MONTHLY BULLETIN NO. 20, DEPARTMENT OF ECONOMICS AND POLITICAL SCIENCES, AURORA UNIVERSITY

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• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00926A006900050001-2
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• Document Page Count: 93
• Document Creation Date: December 14, 2016
• Document Release Date: August 3, 2001
• Sequence Number: 1
• Publication Date: February 16, 1954
• Content Type: REPORT

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CENTRAL INTELLIGENCE AGENCY
INFORMATION REPORT
COUNTRY China
SUBJECT Monthly Bulletin No. 20, Department of Economics and
Political Sciences, Aurora University.
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DATE ACQUIRED
JOY SOURCE)
DATE (OF INFO.
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SUPP. TO
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SOURCE BOCUPI i.N l'/11~Y
/rAv .i..sble on loan from the CIA Librery is a photostatic copy of Monthly
i:u:I.1.etin No. 20, dated. August and ":eptertnber 46p preY)cS.ro6 by the :oepChc~.ptehaptert
~:"11a~~.nUh~~i,. ?
. .,.?-^ ";c=~norn.ic.s and Political olitica-Sciences, 1lurorn; University,
titles are as follows:
Conditions of the Cotton Textile industry.
Forestry in Taiwan.
The Currency Reform of August 19th.
Production oi~ Raw Silk and Silk Trade in. China: Annotated. Statistics.
Notes on Coal in Kiangsi.
1iiVlVtalL
Supplementary Measures for the Iead,justment of Finance (August 26, 1548).
ti
?
ons.
Revised Text of Articles 3, ! and 5 of the Commodity Tax Regula
L Ad y SUBJECT & AREA COOEr
-end-
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-2..
4/746.1;
IL/C
4/746.5
1L/C
4/746.5
81L
746.1
81L
71+6.5
81L
746.5
31L
746.1
31L
729.41
193L
729.412
193L
729.411
193L
729.43
193L
773.11
1L/C
784.2
IL/C
771.2
IL/C
771
1L/C
4/729.7
581L.
4/729.7
181L
4/729.7
281L.
4/729.7
83I L
4/729.7
A IL
4/729.7
981L
7/729.7
1L/c
1/735.1
681L
2/735.1
681L
4/735.1
681L
735.1
681L
771.21
1L/C
CONFIDENTIAL/US OFFICIALS ONLY
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'41 1
UNIVERSITE L'AURORE
SHANGHAI
FACULTE DE DROIT BUREAU DE DOCUMENTATION
SECTION DES SCIENCES
POLITIOUES ET ECONOMIOUES
IECONOHIE CHINOISE)
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It 0 N T H L Y . B. U L L E T I N
E. S. de BREWERY
Dean of the Department of Economico
and Political Sciences
Editor
Ic
A. B02UTICHON
M. THORTON
A. SUNG CHIA-HUAI
MICHAEL W.Y.LEE
JOHN T.S.CHEN
Advisory Board
Dean of the Faculty of Law
Dean of the Department of Sociology
Professor of Chinese Civil Law
Sesearch Assistant. Bureau de Documentation
Research Assistant. Bureau de Documentation
SECOND YEAR N0.XX - Aug. -Sept. 1948
DOCUMENT NOS.
103. Conditions of.the Cotton Textile Industry.
104. Forestry in Taiwan.
STUDY NOS.
XIX.- Tho Currenoy Reform of August 19th.
.XX. Production of Raw Silk and Silk Trade in Chinas
Annotated Statistios.
XXI. Notes on Coal in Kiangsi.
ANNEX NOS.
LXI. Supplementary Measures for the Readjustment of Finance
(August 26, 1948).
LXII. Revised Text of Articles 3,4 and 5 of the Commodity Tax
Regulations.
$E$ PAGE II
For two important notes
1. On the Land Law: date, for starting the levy of the Land
Increment Tax in Shanghai.
2. On the Business Licence Tax Law and Rules governing its
Collection in Shanghai: temporary postponement for levying
the tax in Shanghai in 1948.
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1. ON THE LAND LAW revised and promulgated by the National Gov-
ernment on the 29th of April 1946 (see "The New Land Law of
China Compared with the Old", by Prof. Sung Chia-huai, pub-
lished in Monthly Bulletin Noo.IV,V & VI, Documents 23, 30
& 36).
Acoo5ding to information in the Shen Pao (Shang-
hai) of August 22nd 1948, the Bureau of Administration of the
Shanghai Municipal Government has recently announced that the
Tax on Lund Increment shall be levied in the Municipality of
Shanghai beginning from the 1st of September 1948. For de-
tailed provisions and comments concerning this tax, special
reference in made to Document 36, pp.6-9.
2. ON THE BUSINESS LICENCE TAX LAW revised and promulgated by the
National Government on the 14th of November 1947 (see Monthly
Bulletin No.XII; Nov. 1947 - Annex XXXIII); and the RULES
GOVERNING ITS COLLECTION IN SHANGHAI promulgated by the Shang-
hai Municipal Government (see Monthly Bulletin No.XIX;June-July
1948 - Annex LX).
The Bureau of.Pinance of the Shanghai Municipal
Government has recently declared in its letter Shih Te'ai P'ai
(37) Tzu No.26481, that the levy of the Business Licence Tax
in Shanghai for the year 1948, shall temporarily be postponed
until further notice (cf. the Bankers' Weekly, Sept. 20th 1948).
( End )
--------------------- ------------------ ------?----- - --
MONTHLY BULLETIN NO. XX - Aug.-Sept. 1948 - Editor's Noten
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I
The MONTHLY BULLETIN is edited by the "BUREA'J D3
DOCUIENTATION" of the Department of Economics and Political
Sciences, Aurora University (Shanghai).
Part of the work of the "BURS,1U DE DOCUMENTAT101"
is the systematic filing of all articles in the chief Chinese
periodicals (monthly, weekly and daily) which deal with the eco-
nomic and financial life of the Far East. References on any sub-
ject can be found immediately by means of a detailed card index.
The aim of the BULLETIN, which appears on the
20th. of each month, is to put at the disposal of foreigners
the economic and financial points of view expressed in articles
in the Chinese reviews. A certain number of these articles are
carefully chosen and reproducAi each month in English, either in
full translation or in the fort; of digests.
Each article translated or summarized is published
separately under the heading "DOCUFNT No...." so as to enable
each reader to classify them according to his personal system.
A classified index will appear at the and of each year.
Where several articles on the same subject are
written from widely divergent points of view the BULLETIN sum-
marizes these points of view under the name "STUDY, No...."
.When it seems advisable the BULLETIN adds to these
Documents and Studies the translation of relevant laws or adminis-
trative acts, which form "Annexes" to the Documents or Studies.
The BULLETIN is being published to meet a definite
need and any suggestions as to the best way of meeting that need
will be welcomed.
Though the selection, translation and summarizing
of the articles and other texts is done under the authority of the
Dean's Office of the Department of Economics and Politdcal Sciences,
the authors, whose names appear on each Document, Study and Annex,
are alone responsible for the statements of fact or opinion ex-
pressed in them.
As regards the REPRODUCTION of translations and
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1. The Bureau of Documentation reserves to itself the right of
permission for the reproduction of its Documents, Studies and
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LIST OP CHINESE PERIODICALS
REC rv_EL AT THE
"BIREAU DE DOC[OIENTATION"
(September 20th.1948)
QIM4RTEALY _RhyVIEOP
Hera.t Power Engineering Journal (Jo Kung Chunn K'an)
Agricultural Information
Banking Information
Capital Market
The Central Bank Monthly
The Chekiang Economic Review
Chemins. Dye: ng
The Commercial Bulletin
The Comma-ioatione Monthly
Eoonomio Reconstruction
The Engineering Monthly
The Farmers' Bank Monthly
The Financial Review
Flour Industry
The R6peh Provincial Bank Monthly
The Hunan Economic Journal
The Import-3vort Monthly
The Industry & Mining Monthly
The Industry Monthly Magazine
The Journal of Finance & Industry
The Juriatio A, Eoonomio Review of
Aurora thiver.ity
The Lih Hein Monthly Review
The Maritime Developeient Monthly
Modern Economies
Modern Highway.
