jan - Oot. 1947
(Unit t LA.1$ 1.)
Month
Imports
Exports
Trade Deficit
January
44,696,692
14,384,572
30,312,020
February
43,008,045
16,237,229
26,771,816
Maroh.
35,251,199
11,884,456
23,366,733
April
42,622,248
17,289,314
25,372,934
May
42,738,565
34,028,359
8,710,206
June
43,645,863
21,862,067
21,783,796
July
59,152,695
19,432,714
39,728,981
August
23,978,955
12,215,419
11,763,536
September
25,678,991
6,838,409
18,840,582
October
32,210,370
9,773,945
22,436,435
Mote s The following rates
Januarys
Februarys
March-Julys
August-Novi
have been taken as a basis s-
CN$ 3,360 to US#1.
Average of 3,350 to 1 and 12,000 to 1.
12,000 to 1.
Average of rates as announced by the
Foreign EXohange Stabilisation Board.
From the two tables above, it can be seen that exd its
in Jan-Oct. 1947 were at CH.2,699,900,000,000, whereas the oerresponii.47,
imports were at CN I 7,219,300,000,000, making a trade deficit of 011$4,L19,
400,000,000. If converted into US ourrency, import values during the 9a-
riod from January to October amounted to approximately US$393,0001000 and
export values for the same period about US$164,500,000, allowing a deficit
of about 138$228,500,000.
Now during the corresponding period (Jan-Oct.) in 14404
the imports reached 138$490,000,000 and exports US$ 78,000,000, with a den*
cit of 138$412,000,000, so that the combined import and export in Jan-Oct.
1947 (U811557,500,000) was reduced by US$10,500,000 if compared with 1946
(US$ 568,000,000)1 export being inoreased by U8$85,000,009 and import res
duoed by 97,000,000 with the trade deficit dropping by US$186,5006000.
On an average, import was only half as muoh in 1947 as
c for the porresponding months. in 1946s
(Unit s US$ 1 )
1946
1947
April
46,000,000
42,000,000
May
44,000,000
42,000,000
June
68,000,000
43,000,000
July
59,000,000
August
.111,000,000
59,000,000
23,000,000
8eptekber
73,000,000
25,000,000
October
68,000,000
32,000,000
It should be noted that the above statistics aro far
from showing the overall picture of Ohinais trade oonditionss as they do not
include smuggling, both of imports and exports.
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The imports in 1947 comprise two partes imports
under the quota system, and imported goods paid with fereign =ohm.*
not provided by the Government.
to October 1947
Items
Cotton
Fuel Oil
Gasoline
The following table shows the imports from January
(Unit: CN$ 1,000,000)
Value Items Value
1,555,970 Sulphur black 94,763
323,753 New gunny bags 86,702
302,812 Chemicals n.o.p.f. 83,167
Tobacco
233,051
Prime movers
80,004
Rice
185,494
Medicine & Drugs
70,647
Machinery n.o.p.f. 185,494
Wooden planks
67,036
Kerosene oil 178,494
Caustic soda
65,883
Looms
174,061
Lubricants
66,64:6
Rubber
162,289
Automobiles
64,619
Wheat flour
144,585
RR sleepers
60,903
Iyestuffs
139,374
Tires & inner tubes
63,139
Printing paper
125,256
Round softwood
68.937
Wool
1220.87
Steel bare for reinforced
conorete
67.012
L000motives
107,273
Rails
66,896
Truoks
105627
It may be seen from the above data that in 1967 as
in 1946, cotton, gasoline, fuel oil, tobacco and rice continued to be t.0
largest import items. This was due to the enforcement of the import gees
ta system, which was based on the import figures of 1946.
The total import quota for 1947, announoed in quartir..
amounted to US$ 293,550,000. The following table indioatee the breakdowir"
of the figures,
.Items
Gasoline, fuel, oil, kerosene oil
Cotton
Rice, wheat, and wheat flour
Tobacoo
4'
temp and gunny bags
`.-Coal and aoke
Metals
Chemicals
Paler (including pulp)
Timber
Wool and woollen thread
Artificial indigo, eulphiden & dyvatuffe
India-rubber, gutta-peroha and manufac-
tures thereof
Lubricants, oils, fats & waxes
Machine belting, starch and other mate-
rials
Ammonium Sulphate and other fertilizers
Artifioial silk (raw materials)
Medicine and drugs
Value (Units US$ 1,000)
49,170
80,000
41,000
26,000
6,000
2,000
13,000
9,000
16,960
7,830
.7,400
9,100
6,100
6,860
1,066
4,000
2,260
1,800
TOTAL p84.526
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Cotton, liquid fuala,r-t-obac-co, rice and foodstuffs
represented 67% of the whole import quota, or US$ 196,170v-00hcreal
other 14 itewe of?t-Annt,.141.1._xaw materials received_ only 33%.
It must be pointed out here that import quotas assign-
ed for the different periods of 1947, rapidly diminished: first quarter,
US$ 99,000,000; second quarter, US$ 72,000,000; third quarter, US$67,000,C0C
and the fourth, US$ 53,000,000.
,The quotas for the first three quarters of 1947 (Jan-
uary - October), aggregated US$240,000,000, whereas the total import umounte?
to U8$390,000,000, making a differeo.:J of US#150,000,000. Of this latter -
figure, it is estimated that U8#70,00G,000 worth of goods were imported in
January s.nd April by means of foreign exchange from private sources. Im)xts
outside the scope of the quota comprised the following oategories:-
1
1) Productive Implements ) No limit was laid ,Th..
on the import of productive implements and application might be submittec it
rny tine. It was however very hard tc secure permits for items of a
( foyer US$10,000. Loom:, prime movers and other machines were among
most important productive implements. These machines delivered in 1S,.7,
in fact ordered in 1946, zo that strictly, speaking-they should not hn-i_ c7
listed among the figures for 1947. ?
? 1
2) Daily Necessities ): Articles under this c-.1:::-
gorr inolliaed woollen textiles and other miscellaneous items.
2)
3) Articles imported under the Baiter System :
Especially to be mehtioned are railroad sleepers, lo-
comotives and rails, mostly originating in Japan. These occupied a very
large part of the US$150,000,000 worth of goods imported outside the scope
of quota. ?
It is probable that a part of the artioles listed in
Schedule II of the Provisional Measures governing the Import and Export Tra-
des, was also paid with foreign exchange not provided by the Government.
The import of goods against foreign exchange from pri-
(Ito sources was prohibited :after August 16th 1947, and at the sane time
registration of such goods started. According to the Import and Export
Control Commission, goods thus registered amounted to a value of US$41,000,000
1) EDITOR'S NOTES: cf. Schedule I of the Revised Provisional Measurea
governing the Import and Export Trades, promulgated by the EXeoutive
Yuan on the 17th of November 1946.
1) c.f. Schedule M.A. of the Revised Provisional Measures governing the
Import and Export Trades.
2) These are listed in Schedule I.
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, of which industrial equipments in Schedule I represented 11644+240,000;
industrial raw materials in Schedule 1.1..-418536-,.5.60_,P00,Euld daily ne-
esi i ties in'11EIS2_160,3100.
We must point out the unsoundness of the import
quota system carried on by the Government. The whole volioy was dicta-
ted either by the necessity of cutting down disbursements in foreign am.
change or by the desire of assuring revenue for the Treasury. Generally
speaking, the quota was based on the import figures of 1946, with only
a rise by 100% in the import of gaaoline and liquid fuels, and some slight
increases in foodstuffs and coal. But the major part of theee latter
items were destined for military uses. Half of the imported cotton,
also, was under Government control. The quota accorded to tobacco may
be said to have aimed at maintaining the Government's revenue from cus-
toms duties and taxation on cigarettes.
The fact that only 33% of the total was appropria-
ted to 14 items of industrial raw materials and equipment, is eloquent
evidence of neglect on the part of the authorities regarding the fate of
home industries. The quota provided not more that 30% of the raw mater-
ials required by the rubber Industry, 14% for the woollen textile indus-
try, 10% for the paper industry and 5% for the match industry, so that
an average only 20% of the required raw materials were supplied. Jo
priority was granted to industrial equipment such as looms and other
machines, which were nevertheless indispensable to laying down a squid
foundation for the industrial production of this country.
It may be mentioned that one of the results of
the Government control of the import trade was the elimination of me-
dium and small import merchants, since they were not eligible for reoei-
7ing allocations in import quota. All import transactions were there-
fore oonoentrated on the hands of large firms many of which were opera-
ted by foreigners. Por instance 90% of the tobacco import quota and of
the gasoline quota was accorded to foreign firms. This tends to a monde,
polisation of the import trade.
We should remember, also the nefarious reper-
ousaions on commodity prices caused by the rapid diminution of import
quota q for the various quarters and the prohibition in August of import
against foreign exchange from private sources. In the price rush in
September and October 1947, chemicals which are important industrial
raw materials,, seared twice as fast as any other goods and were respon-
sible
for the rise in many finished manufactures, textile products and
metals.
IV - Export Trade and Policy in 1947.
The value of' the various exports from China
eUring the months of Jermary-03t:.ber.19-.7 was as follows :
Items
.
Wood oil
Bristles
Pigs
Tea seed oil
Wicellaneoue cotton
piece goods
Salt
Fine cloth
Cotton cloth
Sugar
Poultry
Unit :
Exported from
China
CN$ 1,000,000
Exported from
Shanghai
419,663
172,404
256,977
72,088
187,667
---.
160,148
12.700
80,505
6,100
71,566
4
62,481
62,066
54,121
54,121
53,,;,:6
45
98,091
8
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Items --Mcported from
III! 11190 111!Ipsf !, ,
--(.0cust.inued.)
----_,Exported from
**.sehabgbai--
Silk piece goods (mixtures)
46,913 -
96,809
Shelled groundnuts
39,988
13,572
Green Tea
36,548
25,586
Tin ingots' and slabs
36,319
836
Fresh eggs
33,818
21,610,-
Tungsten ore
30,722
26,224
Antimony
27,773
14,688
Medicinal substances
25,534
6,431
Fresh fish
21,666
141
White raw silk, steam
filature
19,662
17,521
Nankeen
19,102
18,329
Converted into US currency, the value of the month-
ly export of some of the main items from January to July was as follows:
d
Items
Jan.
Feb.
March.
Unit s US$ 1,000
April May
June
July
Wood oil
3,518
4,635
3;273
4,230
9,696
6,200
4,01.
Tiristles
2,996
4,012
1,969
2,005
7,039
3,903
3,29
( .iece goods
754
1,624
1,044
1,490
2,473
1,877
1,173
Silk
-759
3,372
444
441
4,253
241
199
TUngsten and
antimony
1,497
4247
863
781
742
617
;-,95
Tea
251
3,038
381
498
1,062
823
167
? Oils and waxes (including wood oil), were the big-
gest export-item, making up 24% of the total export. Animals and animal
products followed, and piece, goods occupied the third place.
The exportation of WOOD OIL in 1947 showed enor-
mous progress over the preceding year. In 1946, the export volume was
merely wow tons as againat a prewar annual average of 70,000 tone. But
in the months from January to November 194?, 'it was already 61,000, and
as a probable 4,000 tuns more were exported in December, the total export
of wood oil in 1947 almost reached the prewar level. Thin improvement
was mainly due to the fact that the price demanded by the Chinese produ-
cers having been lowered, Americans found it cheap to use Chinese wood
(lil and imported 50,000 tons from China in 1947, which wss equivalent to
-,W6 of her annual consumptiob.
On an average, one pound of wood oil was worth
US$0,25,-so that China's income from sale of wood oil amounted to US$.
33,000,000 in 1947. Two thirds of this figure were controlled by the
Government while the other third represented smuggling through Hongkon.';.
/ The management of wood oil is tending to beco.1, --.
- monopoly. The China Vegetable Oil Corporation and the Central Trust aav.
become two of the biggest dealers. For instance, during the months Mz.y-
October 1947, of a total of 9000 tons of wood oil exported from Shanc17-i,
2,078 short ton:a-were sold by the China Vegetable Oil Corporation; 2,000
short tons by - T.- Sit-',-Co.,1 800 long tons by the Central Trust; 917
short tons by Ku Keng Ghl_Co., 1 63-: short tone by Shang Li Co., ; 530
short t:ns by Ho I Co., s 300 short tons by Nn Chung Co., 1 144 short tc.r.s
by I_Sheng Co? 1 44 short tons by...EU Chiang Co., ; and. 2,000 tons by six
c,thor firms.
gsigjaut owing to their low production oost, "ecu-
pied the second rank in export items. According to the US Department of
Commerce, China's export of bristles in the second quarter of 1947 was
around 2,000,000 pounds with a value of about US$ 7,596,000. The US
Consul General at ChUngiipg did not however receive any export applica-
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applications in the first half of 1947, and only a small quantity was
exported from Tsingtao. -"Th.--.explanation is that half of-the brist2e1
were smuggled_listeLliengkong, and. imported--thenee.
According to the 8Sechwan Animal Products Compnny,
the annual output of bristles for 1947 was about 7,000,000 pounde, a
little below the prewar level. About 4,000,000 pounds could be expert-
ed.
The transactions on INTESTINES were very meagre, al-
th:ugh this also used to be an important animal product for export in
prewar days. As a matter of Plot, since V-3-Tlay, the high price of in-
testines at home, has paralysed any attempt to export large quantities.
It has been reported that in the month qf October 19 els
were?available for export. But this, figure wa y insignificatAt :3
against a prewur annual export of 10,000 ba els (approximate wort;:
U8410,000,000).
The export of TEXTILE FABRICS struck a new nott. in
1947. The volume of their transactions was -equivalent to between i/4
. and 1/3 of that of wood oil. Before the Nar, Chinese cotton yarns and
cloths were sold only in the South Seas. But einoo V-J Day., the
Textile Industries, Inc. has been making exertions to export huge
_ ities of cotton good, in exchange for Indian and American raw oott .
? It has been rather disquieting for China, however, to see the recon:
dusping of Britj.sh made piece goods in the South Seas and also to f..1
onoe more the fierce oompetition of the Japanese textile industry in
_.'the same region.
? Brom January to November 1947, 3,965 bales of RAN
SILK were exporteds 1,600 bales to USSR in payment, for a debt, 1,200
to U6A and 1,000 to India. All these exports were made by the Centrrl
Trust which had firet-madJuiturehaa.ea._from silk producers in the country.
The export of Tar, ANTIMONY and TUNGSTEN diminished
each month. From a monthly export of US#1,490,000 at the beginning of
the year, it dropped to US$390,000 in July which was lee, than 1/3 of
the early volume. The National Resources Commission purchased these
minerals for export. But as the price it offered was too low, the major
part of the export was 'done by smuggling through South China.
1
The export of TEh in 1947 ) outstripped that of
1946, but still lagged far behind the prewar volume. luring the months
from January to August 1947, altogether 96,402 quintals, i.e. 21,000,000
pounds of tea were exported, as against 69,000 quintals in the who1,2 v(3r
of 1946 and a prewar annual average of 484,000 quintals. It should
pointed out that the dxport of tea in 190 and 1947 inoluded both old
and new tea, since the actual tea output 1) in these two years was only
28,000 quintals end 50,000 quintale.
3.) EDITOR'S NOTEs For other details conoerning the production and
export of tea in 1947, see Monthly Bulletin No. XI. (Oct. 1947).
Document he. 65. -'Chinese Tea Trade And Foreign Akobang. Regula-
tions". pp. 1,2 and 6.
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Beftee the war, China used to hold a privileged reeftien
in the werld tea eeeest. But tteetion has coppletely chanet,:. et
' present she pr:duc_s aneeetly eeeuf3,000 pounds of black tea, which is
negligible in the face of a hue.: Annual world consumption of 800,WO,J00
pounds of black tee, Vti of which are being sepplied by Java, Indie,
Ceylon and East Africa. China hae alet lost her monopoly in the green
tea market in the Middle East and Fcrth Africa where she has only been
able to sell approximately 4,000,000 pounds in 1947 as aminet the pre-
war annual average of 20,00(,000 pound. In prewar days, 20,000,000
pounds of tea bricks werc seld to Russia annually. This figure hsvever
dr:pped to a mte 300000 pounds in 1947.
In uneearising the eboVe,.it mhy he said that on the
whale the exp:et trade in 1947 shewed some progress over the prece iie
year; and in some itees steed :Al especially) it even approeche
the prewar level.
It shoule be obeerved however that in 1947 as in
the Government's ftraicn exehange policy lontinued to mar the nereal
development ;.,f the exere.t cusiness. The Beverament maintained a low
rate of exohange and demanded that all foreign exchange secured fr.a.
exports be surreelered to the General Banks this made it impossible
tor private firma %r txpert without sustaining eonsiderable ices. '
export of home products became profitable only when the oxchanee let.;
was high. For instance, when the Government reVised the exchange r t:
to CB412,000 to USi)1 in Abrunry 1947, exports started to move an riech-
ed a peak in May. However, after the skyrocketing of commodity prices
in the months of April and May, the official and blaok market exchen-e
rates fell apart again ; the difference being 60% in April and 10ee';io
May. Later, it jumped to 20(% and 30y% in June and July, so that ex-
ports continued to deeline in June, July, August and September. Octo-
ber showed the influence exerted by the introduction of the open market
exchange rate. Yet as commodity prices began to rise and the new rate
remained unohanged, the official nd bleak market rates again began to
fall apart and another decline in export was experienced. The month of
December, brought the hardest trial. For example, wood oil, Obi Rune)
was priced at CA.12,40G,000 per barrel in China whereas the quotation in
New York was only U80.21 per pound which was lower than the domestic
price. Bristles were quoted at CN423,0CC,000 per Tan ') in China and
U8e1.80 per pound in New York. The cost of 50 kg. of tea was C1143;0e0,
00e in China, but the some quantity of tea could be sold at U84.- in
New 'York, which ocnverted into 0Ne according to the "open market" ex-
change rate, was only 1/5 hieher than the home price.
Undee such eircumetences, exporters ootild make pr-fits
only through smugeline end other fraudulent or irregular means. 8 me
merohente smueeled Goode out of the oeurtry through South China, ani
sold the foreien exchange they obtained on the black eerket. Other ex-
porters, heving sold their goods pretended that their agencies abroad
had not yet sold them, thus delaying the surrender of their foreign ex-
change until a new revision of the exchange rate. Others still, ree:rt-
ed the price at only 1/2. of the actual selling price, so that only 112
of the foreign exchange secured from their export was to be eurrenier_'
while the other 1/2 could be sold.on the black market.
1) EDITORIS'NOTEI 1 Tan = 60.478 kg. or 133.3 lbs.
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.
In order to counter sucA fraudulent Manoeuvres on the
part of exporters; the Central Bank of China declared its resolution
strictly to enforce the old order that all export goods must be sold
within three months after application for their export or else the goods
would be purchased and then sold at low prices by the authorities. Mean-
while, the Import and Skport Ccntrol Commission demanded that all appll*
cants for export should first rtoTor-t-41e_ u.glatiana--64-misttirtlitirireri --
willing to sell their products abroad. IT the reported prices were
found to be too low, the goods would be purchased by the Government at
those prices. Needless to say, these measures helped to bring more Of
the foreign exchange from exports under the control of the Government;
but they could not but adversely affect the export trade.
It may be added that a State monopoly of the export
trade seems to be on the way. Before AUgust 1947, the Central Trust
has already purchased wood oil, bristles, raw silk.and tea from the
producers. Though this practice has temporarily been disoontinued, ?
there is all likelihood that the Government is now considering an over.-
all plan on purchases for export, in order to augment its income in
the much-needed foreign exchange.
' V. International Payments in 1947.
Let us finally r..iiew the trade haleness and other
items in the international payments of China during the year 1947.
As the imports and exports from Jan. to Oct. 1947
amounted to U84395,000,000 and US4 164,500,000, their totals for the
whole year may be estimated at about U84478,000,000 and U84200,000,000
respectively, showing a trade deficit of approximately U84 278,m0,000.