Monthly Bulletin of the Fu
Industrial Bank
The Native Bank Monthly
National Reconstruction
The Hung Pao
Oriental Review
The Popular Science Monthly
The Rural Affairs Monthly
Soie:ttifio China Monthly
The Taiwan Engineering Monthly
Textile Reconstruction Monthly
Hung Yoh Tung Hain)
Yit; Hang Tung Hein)
Tau Pen Shih Ch'ang)
Chung Yang Yin Hen Yueh Pao)
Chekiang Ching Chi)
Yen Hun)
Shang Yoh Tao Pao)
Chico Tung Yueh K'en)
Ching Chi Chien She)
Kung Ch'eng Chieh)
Chung Hung Yueh Keen)
Te'ai Chang P'ing Lun)
Mien ran Kung Yoh)
Hopeh Shang Yin Hang Yush K'an)
Hunan Ching Chi)
Chin Ch'u K'ou Mon Yih Yuen Kean)
Kung K'wang Yush Klan)
Kurg Yoh Tuath Klan
Shih Yoh Chin Jung
Chen Tan Fa. Lu Ching Chi Tam Chili)
Lih Hain Yueh Klan)
H&I Chien)
Haien Tai Ching Chi)
Hsien Thi Kung Lu)
(Pu Haing T'ung Hain Yush Van)
Ch!iou Yoh Yush Pao)
Chung Kuo Chien She)
Hung Pao)
Tung Fang Tea Chili)
Ke ' Eeueh Hue. Pao)
Nung Te'un Yueh K'an)
Ke Hsush Ta Chung)
Thiwan Kung Oh'eng Chien)
Fang Chili Chien She)
~IQr369NT'tII.Y REVi
Chem China ag
China Nov hin IMagazitecn Hein Chung Rae)Hsin)
The Bankers' Weekly
The Central Bank Weekly
The Economics Weekly
The Economic Review
The Now Road
The Observer
The Textile Weekly
The Weekly Review of Laws
Yin Hang Chou Pao)
Chin Yung Chou Pao)
Ching Chi Chou Pao)
Ching Chi Ping Lun)
Hain Lu)
Kuan Ch'a).
Fang Chili Chou K'an)
In Ling Chou K'an)
MAX PAPERS
Chin Yung Jih Pao ?? Chung Yang Jib Pea .. Clang -ac ?. Sha:a ^ao - in Won Pao -
TM Kung Pao
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BURF,AU DE DCCU1 EENTATION
(Economie Chi noise)
280 Chungking Nan Lu (Dubail)
Tels85761
Topics Conditions- of the 3otton Document Nos 103
Textile Industry;' ,Natures Tranalatior.,
final section
Authors Chi Ch'ring-wei omitted.
Number of pages: 12
Periodicals The Textile Weekly Remarks: Original title
(Fang Chih Chou Kan) is: "Present Status
and Trends of the
Date of Issues July 1, 1948. Cotton Textile
Industry."
C0HI)ITIONS OF THE COTTON
TEXTILE IIIDUSTRY.
Although this article shows a certain bias and
lack of discrimination, - chiefly in its second half - it is given
there for the information of our readers ds representing criticisms
often expressed among private cotton mill owners.
The restoration of the cotton textile industry in
China since the war has been smooth and rapid for the following
reasons. Owing to its concentration in large coastal cities, the
industry has suffered little destruction or lose from civil war-
fare, and since the;war, the demand for cotton goods, both at bone
and abroad, has exceeded the supply, so that the profits have 'use:n
relatively high. Again, inmediately after the conclusion of the
war, the foreign exchange policy was favorable to the industry and
the supply of cheap US cotton was abundant$ and although the sup-
ply of native cotton has occasionally been interrupted in the past
year, the industry has managed to carry oh by using the raw cotton
in stock, UNRRA supplies, and cotton exchanged for cotton goods
from abroad.
The trend towards increase of production since the
fall of 1945 is shown in the following table, to which prewar pro-
duction figures are attached:
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1SONTHLY BULLETIN NO.XX - Aug.-Sept. 1948 - Document-103 - Page 1
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I
Year
output of'Cotton Yarn
(bale)
Output of Cotton Piece
Goods (bolt)
1932
2,398,093
20,233,710
1933
2,449,318
20,121,900,
1934
2,386,476
23,465,437
1935
2,402,775
24,983,078
1936
2,126,763
25,889,375
1937
2,141,177
30,478,850
1946
1,300,000
13,930,000
1947
2,050,000
22,400,000
The figures for 2.946 and 1947 are estimated accord-
ing to statistics published by the China Textile Industries Devel-
Opment Inua;eporsted,'and member factories of the Sixth District
Cotton Textile Industry Association. Thus we learn that the out-
put in 1947 was near the 1937 level, though still below that for
the period 1934-37.
The postwar production of cotton products in
China in represented eoncretely by the output of the China Text'_le
Industries Development Incorporated (CTX) and the member factories
of the Sixth District Cotton Textile Industry Association. The
following table shows the C TI output since 1946;
Monthly Output of Cotton Yarn and Cotton Piece
Goods of the China Textile Industries Development
Inc. During the Period Jan. 1946-April 1948.
Month
Cotton Yarn (bale)
Cotton Piece Goode (yard]
1946
January
4,932.84
4,880,458
February
9,510.35
8,399,863
March
18,763.52
18,474,399
April
27,174.21
26,596,917
May
32,830.58
29,765,642
June
34,738.21
32,572,602
July
40,291.21
38,514,717
August
43,342.75
39,756,359
September
44,891.68
39,079,105
October
53,170.63
45,326,035
November
58,719..5
48,427,034
December
58,537.94
49,Q37,843
Total for 1946 426,403.90
380,830,974
1947
January
47,728.51
40,039,524
February
56,422.66
47,146,275
March
61,547.65
51,122,297
April
68,648.26
56,970,868
May
66,289.18
56,057,811
June
62,015.16
53,929,337
July
62,140.80
54,564,801
August
67,885.04
52,988,661
September
67,337.39
58,823,730
October
65,454.81
58,246,399
November
65,454.81
56,001,411
Dec ember
58,699.15
50,374,600
Total for 1947 '.45,689.78
637,111,747
1948
January
58,419.31
_ 49,503,589
February
50,658.91
42,472,541
March
65,952.33
56,825,991
April
65,482.96
55,804,602
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MONTHLY BULLETIN NO.XX - Aug.-Sept. 1948 - Document 103 - Page 2
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I
The above table indicates clearly that the pro-
duction was on an upward trend un;:il April 1947. The decline
which followed, was due to four main causes: the power shortage
in Shanghai affected the operation of the factories; the spread
Oficivil warfare in the north-eastern provinces reduced the out-
put by 3/4 to 19/20; the operation of plants in Tsingtao and Tien-
tsin was interrupted owing to the coal and cotton shortage; the
output in February 1,948 was lower as a result of the Chinese New
Year holidays.
The production figures for March and April this
year were mounting, but were still below the peak of April and
May 194?.
Meanwhile, the operation of private mills in
Kiengeu, Chekiang and Anhwei, all under the Sixth District Cotton
Textile Industry Association, as been more successful than that
of the China Textile Industries Development Inc. as shown in the
following tables
Output of Cotton Yarn and Cotton Piece Goods
of Private Mills under the Sixth District
Cotton Textile Industry Association
January 1946 - April 1948.
Month
Cotton Yarn (bale)
Cott
i
on P
ece Goods (bolt)
1946
January
29,284
85,386
February
25,888
90,721
March
39,065
138,765
April
44,102
222,253
May
54,180
277,346
June
54,837
333,975
July
62,638
330,143
August
66,204
344,930
September
66,492
359,826
October
76,500
418
171
November
80,114
,
302,525
December
81,488
446
47
Total for 1946 680,792
,0
3,Z49,388
1947
January
E?,605
393
692
February
74,561
,
480
655
March
80,580
,
559
572
April
.