Of the total import figure of US.) 478,000,000, the
Government paid US*, 293,00O,006 (quota for the 4 quarters) plus about
U84 57,000,000 (a part of the imports outside the scope of quota under
Schedules I and III-A) while the remaining US4 128,000,000 steed for
the value of bartered goods and imports against foreign exchange from
private sources.
The import figure stated above does not, however,
17 include UNRRA supplies Which amounted to 0243,000,000,000,000 or
U84 270,0u0,000 in the period Jan-Oct. 1947.
Besides trade balances, other items of internetional
payments in 1947 deserving our attention, may be stated belows
(1)
11
On thl DEBIT side s
Foreign exchange spent by the Government for
purchase of eupplioc and oversose diplomatic)
services $
Payment of foreign debtss
Private uses, e.g. students s
On the CREDIT nide
(1) Remittances from overseas Chinese i
U84 100,000,000,
U84
5,000,000.
U84
5,000,000.
? U84
10,000,000
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The figure fur _remittances is only an estimate. On
aocount of the revision of the official foreign exchange rate in
February 1947, remittances from overleae Chinese augtented greatly in
Desch and April, and the Bank of China received U845.610,000 during the
monthe January-July. Similar increases were witnessed after a new revi-
sion of the exchange rate in AuGust. But it may be presumed that the
Bank of China could hardly have received more than U8410,W),000 in
1947.
Foreign exchange spent by foreigners in China is not
taken into account"sinos for the most part it escaped the control of
the Chinese Government. For instance foreign erbassies and consulates
usually sold their foreign exchange in the black market.
In view of the above, China's international payments
for 1947, under the control of the Government, may be summarised as
followes
'(Units USv1,01,000)
DIT CREDIT
Import
478
Government imports and
diplomatic services
100
Debt payments -
b
Private uses
5
Imports under the barter
system or paid with fo-
reign exchange from priva-
te sources 128
xport 200
Overseas remittances 10
Balance 250
Total 31E =
114 may now figure out the amount of foreign exchange
still at the disposal of the Chinese Government at the end of 1947. As
has been said, on V-J Day, the Chinese Government had at its disposal
U841 900,000,000. Its disbursements Gino? then have been as followes
August 2.045 - March 1946
March 1946 - February 15, 1947
February 16,1947-December 31,1947
U8464,200,000
U81,4288,000,000
U84 250,000,000
Total ...U84602,200,C00
It may therefore be estimated that the Chinese
Government-held only about U80'300,000,000 at the end of 1947.
.
SO M11011 for international payments under the Govern-
mentos control. As for smuggling and clandestine remittances from
overseas Chinese, only a rough esz.imato can be made. Smuggled imports
during the year 1947 totalled about U84 90,000,000 whioh was equivalent
to SO% of the legal import figure for the same year (U84 478,000,000).
Smuggled exports in 1947 came near to U84140,000,000 or 70% of the legal
.export volume (U84 200,00O,000); 1/5 of the wood oil and 1/9 of the
bristles exported from China being smuggled goods. Remittances from
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oversead Ohinasa 'soaping Government controli approximated to
U81; 140,000,000 for the Whole year 01-1947. The balance *as therefo-
re favourable for China, ea is shown in the fo1lesia2-4ab10
(Unit I U84 10.614900)
DZBZT-NADU
Smuggled igports
90
Snuggled exports
140
Balance
170
Clsndeetine overseas
remittances
120
Total
260
. Total
260
Amtax BULLITLX No. X9 ...February 1948 ? Document 85 Psitte 13.
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4:::
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4.146044...
044.610.40eliaigrior
UNIVERSITS L'AURORE
-.8hc.nghai-
- BUREAU LE DOCUTATION
(Economic Chinoise)
280 Chungking Nan Lu (Bubeil)
Tel ,r 761
-------
Topics
Author:
Periodic,A;
Date of issues
The First Year of Revival Dooument Woo 84
of the Chinese Cotton Mature' Tr%nsle!.tion
Industry . slightly abridvd
Hu Ohing-lieng Number of pngess 12
The Textile Neetly
(Fane, Chill Chou ;Van)
Jc.n. 17th. 1943.
THE FIRST YEAR ul REVIVAL OF THE cilb(bii
COTTON INUUSTRY
(4 record of result'S obt-T:ined under the
monagement of the Improvement Bureau. of
the Ministry of Agrioulture nnd Forestry)
Introduction.
Thu production of cotton in Chino reached a peak of
17,000,000 shih tan I) in 1936. After 1937, most of the cotton
growing areas having fallen into the hands of the Japanese, the
production dropped considerably, awounting only to 5,000,000 shih
tan in 1945. Thus, during the night years of war, the production
of cotton decreased by 44,1000..-0 shill tan, equivalent to the total
produotion of four prewar years.
According to the eetimate of the Chinese Cotton
mill Association, the total area using American seed in thie country
was 4,700,000 shill mows 2) With a total output of 1040,0u0 shill
tan of raw cotton in 1922; about 11,0u0,000 shill mow and 3,780,000
ehih tan in 1930; 16,900,000 shill mow and 5,710,000 shill tan in
1933 and 25,490,0o0 shill mow and 8,890,000 shill tan in 1935. It than
represented about 52% of the nation's cotton crop, and in sue'
provinces as Hopeh, Hupeh, shantunb, Shensi, Shansi and Hunan, it
oocupied an area three times that of the native cotton. Now,however
the situation has changed completely owing to the Sino-Japanese
oonfliot. During the war of resistance, though there was some
inorease in the production of American cotton in various provinces of
Free China, this was by no means considerable on account of the
1) One shill tan = DO. kg. or 110.23 lbe.
2) One ohih - 6 64 ,-r:c 1; 1.1G476 acre.
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II A
limited cotton areae-coma.erned. In therefialds...lieanerey hands the
decrease was general. In consectuanoe the proportion between
native and american cotton producei in this country has now been
completely altered.
This situation cannot but react unfavourably on
our cotton industry which suffers fr.= both the insufficiency of.
raw material and its poor quality. Since all the enezy cotton
mills hare been taker over, it is estimated tlu.t China requires
yearly auout 11,000,000 shih tan of cotton for its 4,500,000
epindles. This, however, doss not include the amount needed for
hand spinning and wadding..3efore 1937, the Chinese mills
throughtout the ccuntry spiened eainly lu count cotton yarn, and
during the war of resistance, all the milia located in Free China
were spinning counts below 20. Now 80% of the mills have been
spinning 80-. count% whicn is better suis4d Ao internal needs as
well as to the requireee...ts of the oouth oea Islands' market. In
consequence Lost of our raw cotton is no longer suitable and.our
post-war cotton productien is not in a position to meet the cemand
either quantitatively of quelitative]y.
In "Outlines for the Revival of the Chinese Cotton
Industry", written by the preset author, a five-year plan was
drawn up the first three years-of which should form a reoovery stare
to restore a produotion of 17,000,060 tan, the figure of 1935. The
remaining, two years should be a period of further increase, aiming
at 80,000,000 shih now and a total output of 25,0...0,000 shih tan.
Dr. T.V.Soong asked the author to eomplete this five year prograLiee
within three years. AZ the situation of the country was still
uncertain and time was needed for the arrival of american cotton
seed, the concentration of technieal staff and the purchasd of
equipment, 1946 was sonsicered as a year of preparation only, during
whioh the projected increase of the nation's cotton area to 30,000,
000 shih mow and of production to 7,0o0,000 shih tan was achieved.
1947 was.the first year set for the revival properly so-called with
a proposed increese of cotton area up to 41,190,000 shih mow and
of production of raw cotton up to 12,600,000 shih tan. Before
entering on a new yeaes, work it is good to review briefly the
efforts already made and see what has been achieved -anu what remains
to be done.
Il.- Seed Selection.
1: acquisition of american Seeds.
with the axception of the native teed Cieh Teel, in
Hunan, the eseas distributed by the Cotton improveaent Bureau of
the iiinistry of agriculture end Forestry are mostly of american
type, derived from tin. followinr source.si
a) UNRRA supplied 64,052 bags of cotton scede or 52,276.26 ',hi,"
tan. ?
b) 49,519.81 shib tan of Dolfee and aten.ville-e?:eds were
collected from various 1;eis country.
e) A furt-eee emnent oi ileA-Js and Stoneville oame from Shensi
and Ozechuan where they had been extensively grown during
the war.
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Let ns note thct it wes-by no a.eens an easy matter
to obtain the various Rinds Of cotton eted .from UNRRA this year.
UNRRA woe originally requeited to supply 6,000 tons of latlfos and
Stoneville seeds, the most suitable for cultivation in the Yangtse
River and Yellow River reFions: ao, verified by the Central
Agrioultural ?experimental inettlte and the former Central Cotton
Improveme.vt institute as well as from past experiende. At first,
UNARi. agreed only to one theusand toes of Delfoe and atonsville
seeds Wtlile the U.B. Agriculture De?artment promised to issue an
expert .,Ldence for 1,b0, tons. At this juncture, the present
writer arote an article in English stressing the urgent need of
China ane sent It to UNRRA &ea to Mr. Oven L. :.:aween the
Agricultural Attache Of the U.. Labassy, with a request. for
further negotiutions with the U.6. Agrisultural Lepertment.
Again, Man,. was asked for 3,oeu tons of iimbessadorl, Delta Pine-
land', 'Coker' and 'Imp.,riel esed'. The imperial end
Ambassador seeds, selectee types fr..mi the Stoneville ,species, are
most suitable for the Yellow Aiver region, while the Coker has
very -strong resistel:ce: to winu and rain and is .tl'erefore better
mated to 21aoes along the coast of Alangsu and Cheki,ang and else
?to plocee like bzechnan where th-re is an abundant rainfall. The
grade 4, Coker 100 is very similar to tl'e aetive 'Aran and
can be grown in places in Hupeiwbere the native IXWand:Teel is
used. The Lelta kinland can be used in districts such as
Shanghai, Hanttung one Jukao usually'devoteJ to netive 'Bei. Taal.
These negotiations finally met oit'n success, and yam& supplied
altogether 5,202 tons of cotton seed whish arrived in April 1947
in Shanghai, whence aftz.r the necessLry arrangemente and
examination, they were sent to various places 1).
2. Ileanwhile the activity of this Buroau has been
mainly directed along the three following lines:
a) To persuade farmers in such regions as Hopah, Hupeh,
Shantung and Hunan, Whinre American cotton seed has greatly
degenerated, to utilize new soed.
b) To p4omoto-Mbe use of American seed in distriets planted
Moetly with native cotton:- for instance xi-Intling, Tsaittsang,
Cbiating,kaoshan,. Aanhui, Pangheien and Chluansha in
idanastig Hofei, Huaiyuan, Huaining in Anhwei, Heiaosben,
Juyao, Chanhai In Chekiang.
C) To open new cotton fields in oistricts such as Hasebow,
(Alangsu)ehengchfiu (Honan) and funy..n, (Alangsu), where
tile soil is sulteble for cotton cultivation. However,
owing to the hosti/itiee, this work did not meet with
complete SUCC.A8.
1) Ic speaking of UURBA-consignments it must be added that this
organiection supplied also considerable quantities of
fertilizers which were distributed to cotton farmers, moitly by
the membrs of this Bureau with proper instruction on how to
utilizo them.
4 . -
U.ONTHLY BUILDTIP No.XV - February 1946 - Dooum,:nt 04 - Pegs 3
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To iaporti.nt rem..rks should he meth, in respect
of the promotion work. The first ponoerna the iwportunce of
teohniehl guidcybes our f:.raere have little knowledge of the
pryer c.:.re needed by th'e cotton frow ?weric;:o coeds during its
growing periou L'.8 well durin horveetie. tiae. To meet this
need', the 5urceLu eotablishey in Netrious cotton produoing distrL3ts
some 33 guad..:::ce stLtions where teohlicl advice w-s constantly
' The sece;Al is the difficulty of keeping the
?cotton seed from degenerz-tin. dith this zim in view, the Burenu
in 0,ccord,,:nce with the re:;u1,1tions governing the oontrol of cotton
seeds ,at stimult.ted by the ,anistry of Aericulture end Forestry,
nazin erased oottor eleed control distriote where pure seeds -tre
kept to be used for the next orop. '
The tottl cotton .:rer thus coveted during the
promotion et.ge w,.:s 4,178,837 'grow (ace Appendix I). 'In Shensi, ti:v
oOtton farmers used thcir own 6.toneville cottoa seed. In 6sechuen,
this Bureau supplied about 1,066 tan of Dolfos ootton and the rest
was aostly the farmers' own Delfos do.531 as well as Deltes
(24-42) and (4410) distributed through the flamers' Bank of Chita
during the 7ar.
In general the conditions of the improved cotton
Crops this year have been excellent. According to reports from
various districts, the averane yield of Amerisan cotton wae
more than that of native cotton. Ip other words, suppoeing that
sash now gave a surplus of 10 yhin 1) of rawvotton, there wae Ln
increase of 417,883 shih ten and as the price of one tan is now
*bout six million dollars, this aeans an additional income of
4260.729,806.
Am:fording to the latest revised estimates, the .
nation's total cotton area in 1947 was 380531,000 mow, which
shows an increase of 9,210,600 mow. Though this 01.11 lags far
behind what was hoped for, the quantity harveatee by area unit
has Omen a definite increase. The nation's total production was
10,738,000 tan of raw cotton which is 1,760,000 tan less than the
plamed amount of 12,b0u,Ovv tans but the yield from American
ootton attained 7,266,060 tan whioh is 200,600 more-than the
expected amount. .
III.* Prevention of Harmful Inseot Peete.
Among the 160 kinde of cotton pest inseets alreed?
diseovered in this country only 10 are espeoially harmful, namely 3)
the 'Ti.laohul (A3rotis upsilon Sett. or Az.ratis Sp.), 'Y&-ohlungl
(Aphis goseypti Glov.), 'Hunglling-oh'ungt (Peohtinophore goseypiella
Saund.), 'Chin-Ken-chuan( (Earias capres viridis elk.), Wien-lingo..
sh'ung? (Heliotie obsolete War.), 1Yeh-tqao-oh'ung' (Chlorite
biguttula Shiraki), 'Hung-ohl-tzu. (Tetranyohus telerius L.), 'Menge
ehung-heiangl (Lygue luoorum Heyei-Durvar or Adelphoearis sqturalie
1,0), 'Chuan-yeh-eh'ungi (Sylepta derogate Fhb.), 'Ohao-ohliao-
oh'ungi (Boarnin Sp.).
XDITU108 N0TA6: 1) One thin es 0.50 Kg. er 1.10e lb..
2) The soienti.rio evemes are not in the original.
---------
.4.40
litiWXHAN eebruary 1948 e -lieeument 84 - Pate 4
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In an effort to reduce the losees-sustained,by
cotton farmers, thie_Buram.u. ordered large quantities of insecticiac
*
including 10,000 chin of 10*ZDT, 5,000-chin-of aluniniuM arsenic
compound, 14,000 chin of "Bolter...-0.owder, 970 powder sprayers, 200
powder spray tubes, and five tons of merouMy compound from factories
here; and 40,000 pounds of DDT, 60,000 lbs of "aluminium arsenic
compound", 10,000 pounds of 666 powder, 100,000 lbs. of sulphur
powder, five tone of mercury compound and 600 powder sprayers from
abroad.
The inpect peat prevention work carried out by this
Bureau in 1947 covered a total cotton area of 1,629,946.7 ebih mows
province
ores Covered by thq
proviqoq
Area Covered by pq
prevention Work
Prevention Work
(Shih Mow)
(Shih Mow)
&angels_
179,653.0
Szephuan
108,209.0
Anhwei
22,529.0
tiangai
1,132.0
phekiang
4,206.0
Hunan
8,998.0
Hopeh
197,907.6
Homan
715,839.0
Hupeh
90,864.0
Shensi
296,128.0
Liaoning
4,481.0
IV.- Cotton Loans Granted Jointly
with the Farmers' Bonk.
Rural finanoe has been very much depressed since
the end of the war-and this is especially true for the cotton
districts. In order to alleviate the diffioultiee of the cotton
farmers, the Farmers' Bank undertook the granting of cotton loans
with the Bureau's guarantee for their repayment. These loans
ooneisted of the followings ?
1. Production Loans.
Production loans amounting to 116.000 million On
were distributed in the provinose of Kiangsu, Ohekiang, Anhwei,
Szeohuan, Hupeh, Hunan, Kiangei, Shensi. (Menai, Henan, Hopei.
shantung, and Liaoning.
2. Cotton Processing Loans.
AA the poet-war cotton farmers have little equipment
for the cleaning and baling of cotton, the Bureau introduced the
cotton processing roan. A total amount of 10.600 million CM dollafe
was distributed for this,purposes
Szechwan
CH$ 600,000,000
Henan
C111)
1,600,000,000
Hupeh
1,600,000,000
Shantung
700,000,000
Hunan
600,000,000
Hopei
900,000,000
Kiangsu
1,500,000,000
Shensi
1,900,000,000
'Kiangei
200,000,000
Shansi
400,000.000
Anhwei
400,000,000
Chekiang
200000,000
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3. Insecticide.
As already,..r.er-zm.aftl.,BuZ'dered-d s_
-^nag_f.r
abroad in order to fight insect pets. - w
are distributed
?
freely to the cotton,farmers. Ac the cotton area is very wide and
the demand for insecticide very large, the 8ureau1distributed_ special
loans in the following provinces:
Hcpeh CA 0 63O,Ou,U00 Hupeh CM, 200,000,000
Horan 500,000,000 Liaoning 6,903,000,000
Shensi 300,000,000 Anhwei 400,000,000
Kienceu 630,000,000
4. Well-digging Leans,
Deepite repeated negutiations, the Farmers' Bank
refused to consider granting leans for well-digging on a general
basis for 194'1.
In *larch, however, a $3,500,000 well digging loan
was granted to the cotton farmers of Changan, Shensi. The Farmer 31
Bank also promised to grant 71531,000,000 as loan to Changan,
$13,000,000 to Heionyang, 422,000,000 to Hsingp,ing, and $35,000,
to Tinting, making a total of O0a,000,060.
5. Cotton Ginning andIdarketing.
The help given to farmers between sowing and
harvesting only accomplishes half of the work. It remains to secure
properly a series of further operations such as ginning, baling and
marketing. .actually if there is no proper pontrol of the cotton
ginning, the cotton seeds cannot be kept pure. again if the problem
of collecting and marketing cotton is not reaspnably settled, the
legitimate interest' or profit of the cotton farmers cannot be assured.
Since the war of resistance, the ginning equipment iX
most places i's out of order. The gine which remain are mostly 16"
diameter machines, and their working efficiency is very low. Moreover,
as the gins arewidely distributed, it is very difficult to control
the quality of cotton seeds. The Bureau decided therefore to
establish in the cotton districts, as many ginning factories as
possible, operated by% mechanicC or man power. In the 18 regions where
the use of American seeds has been introdueed every grower is required
to send his cotton to the ginninq factories. Each factory is equipped
with a "cotton distribution boy.;, baling machinery and motor engine.
The ginning machines were manufactured in Shanghais while engines
were purchased and sent to various places for use. By now, the
installation of gins has been completed. (See Appendix II).
On account of financial difficulties, the Bureau is
not in a position to establish ginning enterprises on a large scale
and it has made arrangements with priVate ginning factories in varioMO
localities, mostly in Kiangsu and Mlikiang, to do the ginning work.
The writer of this article was sent to America to
conduct negotiations with UNRRA for the supply of 20 units of saw-gins.
In spring of 1946, 15 units arrived and were handed over to the
management of the Farmers' Bank by the Ministry of Agriculture and
Forestry. goreover, in 1946, the Hein Shen Cotton Mill purchased two
units or seta of saw-gins of "automatic current type", which were
later installed in dusth and Nanhua. Other sets were bought by the
China Vegetable Oils Corporation and the China Cotton and 'Hemp Comp-Ly
respectively.