81,892
,
594
823
May
83,943
,
606
891
June-
79,585
,
658,428
July
79,146
572
016
August
78,456
,
566
449
September
85,104
,
625
236
October
89,640
,
662
520
November
89,200
,
609
387
December
89
015
,
6
,
Total for 1947 978,687
89,833
7,020,802
1948
January
83,998
722,036
February
83,726
741
258
March
94,674
,
784,135
April
89
733
,
762,227
MONTHLY BULLETIN N0.XX - Aug.-Sept. 1948 - Document 103---Page 3
r
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ote s The figures for the months January-April 1948 indi-
cate the production cf large private mills in
Kiangsu, Chekiang and tohwei; the output of small
mills, with 120,000 spindles being not included.
From the above table, we might notice that the output. of the pri-
vate mills was ever on an upward trend since 1946, though owing
to the power shortage in Shanghai and Chinese Lunar flew Year hat.'-
days,, a decline was noted in June-August 1947 and January-Febru~ry
1948. The output became high again in March 194ii, and dropped in
April due to the cotton shortage. However the output of cotton
piece-goods was above that in December :947. All in all, the total
production of cotton yarn of the private mills in the sixth dis-
trict in 1947 surpassed that in 19,:6 by 41% and cotton piece-goods,
109%. The increase made in 1948, a compared with that in 1947,
has been limited. As compared with tha: in the last year, the out-
put of cotton yarn in ;pril 1948 increased by 9.6%, that of cot~,on
pieee-goods, 28%j and as compared with that in December 1947, cottcn
yarn increased by 8%, and cotton piece-goods, 10%.
The improvement pf the operating rate of the CTI
and private mills in the sixth district is compared in the next
tables
Month
% o a,n ;'~i.n?i_i
% of Looms in operation
in op.-__-ration
privati.il?.ts C'I Mi11s
Private Wile CTI .11a
1946
January
42.
'
31
19
36
February
45
24
23
32
March
54
41
28
51
April
61
57
34
63
May
66
66
44
70
June
70
64
43
69
July
72
68
44
60
August
74
68
46
63
September
77
67
49
62
October
82
75
51
76
November
81
71
53
63
December
82
64
55
57
Average, 1946 E7
58
41
58
1947
January
82
68
50
60
February
84
73
52
63
March
85
76
57
65
April
79
78
59
67
May
84
78
66
68
June
l
J
85
78
69
65
y
u
84
74
69
63
August
84
75
70
64
September
87
82
72
69
October
87
79
65
66
November
88
79
74
66
December
88
81
73
67
Average, 1947 as
77
65
65
1948
January
94
78
82
66
February
93.3
78
80
64
March
94.3
84
81
70
April
94.5
a4
79
71
Average, 4 months 91
81
80
68
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From the above table we may conclude that the
operating rate of all the mills has been increasing; but the increase
of operating rate of the private mil:.: has been more rapid than
that of CTI mills. Despite the objectively favorable environment
of the CTI, the private mills have shown more active effort in
restoring productivity.
With an operating rate of 94% for spindles of
private mills, 81% for CTI spindles; 82% for looms of private mills,
and 71% for CTI looms; the productivity of all the mills has almost
reached saturation point. Unless new machines are installed, or
new stimulating factors are present, neither the state-operated nor
the private mills can appreciably increase their production.
The production of textile mills in Teingtao and
Tientsin may be represented by the figures for the CTI plants in
these two places. -
Output of Cotton Yarn ana Cotton Piece Goods
of CTI Plants in Tsingtao and Tientsin
1946 - 1948.
Period
Cotton Yarn (bale)
Tainatao Tientei
Cotton Piece Goods (bolt)
Teingtao Tientsin
1946 monthly
average
7,112
6,618
155,829
179,026
1947 monthly
average
12,178
15,375
266,547
404,122
1948 January
5,062
17,591
103,115
461,373
February
7,558
13,155
159,06$
341,734
March
9,511
18,565
209,182
496,240
April
13,000
12,647
292,417
360,023
On account of the coal shortage, the plants in
Tsingtao have partially suspended operation for a considerable
length of time since the end of last year. Their original produc-
tivity had not been restored even by April. The plants in Tientsin
were one after another forced to suspend production for two months'
this year owing to the shortage of raw cotton and coal. Continuous
production in these plants will depend on the supply of raw materials
and coal.
No statistics are available for thb production in
II. - Textile Equipment Added and Scrapped
during the Past Two Years.
Accroding to the National Textile Industry Associa-
tion, the equipment of all the textile mills in China in 1947 was
as follows:
District No. Of. Yin Thread Looms
Mills Spindles Spindles
let Di-triot (Szeohuan) 18 193,772 --- 1,196
2nd pistrict (Shensi) 6 94,865 1,152 1,566
3rd District (YiYnnan) 3 29,476 --- 140
6th.District (Xiangsu,
----Chekiang, Anhwei) 156 2,925,508 387,156 33,891
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F_
7th District (Hopeh)
8th District (Hunan,
Hupeh, Ki.angsi )
9
217,800
1,240
-' 4
9th District (Shantung,
1.2
403,000
41,580
8,467
Shansi, Honan, Taiwan
Kwangtung,North East
22
387,760
15,806
6,540
Foreign mills
3
66,141
48
Total
241
4,761,955
507,058
64,013
The losses of cotton mills are heaviest in the
Northeast. Of the five mills taken over by the China Textile In-
dustry Development Incorporated in Liaoyang, Yingkow, Chingcho:v,
Antung and Fachow, with 223,208 yarn spindles, 13,420 thread spin-
dles and 5,330 looms; the mills at Antung, Liaoyang, Yingkow aril
Fachow were lost (though 20,000 yarn spindles were removed from
Liaoyang to liukden) and only the mills at Chingchow and Mukden '
remain with 70,000 spindles. The Ta Hsing Textile Mill at Shih-
ohiachuang, Hopeh, with 20,833,yarr.. spindles and 500 looms, also
fell into the hands of the Communists with the fall of that city
last year. Paochi and Ts'ai:hiap'o, Shensi came under Communist
occupation recently, but fortunately, the Shon Hain No.4 Mill and
the Tsaichiap'o Textile Mill .a.:apcd destruction.
The number of machines in the rills in Shanghai.
Kiangsu, Chekiang, and Anhwei has been increasing since 1946. "he
number of yarn spindles had been raised from 1,789,512 in January
1946 to 1,893,979 in December 1946; that of looms, from 14,942 in
January to 17,674 in December 1946. 120,263 yarn spindles and
1,179 looms were added in the year 1947. By the end of December
1947, the mills in the sixth district possessed 12,012,488 yarn
spindles and 18,853 looms. During the period July 1947 - April
1948, 12 new textile mills were established with 65,388 yarn spin-
dles and 436 ir?oms,
- In the CTI mills in Shanghai, 16,580 yarn spindles
and 1,610 looms have been repaired since January 1946. The mills
now possess 897,556 yarn spindles and 18,197 looms.
III. - Cotton Control") and the Textile Industry.
The Cotton Control Commission has been established
for 5 months. What has it accomplished? How has it influenced
the textile industry?
The Cotton Control Commission was created to en-
force an overall control of cctto:j, cotton yarn and cloth with a
policy of collection and centralised marketing, spinning and weaving
of raw cotton. The Commission has failed in all these aims, and
because of political entanglement, its policies have changed fre-
quently and irregularly. For instance, at first the collection of
-cotton was entrusted to the China Textile Industry Development
Incorporated, later, as a result of their protest to the Joint
Office of Cotton Merchants in. Shanghai., and finally in answer to
their appeal, the cotton merchants in Hupch were also included.
Regarding the purchase of cot::: by eotton mills, the Commission
originally ruled that mills with less than 3,000 spindles might
themselves undertake the purchase, yet, finally when the Commission
could not furnish the cotton required, permits to purchase were
issued to all mill:, The official price of cotton, under the
manipulation of the cotton merchants, has been raised frequently,
following the market price; when the price was high and all mills
EDITOR'S NOTE: 1,' See also lictton Control in ChInac its many Lif-
ficultiesi' in Monthly Bulletin Db.XVII (April
1943) Study XVI.
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were busy purchasing, the Commission stopped buying, and when the
price was high in Shanghai, it dumped cotton. Stranger still, the
Commission sold and bought cotton in Shanghai at the same time.
All these facts show that the control has been a gross failure.
In the past five months, only 500,000 .tan of cotton
have been collected by the China Textile Idduetry Development Ino-
orporated, the Joint Office of Cotton Merchants and the Commission
itself. This is far below the original aim of 5,000,000 tan for
this year which was later cut down to 3,000,000 tan. As a conse-
quence of failure in the collection of cotton, the overall cotton
control plan came into a state of bankruptcy, for without cotton,
neither centralised spinning and weaving, nor control, is possible.
To paoify the textile mills the Commission occasionally allocated
a small quantity of cotton to them in exchange for cotton yarn, on
exacting terms.
The 'accomplishmente? of the Cotton Control Com-
mission in the past five months have indicated that the control of
cotton, yarn and cloth and the policy of centralised collection and
sale of cotton are not feasible. We do not regret the failure of
the Commission for if the Commission were determined and competent,
the failure would have been much more tragic and the losses of
productlve enterprises would have been much greater. Nevertheless,
the co{ton textile industry has been greatly harmed by the Commis'
sion because s
'i/ Owing to lack of planning and preparation the collection
policy of the Commission caused the mills to misp the time for ool-
asttion of native cotton, thus deepening the crisis of the shortage
of raw materials.
ii/ Owing to the former discriminating attitude of the Commis-
41on in the export of cotton goods, it failed to obtain large
quantities of cotton from India.
dii/ The severe control has created suc$ an atmosphere that
the management as well as the people i0 the business are thrown
into a state of fear and annoyance, thus greatly reducing their
efficiency. Hongkong has been chosen for the establishment of new
mills. Capital has found its outlet in hoarding, or the purchase
of US motes and gold. Even the technical staff have shown little
interest in improving the productive technique.
IT/ The Commission, employing more than 700 staff members, has
raised its monthly outlay from CN$30,000,000,000 to CN O, -
70,000v000,000. An American adviser vdth a monthly salary of
US*2,000 has been engaged recently. All these expenses are borne
by the textile industry using up the fund for its improvement as
regulated by the Ministry of Economic Affairs. The Commission h&s
had to make money by monopolising the trade in cotton goods in order
to cover its expenses. Being a parasite, living on the textile
industry, the Cotton Control Commission has done nothing for the
betterment of the textile industry in the past five months, but only
threptened, interfered and set up handicaps. The continuous exis-
tence of this organization can only be "favourable to the textile
industry as well as to the government. 4)
EDITOR'S NOTEi 1) On July 17th the Legislative Yuan made a resolu-
tion asking for the prompt Abolishment of the
Cotton Control Commission.
M -
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IV. - Some Important Problems Facing the
Present Cotton Textile Industry.
The cotton shortage constitutes the most urgent
problem facing the cotton textile industry today. The gravity was
first realised by the plants-in Shanghai in February and March this
Year. The raw materials then .'n stock in the mills in Shanghai
had dwindled to a low level, and it was through the supply from
local sources and other cities, Indian cotton exchanged for cotton
yarn and piece goods, and an emergency allotment from the Cotton
Control Commission that the industry managed to carry on, without
:reducing its scale of operation. The impression may have been given
that since the Shanghai mills have maintained production up to the
present, their declaration that stock-3 were sufficient only for a
few days was made merely for purposes of propaganda; However, as
we know, only mills with less than one month's stock of raw mater-
ials were.eligible to apply for emergency cotton allotments from
the Cotton Control Conjniesion. Accordtng to figures published by
the said Commission, up to May 29, 1948, forty three mills, in
Shanghai and other cities, had concluded contracts or initiated
procedure for allocation of cotton, totalling 13,146,265 pounds,
i.e. 120,000 ohih tan; that is to say the cotton in stock of the
43 mills was so low that they could not carry on for another month,
and the Cotton Control Commission had to be relied upon for supply.
The continual supply of 100,000 bales of raw materials derived from
CNRRA and Cotton Goods Expert Commission (foreign cotton exchanged
with exported cotton yarp and?piece goods) i,n the pant two or three
months have also helped to maintain the operation of the industry.
Nevertheless, because of the cotton shortage, CTI mills in Tientsin
and Tsingtao have suspended operation several times.
Out of the 4,700,000 spindles in China, 3,700,000
spindles are in the mills in Shanghai, Kiangsu, Chekiang, Anhwei,
Tientsin and Tsingtao with a monthly requirement on the basis of
one pound of cotton for each spindle for 24 hours and 26 working
days in every month of 96,200,030 pounds, i.e. 874,000 shih tan
(192,400 bales), of cotton. Yet the Cotton Control Commission has
so far (;Qllected less than 5Cc, 000 shi.h tan, part of which has not
yet been despatched to Shanghai from producing areas. More than
100,000 tan have been exchanged for yarn or sold in Shanghai;
therefore the quantity of cotton that could be utilized by the
cotton mills would not. run to more than 1-200,000 tan.
So far the Cotton Products bcport Commission hae
ordered or exchanged for yarn, 70,000 bales from abroad, and the
28,000 bales Of cotton imported without license have been allocated
to be spun by the various mills. There is no way of ascertaining
the definite amount of the US-aid cotton, and it is also unknown
whether the whole batch @f US-aid cotton will be forthcoming this
year, for the US government has ruled that the aid is to be utilized
in fifteen months. Even if 350,000 bales can be obtained, the sup-
ply of foreign cotton for the textile mills in the second half of
this year will be only a little over 400,000 bales.
If the war situation in Shensi and Hupeh does not
deteriorate, several hundred thousand tan of native cotton may be
collected in the coming months. Thus, with imported dotton, the
mills may be able tit carry on until September or October when the
new crop of cotton in harvested.
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Since a large part of the cotton-producing area
is outside the control of the government, the situation may worjen
after the fall. Without native or imported cotton, the shortage
of raw materials of the textile industry would be ekrious at the
end of this year.
2. - Removal of Textile Mills to Hongkong.
More than ten textile mills with 180,000-190,000
spindles have been established in Hongkong since the second half
of 1947. Why, being affiliated with the home textile industry, are
they set up in Hongkong, which is unsuitable for the development
of the industry? The main reason is that, its importation not being
allowed the machinery ordered from abroad has had to be despatched
to Hongkong for the time being. Furthermore, the lack of raw cot-
ton, the insecure conditions, and Government restrictions in China
have combined to drive out industrial capital. In his statement
to the press, Mr. Yung Hung Yuan, General Manager of the Shen Hsin
Textile Company, who has just returned from an inspection tour in
Hongkong, clearly explained, "Since my trip to Hongkong, I have
realized that the abnormal prosperity enjoyed by that tiny island
has been baused by the civil warfare and unreasonable Government
control of commerce and industries in China. The industrialists
in northern and central China have been forced to remove their
factories to Hongkong and capital has inevitably flowed abroad.
If the Government had permitted. the import of machinery paid for
with self-provided foreign exchange, they would not have been ins-
talled in Hongkong"...(Ta Rung Pao, Shanghai, May 26, 1948).
Mr. Yung spoke the truth.. But instead of endea-
vouring to settle the problems of the import of machinery, the
shortage of raw cotton and the control of cotton, yarn and cotton
piece goods, the authorities have repeatedly announced the Govern-
ment's resolution that no yarn spindle should be exported. In
fact, none has been removed to Hongkong from China. The machine
now in Hongkong were ordered from abroad. It is a pity that the
Government has not drawn up any preventive measures, not to mention
trying to gain back the machinery now in Hongkong.
3. - Replacement and Installation of
New Machinery.
Including the 1,700,000 spindles taken over from
Japanese mills in China, there are 4,700,000 spindles in this coun-
try? which is still below prewar level of 5,000,000 spindles. De-
spite the fact that the home market in low owing to the civil war-
fare and that export is not very well developed, the supply of
cotton yarn is still below the demand. The demand should therefore
be immense once peace is restored in this country, so -that the
increase of new textile machinery is essential.