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Concrete plans have_eaready-neen drawn up ..ter the
collection and markLting of cotton. In order to preserve the seeds
and to supply proper raw material- to the various cotton mills, those
intending to collect cotton must first obtain a permit from the
Bureau and sign a contilact. In 1947, most of,the collection was done
by the China Textile Development Inc., except for the vatious beim;
in Chekiang where it was done by the Chekiang Department of Joint
Production and Marketing of Cotton, Tor Tlaitstang where the Hein
Shen Cotton Bill collected, and for Shanghai and Paoehan Where it was
done by the China Cotton r.nd Hemp Ca. The price of the American
cotton collected, was about 20-34 higher than that of the native
cotton. ?
V.- Cotton Inspection.
The inspection of cotton aims at improving the
quality and broadening its market. Before the war, considerable
success had been achieved by such inspection. Unfortunately the
work had to stop ,owing to the Sine-Japanese hostilities. Since the
inauguration of the Bureau efforts have been renewed on this line.
It is estimated that the personnel required for such technical work
would number about 150. With the exception of the heads of important
departments, who are experts invited by the Bureau, most of the
' staff members were found among the senior and middle technical schools
in Shanghai. Thirty one came from universities and forty from
agricultural high schools where special training was given between
August 15 and Oct. 15. 1947.
Five inspection offices were established in Xiangsu,
Chekiang, Hupeh. Ronan and shensi. Inspection stations were also
created in various important ootten producing distriote. Their mein
duty is to prevent adulteration of the raw cotton by the mixing of
water or impurities with itp to enforce proper grading in order to
stabilize the value of the pradubt and foster international trade;
to determine specifications or standards for the quality of the
cotton produced and to improve the technique of inspection.
VI.- Experiment and Research.
Experiment and research, fundamental prereqpieitee
for the reform and improvement of the cotton business, have been
carried out by the Bureau this year as follows:-
1. Research on Chemical Fertilizer's'
2. Study of machineryTor the cultivation of cotton,-
In opeperation with the FaraTool Section of the China Agriculture
Institute, the Bureau hae set aside 60 mow of cotton fields to be
cultivated with modern machinery. The atm of such experiments is to
compare the cost and yield with that of fields where only human and
animal labour are employed.
3. Prosarcb and jr,',:periment in the breeding, crossing
and ,raising of the various kinds of seed as well as in the testing of.
different insentioidea.
The above are the more important works oarrie4 out
by the Bureau in 1947. It has also undertaken investigations of cotton
production, training of experts, and study of the economics of the
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7'1
cotton industry. In reviewing the activities of this year, the
following points should be especially stressed,-
Though the Bureau is ?till very new, its complete
structure has been successfully organised and its work carried out
according to our original plans and schedule. Through its efforts
the cotton area has been extended by 4,178,837 mow, and an inoreaSS
of 41,782.7 tan of raw oottcn obtained. This meane an income Cr
C2I42,500,000 million and a parallel reduction of 'foreign imports
The campaign against insect pests has been repaid
with remarkable success and the cotton farmers have been convinoed
of the advantages of using American seeds.
Cooperation for cotton ginning with the cotton
dealers and factories concerned has resulted in the raising of
cotton prices, to the benefit of the cotton farmers. lUrthormore,
ginning factories have been established in various places in China.
There are still two points, however, that lust be
settled if the revival of the cotton industry is to be sattefaetorily
developed. The first is the lack of funds, the second, the oivil
war that has been devastating the country day after day. Work could
not be carried out in important cotton producing &striate as the
northern Yangtze and Yellow River Regions. We have also had to
withdraw our staff from many places in Hopeh, Southern Shansi, Henan,
Shantung, and Hupeb.
Appendix ;
Introduction of American Cotton directed by .the Cotton
Improvement Bureau of the Ministry of Agriculture and
Forestry (1947)
province
Wand
Area Planted
CotlgaSeed
Hain
in mow
Hopeh
Peiping
113,129.5
Stoneville
T'ungheien,Taheing,
Ant,zu, Imagism.
Tientsin
80,060.0
Stoneville
'Stoneville
WutteingoKenlyang,
T'eansheien.
Paoting
48,400.0
TleingyuanoWanstu,
,IingheingoTiogheismo
Shitchiachwang.67,000.0
Stoneville
Huoluodhingtingo
YuanezeoLeohlengo
TOTAL
308,689.5
Shantung
N.Shantung
6.122.0
Stoneville
Ilhoh'eng,Chlans.
tieing' T'elhoo
Weiheieno Ch'angle,
Anoh'isso Ituo
S.Shantung
50,261.0
Stoneville
TosaohaienoTiaitaef
Trioe
Rot's).
TOTAL
55,383.0
I.
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Introduction of Amerioan--Ootten--diz'ected by the Cotton--
Improvement Bureau of the Ministry of AgutauLtural?and
Forestry (1947)
(Cont'd)
ZERILL2Sti 10g2-191
Shansi S. Shansi
Shensi Chingwei
Canal
Changan
TOTAL
ROlian
TOTAL
Tali
Nanoheng
X. Ronan
S. Ronan
W. Ronan
O. Honan
( Liaoning
Kleageu Nanking
Shanghai
Hsuohow
4Ax9a PlaUIES1
in mow
50,000.0
850,000.0
670'000.0
750,000.0
300,000.0
2,570,000.0
36,692.0
11,234.0
58,690.0
224,361.0
330,977.0
4,000.6
33,941.6
65,111.4
13,603.75
Nant'ung.Jukao 04,482.5
Hal chow
TOTAL
Cholldiang &Chekiang
. W
NEINTHLY BULLETIN No.YV - February 1948 Document Si - Page 9
97,060.0
304,199.25
26,396.2
'cotton Seed
Stoneville
Stoneville
Stoneville
Stoneville
Stoneville
Stoneville
Stoneville
Stoneville
Stoneville
& EMbaseador
Stoneville
Delfos and
Coker
Delfoe,Cokor
and D.P.L.
' Trice &
Stoneville
Delfos &
D.P.L.
Stoneville
k Sapire .
Hal en
Anyih, Isze,Yuhsiang,
Chiehhsien,Yungtsi,
Linfon,Yunchteng. ?
Chingyang,Sanyuan,
Kao1ing,F4pling.
Changan,Lint'une,
Heionyang,Bningp'ing,
Ngehsien,Chouchih,
Ch'unheien,Liheien,
Ch'ienho.
Tali,Ch'aoi, P'iugmin,
Heyang,Hanch'eng,
P'uch'eng, Weinan,
Huahsien, Huayin,
Tlungkuan.
Nancheng, Ch'engku,
Yangheien,Pacchleng,
Mienhaien,Heihsiang.
Lanfeng,Shangch'iu,
Minch'uan,Ymheiang.
YUnan, Ch'u5kehan,
Nanyang,Ngeheion.
Wenhsiang, Lingpao,
Shenheien.
KWangwu,Chenghsien,
Loyang,Kungheien,
Fanshui, Yenshih,
Chiangp'u,Chiangning,
Tanyang,Chenohiang,
Chintleo, Chuyung.
Shanghai, Plutung,
Paoehan, T'ait'ecng,
Chiating, Chuneshou,
Chiangyin.
Hsuohow, Fenghsien,
Pteiheien,Shaohsien,
Tangshan, Suchlien.
Nant'ung, Haimen,
Jukao, Tungt'ai.
Kuanyun, Lienyun,Tung.
hal, Shuyang.
Delfoe & Hsiaoshan,Chenhai,
Coker Juyao, T'zuch'i.
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s?
Introduction of.Amerioan Cotton directed by the Cotton
Improvement Bureau Of the Ministry of Agriculture and
. Forestry (1947)
(Contid)
rrOvinog Paden', area Planted Cotton Seed
in mow Used
Anhwei
TOTAL
Kiangei
Huaitung
Hofei
lUyang
Hupeh Buiheien-
"Taaoyang
TUenmi n
TO
X
'ieschuan
20,87.0 Delfoe
9 74.2
,154.0
63,71.1.2
2,240.0
46,938.0
29,800.0
Heia 4an 36,946.0
ngeba 83,673.0
Taiwan
Pinhu
W.8zechuan
..GRAXIA TOTAL
197,357.0
105,417.0
160,000.0
567.3
4,178,837.45
Delfoe &
Coker
Stoneville
Helen
Huaining, Tungliu,
Kneitzu,HeuaLohleng,
Chingheien, Tangt'u,
Wangchlang,Tralhu.
Hofei, Shouheien,
Huaiyuan.
FUyang, T'aiho,
Yungehang.
Delfoe Kiukiang, Yunghs::u,
Piengtee.
Delfoe Suiheien,
Delft's TUeramen,
Hanch3uan.
Delfoe Heianyang,Heierh
Tzuchung,
Coker & Chiengling,. ,
Delfos Sungtzu,Chihehi.ang,
.Chingmen.
Dolton
Delfoe
Dolton
Liheien, inheiang,
Linli, Hanehou.
Shehung, Yent'ing,
T'ungch'uan,dianyang,
Suining, Lemac,Hanpu,
hung, Chintlang, Te-
yang, Chiangyu,P'engft
ming, Chungohiang,
Piengehli, Fengohieh,
Yunyang, Ch,uheien,
Kaangen, Pachung,
Nanohiang, Chi enyang,
Tizuyang, Kwanuuan,
Ihua,
rfaitung, Chiai.
MONTHLY BULLETIN No.XV - February 1948 - Document 84 - Page 10
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Appendix II
Ginning Factories (Ban power or Motor Operated) establishsd
by the Cotton Improvement Bureau of the Ministry of
Agriculture and Ferestry(1947)
provincq Regions: Location
311
Hupeh
T'iension
Heient'aochleng
in Mienyang
20
1
1
25
Suiheien-
Mienchtang in
20
1
1
25
Teaoyang
Suihsien
Heiangfan
.?
shuangkuchenl
in Heiangfan
20
1
1
25
Chingeba
Chiangklou in
20
1
1
-
Chihchlang
Cliingeha
Shataokuan in
20
1
1
25
Sungtsu
. Hogan
E.Honan
Railway Station,
Shangchliu
8
1
a
8
C.Honan
Kuyungcheng in
12
1
1
12
KMangsu
C.Honan
Loyang
0
1
0
(24)
Chekiang
E.Chekiang
Chenhal
12
1
1
12
E.Chekiang
Heiaoehan
/2
1
1.
12
=anon
Rant 'ung-
Rant 'ung
20
1
1
30
Jukao
Bant'ung-
Tungt'ai
8
1
1
0
Jukao
Banking
Chiangp'u
8
1
1
8
Banking
Shaolingwei,
Nanking
4
1
a
8
c Ropeh
T'ungheien
20
1
1
36
Langfang
20
1
a
35
Peiping
4
1
1
6
Teingyuan
20
1
1
ao
Blangsu
Tanyang
Hand-oper-
ated gins
Htiohow
*
Anhwei
Hofel
?
Hupeh
Sbaehih
*
Mitloezu
*
Shataokuan
. ?
Heheien
suihsien
. ?
?
Tsaoyang
?
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Appendix 114
Ginneries Specially set up in XiangeU & Chekiang
Regions Location of GinnerY
PojggeatAd
' Shanghai Tech tang, Shanghai Ginnery specially set hp.
Elangwan, Shanghai m
Yanghsing. Paoshan *
Neingchiang village m
in Nanohiang
YUehptu village in n
Paoshan
Sintun village in ?
Nanohiang
HsituVou in Penghsien ?
, :T.Chskiang Hsinpsnymin in Juyao Ba.1 Specially set up GinLel.y.
Tungshant'ou in Timuch'i No.2
T'ienyanghuang in M. Mo.3 *
Chenhai '
Jungohia in N.Chenhai NO.4 a
Nanhung, Chenhai No.b is
Tsangwant'ang,Nanhung No.6 0
in Chenhai
Haineighan Island Ba.7 ?
( En4 )
MONTHLY BUILMTIN No.XV - lebruary 1948 - Document 84 - Page 12
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UNIYERSITE LA
-4Shaughai-
BUREKU DE DOCUKENTaTION
(Economie Cninoise)
Topic!
Author:
Periodioals
Date of Issues
280 Chungking gin Im (Lybail)
Tel 8576].
Three Large Iron and
Steel Works in
Shanghai
Yao Hsing-chih
Chin Yung Jih Pao
Dec. 22nd.1947,
THRKE-.-LARGE IRON AMD STEEL-
WORKS IN SHANGHAI
URORE
Documint No.: 86
Natures Digest
Number of pages: 8
Remarks: The original
title las "Iron and
Steel Metallurgy in
Shanghai".
In recent yeaY1, growing demands for iron and51-.0,1
goods on the market of Shanghai ha7e, contributed to a fair develop-
ment of its local iron and steel metallurgical industry. Among the
21 iron and steel works now operating in the city, three of the
largest, which it is our purpose to introduce here, deserve special
attentions the Shanghai Iron and Steel Arg.,00.,Ltd., the Asiatic
Steel Oo.,Ltd., and the Ta Hein Steel Factory,
I.- The Shanghai Iron & Steel Mfg.,Co.,ftd.
?
Before discussing the equipment and productive
Vivacity of the various plants of this Company, it may be interesting
to know how and when it was formed.
At the end of the war the Chinese Government took
over noMerime plants from the Japaneee and among them 3 iron and
steel factories and 1 smaller workshop, which it offered for sale.
Tenders were invited, but no one wanted to buy them.
Later the Central Trust of China induced industrial
and commercial circles to organise a Company by the name of The
Shanghai Iron & Steel Ofg.rCo.,Ltd., which was to purchage the above
factories and workshop. The capital. of the Company was 2,500 millioa
ON:ions:re, of which 1/3 was to be contributed by the Cedtral Trust
and the remainder by iron and steel dealers and manufactures.
The Company was formally founded in December 1946,
with it. head office in Chung Shih Building, Room Nos. 15-16; at
Mo.14 Museum Read. Its three factories were amalgamated to form .
ltotories Noe. 1 and 2, located at Changhuapin,--Woosung and Huanglosics
Road, Hongkew, As both their premises and machinery were in wretched
condition, it was only in December 1947, after 5 months of repairs
that. resumption of work was made possible. Recently the Company has
annexed the Heil Hein Factory at Choutu, which it has converted into
laCtory No.3 and set to work. The email workshop mentioned above,
which is situated at Lanchow Road, has been transformed into a
transportation station.
?
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Adietmtivaly-the Company Consists of 3
departments,_Xor-general affairs, finance and business. Each factory
is headed by Direator under whom there are sections for engineering
and for gener:11 affairs. An Engineers' Office, presided over by a
Chief Engineer, takes charge of cnsiJoering planning and technical
improvement.
Equipment and Produativa Capacity. ?
1, Factory No.l.
Mictory No.1 is a plant devoted solely to the work
of manufacturing various kinds of iron and steel and casting iron
and steel goods.
The equipment for the iron smelting which have been
removed to this plant from Hsitu, Pootung, are one 20-ton modern
furnace, 4 horizontal hot air furnaces, 1 gas washing tower and 2
electric motor driven blowers. The construction of skip hoists for
charging with raw materials as Well as shops for iron casting and
hoisting rooms will be completed about July 1948. The raw material
used is iron ore, but scrap iron sheets easy to collect in the city
itself, may also be utilised. The monthly output of iron can reach
500 to 600 tons.
The main equipment for stool manufacturing consists
of one 15-ton Martin furnace with 5 gas producers. The steel coating
shop has 2 cranes of 10 and 30 tons capacity suspended from beams.
Scrap iron and steel are used as raw materials, and as huge quantities
are available on the local market, there can be no problem regarding
_their supply. The monthly production of carbon steel, tool steel,
alloy steel, etc., reaches between COO and 1,000 tons. The quality
of the goods is said to be quite up to normal standard and they are
4100 very eeonomical. The foundation of another Martin furnace has
already been built and the work of construction will be finished Upon -
the arrival of fire bricks. It is hoped that the produotion may then
be doubled. 1
The furnaces for the iron and steel metallurgy have
been put into service, after careful planning. The oast iron
produced from the iron smelting furnaces while still hot, is passed
over to the steel furnace. This oo-ordinated operation eaves fuel
and increases production. -
In an effort to reduce losses from the casting of
large steel ingots by 10 to 20%, it is planned to install some
additional rolling, mills for stcc.1 ingots and steel heating ovens.
so that all cast steel ingots while still hot, may immediately be
kept in hot ovens.
/n order to bring future output up to standard, a
testing department has been established with all necessary instruments
and chemicals for testing purposes.
2. Faotory.80.2.
This factory Undertakes the titork of rolling various
steel produots. It has the most up-to-data equipment in China,
namely one 13mtriple series preliminary rolling mill, six 11" double
series intermediate rolling mills and eight 11" double series finishing
mills, driven respectively Vy 300, 600 and 800 H.P. motors.
ft*
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0611,8-
5
The intermediate and finishing_mille are of Belgiaa
typa,--employd-ng tha-oarrtialuoue--_-etai-Loa_mathod of rolling. Automatia
devioos are provided for the feeding in of the oteel ingote and the
discharge to the steel heating furnaces. Brom the steel heating
furnace to the preliminary rolling Adlls, a belt oonveyor is eagiloYea.
The wire rod produced ie reeled by two winding maobines By working
day and night, the present equipment can produce more than 1,000 tons
of steel wire rod monthly. It is estimated that output could be
increased 3 times, if some more preliminary rolling mills were
installed.
3. Factory No.3
Factory No.3 is a steel works and steel rolling will
as well as an iron founky. It covers a very large area of
approximately 500 mows I/ which is almost equal to the sum of the
area of the other two factories. The chief equipment of the factory
are as follows:
Steel Works;
10-ton Martin etcel furnaces
Gas producers .
2Q-ton electric crane
, Bitter Apar furnace
Limestone furnace
Pulverizers
2
4
1
1
X
2
Steel Rolling tills:
20" preliminthlr rolling mill
1
15" finishing mill
4
12" steel wire drawing machines
6
Hot cutting machine
1
Steel heating furnace
1
Wire winding machines
2
Iron Foundry:
15-ton iron blast furnace
1
10-ton iron blast furnaoe
1
Repair Shop:
1-ton cupola
1
1/2-ton cupola
1
.161 lathe
I.
81 lathe
1
6' lathes
4 -
20' planes
2
1" drills
2
1) MITORIS NOTE 1 mow Is 6.7448 area or 0.166 Aare.
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1---
1
4. Transportation stations
This station possesses 1 large hydraulic baling press
with ammiliary-cqulpnent. The work consists in sorting the various
kinds of scrap iron purchased and in packing scrap iron that rusts
easily. Communications are very convenient at this station so that
the cost of transportation of materials is greatly reduced.
The Asiatic Steel Co.,Ltd.
.The faotory of the present Asiatic Steel Co. ,Ltd.
was the former Japanese -Asiatic Steel Factory at Hochien Road,
Yangtzepoo, which after V-J Day was taken over by the Ministry of
Economic Affairs. Preferential right of purchase for this factory
was granted by the Bkeoutive Asan to the Hua Hain Bleotro-
metallurgical Co., which had the credit of greatly contributing to
the development of the steel industry in this country during the War.
The Asiatic Steel Co. ,Ltd. was founded in Nov. 1946,
with its head office at Room No.606, Kiso Hua Building, Peking Road.
As its plant and equipment had been damaged, repair work had to be
done before work couldbe begun. In addition to the original
equipment, the Company has lately spent over C2410,000 million on the
installation of new rolling mills. '
The Main work of the Company is steel casting and
the manufacture Of machines for casting. The largest steel castings
can be as heavy as 4 tons while iron castings may reach as much as
7 tons each. Nails especially are produced in large- quantities. The
whole plant consists ofs 1) steel casting shop, 2) iron meting
ch0P. 3) metal works, 4) nail shop, 5) steel wire shop, 6) bolt
shop, 7) wire drawing shop, 8) tube drawing shop, 9) rivet shop,
10) machine shop. 11) metallic gauge shop, 12) plane ebbp and
13) steel rolling shop. The above Units are all in operation.