In the two years since the victory, only a limited
number of new spindles, apart from those repaired, have been ins-
talled. For instance, in the sixth district, that is Shanghai,
Kiangsu, Chekiang and Anhwei, only 220,000 spindles and 3,900 looms
(not including the looms in mills for both dyeing and weaving) were
added by private mills in 19b6 and 1947. The number added in other
districts was much less. With all the difficulties, it will be hard
for the textile industry to add any new machinery: but, without
effort the goal of 10,000,000 spindles will never be attained.
Moreovet the existing machinery will. become old and deteriorates
and the textile industry will not only be incapable of development
but will be unable to maintain its original level.
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The authorities seem to have given superficial
attention to the development Of to ;sx`..ile industry. A 5-year
plan aiming at an increase of 5,000,000 spindles {:at.rr revised to
3,000,000 spindles% was brought up at the Textile Industry Product-
ion Meeting held under the auspices of the 3:iraetry of Economic
Affairs in October last year. At the Textile Machinery Manufacture
Meeting held in Shanghai by the EL.niatry of 3coriomic Affairs on
Marsh 12, 1948, a resolution was passed to manufacture 200,000
spindles and 7,000 looms in one year. This second plan seems to
be more practical. In the second meeting, detailed points concern-
ing the types of machines, raw materials required, plants under-
taking the manufacture, financial resources, etc., were also formu-
lated and a Supervisory and Guidance C3n:mi.ss.on for the Manufacture
of Textile Machinery was created and put in charge of the under-
taking. Up to the present, the Corramf.3sion has been organized, but
the manufacturing has not been begun. Actually, it would not be
difficult for China to produce 200,000 spindles 1n one year, pro-
vided there were strong organising power and sound coordination.
It is strange that the Government is promoting
the manufaoture of textile machineries at home and at the same time
foi'bidding the import of machines 'which have been ordered from
abroad and delivered. The Government's attitude is based on the
ground that there is little foreign exchange to be granted for the
purchase of machinery from abroad and if the import of machinery
paid with privately owned foreign exchange were allowed, the indus-
trialists would have to seek foreign exchange from the black market
tie stimulating the rise of commodity prices. Nevertheless, there
are ways of settling the problem, provided the Government has de-
termination and sincerity. The Government should make an overall
investigation on the textilemachinery ordered from abroad, and the
margin of foreign exchange paid, and then direct the mills to import
the machinery by instalments paid with foreign exchange derived
from the export of cotton goods. This measure compares favorably
with?the present practice of fording the industrialists to purchase
foreign exchange from the black market to pay for machinery and
the conetruotion of buildings in Hongkong.
4. - The Export of Cotton Goode.
Ever since the conclusion of the war, the Chinese
textile industry has dreamed of taking over the market in the
South Sea Islands, formerly controlled by Japanese goods. owing
to internal restlessness and the lack of foresight the quantity of
cotton products exported has been far below the original expectation.
Owing to-urgent needs at home, the Government at
first prohibited the export of cotton goods, until at the beginning
of 1947, in order to obtain much-needed foreign exchange, the China
Textile Industry Development Inc. was permitted to export a part
of its products. After the resignation of Mr. T.V.Soong, and the
establishment of the Textile Enterprise Regulating Commission,-the
Government at the request of private mills, set up a Cotton Products
Export Commission and permitted the export of 1/10 of the native
cotton products, the figure being later increased to 2/10. The
China Textile Industry Development Inc., during the peyiod Peb:1947-
April 1948, fourteen months in all, according to its own records
exported 6,533 bales of cotton yarn and 185,503 bolts of cotton
piece goods directly, 4,647 bales of cotton yarn and 648,300 bolts
of cotton piece goods on behalf Of the Central Bank of China, US
Bonds, 3,033 bales of cotton yarn and 74,678 bolts of cloth on
behalf of the Central Bank of China for. US. Dollar Bonds 8,313
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bales of cn;`on yarn and 639,489 bolts of cotton piece goods for
the Cotton Products Export Ccr.ud ssion; totalling 22,525 bales of
cotton yarn and 1,550,970 bolts af cotton piece-goods. Thirty to
forty thousand bales of cotton yarn were also exported by private
mills either in direct exchange for Indian cotton or for cotton
through the Cotton Products Export. Commission. These figures are
small in consideration of the high demand throughout the world and
our supplying capacity. It is a p'ty that we have riot grasped our
opportunity in the past two years when the world has been facing a
serious shortage of cotton products.'
Why ;.,as the export of cotton goods not been as
successful as had been expected? The words of Mr. Chang Shun-kung,
one of those who actually participated in the work, might be notedt
"The China Textile Industry Development Inc. might undertake the
export of cotton products, but it is already over-burdened with the
work of supplying the troeps and civilians, and the stabilizdtiop
of the prices of cotton goods is an important part of the national
economy. Besides, the procedure in official establishments is too
complicated. Only 8,000 bales of cotton yarn and 400,000 bolts of
cotton piece goods, t.e. 5-8% of its output, were exported in t1he
past four months by the firm. ~~,,~,,e ors of products of private
mills has been complicated by 1he7o t.rf ing yarn or cloth for cot-
ton at the Cotton Products Export Commission which, instead of
promoting export, has found pleasure in such passive work as check-
ing, examination, registration, and exant'.on, exploiting the interest
of private mills. While giving no direction regarding the develop-
ment of the textile industry, it is ever on the watch lest the child
be spoiled by being given too much candy". (The Textile Weekly Vol.
IX. No.15.)
The fact remains that, besides this lack.of assis-
tance, the Government has actually participated in the division
of the loot. The export of cotton goods must be approved by the
Cotton Products Export Comtaission,6c of the profit going to the
Central Bank of China and the remaining 40, to the textile mills.
As already mentioned a half of the export took the form of exchang-
ing yarn for cotton. For every bale of 20's yarn, 726.75 pounds
of cotton are given by the Centa_al Iiank,'which thus reaps a huge
profit. No wonder the Government has been very strict in examining
the exchange rates adapted by the mills in exchange for foreign
cotton. Many business transactions have not been approved. It has
not been realised that while the quotatiorx qX cotton products are
'dropping throughout the world, the maintenance of our prices only
spoils the opportunity for export..
The xport of cotton products has been further
handicapped by the pravalent smuggling. Since only 20% of the
cotton products are allowed to be exported, and as a result of the
depreciation of rhinese currency, a large quantity of cotton products
find their way to Hongkong fr..,. Canton.. The flood of smuggled
goods has caused the prices in Hongkong to drop, thus affecting the
sale of legally exported cotton products.
The smuggling is not limited to cotton yarn and
piece goods. Owing to the unfavourably low exchange rate, many
othz,r cotton products have been smuggled out-too. This is one of
the rain cwases which have prevented a large-scale export of cotton
products.
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Many people-are afraid of the threat of competi-
tion from the Japanese textile industry. It should be known how:,.
ever, that there are only 2,000,000 spindles in Japan at present,
as against China's 4,700,000 spindles. Whereas a part of the cot-
ton used in China is native cotton, Japan has to use American
cotton entirely. And the labor costs in Japan are almost as high
as in China. Thus, with a sound policy, and cutting the prices and
profit to a reasonable level, our products might compete with those
of Great Britain, USA, Japan or other countries. The quality of
the goods should be such that they might appeal to foreign taste.
Under these conditions the textile industry in China might find
itself in a superior position in the world market.
(Rnd )
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I(
BUREAU DE DOCUlILNTATION
(Economie Chinoise)
280 Chungking Nan Lu (Dubai!)
Tel:85761
Topie: Forestry in .iwan Document Not 104
Authors Tang Chen-hsu, Nature: Digest.
Director of the Forestry Number of pages: 11
Bureau, Taiwan Provin- Remarks: See Appen-
oial Government. Six concerning
Periodioals The Taiwan Engineering Month- forest product
ly (T'ai Wan Kung Ch'eng industries on
Chieh) p. v ff.