The productive equipment is as followss
1) Smelting equipments
Steels One 3-ton and, one 2-ton eleotrio furnaciep
? two crucibles
? Iron one 28-ton iron smelting furnace.
2) Mechanical Equipments
Wire drawing machines
10/
Nail manufacturing machines
60
Wooden bolt machines
76
Maohine bolt machines
29
Steel wire 'machines
25
Machines spring aluminium wire for
garden use
6
Iron gauze looms
10
Shoe nail machines
5
Nail machines
49
Galvanized iron wire machine
1
Tube drawing machine
1
Plane rolling machine
1
Corrugated iron sheet machine
1
Driving engines and o..Aler auxiliaries
92
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--
4, ?
Working at full 09tio.o.yas-04.7.-.64uis15.sgt mould
jthou
Drawh wire 500 tong
Nails 8,000 barrels
Steel castings A00 tons
Steel ingots 400 P
Bolts ? 50,000 grosses
Steel wire cables 300 tons
Cast iron 100 ?
Iron wire and steel wire gauze 10,000 metres
Barbed wire 150 tone
Machine bolts and spikes 100 *
Galvanized iron wire 400 *
Drawn tubes , 30,000 feet
Galvanized iron sheets 100 tons
Corrugated iron sheets 15,000 sheditS
On account of shortage of raw materials, however,
the above standard cannot be reached. So far,. monthly production
has only been as follows:
Drawn wire 150 tons
Neils 2,000 barre/s
Steel castings 100 tons
Steel ingots 100 0
-Cast iron 50
Bolts 20,000 gross
Various manufacturing worki
undertaken for other factories.
When the installation of steel rolling mills has
been completed, the factory Will be able also to preclude round steel,
angle iron4;-140.41:4; steel, and steel sire rode.
At present. the Company has 426 eMplayses and
workmen, showing an increase of 161 persons When compared with the
personnel at the time of the taking-over. If produotion can be
carried out at full capacity, the Company will have to employ more
than 1.000 Workmen.
III.- Ta Hein Steel Factory.
The Ta Hain Steel Factory at No.730 laanWen
was founded in 1934. Its main equipment is:-
1-ton eleotrio furnaces- 2
1-ton Bessemer converter 1
52" cupola 1
36" cupola 1
28" cupola 1
The factory mainly produces oast iron, mot steel and
steel ingots. Its maximum production of steel and osrbOn steel is
1,200 tons per 3:months, marketed in Shanghai and the Elangnu and
Chekiang provinces. The maximum quarterly output of steely iron is
300 tons.
MONTHLY BULLETIN No.XV .? February 1948 - Document 85 - Paget 5
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In order ta do justice to the Ta Hein Steel Factory,
it seems necessary to recall the great role played by it before and
during the War.
After its establishment in 1944, the factory
imported an arc furnace for the manufacture of pure steel, and rapidly
gained an excellent reputation for making chassis. About that time,
the British-owned Shanghai Omnibus Company which planned to build
double-decked buses, ordered 40 chassis from Japanese manufacturers.
When the first Japanese-made chassis arrived in Shanghai and was
assembled for a test service, carrying 40 passengers, however, the
rear shaft broke during the drive. This failure etbaraseed the
Bus.Co., which had already announeod to the public the forthooming
introduction of new double-docked buses. With a view to remedying
the eitutation, the Company requested the Ta Hein Steel Factory to
design and manufacture the required chassis parts. The factory
studied the structure and dimensions of the transmission parts of the
chassis, made them from alloy steel and finally completed a solid
chassis which could smoothly carry BO passengers without the.
slightest risk of breaking the rear shaft. As a result, the Bue,Co.
immediately cancelled its contract with the Japanese manufacturers
and signed one with the T. Hein. Following this event, the factory
became famous all over China.
To make sure of the quality of its steel, the Ta
Hain sent its products to the Britieb Shipping Society for
examination. After a strict test, the Society issued a testimonial
certifying the excellent quality of the steel produced, declaring
that the Ta Hein was the only steel factory in the Par Beet able to -
manufacture such good steel. It is said that though there were
several hundred steel factories in Japan, up to that time the British
Shipping Society had issued testimonials only to two of them.
Prom then on, the China Steel Vehicle Company which
ueed to build freight wagons for the Ministry of Railways, began to
purchase chassis parte from the Ta Hein. The Shanghai-Ranking
Railway Adminietristion,. the Old Dockyard, the New Dockyard, the
Eiangnan Dockyard, Butterfield & Swire and Jardines soon followed
suit one after another, entrusting to the Ta Hein the work of
manufacturing various machine parts for marine use.
, later, the Ta Hain Factory also designed express
trains by using special cast iron, carbon steel,, alloy steel, eta.,
and made it possible for a train to reaca Nanking from Shanghai
within 24 hours-z_7nd 25 minutes.
After the outbreak of the War the factory was first
moved to Pachlishan, Hankew, and then further westward to Chungking.
During the hostilities, it rendered considerable service to the
coantry, and was able to export-architectural steel, light rails and
other materials.
After the War, despite tremendous difficulties in
taking over its old plants and in transporting its equipment back te
Shanghai, i fL:Qtcay has -already Succeeded in resuming work. It is
hoped that it will in due time 1.,:cover its former inportanoe in the
local iron and steel industry.
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...0MIZNDLX
Thanks to the recent development of the iron and steel
lndUstry in shanghai, many Chinese are nomLeb.1.44-Use home products
inctead of depending on foreign supplies. A list oV-4.sec and steel goods
from Chinese factories in Shanghai which can replace 4'11=4444 goods, is
given below for purposes of references-
Wire Rod Bamboo, Steel ban ifffes. and roun4
!steel. of ecuare.
souares round
& round hexagonal,.
octagonal ,
section
quality S.A.E.10 B.A.B.10 8.A.2.10 8.A.2,10 81,4E02
10-1030 10-1030 20-1090 20-1030 554260
Uses
? MS11 & Architect Arohlt., Arohit., Architect.,
arohiteo- machines, machines, maohines,
ture . shiply ship- ship-
building building building
Efficiency Same Same 1* & 2* Thiokness Below 40,
(As corn- square & above Pi round &
pared with round same as
imported same as imported pOlygonal
Of less
goods) imported ' than 20
diameter,
same as
imported
Monthly 1,500 2.400
output
(Ton)
Monthly 2,000 1,500 to
require- 2,500
ment (Ton)
quota- 4,500 4,000
tion(Units
$10,000)
100
II?????
5,000
loo 50
5.000 5,000
Goode Wire rod Bamboo Round,square, IrOn ,Iat and
which can steel, flat,hexago- plates round
replace square & nal & oota- spring
foreigp round 3/8H gonal steel steel
goods , to lm rods below
2"
' Market in 70% 70% 60% 60% 60%
Shanghai
Market in 30% 30% 40 20% 20
other
regions
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'Magill -"Is" Channel
/Lan_ HIM
SEAM
quality
Usee
Efficienoy
(as corn-
pared with
imported
goods)
S.A.M.10
25
Architect.,
machines,
chip -
build,'
Below 3'
x 1/2
same
8.A.E.10 8.A.E.10
26 25
Arobitect.,Arohlteot..
machines, machines,
ship- chip-
build . build.
Below 3" Below 3"
x?1/2 x 1/2
came came
6.e.S.10
25
Windows
316.320,
521,522,
511,501,
581,same
8.A.Z.20
25
Pipes and
bales
Mo.18 & 20,
40.x 3" -
SA inferior
to imported
Monthly
100
30 30
120
80
Output
tTons)
Monthly re-
quirement
.
????? - - -
200
500
(Ton)
quotation
5,000
5,000 5,000
8,000
9.000
(Units
410,000)
Goods
Triangle
Triangle Triangle
Steel
Hoops
which can
replace
irons,
beans &
irone, I irons, I
beams & beams &
window
frames
foreign
channels'
channels channels
goods
below 4"
below 40 below 411
Market in
so%
80% 50%
90%
90%
SbanShal
Market in
other
regions
40% 40%
10%
( Sad )
MONTHLY BULLETIN No. XV February 1948 - Dooument 85 Page 8
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4
IJNIVERSITE L'AU
-$hanghai-
BUREAU DE DOCUMENTATION
(Economie Chinoise)
Topics
Authors
Periodical;
Date of Issue:
280 Chungking Nan Lu (Dubai')
Tel 8576l
Analysis .with Comments, of
the New Regulations Governing
the Renting of Hcuses
(concluded)
Prof.Sung Chia-huai
The Juristic and Economic
Review of AurcrP University
(Chen Tan Fa Lu Chiu Chi
Tea Chih)
in course of publication.
11,
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?
R 0 R
0018-5
Document No., 86
Nature, Translation
Number of pages, 7
Remarks, Bee Document
No.76 in the Monthly
Bulletin No.XIV.
ANALYSIS WITH COMMENTS OP THE NEW
REGULATIONS GOVERNING THE RENTING OP HOUSES
(concluded)
VII.- Cancelling of Leases.Art.9,11,14 & 15.
According to Art. 450, 0 1 & 2 of the .Civil Law, the
relationship established by a lease of fixed term ceases at the
expiration of that term, while the two parties to a lease of indefinite
term can at any time cancel the contract provided no custom exists on
this point, in favour of the tenant. The liberty of the lessor to
cancel a lease of indefinite term was restricted, however by the
promulgation in 1943 cif the Regulations on the Leasing of Houses in
Wartime, i) ard he could no longer do so save in one of the cases laid
down in Art. 7 of those Regulations. In the case of a fixed term
lease, if one month before the term expired-the tenant gave notice to
the lessor of his intention to renew the contract, the lessor could
not refuse. Since the abrogation of these 1943 Regulations the
reasons for which a lessor may take back hip house are laid down in
Article 100 of. the Land Law; but as the Judicial Yuan has declared
that this article is inapplicable to fixed term leases (see Interprets-.
tions Nos. 3489 & 5600, as quoted above) tenants who have made such
contracts have now no protection.
Art. 9 of the New Regulations is almost identical with
Art.100 of the Land Law, but establishes a distinction between fixed-
term leases with a term of less than two years and those with a longer
term. For the future, therfore, the mere expiration of the term of
the lease does not neeeesarily end the relationship.
1) NOTE The tenant could always terminate the lease, on the conditions
laid down in the Civil Law.
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Since the purpose of these Regulations is to sett:.s
disputes between.landlords and tenants during the present housing
crisis, and given that this article li,ats strictly the various
reasons for cancellation of which the lessor might avail himself, is
seems that he can no longer base such a cancellation on one Of the
causes laid down in the Civil Law unless ft appears also in the
Regulations. This may ba deduced from the terms used in the text of
the Regulations: - "cannot cancel the lease except in one of the
following cases". But in the eirsumstances mentioned in Art. 447,1 2
of the Civil Law, that is; when 1...s. tenant, unknown to the lessor or
against his will, has removed objects which come under the. lessor's
rights of retention, it seems that the lessor can still use the
power of cancellation given him by the Civil Law, even in the places
and during the periods of application of the Regulations on leasins.
For the reasons for which the lessor may terminate
the lease we must examine carefully the restrictions laid down in
Art. 9, 0 1 of the Regulations' 2-)s-
1) "If the lessee puts the premises to illegal use;..
This is identical with the provision of Art.100, No.4. of the Lard
Law.
21 "If, for reasons for which he in responsible, to
lessee owes an amount of rent equal to the amount of the cash seenrisy
given plus at least two menthe' rents,. This resembles the provision
of the Land.Law, Art.100, Mo.3, except that the words "For reasons for
which he is responsible" do not theres.-ocsur. Since the Civil Law has
already laid down (As't.230) that a debtor is not behindhand if the
payment due has not been made for reasons outside his control, it
follows that the contract of lease cannot be cancelled because of nso
payment of rent unless this is the fault of the tenant. It must be
noted, however, that the rent is a money debt and for money debts there
can be no question of impossibility of execution, therefore even ?
where the tenant has no money to pay the debt, there is always delay
of execution. Consegnently unless the tenant has just reason to
refuse payment of the rent he is always responefble for the reason of
its nen payment.
Neither the Regis]. A. ons nor the Land Law has made
clear whether the lessor, in cancelling the lease according to this
provision, should observe or not the formalities of summons laid down
in Art. 440 of the Civil Law 4); but according to Interpretation
No.3489 of the Judicial Yuan, such a summons is indispensable and the
lease can only be eancelled if the tenant has failed t2 pay the rent
within the term fixed in this summons from the lessor '7).
NOTES: 1) The tenant, on the other hand, can always, in order to
terminate the lease, invoke the previsions of the Civil Law, notably
Art. 424, 430, 435, II, 436.
' 2) Art. 440 of the Civil Laws- ,:ahen the tenant is in arresss
with the payment oflahe rent, the lessor may fix a suitable t.srm and
summons him to pay within that term. If the tenant fails to pay
within the term the lessor may cancel the lesson. .
3) Interprststion ro.3489 of the Judicial Yuan:- 03. A lessor
who resume possession of his house because of nen-payment of the rent:
as provided by Art.100, No.3 of the Land Law, must according to the
provisions of Art. 440, 6 1 of the Civil Law, fix a suitable term and
summons the tenant in arrests to pay within that term. The contract
of lease can only be cancelled if the tenant has failed to pay within
the term".
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3) "If the lessee has intentionally-or-through
negligence damaged the lessors house and fails to make repairs or
to pay adequate compensation". This provision is again similar to
that of Art. 100, No.6 .of the Land Law, It is true that the Land
Law speaks of "the house" and its "dependences" while the Regulations
only mention the house; but it is obvious that the dependences are
also included.
Consequently the present provision may be applied
whether the damage is done to the house or to its depend-paces. /f
either has been damaged by the fault of some person other than the
tenant, the latter is still bound to make reparation according to
the provisions of Art. 443 of the Civil Law 11. :If the tenant does
not make reparation, therefore, Ihs lessor may cancel the lease.
4) "if the lessee contravenes the provisions of 8 1 '
of Art. 6" of the Regulatiens; that is to say, if the tenant has
sublet the whole house to another, or if having sublet part of the
house in spite of an interdictory clause in the lease, he has obtained
neither the written consent of the lessor nor his signature to the
contract of subletting, then the lessor may cancel the lease and
resume possession of the house. The Regulation does not, however,
define the situation of the subtenant once the relation between
lessor and lessee is terminated. If the whole house has been sublct,
since this is forbidden both by the Civil Law and by the present
Regulations the subtenant has no right to protection. If only part
of the house has been sublet, it is possible that the subtenant was
in ignorance of the prohibitive clause in the lease, and the provisions
Of Art. 7 1 1 of the Regulation would seem to be applioable by
analogy; that is, the subtenant would have a preferential right to
lease the part he had held as subtenant.
5) "If proof is furnished that the lessor is taking
back his house for his awn use, in accordance with the provisions of
Art.11". Art. 11 of-the Regulations reads as follows, "If after a
lease of indefinite term has been in force for two years, the lessor
for adequate reasons has to take back the house for his own use, he
shall furnish definite proofs of his need, and further give the lessee
three months, notice of the canoellation of the lease". This is why
with,a fixed-term lease, whatever the length of the term, (twenty
years is the maximum according tp the Civil Law) it is impossible for
the lessor to take back the house for his awn .use so long as the term
of the lease has not ended. Alth a lease of indefinite term, before
the house can be taken back for Forsonal use, two years must have
elapsed; but these two years are oounted from the conclusion of the
lease, not from the coming into force of the Regulations. In any case,
if the house is to be taken back for personal use, the following condi-
tions must be fulfilled- just oauee, certain proofs, warning given
three months in advance. Personal use aovera not merely use as a
dwelling, but also the personal conducting of a business,-as is stated
in InterpretatApn No.2954 and in Interpretation No.3489 of the
Judicial 'Nan 4,
NOTES: 1) "If by reason Of facts for which the responsibility falls
either on those who live with the tenant, or on third parties whom he
has allowed to use the thing leased or to enjoy its fruits, the object
leased is damaged or destroyed,,the tenant is bound to make good the
loss".
2) Interpretation 2954 of the Judicial Yuan: "The terms' taking
back of the house for personal Liss: used in Art.11, of the Regulations
on the Leasing of Houses in Wartime include also the taking back of
leased house in order personally to conduct a business?.
Interpretation No.3489:- 02nd. The taking back of a leased
house in order to use it for one's own business le included in the
taking back the house as a personal dwelling in Art.100.NO.1 of the
.and Law."
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Art. 15 of the Regulation should bennotect_in fuli
this questions- "If anyone Who has taken beak a bons for his own
use, keeps it vacant for three months or again leases it within one
.year, the original lessee shall have the right to olaim the
continuation of his leases he may further ask for compensation for
.damage or injury". On this point two oases must be distinguished1
a) If the lessor has left the house un000upied during three
months, the original tenant may demand the continuation of
his lease and at the same time olatm damages in the form of
interestf or he may claim damages without requiring that
the lease be continued.
b) If within a year the house is relet by the lessor to a third
person, the original tenant can claim damages but cannot
demand the continuation of his lease; for if he were allowed
to continue his lease the new tenant would suffer unforeseen
loss. Again, since the Regulations only say he may *claim"
the continuation of his lease, the original tenant's right
of tenancy is not ipso facto reconstituted but depends on the
consent of the lessor to a new leases though if he refuses
this the original tenant can certainly bring an action agsUnst
him.
6) If the term agreed on for the lease has expired* ?
*This provision ehall not apply to a fixed term lease of less than
two years or to one containing a special agreement'. The Chinese
expression * a lessee of less than two years 0 appears to include a
lease of two years. It is only When-the term of the lease exceeds two
years that the oontraot can be dancelled on its expiration. As an
example of a special agreement may be quoted the clause by which the
tenant reserves the right to renew.the lease an its expiration. This
provision tends to protect tenants holding short term leases ( in
Shanghai, leases are often for six months only ) and for this reason
it should have the force of an order. Therefore if the term of the -
lease is lees than two years, even if it has been laid down in the
contract that the tenant is to move out at expiration ofthe lease,
any reason to the contrary notwithstanding, the lessor cannot use
Such a stipulation as basis for taking back the house. Even in leases
with a term o..7 over two years-, the expiration of the term is not in
itself sufficient to end the oontractp the lessor skint declare his
intention to oanoel the lease and unions this declaration has been
made before the expiration of thp lease the contract is considered to
continue for an indefinite term i).
NOTEs Art. 451. Civil Laws *If after the expiration of the lease
the tenant continues to use the thing leased or to enjoy its fruits,
and the lessor does not immediately express his will to the contrary,
the lease is considered ae prolonged for indefinite term".
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7) "If -the-losseer-tas cloned up the house and has
ceased to, use it-for more than six menthe, "Me-purpose-of a house
,ie to be u ed. If therefore the tenant has not used the house for
six months clearly he does n.:4 need it and it is quite normal that
the lessor hould be permitted to cancel the contract. But the
question wh ther the tenant is using the house or not must be
answered accprding to circumstances. The fact that the house remains
closed only ionstitutes a "presumption" of its disuse and cannot
always cause\the cancelling of the lease. For example a house used
for storing epode, even though it remains closed for six months is in
eontinuous use. On the contrary, even though a house is not closed
down if according to the facts it may be judged that the tenant no
longer uses itregularly, the contract can also be oancelleds thus
when-the tenant has moved, leaving some small goods in the house, or
giving into a friend's charge, in certain cases it may be said that
the tenant no longer uses it.
8) "When the house has to be rebuilS, and the lessee
has been notified three months in advance, and furthermore a building
license ha been secured". We may add here the text of Art. 14 of
the Regula ions, "If after beinte rebuilt a house is still to be
leased out the original lessee shall have a preferential right to
rent it". If the rebuilt house is to be used by the lestor in person
or is soldlto a third party the tenant cannot exercise his right of
preference4, Even when the tenant holds a right of preference for
the levee, he clauses of the new lease must always be decided by
mutual agre,ment between the two parties. But if the lessor proposes
inacoeptahl4 conditions with the object of inducing the tenant to give
up his righ to preference, it appears that the tenant may bring an e
ention befor the courts.
k
1 9) "When the leasee violates the restrictions laid
down in the lase", Restrictions laid down in the lease must b. taken
to mean specigl clauses inserted in the lease and.tending to limit the
tenant's manner of usage. This does not mean that a violation of any
restriction whatever contained in the lease can constitute a reason
for cancelling the lease. For some time it has become customary in
some places - Shanghai, for example, to use contracts of lease
entirely printed in advance, containing severe (restrictions on the
method of using the house, so that the leasit,negligence on the part of
C the tenant may be construed as a violation of the restrictions of the.
lease. It must be emphasised here that cancellation clen only be
admitted if the restrictions contained in the lease are judged
reasonable in the given circumstances and if the cancellation of the
lease is an equitable sanction-against the violation of these
-restrictions.
? The nine facts thus far enumerated are the oauses of
cancellation of the lease by the lessor. But 4rt.9 of the Regulations
in no way prevents the contract of lease to be accompanied by a
eancellation clause nor does it -1 away with the effeots recognised by
the Civil Law on the fulfilment of the cancellation clause 1).
1) NOTEs Interpretation No.3489 of the Judicial Yuans 64. The provistOS
of Art.100 of the Civil Law - corresponding to Art.9 of the
Regulations on the Leasing of Houses - has not the effect of for-
bidding that the contract of lease should contain a oandellation
clause, nor does it'waive the effects of implementing the oaneella..
tion clause, as laid down in the Civil Law. If an agreement has
been made between-a lessor, A. and a tenant,B. that if a third part,-
C. should need the house leased, the contract shall automatically
terminate, it must be concluded that the lease is accompanied by a
cancellation clause and that as soon as the-condition is fulfilled,
A can take back the house?.
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V/II,- Rent Revision.Art.10.
Art.10 of the Regulations deals with the revision of
rents. This question had already been dealt with in Art.442 of the
Civil Law, as follows s "When the object leased is a house either
party may ask of the court an increase or decrease in the rent
because of fluctuations in the value; but this provision does not
apply to fixed term leases". The provision of the Civil Law applies,
therefore, only to leases Of indefinite term. Since the promulgation
of the Complementary Rules on Civil Procedure during the Period of
Demdblisation, appeal may be made to its 12th Article, to demand the
revaluation of all debts, including rents from fixed term leases.
But the conditions required by.Art.12 of the Rules on Civil Procedure
are extremely strict (circumstances which could not be foreseen at
the time of the contract, manifest leek of equivalence in the
commutative contract, etc.) Art.10 of the Regulations for the leasing
of houses has therefore been drawn up to enlarge the scope of rent
revision. By this article any obvious change in the local economac
situation is enough to allow the parties interested to ask for an
increase or decrease of the rent; moreover such a modification is
possible not only for leases of indeterminate term but also for fixed
term leases down to a limit of cry?, year.
IX.- Deposit of Rent refused by the lessor.Art.12.
Art.12 deals with the deposit of rent. Where a
creditor refuses to accept payment, the debtor, to free himself, can
deposit the sum he owes with the Bureau of Consignation. The rules
governing this matter are to be found in the Civil Law, Art.326 ff.
and in the Law on Deposits promulgated on Jan. 7, 1937. According to
Art.12 of the Now Regulations, if the lessee, without legitimate
reason, refuses to accept the rent, it is no longer necessary to make
use of the Bureau of Consignation; the tenant can deposit the money
in a bank or at the post office. On the other hand, Art.12 contains
no detailed rules on the procedure of depositing, on Which reference
must therefore still be made to he provisions of the Civil Law and of
the Law og Deposits.
X.- Misoellaneous.Art.16,17,18,19 and 20.
Art.16 lays-down that competent governments, according
to the provisions of Art.94 and 95_ of the Land Law, must build lic.usee
for the inhabitants of their districts and encourage the residents to
build for themselves. Strictly speaking, this article has nothing to
do with the present Regulations which, as their title shows, deal vith
the letting of houses and not at all with their building. Nevertheless,
it is obvious that the disputes about leases are caused principally by
the housing shortage and will vanish as soon as there are enough houoln.
Art. 94 of the Land Law, which deals with the building of houses by
public authorities, runs as followes- "In towns, the administration
should build a certain nuMber of spare houses to be let to private
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individuals as personal dwelling". "The rent of the houses menticned
in the preceding paragraph shallnot exceed the interest, at 0% per
year, on the value of the land and building". ...Art.95 of the Land
Law, on the building of houses by-the residents themselves, says,
"In order to remedy the present housing shortage, the municipal or
district authority may, with authorisation from the Ekecutive Yuan,
reduce or suppress the rland taxes and improvement taxes on new
houses and fix the length of thio reduction or exemption". The total
or partial exemption from land tax and improvement tax, laid down in
Art.95, is fairly easy to realise, since it needs only a decision by
the competent authority and an authorisation from the brecutive Yuan.
The building of spare houses seems harder of realisation given the
present financial difficultie& of the public authorities.
Art.17 again has nothing to do with letting houses
and is only of interest to the personnel of the public authorities.
Art.18 indicates which authority can inflict
?
penal.ties for the breaking of these Regulations. Such penalties are
to bek pronounced by the courto -Ind are of a civil character.
Art.19 and 20 of the Regulations give the right of
recourke to the oourts to a tenant expelled without reason and the
owner of a house illegally occupied by another. Both articles simply
lay dow# the principle of recourse to the courts, giving no deta_led
rules. \It therefore appears that the common procedure should be
followed'i of bringing an action in court; these two rules have
little practical utility.
\
Art.21 recognises the right of provinCial and
munioipal authorities to draw up complementary measures, adapted to
local needs; these measures are to be approved by the Executive Yuan
and may nivE contravene the provisions of these Regulations which,
since the have been passed by the Legislative Yuan, have the force
of Law.
Art.22 is concerned with the length of time in which
these Regul*tions are to apply; which will come to an end three
years from their date of promulgation, December lst..1940.
( End )
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U N J V E .R 6 I M
Topics
Author;
Brochure:
Published bys
L ' ',U WE
- Shanghai-
BUREAl., DE ),CCU,-.:ERTaTiON
(Eccnorle Cbinoise)
----- --
280 Chungking Ebn Lu (Dubail)
Tel t85761
Coal mining and Coal
Policy in China
1038-1948. (Part I)
Li 4ng-ho
Ten Years cf China
mconovins
(Shih i,ien Lai Chih Chung
Muo Chi,pg Chi
The Chrhe Book Co.,Ltd.
January 1948.
Doeument No.; 87
.Natures Digest-
NuMber of pages: 13
Remarks: Original
is "The Coal ki
EnSerprises in t"?.
last Ten years?.
COAL MaNING iD CUAL POLICY IN CH1EA
1138-1948 (Part I)
Tho article of whilh a full digest ie here gin is
one .cf the twenty studies gathered by LY.. Van Hei-hung under C7,3
title "Ten Years of China's Elonomics". The first volume of ti
work has recently been published.
The subject seems of special interest at the
moment, since the problem of the production ami distribution of
Goal is oboupying the responsible authorities and lesi.:ing to fled
research in order to maintain existing industries and develop new
ones.
The original -article is ,:livided into seven
chapters whose essential points and statistics have here been
regrouped under three principal headings. This issue will contain
a short summary, followed by the first part, "The Development of
Coal Mining in Eree China during the dar and its Aesults". The
remaining two parts,. "Coal Janes in the Liber6.ted ariae", and
"Coal Demand and bupply ahd Future Prospects", will appear in the
muroh Bulletin.
Certain lines of information, insuffiCiently
brought Out in this article may be supplemented by re-reading
Documents and Studies already published in the 1.enthly Bulletin,
especially those on coal in the provinces of Hunan, Eiangsi,
Kwangtung, Shensi and Shansi, to which reference will be made in
the course of the stuey.
The 1.74itor. ?
?
. ?
MOITTIDff PUiJT.. No..XV - February 148 Dccument No.87"-.Page 1
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China ranks fourth 9moi6the natione ae regav,0
o..1 reserve?, coming afti,r the United Stat, Soviet Russia and
Canada. Before the war, astiutes ;lade by the GeoloOcal Survey
of China put the total reserves cf china 't 266,311,000,000 metric:
tone but kora re- nt investigations rcash the figures of 444,611,
000,060 ate it s_ms that this is more accurate.
_Cool heaerves in 'U., Various Provinces
(Unit: 1,0(0,6ue m.t.)
Porthiltoullrldifiaal go.glsaiaftl S.4...kur
- kgrva Ottlatta
?
Liaoning
1,836 1/
3,110
Kirin"
1,143 1
.1,694
Heilungkieng
1,017 1)
" 4
Antung
7--
795
Sungkie,ng
---
440
Hokieng
---
3,326
Hsingan .
1,126
liaopeh
249
,Nenkieng
;---
16
fatal for N.E.
3,906
10,650
Jehel
OA
1,763
:Chahar
504
504
Suiyuan
476
476
Ninghsia
457
457
liansu
1,056
Chin(hai
.1,056
824
824
Sinkiang
31,980
31,980
Shensi
71,95o
71,960
shansi
127,127
_296,600
HoPah
3,065
4,36O
Hone a
7,764
8,034
, Snintung
1,639
2,126
:hiantssu
217
217
...schwei
W::
760
,,.:Uhe...iailg
100
- lUti
',Hupeh
354
354
, -rHilnan ?
1,293
1,293
,:.!hlangsi
700
700
ISmaehuan
3,833
3,833
'Sikang
531
531
:.: 11.*Achow
2,518
2,519
: Yunnan'
2,310
2,310
Kwangei
1,157
1,157
.iWaagtung
333
333
4Ukien
153
163
%Taiwan
-
444
Gh..ol) TOUL
265,311
444,511
1). RDITORIS NtriX: figrr:- correspond to the old-Chinese
.Provirc,e es tey exi5.d .fore the Milkd,.,c incident.
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. ,
Before?the-Zukd-en Inoident of Septetber 18th.1931,
the yearly production of coal in Chima(Manohuria included) reached
30,000,000 metric tone. After that it remained at about 20,000,000,
? the more productive mines being located in the provinces north of
the Yellow River.
in order to promote the development of industries in
Central and Southern 'China and to increase the resources for national
defence special measures were taken either to open new coal mines or
improve those already existing. Now mines wore opened by the
National Resources Commissien at Yuhsien in Henan, and Kaoklang,
P'inghsiang and Tienho in Klangeili the Reconstruction Commission
opened coal mines at Huainan in Anhwei and reorganized those at
Chianghsing in Chekiang; and the former Ministry of Industries
helped private interests to open the Tachung coal mine at Hsuchow
in Kiangsu and to develop the Pfolo mine at Lop'ing in Kiangsi, the
Yekuo mine at Ch'uchiang in Kwangtung and the Yuanbua and Iihua mines
at Tayeh in Hupeh. Meanwhile two important companies, the Chungfu
in Henan and the Kailan in Hopeh, were reorganized so that Chinese
and foreign interests wore better balanced. Further action was taken
to help the various coal companies that were experiencing difficulties
and to provide better coal distribution throughout the country as
Northern China had a surplus and the regions along the Yangtze River
a deficit in production as compared with demand. With this in view
the former Ministry of Industry established a Commission for Adjusting
the Finances of the Coal Trade and a general conference was summoned
in 1936 to disouss and draw plans to solve the problems concerning
coal production, marketing and consumption. But owing to the outbreak
of hostilities, the project could not be carried out.
New measures had to be taken to cope with the
situation created by the Japanese invasion. The Ministry of Economic
Affairs was established in 1938 and together with the Third
Department of the Military Council, the National Resources
Commission, the Reconstruction Commission and the National Economic
Council, had to face the many problems of resisting enemy oppression.
During all these years special care was devoted to the coal mines of
Szechuan, Hunan, Klangei, Kwangei, Yunnan, Kweichow, Shensi and Keneu.
? Such afforte wore crowned with success as already
in 1942 coal production in Free China amounted to 6,000,000 meltrie
tons which Was enough for industrial, military and civilian
requirements. In 1944 a War Production Bureau was inaugurated in
order to carry out a systematic promotion of'coal production in the
free provinces. When Japan eirrendered, the Government without
abandoning the wertern regions had to turn specially to the newly
liberated provinces in order to relieve the pressing coal famine
in such big cities as Shanghai, Hankow, Tientsin, Tsingtao, Peiping,
Mukden, Canton and Taipeh.
Unfortunately, new difficulties arose with the
communist disturbance; mines just restored were plundered and
communications disturbed. The Ministry of Economic affairs and
-'the National Resources Commission did their beet to help the old
nines in spite of the campaign against the repels and to malutain
the coal supply by disoovering new fields sne inereaeira the
capacity of those already existing in Geatral and Southern China,
AS a whole their policy has met with real sucoesst In 1946 the
total coal production reached 18,000,000 m. tons and it was over
19,000,000 in 1947.
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I
Coal Production by Provioces Before,During
and stfter t1e dar
(Unit; 1 metric ton)
in?
194?.
1147
North stera
Liaoning
--- -...
1,800,000
2,160,0Z4)
Zarin
--. ...4
...
219,000
Heilungki6ng
.01tung
Sungkiang
- - -
Holit:ng
---
,
Heingan
Liaopeh
882,000
600,60.,
Wenkian
-.... ???????
l 'WO
. 0.10
Total for .c.l.
12,606,0G6
2;582,000
2,979,000
Jehol
..-
.....
1,500,000
1,699,000
Chahar
247,093
---
30,000
18000.0
Suiyuan
72,59Z
---
73,000
80,4%10
Ninghsia
.1!,,00.i
74,000
150,060
159,5C-6
lansu
. 10,00
100,0.'0
286,000
240,0'
Chinghei
......
.--
50,0:.:0
50,4
Sinkiang
10..?0:..)
......
200,000
176,4?..
Shensi
200,316
506,946
650,0.'0
640,0%-:
8hansi.
2,866,487
060,000
600,060
Hopeh
7,575,591
...
4,650,000
5,540,0,6
Holum
2,26;3,600
698,900
1,000,000
720,6..6
Shantung
3,988,157
...
837,060
300,60
4iangeu
667,230
...
450,00U
624,0L6
.;nhwei
1,010014
20,60u
706,000
871,0.0
Cheki.ng
242,472
2,000
10,000
99,60y
Hupeh
563,642
37,006
160,060
306,400
Hunan
919,006
1f1q2.000
600,000
699,600
tiangsi
346,869
200,000
140,000
219,600
Eizechuan
663,988
2,860,000
1,860,000
1,748,400
Sikang
30,000
30,000
30,000
kOmichow-
80,000
303,060
800,000
199,206
Yunnan
123,647
242,460
180,000
000,0t.0
JiWangei '
10L,000
93,000
60,000
132,06%,
Lwangtung
361,252
70,000
40,000
YUkien
60,000
30,000
30,0o0
10,600
Taiwan
--.
..--
1,000,000
1,190,060
GR.ND TuThD
34,g5005f
6,313,617
18,408,000
19,487,400
I... The -2..eve1opment of Coal lining in 'Wee China"
during the -tar and its Resulte.
It is iatereeting to review the development of Goal
mining in 2ree China dur1n6 the war, not only to appreciate the
work achieved, but also in connection with plans for the better
utilization of the country's coal resources in the future.
T ^.
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4
Let us examine first the polity adopted during war
time and then the results obtain,-__ in each province.
The numerous meyeures taken by the Ministry of
Soonomic Affairs during the wLr to promote the development of coal
mines in uiree China,' had a triple aim in view: bo inOrsase productiesle
to control merketing and to supply the smelting and refining works
Of the interior with coke of goo a quality.
In order to increase coal produotion in the West,
the procedure for obtaining a license of exploitation was very nuoh
eimplified as well as that for obtaining leans to remove and repair
the mueh needed machinery or even to buy it in foreign couitricss
moreover all peocle engaged in ooal mining either workers or technicians
were temporarily exempted from pilitary service.
Already in 1938 a Axel Control Office was set up in
Hankow to regulate the demand and supply, secure speedy transportation,
prevent adulteration and limit prices and profits. After the fall of
the Wuhan cities, the office wee removed to Szechuan where it was
chiefly concerned with coke problems. In 1943, a l?ranch of the lesel
Control Off:;ce was put specially in charge of supplying the railrose'e
in .:Nangtung, Hunan and ,wangsi, and in 1944, another Branch was
created to supply the new industries in Honan and Shensi. Then the.
Bureau of War Production. was set up and the former offioe remained
only conoerned with coke production.
Anally the Ore -Smelting Aeseareh Laboratory wee
created. Its chief function was to experiment with the varioub
bituminoue coals in ?vier to find the most suitable ones for coking
and to establish goad coke factories Promising results were obtained .
with the Permian coal of Szeohuan and espeoially good coke was
obtained from the coal of the Tgienfu, Chiangho, Ana Huaan mines so
that the production of iron could be increased.
1. 8zeohuen.
The results obtained in this province are clearly
shown by the following figuress
Seechuan Coal Production during the War.
1938
1,400.000 .
1942
2,005,000
1939
2,350,0W
1943
2,900,000
1940
2,190,000
1944
2,700,000
1941
2,800,0W
1945
2,300,000
-
Among the various mines listed below the.Weiyuan,
Shihyen, Huachtang, Yita, Chtenehuen, Tatung, Hun, Chengtu, Huuyin
and Chumicoul companies were newly opened or reoganised. Part of
the machinery removed from the Chungfu Coal Pine (Honun) was handed
over to the fields Of Tolenfu and Chiayang while better equipment
and means of transportation were given to the old mince at Sentelai-
sheng, Paoyuan, Chlangho, Tunglin and Shihlin.
vv
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Zcoept -for the-4;12110,4in whieh -
prod'..toes anthrasite n11 the?woals are bituminous. The w4XiM20
daily output is given thus;
gegl_giaggagx
Weiyuan Coal ' 1)
ao.
Huachlang o
Yita o
Chienchuan 2)
Tatung , o-
Huaan 3)
Chengtu o
Huayin o
Chuantei 04)
Tfienfu o4)
Chiayang 294)
Santsfaisheng o
seuirks;
MaximmeLD4121
600 tone
260 "
10C 4
12. 0
60 0
10Z, 0
50 N.
100 b
10u 0
1,500Hsinakwe "
600 0
30c "
09440Alm_Ps?
Paoyuan ?
Chiangho ?
Tanglin o
Shihlin o
Hopiu 6;
Chisngpsi 6
Changpara o
Yungku o
Chuebiang o -
0
/Uinta o
Chfichoang o
44atl4117
Autatt
300 tone
10u
20:::
11
250
10i)
S.
80
ci
200
60
b0
100
60
11
Si)
o . Privately owned.
1) Jointly ownea by the MHO and the salt atiministration.
U 01 * private interests.
" i.linistry of Aconondo affairs and
private interests.
41 . Cowblned to form, the flienfu Coal minicg Co.
6 Publioly owned.
6
The szeohuan aning Co. Jointly owned by the ARC and
Provincial uovernment.
Produotion of Prinoipal Aides in bseohUan.
Jan.-au:le 1947. (in met.tens)
Tlienfu
308,924.40
Obukiang
17,800.Pu
Weiyuan
424,154.00
Huayin
24.715.$15
Shihlin
43,6c1.00
Hoping
13,951.00
Yitn
18,714.99.
Hoehuan
10,385.00
Tunglin
17,004.72
Yungku
2,600.i..0
2. tiikv.ng.
The llkai Ci4L1 Yield under the management of the
1120 end the Sikmng Provincial iioverrumont, furnished soal to the
fo.gper, lead and zinc wining enterprises of szeshuan &flidikeng for
refining purposee. ?