Date of Issues March 20, 1948
FORESTRY IN TAIWAN
I. Forests on the Island.
Forests cover 1,901,040 hectares or 52.83% of the
whole area of Taiwan (see Table I below) while pasture land occu-
pies 562,552 hectares or 15.64%. Rich reserves of valuable trees
totalling 185,243,338 cubic metres (see Table II) are found in the
sub-tropioal and temperate zones: broad leaved trees on the Central
Mountain Range stretching northward from the Tawushan along the
Hengoh'un Peninsula; coniferous woods on the Northern and Western
elopes of the Alishan and Mount?Morrison near the centre of the
island; and mixed forest on.the Luanta.han also near the centre and
on the Iuobfangtashan and Ch'ilanshan in the North.
Table I. Areas covered by different categories
of trees in Taiwan.
Broad leaved timber 683,560 hectares
Coniferous timber 187,484
Mixed broad leaved and
coniferous 'h tuber 133,626
Bamboo forests 2,645
land bearing scattered trees
of various kinds 91,323
Tree plantations 42,660
Table II. Reserves of timber trees.
A. BROAD LEAVED to 'e
TaxuB cuepidata et Z. t 174,403 cub. m.
Zelkova formosan Hayata 146,450
Cinnamomum osrphora Nees. 100,387
Aeaeia cunfuea Lerri.]l 77,055
Others 105,""=~).~
TOTAL 10.247.95, cub. m.
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B. CONIFEROUS TREES-
Chamaccyparis formosensis
Ma en um
1?,518;821
cub. m.
Chamaeoyparis obtusa S..eb
16,879,983
"Hsiang Shan" cedar
1;100,196
Taiwania ?:ryptomcrioides Hay.
64);606
Cryptomeria japoni..a Donn.
19,702
"Chia Sung' pine
5,787,834
Other pines
10,934,432
Picea morrisonicola Hay.
4,058,882
Teuga chinensis
3,006
928
Libocedrus
formosana
,
438,907
Others
600,092
TOTAL
78,995,383 cub. in.
Generally speaking, the trees on this island are
distributed in the following areas:
a) BROAD LEAVED TREE AR.E~S: These are the most
flourishing of all forested regions and cover the largest area.
The trees consist mainly of' Fagaceae, though coniferous trees are
intermixed in some parts, e.g., Keteleeria davidiana Be'ssen in
the Southern and Northern parts, and Pinus densiflora 8frt Z. in the
Central part (300 - 2,300 in. above sea level). The principal kinds
of broad leaved trees are as follows:
Machilus kusanoi Hayata
Lithocapus uraiana Hayata
Lagorstroemia subcostata Kochne
Juglans formosana Hayata
Pistacia chinensis Bunge
Zelkova'forniosana Hayata
Var formosan Kan
Bischoffia javanica B1.
Castanopsis taiwaniana Hayata
Castanopsis kawakamii
Taxus chinensis
quercus Morii
Engelhardtia formosan
b) CONIFER ARE&S: Forests in high mountain sec-
tors consist of copiferous trees only. Though these regions dtf-
fer in height in the South and in the North, their average altitude
is more than 1,800 m, above sea level. Chamaecyparie formosensis
Matsum grown on lower land and Chamaeeyparis obtuse Sieb in higher
parts, form the largest reserves. Other trees are:
Keteleeria davidiana Beiesen Pinus formosana Hay.
Tsuga chinensis Pinue armandi Hay.
Cunninghamia konishii Hay. Abies kawakamii Hay.
Picea morrisonicola Hay. Taiwania cryptomerioides
c) COASTAL AREAS: Forests which can stand the
sea water when tides are high, appear on the Northern and Southern
coasts, while they are a rariy both in the well cultivated `Nest
and on the Eastern coastal areas where precipices predominate.
Such coastal forests are especially found in the Eluanpi-Hengoh'un
sector on the Southern tip of the island. It is believed that their
seeds were,f'loated there from the South Pacific islands, with the
help of the monsoons. There exist in this group more than 300
varieties, the most important of which are mentioned below:
Palaquium formosanum Hay. Pongami'a pinnate
Calophyllum inophyllum, Sideroxylon duclitan
Barringtonia asiatica Sideroxylon feraugineum
Buohanania arborescens Terminalia catalpa
Excoecaria agallocha Pittosporum tobira
Thespeeia populnea Entada phaseoloides
Hernandia ovigera Freycinetia formosan
Pemphis aoidula Pandanus iidoratissimus
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d ) AREAS OF RHIZOPHORA MUCRONATA LAM.: This kind
of tree thrives best near bays and the mouth of riverej but as the
Boil of such areas is far from fertile on the island, its growth
has been limited to a small region along the eo&st near Kaohsiung.
The following are some of the important species grown in this zone:
Phizophora micronata Lam. Ceniops tagal
Avicennia marina Bruguiera conpigata
7umnitzera raoemosa
e) AGRICULTURAL PLANTATIONS: Banana, tea and
other agricultural products are planted both on the plains and in
mountainous regions of rather high altitude. Some of the more
important are gin below:
Acadia confusa Merrill Mallotus japonicue
Liquidambar formosana Hance Aphananthq aspera
Alniphyllum Pterospernum Melastoma septemnesvium
II. Exploitation.
Large-scale and systematic exploitation of the
forests in Taiwan is now being simultaneously undertaken by six
local offices under the Forestry Bureau: the Forestry offices of t
the Alishan, Pahsienshan, T'aip'ingshan, Chutung, Luantashan and
T'ailuke. The timber output of these off.`ces during the year 1947
was as follows: (in cubic metres)
Timber
Plantations
Forestry
f
i
Total
iom Natural Forests From (Con- Timber Pro-
O
f
ce
Conif,-:ous
Broad
iferous
ducts in
Trees
Leaved
Trees
Trees)
Mountains
(Coniferous
Aliahan
23,221.511
14,541.434
5,005.031
3,675.046
Trees)
981.072
T'aip'ing-
37,517.654
37,517.654
---
ehan
Pahsien-
16,660.176
16,660.176
---
---
067
2
623
?shan
Chutung
7,890.618
3,356.226
2.059.059
2,439.333
,
.
407.779
Luantashan
'
2,405.600
2,405.600
---
---
1,065.728
T
ailuke
1,653.567
1,653.567
---
_--
---
GRAND
TOTAL
89,349.126
76,134.657
7,064.090
6,114.379
5,077.646
Of the above 6 forested regions, the Aliehan,
Peheienehan and T'aip'ingshan are the most completely equipped.
The following sections will give some idea as to the present con-
ditions of these three regions.
1. The Aliehan Forested Region.
The forests, covering moat of the mountains at
Chiayi and a part of Touliu (both in the Tainan District), have a
total area of 31,922 hectares, of which 10,100 hectares can be ex-
ploited. Lying near Lat. 23?5 N., the region is crossed by the Tro.:c
pie of Cancer; its lowest part is at Chuch'ihsiang, Chiayi, 150 m.
above sea level, and the highest at 7ulingehan, 2,004 m, above sea
level. It is estimated that there is now a total reserve of
6,100,000 cub. m. of trees (3,100,000 cub. m. of broad leaved tim-
ber and3,000,000-cub. in. coniferous).
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Alishan which is the largest forested mountain, is
being exploited by the Alishan Forestry Office whose work now consij`.3
mainly in the collection and transpcrtation of the 83,400 m, of log3
already felled in the past, which, according to the present trans-
portation capacity,,will be completed within 4 years.
The Alishan Forestry Office possesses the following
a) FOR COLLECTION OF LOGS: There are 9 log-col-
b) FOR TRINSrORTATION: Railroads at the Alishan
reach a total length of 110 km., with 20 steam locomotives, 3 gaso-
line locomotives, 1 gasoline car, and 306 passenger and freight
cars. The engineering work of the railways in Alishan is world-
famous. The length of the various lines and the number of tunnels
and bridges along them are indicated in the following tables
lime of Line
q]ishan Line Proper
8huiehan Line
8huiehan Branch Line.
Ch'ech'echia Line
Branch of Sub-Line
No.4
Heiangheuehohan Line
Shihehuishan Line
Length
ILO, 0
No.of
Remarks
Tur-tels
Bridges
71.798
km.