8ikang Coal Rroduetion during the jar.
1638
20,000
1942
30000
1939
30,001.,
1943
30000
1940
52000
1944
20,000
1941
30,000
1946
30.000
_1S.-_
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3. Yunnhn,
During the war several-new nines were opened! the
Hsuanming ?oral mine to furnish coke, the Hsiangyun to OUpp31 the
projected Yunnan-;3urna railway, the Ipinglung for the requirements
of the salt wurks of western Yunuah ind the iron and steel Works
of the Province.
Yunnan Coil Production during the Mar.
1938
150,00C
1042
242,450
1939
220,000
1943
250,000
1940
2.2, O.'
1944
260,000
1941
30.1:,00u
1945
250,000
The lietienel ilesources Commission after having
invested funos in the ,aihIsliang c..a1 Jane bough all the reMuining
private shares ano reort,eilized the Company to deliver soul to the
industries of hlmmin6, to tlie Yuiw:an-Incechina railway and to the
projectod Hsupuu-..unthin
ileanwhila the giaoke Aline wee readjusted for the
benefit of tin refinery works.
Coal 41.nia.g_Co. AR20:;:tr0 :1.1R11.X
. ?AIWA
Aingliang noo m.tons
Hsuanming 50 0 h
Ipinglang 150 "
giaoke 86 "
pwncrlus
NRO
fest Yunnan iinterpriso
Bureau of the Prov.0ovt.
NRO, Prov.Govt.& Bank
of China.
All these JAnes produoe bituminous coal.
Production of Principal anes in Yunnan
Jan.-June 1947.(in met.tone)
Niaoke(Tin Co.)
4. Aweiehow.
23,807.04
9,132.00
Ipinglang 22.767.87
0reat efforts were made during the war in nis
province, known to be poor in coal, to increase its production
ehiefly with a View to the opening of the ...weichow-A*ungei railway.
K:leihow Coal Produotion
during the jar.
1938
100,000
1042
303,000
1.939
200,01/4.0
1943
. 310,000
1940
270,0TS
1944
250,0Z-0
1941
30U,UvO
1945
192,..0
? ? s? y ??????
ifOliTHLY BULLETIN No.X7 - February 1948 -
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Among-the ocw1y-sogerked-mineir-suak-aa...Chutung.
Linturo, Tuyun and kentung, the last, located in the TIlingtzu
district, has been the most important and nes able to furnish eigfe
to the bteel 7:actory of Toluk'ou near Chungking. ?
sag dining Co.,
Aweiohow Ocal laning Co.
(Chutung & Lintung mines)
Bantling Coal Minink: Co.
4faximumDaiXAP2E64.2
Output
BO m.t.
ASU0
NRC & i,rivate
interests.
NRC dc Arsenal.
Luring the first half of 1947 the iiantung Coal
wine produced 26,23u.tu met.tona.
These mines produce bituminous coal.
5c Kwangsi.
Before the-war, the rank of China had 000perated
with the 4wangai provincial government to open the Heshan Coal ;An?
in the Chlienkiarg district. Its semi-anthracite, mixed with Hunan
soal was utilized by the Hunan-iiwangai Railway, In 1944, the
Anistry of Economic idfairs supplied loans to this enterprise for
developing means of-transportation and increasing coal output.
The other important mine is that of Hainan
(Bituminous) which was mush developed by the Plingkwei ;aining Tiureau
to supply electric plants and tin refineries.
Xwangsi Coal Production during the :tar.
1938
1OCI,Cut.) ro.t.
1942
93,000
1939
160,k..yu
*
1243
100,0y0
194U
60,0wO
1944
200,000
1941
60,000
"
1945
10,000
g2RLAAning Co.
Hashan
Alaligal_PEALlx Ansrelit. krOmsa_im.-
Salka imm1242
300 mit., Bank if China 16,737.20
& Prov.Govt.
Heaven . 80
NBC & Prev. 9,977.70
Govt.
6, Hunan 1).
When the war broke out, the province of Hunan had
several coal mines in good condition some which, as Shihmenk'ou
ip Illing, .alianyint'an in Chligang and Yunhu in Haiangt'an belonged
to the provincial gavernment while the Yiohang, Yangmaisban and
1) ELITOH.6 KOTIL For eopplementavy detail "anemia in Huron"
by Hsiang Hsieh in Zonthly lulletin ?o.II (november 1946)Losument
$0.13, pp.1-2, and "Bituanous Coal rainee along the Oantan-Bankor
Itailwayu by Cb 2 Hsiao-hing in ._onthly lullstin Do.X11(noveMber
1947) Locument No.41.
.....
OEITHiY B174.LETIN No.XY
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Tzuhein minis were privately owned and run by-law,South Hunon Coal
wining iluresu and the Chunghslang, Haiangiciabg and Tianchihah in
the Hsiangtian tastriot.
In order to supply the inuustries or rieutern Huncn,
the Vetional Aesouroes Comdssion arganized the Chienchli Coal
wining Co. with the. machinery emoved from the Yuenhua ..ine of Tayeh
in Hupeh, t.nd also the Chilling Coal :lining Bureau, given oharge of
the newly opened Yichiachii-lo coal field in iincjing for the
requireaew.s of the Hunan-Kwangsi raiNay; the latter was the only
source of cozil for the sr' ane the railroad after the fall of
Ch.ngshs nnd k.engyang in 1944. The Yunghsing enthr;,cite mine v.a,=s alga
opened by the NRC.
Hunan Coal i'roduction during the Jar.
1936
.540,0LW m.t.
1942
1,102,000
1939
1943
1,150,000
1340
1,016,373
1944
550,000
1041
1,100,000
1945
150,000
gPal..A14#1"16. Co. i4Lximum Laili Coal 4ping:Co.
Outuut
south Hunen Coal
inirg Bureau
Yunghsing
Chilling
wiling
bttuminous coal.
500 m.t.
70
300
250
Au. the
Ch'iynng
Yunhu
Chienchii
Hslangkiang
Uhunghsiang
:lax/ wpm.Lnily
.QMS.RYt
150
50
50
150
60
aines referred to, except Yunghsing, yield
After the war, a reorgnisation was mtioe of the
various compardes in the Hsiangtlan district. A part of the former
Cbungheiang ont-rpriee wae joined to a part of the fonmer Yunhu to
form the Huhsiang Company Under the joint control of the ORO and the
Provincial L.overnment. The other part of the Chungheiang was
amalgamated with the T'anchiashan to constitute the new Chunghsieng
Coal kilning Co. depending directly -2n the Uational trovernMent. The
Hsianglaang mine is wanaged by the ..FAC together with private
capitalists, rS a whole the Hsiangt'an mines have been well supplied
with new vachinery and co:Istitute the main sources of supply for the
Hupeh-Hunan-Aiangsi
Production of Principal i.iinee in Hunan.
Jan.-June 1947. (in met.tons)
South Hunan Coal
Aining
Hsiangkiang
Ch'iyang
Chunghsiang
63,505.95
Yunghsing
10,599.00
Houheiang
2,482.03 o)
50,052.05
Chiencbil
6,700.00
2(1,129.00
Hotsu
18,742.00
11,354.25
Huiming
10,082.00
10,735.t..O0
Yungshao
11,234.48
0 pri1 ay and June only,
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7. ciangsi,
At the beginning of the wg.r, the Anyuan ooal field
at P'ingheiang was readjusted by th-: NW and the ciangsi 'Provincial
Government, Later, the mcohinee of this mine together with those of
the i:Aoklang Coal ,line were removed to Hunan Province by the NRC for
strateGio and ()communication purposes. The Ttienho Coal Aloe in
Gouth aiangei was opened in the very curly period Gt the war but
plane for its GevelOpment were hindered by hostilities. The Plao
Coal iaine, main source of fuel for be eaetorn section of the
Chekiang-Alangsi Railway, was repeatedly assisted finanoi.11y by
the Bureau for the .djustment of InGustry end dining.
&angst Coal Production during the War.
1938
1:039
1840
1941
400,000
300,000
20,000
220,0v0
1942
1943
1:044
1945
200,000
160,000
120,000
10.,,000
Coal sainiog Co.
Natlire oLCoal
Aaximum_Dally
9-11.9011.11.4.2
Output
.
Kaokfang Coal
hin4no Bureau
at P'ingheiang
Bituminous
60
NRC
P/inghsiang Coal
wining Readjust
?
260
PRO & Prow.
Govt.
Bureau
T'ienho Coal
N
100
Alining Bureau
lito1e Coal '
200
Priv.
41ning Bureau
rienho Coal
Aining Office
Loping wine
;iiangnan Coal
"'dining Co.
.
Prod5otion of Prinol,ya1 dines in Xianimi.
Jan,-June 1947.(in riot:Ono)
13,263.90 m.t.
11,890.85
Coal aning Bureau
of Reetern Xiangei
A'enkou dine,Cheki-
ang-Elangei Rlway
wining Co.
10,091.40
6,001.71
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8. ,imahgtung.
The Eukuo Coal .inIng Co. of Chluohlang, a private
enterpriae, had to cloee on account ef the war, Meanwhile the
Rational Aesourees Coiadesion and the ?wangtung Provinaial 13
Government cooperated to run t:Ie coal mine of Patsuling in Juyuan
Kwangtung Coal Produetion during the War.
1938
380,00j
1942
T0,000
1939
30uoi:Ju
1943
101.40.J0
19461
50,000
1944
100,0ki0
1941
500)00
1945
100,0o0
The .Pukuo Coul mine ha, ?roduced 3,252 m.t. during
the first semester of 1947.
e. Honan.
The Yinghao Coal was opened by the Lunghal
Railway Adminietration for its own requirements and the Lungmen
,nthracite Aine dy the hon0i Provincial wovernment to supply coal
to the city of Loyang. In the last period of the Nar, they, as
'well as the Aingheng_Coal mine, were Lt one time oodupied by the
enemy.
- Hunan Coal Production during the 4ar.
1938
400,00u
1942
698,000
1939
400,000
1943
704000
1940
4300)00
1944
300,000
1941
460,000
1945
50,000
Coal miqing_Po. Ihtlas of.9.20. AaXimum DailZ lowntahL2
Qutout
Lungmen Anthracite _ 100 Prov. Govt.
minsheng Bituminous. 300 Priv.
Yinghao il 60 National
Fuyu Seri-bituminous 100 Priv.
1) EDITOR'S :WTE: Por further details, see 1:ionth1y Bulletin Mo.XII
(November 1947) Document No.71 "Bituminous Coal dines along the
Canton-Hankow Railway, by Chu Hsiao-hing.
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de have ooen, in revkavinomiltions.,i4 4zechuan,
thet part of the.mach.J.uary_frola_tha_famous mines of the Ghpagfu
Coapany had been removed behind the fighting lines shortly after the
beginnine of the Sino-Japanese war. .:fter the Japanese retreat thea&
mines ward for a time in the hands of the Communistst in 1946 they
were returned to their owncra but development remained very difficult
es the Ti:e-ch'ing Rcilway was disrupted by oivil warfare.
Production of Principal Lines in Ronan
Jan.-June in met.tona)
ginsheng
Chunzfu
Yuhsier;
87,894.00
76,683,15
10. Shensi.
1)
Yinghco 16,297.10
Awn 9,055.00
Then the Peiping-Hankow itilroad was out, the Lunghai
i;cilway -duinistration, together wit'n the 6hen8i 2rovinciil Governm,nt,
opened new co31 mines in T'unekuan and repaired the branch line from
Hsienyeng to 1.1ungkuan in order to fahilitate the transportation of
coil. Industry having developed rapidly in Shensi Province aince t'ne
war'brokc out, ooal wes needed urgently in Sian and P%oehi, where
many new factori,.a had been established. The ..iinistry of Sconomic
Zfaire helped the Hein Sheng Company of Paishui, the Reinheing
Company of P'roh'eng and the Yung Heikx Company or Lunghsien to
increase their output of ceal uno to improve thea weans of
transportation. The rail section from Honan to Shensi, the iino4Lung
Line, was repaired and the ginistry.of Sconomic .ffeira requested the
.ginistry of Co,launications to conssot a light railway from 1Up!ing
to Paishui for transporting ooal. The machinery of the Ainsheng
Coal ane was removed from Honan into Shensi, and given to the new
ooal nine at Linyiu and the Lin ieeng gining Company was formed. at
the same time, coal mines were opened in Hanchung to meet the local
needs in the southern part of the province.
'
Shensi Coal PrcM.:ction during the War.
1955
240,000
1942
506,009
1939
320,000
1943
600,000
1940
419,000
.1944 -
650,000
1941
500,000
1945
600,000
1) EDITOR'S :OTE: an article on "Present Conditions of Industries in
Honan" published in the gative Bank Zonthly of January 1948 contains
different figures for the coal mines in Florian. They are given
below for referencec
pine
pietrict
tionth1y
PrjAinal
/.122ELIO
_Production
ae99-41.-
Ohungfu
Chiaotso
75,000 tons
15,000 tone
Liuhokou
,olyang
65,vvu.
0
Both are ?caw.
Haingchi
T'angying
9,000
0
by the Communist',
Tungfeng
Yuhsien
11,500
4,500
Lungmen
Loya-33
20,000
7,000
Lineheng
Shenhsien
15,000
8,600
Ch'iukou
Heinen
1,500
YwTh'ing
hienchih
3,000
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Apal_pnIng...Co. .144ximum LailY _ --,Shlarshis - YrONotton Jan.-
kpaAmetion 2312.1.2-12.42
T'ungkuen 1) 600 m.t. Iunghai Rsy.&
Prov.Govt.
Zsinsheng 100 Private 18,547.00 m.t.
Heinhsing 80
Lunghsien 1.51ne of
Yunghsing Cd. 50 Priv.& Bank 17,451.00
of China
Lipfeng 50 Private.
Pingyso Line of
Shensi Enterpr.Co. 80 Prov.0ovt.
All *he mines referred to produce bituminous coal.
11. Aansu.
Only a few email eoal mines at Akansheng existed
with a prueuetion scarcely sufficient for the use of Lenohow City.
The NBC first opened the coal mine of Yungteng and then the Lansu
Coal Lining Bureau was Gstablidhed to oOntrol the mines of
Akencheng and Yungteng in order to supply mare coal to the
developing industry in the provincial oapital.
Kansu Coal Production during the der.
3.938 90,000 1942 100,000
1939 90,000, 1943 100,000
1940 98,245 . 1944 110,000
1941 100,000 1945 200,000
Coal_pinins. Co. Notureo.Qpa1 aximum Dailx OsnersUS
;ionsu Coal Bituminous 80 m.t. NRC & Prov.Govt,
Lining nureau ?
Plingehlung Coal U 40 " Priv.
Lining Bureau
( To be ooncluded)
L) 1641110RIS AOTA: For a detailed account of this enterprise, see
*tenthly Bulletin No.IX (June-July 1947) Study No,IX "The .
tatinekuart Coal an in Shensi".
gONTHLY BUILSTIN NO4XV Februrry 1948 - Dooument 87 Page 13
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UNIVERSITE L'.AURORIC
-Shanhai-
BUREAU LE DOCUMENT-TION
(Economie Chinoiee)
280_Chungking Nan Lu (Dubaii)
Te1:85761
The Chinese Cement Industry STUDY 10.1 15
during the year 1947. Number of pagesS 9
Articles and reports digested and combined
in this Study:
"Future of China's cement industry" by Huang Ta-fling, Ta
Kung Pao, October 8, 1946.
"Cement industry in Taiwan", Shang Pao October 19.1946.
"Cement industry of to-day in North China" by Hei Chang-
hsu, Ta Kung Pao, January 16,1947.
"The China Portland Cement Co. ,Ltd.", Economics Weekly,
March 27,1947.
"General conditions of the cement industry in North China"
by Hsu Ching-sheng, Shang Pao, April 18,1947.
-"The Cement Factory of Kaohsiung" by EUyang Chlung, Chin
Yung Jih Pao, May 4,1947.
"The Saichuen Cement Works in Canton" by Liang Feng, Shen
Pao, May 4,1947.
"Production of Gypsum in haiangtan", Ta Kung Pao, July 1,
1947.
"Production and marketing of Yingchleng gypsum", by T'aing
Pai-ch'ang, Chin Yung Jih Pao, August 24,1947.
"Gypsum discovered at Fengchieh, Szechuan", Chin Yung Jih
Pao, Sept. 26,1947.
"Chinese cement guilds plead restriction of Jap cement
production", Chung Yang Jih Pao, November 9, 1947.
"The manufacture of sulphuric acid and cement in Nanking"
by Szu-Cheng, Ching Yung Jih Pao, November 21, 1947.
"Cement industry in North China and Mk. Lu Chung-bmien" by
Hou Ying, New China Magazine, December 1, 1947.
"China's cement industry of to-day", Shang Pao, December
15, 1947.
"Taiwan to promote production of cement and fertilisers",
Shang Pao, December 21, 1947.
"Cement output fn Taiwan", Sin Wen Pao, December 29,1947.
"The Chinhsi Factory of the North China cement Company"
by Ke Fu-hei, Popular Science Monthly, Jandary 1948. -
"Marketing collaboration between the Chi Hein and North
China Cement Companies", Chin Yung Jih Pao, February 2,
1948.
"Cement guild, suggest readjustment of commodity tax", Shen
Pao, Febrriary 5, 1948..
7
THE CHINESE CEMENT INDUSTRY
DURING THE YEAR. 1947
I.- General C:nditione.
In reviewing the history of the Chinese Cement
Industry, Mk. Chi Ch'ung-wei showed, in his article in the Ta Kung
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11
Pao ? of Dec. 10th.1946 that the Chinese production in 1936 (5.76
million barrels of 176 kg.) not only exceeded the demand for home
consumption (5 million barrels) but was beginning to develop a
market for exports, especially in the Malay States and the East
Indies. As far as quality was concsrLed, "The degree of fineness,
the character and time of setting and the intensity of resistance to
expansion of the, various brands of Chinese cement not only satisfied
the general requirements but were most of them superior to the .
British make".
After the war, however, all the hopes which had
been entertained for a speedy recovery of the former state of affairs
and even for development were "very soon shattered by all sorts of
difficulties and hard blows", Mr. Chi Ch'ung-wei lists what he
considers the most important reasons for the depression of the year
19463
1. High cost of production as compared with selling prioes;
2. Shrinkage of the marketing areas owing both to disrupted
communications and to civil warfare;
3. Dumping of foreign cement;
4. Insufficiency and high price of working capital;
5. Decrease in productive efficiency of workmen.
The 'same factors can be stressed in considering
the conditions of the Chinese Cement Industry in 1947, except for
the third, "Lumping of foreign cement". In this respect, the
situation had already improved during the first six months of 1947
when the Government stopped providing foreign exchange for cement
from abroad. Since then, import licences have been temporarily
withdrawn. Moreover, instructions directed towards the utilization
of Chinese products in all government construction projects have
been issued by the Executive Yuan. As a result of these measures
only cement of Chinese make is being used in the oonstruction of
highways, in the New Harbour of T'angku and in other similar works.
A few figures wA.1 be enough to give a clear view
of the problem of the disparity between cost of production and
selling price. For example: a ton of gypsum o.o.d. at Hankow was
only CN#700,000 in September but C142,920,000 by the endof November,
an increase of 300%. Diesel oil climbed from 0141,411,000 per ton
to 0143,500,000 during the same period, an increase of 150X. The
upward adjustment of the tariff for electric power ran from C141,4510
48 per KWH in September to CM$3,885.CM in Octdber. Wages also
Increase according to the cost of living index which was 34,400 in
September and 53,100 in December. On the other hind, a bag of cement
of 50 kilogrammes was sold at CN$150,000 at the end of September and
CN$240,000 towards the last days of November.' In short the cost of
cement production increased by four times while the selling price
only went up by 60%.