55
114
using steam
10.620
4
31
locomotives
7.500
65
"
9.500
2
41
"
600
--
2
"
1.000
--
4
u
2.750
1
26
using gasoline
Tungp' o Line
5.790
Shenmu (Sacred Tree)
Branch Line
0.760
TOTAL
110.318 km.
locomotives
e) BTORAGIis There is a storing office at Chiayi
for logs arriving from the forests and loading the loge sold. The
dry storage ground covers an area of 8,264 sq. m., and the storaging
pool, 52,442 sq. m., with a total capacity of 33,000 cub. in. The
office is equipped with a 16-ton overhead travelling crane and a
3-ton travelling crane.
d) SAWINGt There are altogether 4 saw Mille.
V REPAIRINGz Two shops take care of repairing
works one at Chia and the other at the Alishan.
Main Equipment of the Repair Shops at Chiayi and Alishan.
jftma of Machine
1 t
Number at
-Kira ian
Iron smelting furnaces
3
2
motors
10 (total-
ling
2 (total-
ling
141 HP)
20 HP)
Blowers
3
3
Chainblocke
8
2
Air hammer
1
1
Screw-making machine
1
0
lire bed (Huo Chuang)
8
1
Uses
smelting iron for
founding
running machines
lifting machines
striking iron
making screws
smelting iron
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Alternating-current
3
1
welding
welding machines
Transformers
3
1
stepping up electric
Band sawing machine
1
0
power
sawing timber
Lathes
19
4
Miscellaneous machines
34
2
2. The Pahsienshan Forested Region.
Situated near Tungehih and Nengkao in the Taichung
Diettict, this region covers all the forests at the Paikushan (3,34?
M. above sea level), Lupinshan (2,971 m.), Ch'ilunehan (2,929m.),
Pahaienshan (2,401 m.), Tahsuehshan (3,600 m.), Hsiaohouehshar.
(3,043 m.), Sheolaishan (2,329 m.) and Tungmaoshan (1,688 m.), wi:'i
exploitable forests amountin to 84,971 hectares and a total re-
serve of 18,459,841 cub. in. (11,617,814 cub. m. of coniferous tim-
ber and 6,842,000 oub. m, of broad leaved).
The equipment of the forestry office of thi.s re-
gion is as follows:
a) FOR COLLECTING LOGS: There exist 6 collecting
machines, 4 of which can be used.
. b ) TRANSPORTaTION: The total length of railroad
is 95.67 km., with 32 steam and gasoline locomotives, 304 passenger
and freight cars, 440 push-oars, five 8-wheeled cars, and thirty
4-wheeled oars.
Suspension cables are widely used for transporting
loge from mountain slopes to the plaint
Lane!
Angle of
e$ i &t Transporting Ygar of
Inclination
capacity Comnlet=l
p'iyawai Cable
879 m. P,4 degrees 364 m.
45 timeal)
daily
March 1931
Shihwenoh'i
Cable No.1
Shihwench'i
1,150
28
500
50
Dec. 1938
Cable No.2
1,276
28
590
50
March 193c.
Malun Cable
1,192
26
526
50
May 1940
7n addition, 3 inclines (built in 1923) are used
for transporting loge, whose daily capacity averages 85 cub. m.,
and can reach 140 cub. m. at maximum.
Length
Angle of
Height
Power
Slope
Incline No.1
1,159 m.
30 degrees
606 m.
30 HP
M
Yo.2
366
33
300
15 HP
"
No.3
466
30.5
203
15 HP
0) HYDRAULIC POWER: There is a hydraulic ,.,.;er
plant on the Shihwench'i River (set up in 1922), with a 110 HP tur-
bine and a 3-phase 70 KW alternator.
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d) REPAIRING: 2 repair s:^ars pnsses3ing the
following equipments
Shop & machine tools.
4 machines fo-=
various uses,
welding machines,
smelting furnaces,etc.
Mosheng Repair 6 sets of miscel- 3,HI
shop laneous machine
tools, etc.
Chispaot'ai Repair 11 rotating plates 10,5 HP
Main Hchinqrv
repairing to
motives and
machines.
repairing gaso-
line to -oniotives.
e) SAY MILLS: One each at _.hiapaot;ai and FenU-.;ai:.
f) STORAGE: Installations are as below:
~rqa Storing capacity
Storage pool 332.7 area 1'-.000 cubic metres
Dry storage ground 99.2. 4, OO
Godown for timber products 6.3 -,80
3. Forested Regions under the T'aip'ing-
shan Forestry Office.
Both the T'aip'ingshat;. and Tayuanehan forested
regions are under the administration of the TT'aip'ingshan Forestry
Office.
A. - THE T'AIP'INGSHANT FORESTED REG-ON, situated
at Lotung and 8u-ao in the Taipeh District and at Tach'i of the
Heinohu District, includes bec des the T'aip'ingshan itself, the
T'aohuashan (3,390 m. above sea level), Tapachienshan (3,572 m.
and Nanhutashan (3,633 m. Sixt nin
this region are Chamaecypatis obtuse 'eetp2..;c20%,oChamaecyparisn
formosensis Matsum.; 7,`~, Tauga siebddi, Carr; 3%, Cedrula ohinensis
Juse; and 1%, "Ya Shanty cedar.
The exploitation equipment in this forested region
comprises the following:
a) FOR COLLECTION OF LOGS: 11 collecting machines.
b) TRANSPORT~TIONs on the plains, the light rail-
road between Lotung and T'uch'ang of a total le.,g:h of 36.4 km. runs
along the Southern bank of the Chushuich'i and is suitable for
15-ton steam locomotives.
On the mountains, there are 3 ^etq of cables and
also railroads suitable for 3-5 ton gasoline or charcoal locomotives.
The communication system is as follovwss
Sables (4.53 km.); torFail ngnCableso(3.92ckm);g tooPa hsihCables
13.20 km.); to Shangchihp'ing (1.20 km.)); to Sanhsing Branch Line
6.30 km) and to Mouhsing Branch Line (12.00 km).
c) STORAGE: There is at fotung a dry storage
ground of 19,000 sq. in. and a storage pool of 93,000 sq. in., with
an aggregate storage capacity of 22,000 cub.m. Two cranes have
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been installed for the lifting of logs. As T'uch'ang is the j,n: :-
seating point of the plain and mountain communication lines, a
provisional storage grqund with a capacity of 11,000 cub. is. will
soon be established there.
d) SAW MILLS: The T'aip'ingshan Forestry Office
directly operates 3 saw mills, all of them at Lotung, while the saw
mill at the T'aip'ingshar} is under the management of the T'aip'ine-
ehan Branch Office.
B. - THE TAYUANSHAN FORESTED REGION, also located
at Lotung, includes the Tayuanshan, Shihliufenshan and some other
high mountains.
It produces coniferous trees, such as Chemaecyparis
Obtuea, Set Z. Chamaecyparis formosensis Mateum, and Tsuga chinensis;
and broad leaved trees such as Michellia aompressa Max Var formosan
Kan, Maohilue Nanmu Hemel. Zelkcwa formosana Hayata, etc.
The equipment of the Tayuanshan forests consists
a) COLLECTION OF LOGS: The work is now being en-
tirely done by man-power.
b) TRANSPORTATION: Three sets of elevated auFo-
matic single-track wireropes are being in use. In addition, more
than 4 km. of railroad has been completed, while the railing over
a 8 km. road bed is under way. At present, only puehcars are em-
ployed for despatching logs on the railway. If the existing :racks
are, improved, however, gasoline locomotives can be used to pull the
pushcars. Transportation between Lotung and Kulu is done by trucks.
1. For water conservancy.
Rainfall is abundant In Taiwan, reaching 6,000 mm.
annually in the mountainous regions where it is not unusual for
C 600-1,000 mm. to fall in a single day. During the rainy season,
communications are often disrupted and houses swept away by floods.
The promotion of afforestation work for water conservancy is there-
fore an urgent need.
The following 2 tables show the original projects
and actual achievements for 1947:
Afforestation Work for Water Conservancy
During the year 1947 within the Forested
Regions under Exploitation.