1) EDITOR'S, NOTE; See Monthly Bulletin No.V (February 1947).Documeat
No.32 "The Struggle of the Chinese Cement Industry" by Chi
Chlung-wei.
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The difficultis of marketing are only too obvious
in the face of the ceaseless in1lation and of the warfare affecting
more and more areas. This had reacted heavily on the cement industry
during the past year. The government has had to suspend all the
construction projects which could temporarily be done without.
According to estimates of the National Federation of Cement Guilds,
the stocks of cement accumulated up to August 31, 1947, in the
cement factories then operating, amounted to 6,258,000 bags or
312,900 metric tons, Meanwhile the Cement sold in Klangsu,Chekiang,
Anhwbi, Shanghai and Nanking amounted to 400,000 bags in July and
300,000 bags in August, but even thougti it bad far exceeded the
monthly consumption of 60,00C.barrels 1) or 10,200 metric tons in
the early part of 1947, this was of little help.
Moreover transportation capacity is being reduced"
on account of military commandeering. Frequent increase in freight
charges adds heavily to the already excessive cost of production and
the innumerable taxes imposed upon the cement industry help to
aggravate the blocking up of the market. The commodity tax on
cement gives a good illustration. Its assessment varies considerably
according to different districts and cement guilds are constantly
requesting the authorities to impose uniform measures and even to
readjust the present official rate (15%) becausd of the precarious
situation of the industry.
II.- Procuring of Raw Materials With
Special Reference to Gypsum.
The main raw materials for making cement are' lime-
stone, clay, gypsum and fuel. The first two are obtainable almost
everywhere without any difficulties. Coal is extremely insufficient
especially in South and East China where many cement factories are
built. Unless the political situation is improved, the fuel problem
will continue to grow. The supply of gypsum is rather difficult as
we shall see below. Packing materials such as paper bags and gunny
bags are also lacking on account of the insufficient supply of
foreign exchange. A total of US$800,000 had to be allocated for
gunny bags for the first nine months of 1947. Import quotas for
paper bags are given in principle but neglected in practice.
As everyone knows gypsum, in a proportion of about
3%, is necessary to control the setting time of cement. The annual
production. in China before the War was 83,700 metric tons, mainly
distributed to the manufeoturevs of fertilizers (60%), cement works'
(38%) and beancurd makers (2%). The present demand for the cement
works throughout China is only about 3 to 4 thousand tons per month
but this would be tripled if all the cement factories resumed normal
production.
Gypsum is found mainly in Hupeh and Hunan where
Yingch'eng and Hsiangtlan are particularly famous. Limited
quantities are also produced in Honan and Shansi. The gyitsum in
'Taiwan is completely disregarded on account of its inferior quality
1) One barrel = 170 kilogrammes.
ft=111.
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and synthetics are being used instead. Other regions producting
gypsum include the Ch'ientiang districts in Chekiang and Tfaiping,
Yaan and Teingplu in Szechuan. According to the local Shang Pao
(Sept.26,1947), a new mine has been discovered at Kungpeichliao near
Fengchieh in eastern Szechuan. Prelirinary survey by the Department
of Reconstruction of the Szechuan ProNincial Government estimated
the reserves at 2,000,000 tons, but further survey made by the Yung
Li Chemical Works disclosed that the mineral hes probably a depth of
60 metres so that it should be at least 4 million tons.
Actually the cement works in China receive their
main supply of gypsum from two regions, Yinch'eng and Hsiangtlan,
on which the following information is available:
1. Gypsum from Yingch'eng.
It is famous throughout this country for its purity
and its high setting power which appears to be the best known to the
Chinese cement manufacturers. Gypsum mining is now a semi-public
enterprise jointly operated by prilrate interests and the Hupeh
Provincial Government. Extraction of gypsum is mainly done by
excavating the quarries which numbered 30 before the War. Only 8
remain in operation to-day, with a total capaoity of 10,000 tons
monthly. Restricted by marketing facilities the production ha*
dropped until the monthly sale is around 5,000 tons. A contract was
made between the miners and the National Federation of Cement Guilds
in July 1947, for the supply of 3,000 tone of gypsum to the cement
works: but it lasted only two months as the price level went up
much higher or other commodities than for gypsum. Since the end
of the war Yingchleng gypsum has been distributed in the following
manner:
Cement manufacturing: Shanghai
Canton
Tientsin
Fertiliser manufactures in Kiangeu,
Chekiang, AnhweA,Hiangsi,7Ukien
and KWangtung:
At present the Yingchleng Gypsum Company has branch
offices in Tientsin, Canton and Shanghai and is planning to produce
refined gypsum for exportation.
2. Gypsum from Hsiangtlan.
This is also very popular with the cement works
especially those in Hunan. Regular supplies are going to the Cement
Works in Shaoyang and the Hwa Hsin's plant in Chtengch'i. The
productive oapacity is about 4,000 tons monthly but actual production
has averaged only 2,500 tons since June 1946.
III.- Principal Chinese Cement Factories.
Toward the end of 1947, the National Federation of
Cement Guilds stated that the total production of cement factories
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throughout China_amaquted,te..J6A010 tons per month.
Cement Works
Productive Capacity,
Actual Prodyotion
per Month (Tone) '
Per Month (Tens)
Taiwan Cement Co.
54,000
13,500
Chi Hsin Cement Cc.25,000

16,290
China Portland Cement CA.
22,50C
1
2,000
Shanghai Cement Co.
8,300
4,900
Hwa Hein Cement Co.
33,900
3,900
Saichuen Cement Works
6,600
3,600
Szechuan Cement Co.
4,500
2,100 .
Tienhsiang Cement Co.
1,800
1,500
Chia Hwa Cement Co.
830
750
Shun Chang Cement Co.
1,250
660
Chien Ya Cement Co.
840
600
KWeichow Cement Co.
300
? 210
Forth China Cement Co. 1)33,000
Liaoning Cement Co.
33,000
28,000
Northwest Industrial
Development Co.
6,000
suspended
EAneu Cement Co.
360
Chi Cheng Cement Co.
300
Elangnan Cement Co.
22.500
249,980
War
1. North China.
One cannot help thinking that the situation of
oement in North China looks rather gloomy. The cement plant of the
Northwest Industrial Development Company in Taiyuan, Shansi, is
producing only restricted quantities for military conk:Action within
its province. Owing to the heavy destruction in Manchuria the
production in the Northeastern cement factories is almost nil, and
supply has to depend upon North China where two of the largest cement
companies in China, the Chi Hein Cement Co., and the North China
Cement Co. are being troubled by under-consumption. .
The Chi Hein Cement Co. in Tlangshan, Hopeh, is a
private conoern and one of the oldest in this industry in China. Fuel
as well as other raw materials being available from nearby district:),
the Chi Hein is in a better position than the North China Cement
Company on which more will be sald below. During the first year after
reconversion (1946) the Chi Hein produced 124,276 tons from which
44,599 had been sold. In 1947 the monthly production was limited to
1) EDITOR'S NOTE: According to Chin Yung Jih Pao, (February 2,1948)
only the plant in Chinhsi susp'ended operation while the one in
Liuliho is still producing 13,000-15,000 tons monthly.
-
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16,290 tons as the selling returns on the market were not big ancuel
to cover the normal costs. The -products are mainly sold to Shanghai,
Tsingtao, Amoy, Swatow, and to the districts along the railways in
North China. quick hardening and anti-oorrosive cement le also
produced by the Chi Hein Cement Co. and is mainly used in the
construction of the new Harbour of T'angku. The equipment comprises
the followings
5 rock crushers
8 coal pulverizers
14 rock grinders
10 clinker crushe-:
6 revolving kilns
15 boilers
3 turbine generators
190 motors
2 packing machines
1 fully equipped machinery
work-shop,
The North China Cement Company, under the National
Resources Commission, has two plants: one in Liuliho in Hopeh and
one in Chinhei in Liaoning. Both of them were taken over from the
Japanese after V-J Day. The production of the two plants combined
could reach at least 30,000 tons monthly but following the suspension
of the coal supply from FUhsin and Peipliao the Chinhsi plant has
stopped work, The Liuliho plant is still operating and maintains a
monthly output of between 13-15 thousand tons.
The installations of these two plants are composed
Liuliho Plant Chinhsi Plant 1)
2 rock crushers,
2 dual gyratory crushers
2 clinker crushers
4 revolving kilns
2 turbine generators
3 crushers
3 drying machines
3 pulverizers
2 air separators
2 rotary kilns
2 clinker crushers
1 600 KVA generator
1) NOM Further details on the Chinhsi Plant are given in an
article reoently published by the Popular Science Monthly Jan.
19481 "The Chinhei Cement Factory under the North China Cement
Company" by Ke
A CompaMison of the cement (*Great Wall Brand") made
by the North China Cement Co. with the German specifications.
German Specification' lost wall
Anemias
4,900-mesh per sq.cri.
Setting time First setting
Final setting
Soundness Steam exposure
"Ray's" test
Tensile strength after 7 days
1 part cement:
A parts sand " 28 days
(by weight)
Compressive ? 7 days
Strength 1:3
28 days
11
Other data:
? Dry process is in'use on account of humidity in Chinhei.
Fuel supplied by Peipliao, FUhein and Fushun.
Limestone quarried in Yangchiachangtse, 20'11 from Chinhei.
Maximum 25%
Shortest 60 minutes
Maximum 10 hours
Absence of creak
Maximum 10 cm.
At least 18 kg,
per sq.cm.
At least 25 kg.
per sq.om.
At least 180 kg.
per sq.om.
At least 275 kg.
per sq.om,
6%
77 minutes
2.3 hours
surface Absence of
orack3 surfsee
eny
of
45
31
360
410
.11.111111
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,
Both of thess-Rlante---tuil.0 large stfaska of
products, those in the Chinhsi plant are blocked by dtemnptiee of
communications in the Northeast and those in the liuliho plant by
competition with the Chi Hein Cement Company. The main markets for
the Iduliho products are the Public Works Departments of the Peiping
and Tientsin Municipal Governments and the cities in Northwest China.
competition has been reduced by an agreement between the Chi Hein and
the North China through which both agreed to supply the market at the
ratio 5:1 (80% from Chi Hein and 20% from North China). This
agreement was later improved and it was decided that the ratio should
be variable according to prevailing conditions ae follows*
When monthly sales are lessthan 5,000 tones 4,1
11 0 5,000.10,000 tons, 3s1
over 10,000 tons:- 2,1
?
2. Kiangeu.
There are six cement factories in the province of
Kiangsu. The Kiangnan Cement Works Which used to produce 22.500 tons
monthly are now closed down peming installation of new machinery.
Among the five remaining in operation only two are worth mentioning.
The Shanghai Cement Company, located at Lunghwa,
Shanghai, is equipped with-1 rock crusher, 2 clinker crushers, 2
revolving kilns and 1 coal pulverizer. Maximum production is about
180,000-200,000 bags monthly, consuming about 1 million KVH per month.
Owing to power restrictions, the aotual output is 70,000 MUM
monthly.
The China Portland Cement Company. at Inngt'an near
Nanking, produces Portland cement and special cement. It has 2
turbine generators, 4 rook crushers, 4.olinker crushers, 2 coal
pulverizers, 4 kilns, 2 mixirachines, 4 drying machines, 3 packing
machines and a, fully equipped MT. The present output is 12,000
tons monthly which is one third df its pre-war standard.
3. Taiwan.
The Taiwan Cement Company, taken over from the
Japanese has three plants located in Kaohsiung, Ssuao and Chutung,
The machines i the first two,plants are rather worn out and
reparations are still under way in Chutung. Production facilities
are generally better in Kaohsiung as limestone and clay are found
near the plant, while the two other plants are handicapped by
inconvenienoe in transportation especially during the rainy season.
In 1947 from January to the end of NoveMber the three plants produesd
altogether 162,257 metric tons.
Kuohsiung
117,831
Szuao
33,898
Chutung
10,528
162,257
During the same period 179,871 tons were molds SQ%
to government enterprises and 20% to private fir. so of the tote&
.
was destined to offioial works in China proper. Meanwhile we learn
from the local Shang Pao (Dec. 21,1947) that the normal demand in
Taiwan alone reaches 25,000 "tons per month.
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In addition to it matP7ertl-tu'ltiln'of rasv-eei,ent,t_.
the Aaoheiung plant manufactures alsp lime, cement teams, cement
bricics, cement tiles eeffent-!coated paper bags and cement sleepers
for railways. It has a full-s-t&ZL _of 1,174 members and the following
. equipment:
.8) Air compressors p Tlrying machines
7 Rec..: crushers 3 Packing machines with large size
3 Revolving kilns- pulverizers and compression haamers
6 Clinker crushers
Actually a sum of -USO 2 million has been collected
for the purchape of new equipment from USA. UP to the present
moment 3,170 metric tons of such supplies have already arrived. The
assembly is expected to be completed by June 1948 after which p
monthly 5C,000 metric ton production will be available to meet the
looal market and demands in the South 8eas. The profits will be used
in the reconstruction of the plant in Chutung; buX the result of
this project is to a large extent dependent upon the supply of paper.
.bags and fuel. Of the former, the monthly requirement for the three
plants combined is approximately 300,0CC bags which cannot be
entirely supplied by local manufaoturers. A requisition has been
filed with the authorities in order that foreign exchange obtained
from the sale of cement to the South Seas may be allocated to the
Company for the purchase of good paper from abroad. The ration of
coal given by the local authorities is always insufficient and work
has often been interrupted for lack of fuel. Actual coal consumption
is 7,000 tons monthly but when production increases 17,000 tons will
be required 1).
4. Central and Southwest China.
The merger of the Hwa Chung and the Kunming Cement
Companies has given birth to the Hwa Hein Cement Company which
during the War was supplying cement to the districts in Central and
Southwestern China. Besides the twc plants in Ch'ench'i (Hunan) and
Kunyang (Yunnan), a new one le being erected in Tayeh where new
machines from Aterica will be i. stalled with a productive capacity
of 6,000 barrels daily. When the new plant is in Operation, the
production capacity of the Hwa Helm Co. will be greater than the
local demand but it aims etleo at marketing ite products to the eitiee
along the lower Yangtze. Coal and gypsum will be within reach from
the Yuan Hwa and Hwa Li Coal Mining Companies at Tayeh, and the
Yingch'eng Uypsum Co. Production in the plants in Hunan and Yunnan
had reached some 4,000 tons g month towards the end of 1947.
1) MOTE: According to the Central Yews Agency 1000 tons of eement
are being shipped to Manila from Kaohsiung, Taiwan. Mr. Hsu
Chung-chten, general manager of the Taiwan Cement Co., stated
that the present output of the Taiwan Cement Co. is 20,000 tons
monthly which will be increased to 40,000 by October, 1948. The
products are Rhiefly destined for local consumption. However,
when_there is surplus available it will be marketed first to the
South Seas Islands in order to provide foreign exchange for the
Goverrment, and next to FUkien and Kwangtung. Cement is being
sold to Manila at U5#20 per ton c.o.d. Kaohsiung. (Shen Pao, lab.
18.1E48)
--
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i !III, ? !I r
VilOr-e-eigg.....a.a.:31'"6&AP14'..AZAW3-'141/..A.1.81.1414h40,1,11a0
Hunan, where the production is supervised by:Tereign experts. The
cement works were erected only very recently and the output is
insufficient to supply the large demand. With adequate increase of
equipment the factory will be capcble of a daily production of 13,300
lbs. At present the Shaoyang Cement Factory has one upright kiln,
one mixer, one clinker crusher, one rook crusher, one 15 KVA pqwer
generator, one 25 HP steam engine and two winnowing machines Ai.
5. South China.
The Saichwan Cement Works in Canton olosrated by the
EMangtung Provincial Govt. is the only factory of this kind in
operation in South China. The tensile strength of the cement produced
by this factory reaches 640480 degrees. The machines in this
factory were installed before the war by the F.L. Smidth Company, a
Danish concern. Two out of the three kilns were removed by the
Japanese during their occupation and only one remains operating with
,a daily output of 1,200 barrels or 204 metric tons daily. -
In concluding this brief study we may mention the
fears so often expressed lately by the Chinese cement works on the
subject of future competition from Japanese cement. They say very
truly that the war has done little harm to the Japanese combat
industry. According to a report made by the China Mission in Japan
there are still 57 cement factories with an approximate production
of 6,100,000 tons per year. This is considered as at tremendous
menace and restrictions have been requested again and-again in order
to avoid future dumping on the Chinese market. It is noted further
that the present consumption in Japan being about 3,200,000 tons
yearly, a 2,900,000 tons surplua would be free for disposal in
foreign land. According to a recent report published by the local
Shen Pao (Jan. 17.1948) some 14,000 bags of Japanese products were
shipped to Hongkong where Chinese products are Already in Sufficient
supply. The cement guilds have called the attention of the'Cuetome to
this fact in order to prohibit the smuggling of such materials into
the Chinese territories.
( End )
1) NOTE' A few details, from other sources, on the Ssechuan Cement
Works and the Kweichow Cement Co. are presented- below for
reference.
Szechuan Cement Works (Chungking)s-'
A rotary kiln P.1. Smidth (Danish) installed in 193?,,
A small research laboratory - The wet process is used - Theoretioally
it can produce 150 tons of Portland cement per 24 hours; - but the .
kiln was damaged during the war, the refractory material is poor and
actually the factory can only work 15 days a month. Warehousing
facilities are also very limited _ld part of the stook is being
spoiled by exposure. - Coal comes from Nanchuan (120 km), limestone
from Mao Erh Hsia (60 km), clay on the spot; gypsum comes from
Chichlang (100 km).
HWeichow Cement Co. (Kweiyang)s-
Chinese vertical kilns - crushing apparatus is also
Chinese - Cement rather poor 0
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Methods for the Investigation and Collection
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Enterprises in the Thirty-seventh Year of
the Chinese Republic (1948);
Promulgated by the EXecutive Yuan
on the 2nd: of February 19481
Published in Sin Wen Pao(Shangbai),
Feb. 3rd. 1948.
ROBB
Annex Mo.: XIII
Annexes concerned:Mos.
I & II
NUMber of Pages: 15
Remarks: Translated by
our Legal Department.
METHODS FOR THE INVESTIGATION AND COLLECTION OF THE
INCOME TAX ON PROFIT-SEEKING ENTERPRISES IN
THE THIRTY-SEVENTH YEAR OF THE CHINESE REPUBLIC( 1948)
Article 1.
The investigation and collection of the Income Tax
on profit-seeking enterprises in the thirty-seventh year of the
Chinese Republic (1948), besides being governed by the provisions of
the Income Tax Law 1), shall also be carried out in accordance with
these Methods.
Article 2.
The competent collecting office shall first, at the
beginning of the year, provisionally assess the amount of the tax and
order the taxpayers to make payment thereof, later when the amount
of tax payable has been investigated and assessed a000rding to the
tax law, a notification shall be issued regarding the amount of tux
still to be paid, or if any sum has been paid in excess, a refund
shall be made.
1) EDITOR'S NOTE: The Income Tax Law was promulgated on April 16th.
1946 and the Rules Governing its Enforcement on July 3rd. 1946.
For their translation, see Monthly Bulletin No.1 (October 1946).
Annexes I & II.
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Article 3.
The amount of tax to be paid provisionally, shall be
assessed in conformity with the following regulations:
1) Jr. accordae7.e with the number of times both
annual Revenues and Income Taxes on Profit-seeking Enterprises as
estimated for the thirty-seventh year of the Chinese Republic (1948)
have increased as compared with those for the thirty-sixth year(1947)
and also in accordance with the number of times the commodity prices
general index number for the thirty-sixth year (1947) has inoreased
as compared with That for tee thirty-fifth year (1946), the amount of
tax to be paid provisionally by ..ech taxpayer shall be fixed at six
times the total amount at which the Income and the (Excess) Profit
Taxes on his profit-seeking enterprises were assessed andpayable by
him in the thirty-sixth year (1947).
2) If a profit-seeking enterprise was newly
established zring the thirty-sixth year of the Chinese Republic(1947)
or if althcugh founded before the end of the thirty-fifth year(1946)
it has not yet paid the tax, the amount to be paid shall provisionally
be assessed on twelve point six per cent of the actual amount of
capital which it declared for registration.
If the amount of the tax to be provisionally paid
as mentioned above, is to be assessed according to Paragraph 1 but on
an operating p3riofecomprising less than the whole of the thirty-fift'e
year of the Chinese Republic (194C), or if it is to be assessed
according to Paragraph 2 and the operating period was mdre or less
than the whole of the thirty-sixth year(1947), it shall be oalculated
for the actual operating period in proportion to an entire year.
Article 4.
The competent collecting office shall, within one
month after the fifteenth of February, fill in and issue to the
taxpayer a notification of payment, setting forth the assessed amount
of tax provisionally to be paid by him and asking him to make
payment within thirty days after receipt of the notification.
Article 5.
When the competent colleoting office has received
returns on the amount of their (taxable) income I-) from taxpayersothe
following profit-seeking enterpr'.ses shall immediately be subject to
an auditing of accounts:
1) Companies.
2) Public enterprises operated by any grade. of government.
3) Principal stores and branch stores whose business offices are
situated in different places, whose capital and management
are not separate and whose tax is payable by the principal
store.
1) EDITOR'S EIOTE: The Chinese characters "So Te" are translated by
"(taxable) income" as they refer to "the amount of net profit after
deducting from the total receipts in a fiscal year all actual
expenditure, bad debts, depreciation, wastage of stock on hand,
taxes and dues" as stipulated in the Income Tax Law ArI.la, .
Paragraph l.
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4) Those which have been liquidated because of merger,diesolution,
transfer or suspension of business.
6) Al]. those which, though not being within the scope of any of
the four preceding Items, possess complete sets of account
books and have been deeigLated by the competent collecting
office.
Article 6,
The amount of (taxable) income of profit-seeking
enterprises which are not provided for in the Items of the preceding
Artiole, may be investigated according to the standard system of tax
assessment.
Article 7.
. For profit-seeking enterprises the amount of whose
(taxable) incomes is to be investigated according to the standard
system of tax assessment, various standard rates for assessing the
tax shall be prepared as stipulated in Article 5 in compliance with
the data obtained through the auditing of the accounts of these firms.
If the number of the above firms does not amount
the percentage provided for in Item 2 of Art.8 as a basis for
assessing the standard rates of taxation, the deficiency shall be
up by including in the investigation those firms which have
comparatively complete account books, bills and-certificates.
Article 8.
The methods for preparing standard rates shall be LI:
followst
1) As preparation, a detailed classification of
businesses shall be made, and within each business "manufacture" shall
be distinguished from "trade" and "wholesale" from "retail".
Furthermore, the competent collec ing office, taking into consideration
local conditions and actual requirements, shall classify the amount o:
capital and operations - (or amount of income) - into large, medium
and small grades.
2) The rate of turnover of capital, rate of gross
profit on sales, ratio of expenses to sales, ratio of gross profit
to capital, ratio offsmanaeato capital, ratio of income to oapital,
ratio of expenses to income, rate of net profit on sales and ratio
of net profit to capital shall be computed for each type or kind
of business or for each grade.
3) The unit of calculation 1) shall not be less than
five per cent of the total number of firm engaged in each type of
business, where the calculation is made for each kind or grade of
businesa, the unit shall not be less than five per cent of that
particular kind or grade.
1) i.e. the nuMber of firms acoording to Whole data standard rate::
for assessing the tax are to be prepared (see Art. 7 -
2 above).
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,Artiole 9.
Where a business keeps no acoount books, 1 te
of net profit and the various other rates may be oomputed ding
to the rates assessed in the preceding year, taking into oon dera-
tion the actual business conditions and the Pluctuations in
commodity prices in the thirty-sixth year of the Chinese Republic
(1947). If no rate was assessed in the preceding year, then the ?
various rates may be determined according to actual business
conditions in the thirty-sixth year (1947) of busineasee of similar
type.
Article 10.
Where the (taxable) income of a profit-seeklng
enterprise is to be investigated according to the standard system
of tax assessment, its reported amount shall be approved if it
reaches the standards provided in Article 8 or 90 if the reported
(taxable) income does not reach this standard, its amount shall be
computed according to the standard rates for that type of businee3
and in conformity with the following provisions no further auditieg
ofmccounts shall be made.
1) If the (taxable) income of a trading or
manufacturing business is higber when computed on the amount of sales
than when computed on the amount of capital, its amount shall be
assessed according to the rate of net profit on sales; if the
(taxable) income is higher when computed on the amount of capital
Shan when computed on the amount of sales, then its amount shall be
assessed according to the ratio of net profit to capital.
2) The amount of (taxable) income of a firm for the,
supply of labour or credit shall be assessed according to the ratio
of net profit to capital.
3) If the amount of sales is not definitely known,
it may be assessed according to the rate of turnover of capital'
if the amount cif income of a firm for the supply of labour or credit
is not definitely known, it shall be assessed according to the
ratio of expenses to income.
Article 11.
If the law prescribes that the amount of (taxable)
income be forthwith determined, the computation shall be based on
the maximum aWount according to the standard rates as prescribed in
Art. 8 and 9.
Article 12.
After assessing the amount of tax payable, the
competent collecting office shall issue a notification of payment
to the taxpayer, vetting forth the amount in excess of the tax
provisionally paid and requiring him to make payment within ten
days. If any sum paid in excess is to be refunded, a form for the
refund shall be filled in and sent, together with the amount of tag
to be refunded and an interest thereon for the period between the
day of payment of the provisical amount of the tax and the day
preceding that of the arrival of the refund form, calculated aocording
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Mr. ?
to the rate of interest granted by the Central Bank to Modern and
Native Banks on their guarantee reserve funds for deposits. If the
amount of tax payable is equivalent to the amount of the provisional
tax, this shall also be notified.
Article 13.
If any taxpayer fails to psy the tax within the
prescribed time limit,, the competent oolleoting office shall submit
the case to the court which shall infliot penalties according to
the provisions of the Income Tax Law.
The penalties mentioned above shall be carried out
by the court within seven days after receiving the case.
Article 14.
promulgation.
--
These Methods shall oome into force on the day of
(End )
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UNIVER s/TP
dpt
Shanghai-
BUREAU DE DOCUMENTATION
(Economia Chinoise)
280 Chungkl.ng Ban Lu(rubail)
Te1185761
-------
Table of the Starting Points and Rates
of Taxation on Incomes of Various
Classes for the Thirty-eeventh Year
of the Chinese Republic (1948).
Promulgated by the Executive Yuen
on the 12th of February 19481
Published in Sin Wen Pao(Shanghai),
Feb. 13th. 1948.
Annex No.: ELM
???..
Annexes concerned: Noe.'
& II 4).
Nutber of pages: 4
Remarks: Translated by
our Legal Department.
. TABLE OF THE STARTING POINTS AND RATES OF TAXATION
ON INCOMES OF VARIOUS CLASSES FOR
A THE THIRTY-SEVENTH YEAR OF THE CHINESE REPUBLIC (1948)
I.- Claes I Section A.
Tax on income from the operation of Companies 2).
a. Starting points w",taxations annual income which amounts to ten
per cent of the .ess. Int of capital assessed for taxation.
b. Tax rates:
1) 4% on any inoome from 10% up but lees than 15% of the amount of
capital for tax assessment.
2) 7X on any income from 15% up but less than 20% of the amount of
oapital for tax assessment.
3) 10% on any income from 20% up but less than 30% of the amount
of capital for tax assessment.
4) 13% on any inooma from 30% up but less than 40% of the amount
of capital for tax assessment.
_5) 17% on any income from 4( up but less than 60% of the amount
of capital for tax assessment.
EDITOR'S NOTES,
1) i.e. Monthly Bulletin No.I (Oct.1946). Annexes I &
II. "Income Tax Law" promulgated by the National Government on the
16th of April of 1946, and "Rules governing the Enforcement of the
Income Tax Law" promulgated by the EXeoutive Yuan on the 3rd. of
July 1946.
2) i.e. Stock Company Limited, Joint Stook Company
Limited or other limited companies (of. Income Tax Law. Art.2.-Clase
1.A.)
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6) 21% on any income from 60% up but less than 90% Of the amount
of capital for tax assessment.
7) 25% on any income from 90% up but less than_130% of the amount
of capital for tax aasessment.
8) 307 on any income from 130% up but less than 200% of the
amount of capital for tax assessment,
9) 35% on any income from 200% up but lees than 300% of the
amount of capital for tax assessment.
10) 4,0% on any income equivalent to or exceeding 300% of the
amount of capital for tax assesement.
On incomes from public utility companies and
industrial, mining or transportation enterprises, the amount of tax
payable at the rates given above shall be reduced by ten per. cent.
II.- Class I Section B.
of any
Tax on the business income/Profit-seeking enterpr:sd
under partnership, individual proprietorship or any other form of
organisation.
a. Starting point of taxation: annual income amounting to fifty
million dollars.
b. Tax rates:
1) 4% on any income from $50,000,000 up but less than $100,000,000.
2) 7% on any income from $100,000,000 up but less than $200,000,000.
3) 10% on any income from 4200,000,000 up but less than $400,000,
DOO.
4) 13% on any income from $400,000,000 up but less than $800,000,
000.
5) 17% on any income from $800,000,000 up but less than $1,600,000,
000.
6) 21% on any income from $1,600,000,000 up but less than $3,500.
000,000.
7) 25% on 4ny income from $3,500,000,000 up but less than $8,000,
000,000.
8) 30% on any income from $8,000,000,000 up but less than 180,000,
000,000.
9) 35% on any income from $20,000,000,000 up but lees than 00,000,
000,000.
10) 40% on any income equivalent to or exceeding $50,000,000,060.
Ci incomes of public utility companies and industrial,
mining or transportation enterprises, the amount of tax payable at the
rates given above shall be reduced by ten per cent.
III,- Clabll II-Seotion A.
Tax on income from profsapional :n artistic sia-vices.
Starting point of taxation: annual income amounting to twenty-
four million dollars.
b. Tax rates three per cent.
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IV-----C.lassil_Section B.
Tax on income from any fixed salary or wage.
a. Starting point of taxation: monthly income amounting to two
million dollars.
b. Tax rates!:
1) 1% on any inome amounting or exceeding 412,000,000.
2) An additional 2% on any part of the income in excess of
410,000,000 up to 420,000,000.
3) An additional 3% on any part of the income in excess of
420,000,CCO up to 440,000,000.
4) An additional 4% on any part of the income in excess of
440,000,000 up tc 360;000,000.
5) An additf.onal 5% on any part of the income in excess of
$60,000,000.
be five per cert.
V.- Class III.
The rate of taxation on income from interest shall
VI.- Class IV.
Tax on income from lease of property.
a, starting point of taxation: annual income amounting to twenty
million dollars.
b. Tax rates four per cent.
VII,- Class V.
Tax on income from temporary sources.
a. Starti.i:g point c,f taxaticns income amounting to ten million
dollars.
b. Tax-rata: 3ix per cent.
VIII.- General Income Tax.
a. Starting point of taxation:
fil.ind.?Q0 -!.n1],rs
b. Deductions grunted:
ir?-;:sms exceeding three
I) An amount of fifteen m11.ion dollars shall be deducted for each
member dependent on the 3.amily for suoport.
2) An elnount of five millior dollars shall be deducted for each
person being educated.
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c, Tax rateei,
5% cn any part of the income in
000,000,000.
7% on any part of the
0.,00G:000,000,
10% on any part of the income
$2,000,000,000.
13% on any part of the income
to 44,000,000,000,
17% on any part Cf the .xic,ome
to 410,000,000,000.
22% on any part of the income
up to 00,000,000,000,
285 on any part of the income
up to ;390,000,000,000,
35% on any part of the income
up to 4300,000,000,000.
42% on any part of the income
up to 4500,000,000,000.
E0% on any part of the income
excess of $300,000,000 up to
to
excess of 41,000,000,000 up
excess of 42,000,000.000 up
excess of $4,000,000,000 up
excess of 410,000,000,000
excess of 030,000,000,000
excess of 490,000,000.000
excess of 4300,000,000,000
excess of 4500,000,000,000.
Income in excess of 4500,000,000 up
?
in
in
in
in
in
in
In
( End )
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UNIVERSITE L'AU
-Shanghai-
BUREAU DE DOCUMENTATION
(Economie Chinoise)
280 Chungking Nan Lu (Dubail)
Te1:85761
Simplified Methods for the Investigation
and Collection of the Businesu Tax on
Shipping Enterprises.
Laid down by the Bureau of Taxation
with the Concurrence of the National
Shipping Federation
(date of promulgation unknown);
Published in the Lih Hein Monthly
Dec. 15th. 1947.
.R 0 R
Annex 1?,1 XLIV
Annexes conoernalit Nos.
XXII & XXIII 4)
1.41.1bor of pages: 5
Remarks: See p.3 for an
important Appendix:
"Supplementary
Provisions...6
SIMPLIFIED METHODS FOR THE INVESTIGATION
AND COLLECTION OF THE BUSINESS TAX ON
SHIPPING ENTERPRISES
1. In order to raise efficiency and to eradicate malpraotioes in
the levy, all shipping enterprrses shall be subject to the
special business tax 1) whose investigation and collection shel.,
be simplified according to these Methods, sin?e most shipping
businesses are international or interprovincial combunioations
with great numbers of branch or sub-branoh organs add all adopt
a centralised system with respect to their management and
accounting.
2. If there exists in any province or municipality shipping
enterprises which are neither international nor interprovincial
and as a consequence of the simplified levy of the special
business tax thereon, the s.rdinary business tax is'deoreased,
the amount shall be estimated by the Central Government and Lade
good by means of the special business tax.
/) EDITOR'S NOTE: See Monthly Bulletin No.LX (June-July 1947).
Annexes XXII and XXIII. Pine Special Business Tax Lawspromulgated
by the Chinese National Government on the let, of May 1947, and
*Rules governing the Application of the Special Business Tax L. M
promulgated by the EXecutive Yuan on the 11th. of June 1947,
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1 , ?
3. Shipping enterprises shall repor on and pay the special business
tax to the local competent collecting office through their
principal institution - including general company, general
administration, or head office, 40. the 'head office of a company'
as mentioned in the Company Law 4) or the 'principal store' as
mentioned in the Commercial Registration Law, 2). No further
payment shall be made by any branch or sub-branch organ . including
branch and sub-branch companies, branch administrations, branch
offices, branch divisions or places of business, i.e. the
'branch office of a company as mentioned in the Company Law or
the 'branch store' as mentioned in the Commercial Registration
Law.
4. The competent collecting office shall investigate and assess the
special business tax on shipping enterprises according to the
provisions of the Bureau of Direct Taxation of the Shanghai
Municipality, regarding the standard assessment of the-income ta.x
on profit-seeking (enterprises) 3), and (also) according to the
following methods:
a).The competent collecting office shall, with the
conourrence of the local shipping guild, investigate the aggregate
amount of the business receipts and net tonnage of the steamers
of three to five shipping companies chosen at random, and avera6e
the business receipt per ton: this shall be taken as the
standard rate of business receipt per ton for the various
shipping companies. The formula of computation shall be as
follows:
Standard business receipt per net ton ?
Cagate amount of business receipts of X no. of qhipping Co.
regate amount of net tonnage of X no. of Shipping Co.
?11, fm ???
EDITOR'S NOTES:
1) The company Law was promulgated by the Chinese
Nation41 Government on the 12th. of April 1946.
2) The Commercial Registration Law was promulgated by
the Chi4ese National Government on the 28th. of June 1937, and its
Applicaiion Rules promulgated by the Ainistry of Boonondo Affairs
on the 13th. of hay 1938. For a new Draft of the Commercial
Registration Law, see Monthly Bulletin No.XIII. (December 1947).
Annex XX1VI.
3) See Explanation & Practical Example, for the Standard
Assessment of the Inoome & (Excess) Profit Taxes, issued by the
Shanghai Office of the Bureau of Direct Taxation and published in the
Lih Hain #onthly, August 16th. 1947.
I\
?
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b) The total business receipts of each shipping
company ahall. be computed according to the total net tannage oi
the steamers of that particular shipping company at the
standard rate of business receipt per ton. The formula of
computation shall be as followss
Total Business receipts of a Company =
Standard rate of business receipt per net ton multiplied by
Total net tonnage of the steamers of that particular Company.
c) The amount of tax to be paid by a shipping corpr-zy
shall be computed on the number of actual working days of the
1
various steamers. The formula of computation shall be as folloast
The amount of tax to be paid by a Company =
(1) Total business receipts,
multiplied by
(2) No,of days in taxable period - No. of non-sailing days
-41i-17. of days in taxable period
multiplied by
(3) Tax rate
b. The number of working days shall be computed on the time of
actual sailing and of anchoring for loading or discharging
cargoes. If a non-working period caused by repairs or aocidents.
at sea, is less than three days, it shall still be counted; if
it exceeds three days, then deduction shall be made a000rding to
the number of days.
Each company shall be responsible for filling in
and submitting a report regarding its actual working days.
6. The shipping guild shall assist the tax collecting office in
settling any problems arising from the computation or technique
of the business tax on shipping enterprises.
1) EDITOR'S NOTE: See Appendix on p,4 for an important change in
the calculation of the amount of tax payable.
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APPE1MIX
SUPPLEMATTARY PROVISIONS GOVERNING
TU LEVY OF THE '-:-CCIAL Busirms nix ON
SHIPPING :!AfhliPRISES
Laid down by the Minidtry of Finance and
published in Ta Kung Tao (Shanghai)
February 13th. 194?,
1. All shipping companies which have teen registered for sailing
international ix interprovincial lines, shall, according to th...
tonnage of their ships and the amount of their receipts from
operation, report for and pay the special business tax.
2. It is approved thnt starting from the day, of the renewal of thi
levy on transportation business - the first of October of the
thirty-sixth year of the Chinese Republic (1947) - the special
business tax en shi..7.ping enterorises be paid c:;11ectively b!, iie
general office of each corTaiiy, But the report and payment m.1,T.
be :cede before the time limit )et in Articles 7 and 11 of th,,
Rules governing the Application of the (Special Business) Tax
failing whicll the general office of the company shall be hi3,1
responsible for the delay in the reuort or the payment.
3. The local competent collecting offices shall audit the busines
books and certificates of the general office Cf each shipping
company in their localities and figure out the standard average
amount of business receipts per ton for three months - the to'al
business receipts for three months of all the shippipg companies
divided by the total tonnage of their shipping - this shall b:t
taken as basis for assessing he tax for each quarter. No.further
quarterly auditing of accounts shall be made. But if there has -
been any increase or decrease in the prices of tickets or freights
charged by the business, the standard average amount of business
receipts per tcm shall be re-assessed in proportion to that
increase or decrease.
4. The number of working days for any shipping company shall be
counted as ninety dayn for each quarter no reduction is made in
this for non-sailing days. The formula for computing the tax
shall be as followsi
The amount of tax to be paid by a Company a
(1) The utandard ave.:age business receipts per ton in three mont'cs,
multiplied by
(2) .The total monnagc f Lb-, ?tsar...re ,t that Company,
multiplied by
(3) Tax rata.
__-
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If there has been calf increase or decrease in the
tonnage of the steamers of a shipping company On account of a
change 'in the navigation lines or for any other reason, it shall
immediately be reported to the local competent oolleoting office
and an adjustment shall be made in the assessment of the tax for
the following quarter.
5. Whenever it is necessary for purposes of control in levying the
special business tax on shipping enterprises, the looal competent
collecting office shall at any time again investigate sample cases
chosen at random from the relevant books and certificates of the
branch or eub-brttnch business units. They may also at any time
write to the authorities concerned requesting them to investigate
and verify the working conditions.
(End)
....... wviem
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