Work Original Pro.ieot Actual AchiPVement
plantations of new trees 478.15 hectares 410.05 hectares
plantation of trees to
replace those felled 137.11 " 137.00 "
Grass Cutting 1,107.73 576.83
8%edlinge nursing 2,177,700 1,742,160
Aff
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Afforestation Work for Water Conservancy
During the year 1947 outside of the
Forested Regions under Exploitation.
Origi_"al ?io,Lect Actual Achievement
Plantation of new trees 690.95 hectares 667.80 hectares
Grace cutting 269.95 " 237.00 u
Seedlings nursing 2,178,200 1,524,740
2. For "Pao An" or security.
As the soil in Taiwan is apt to dissolve in windy
and rainy seasons, landslides often occur on s`tiff mountain slopes,
while both on the mountains and plains, erosion has become a serious
problem. In order to guard agai..rst the above disasters, the Fores-
try Bureau has retained large areas of land for cultivating the tc-
called 'security forests'. The following was the work achie.ed
during 1947.
Work on Security Forests in 1947.
Work Original Project Actual Achieyergnt
Plantation of new trees 564.50 hectares 417.00 hectares
Plantation of trees to
replace for those failed 268.00 " 12.60 "
Grass'Cutting 534.50 82.60
Seedlings nursing 2,674,000 seedlings 1,169,600 seedlings
3. For Economic Purposes
By "eoonomio forests" are meant those which are
oultivated for economic purposes, such as the supply of timber,
camphor, fuel etc.
Work on Economic Forests during,
the Year 1947.
Original Project
Planting new trees
Planting trees to re-
2,446.73 hectares
plane those felled
360.19
342.19 ^
Grass cutting
8,661.40
6,929.00 "
Pruning spreading foliage
11184.21
947.21 N
Trimming twigs
11,17 e
9.00 '
Pursing seedlings
395,128 Sq.m.
276,590 sq.m.
5,577 litre.
3,904 litres
180 mm.
4. For protection of Coasts.
126 mm.
Being situated in the Pacific,_ Taiwan is li;t'^
the attacks of typhoons in summer and winter, which are often de-
trimental to the crops and buildings. The following. represents the
efforts made during 1947 to protect crops and houses against wind
attacks
-
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Planting new trees 360 hecta:?ss 435 hectares
Planting trees to replace
those-felled 253 253
Nursing seedlings 15,529,800 12,423,000
Witlc a vievi to promoting afforestation work, the
Forestry Bureau of Taiwan has drawn up a 5-year plan whose gist
is given below:
Afforestation Sand-Control Work Number of
Seedlings
Area Budget Area Budget
(hectares) (TWO) (hectares) (TW$)
-------------------------------------------------------------------
1948
21,001
1,838,993,720
1,276
745,780,517
66,050,600
1949
25,683
2,608,923,992
1,277
606,889,630
95,691,120
1960
25,773
2,903,798,438
1,277
654,432,729
1~I,5:i^?,".s=)
1961
25,830
3e067,200,008
1,280
642,327,479
101,300,720
1952
24,979
3,160,909,132
1,284
654,504,837
98,781,132
TOTAL
123,271
13,579,865,090
6,394
3,333,937,192
462,935,480
Enterprises for processing forest products in
Taiwan may be olaseified in the following groups:
a) TIMBER PROCESSING: Saw mills constitute the"
main part of these enterprises: the larger ones are operated by the
Provincial Government, and the smaller ones by private concerns.
There are also some factories which manufacture 3-ply-wood, wooden
pipe (as substitute for ironpipe) and preserved timber.
b) PRODUCTION OF FOREST PRODUCTS OTHER THAN TIBER:
-- Camphor and other oil essence (e.g. turpentine,
Chamaeeyparis oil)
Vegetable oil and fats (e.g. wood oil, varnish,
tea oil)
- Tanning materials (manufactured from Quercus
variabilis P1., ?Hua T'o Erh" and the bark of Acacia confuse
Merrill)
- Medicines (made frein Cinchona, Spp., Erythro-
xylum Coca, Lam., S=_ntalum al =im Linn., Gynocardia odorata R.Br.,
etc.)
Others
Of the above industries, the camphor and paper manufacturing is
the largest in scale.
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c) APPLIED CHEKIGAL INDUSTRIES: The dry distilla-
tion of timber and manufacturing of synthetic resin are being under-
taken on a very small scale.
The above-mentioned industries which were formerly
for the most part operated either by the Japanese government or its
nationals, were taken over by the Chinese government authorities,
after V-J day. For instance, camphor is now under the control of
the Reconstruction Department of the Taiwan Provincial Government;
other chemical industries are being undertaken by the Chemical Co.
under the Taiwan Provincial Industrial and Mining Company; the
Taiwan Paper Co, has been placed under the joint management of the
National Resources Commission and the Taiwan Provincial Government,
and all other timber industries are operated by the Forestry Bureau.
Some of the smaller enterprises, however, have been handed over to
district or municipal authorities or private interests. The follc~..-
ing tables ,provide some information concerning the present status
of the enterprises.
Name of Enterprises
Taipeh Saw lull, under the
Forestry Bureau (or FB)
Taipeh Saw Mill.(Branoh), FB.
T'aip'ingehan Saw Mill,FB. i,
Lotung Saw Mill No.1, FB.
Lotung- Saw Hill No.2, FB.
Lotung Saw Mill No.3, FB.
Chutung Saw Mill, FB.
Chiapaot'ai Saw Mill, FB.
Fengyuan Saw Mill, FE.
% nghsiangshan Saw kill No.1,FB.
Wanghsiangshan Saw Mill No.2,FB.
Alishan
Saw Mill, IS.
CGhiayi
Saw Mill
No.l.
F.B.
Chiayi
Saw Mill
No.2,
FB.
Chiayi
Saw Mill
No.3,
FB.
Camphor Refining Co.
under
Monopoly Bureau (or MB)
Camphor Oil By-products
Processing Co. MB.
Camphor Oil Processing Co., MB.
Bamboo-Timber Industrial Co., MB.
Taiwan Paper Co., laipeh Plant
Taichung Plant
Tainan Plant
Kaohsiung Plant
Shihling Plant
Japanese Paper
Plant
Chemical Co. under Taiwan Pro-
vincial Ind. & Mining Co.
4,000 eub.m. of timber annually
(not yet operating)
3,000 cub.m. of timber annually
4,000
10,000
10,000
10,000
2,500
8,000
10,000
6,000
3,000
12,000
10,000
10,000
48 tons of machine-made paper
daily
50 tone of paper pulp daily
90 tons of paper pulp daily
12 tons of packing paper daily
25 tons of carboard and
packing paper daily.
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Privately-owned
location
Taipeh Municipality
Taipeh District
Hsinohu Municipality
Hsinchu District
a
Taichung Municipality
Changhua Municipality
Taichung District
Keelung Municipality
Chiayi Municipality.
Tainan Municipality
Tainan District
Kaohsiung Municipality
P'ingtung Municipality
Kaohsiung District
Iland Municipality
Taitung District
Hualien District
P'enghu District
(Peecadc4res)
TOTAL
$
( End )
Lumber of Mille
62
(incl. 2 mills for
making 3-ply-wood)
44
13
33
(incl. one 3-ply-
wood mill)
22
4
69
12
18
9
38
21
10
15
6
9
22
(incl. 1 mill for
making ply-wood)
2
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U N I V E R S I T E L' A U R 0 R E
- s h a n g h a i -
BUR'r:AU DE DOCUMENTATION
(Economis ^hinoise)
280 Chungking Nam Lu (Dubail)
Tel.:85761
The Currency Reform of August 19th. Study No. XIX
Number of pages: 15
Articles and reports digested and
combined in this Study:
"An Analysis of the Currency Reform", by Yen Ling, the
EcOnomics Weekly, Aug. 27, 1948.
"Commodity Prices since the Currency Reform', by Chi-
Ch'ung-wei, Idem;
"Key to the Success of the New Currency", by Wu Ta-yeh,
the Economic Review, Aug. 28, 1948.
"Currency Reform", Conference sponsored by the Ta Kung
Pap, Ta Kung Pao,(Shanghai), Aug. 30, 1948.
"Problems concerning the Recent Monetary Reform", by Wang
Chih-hain, Chu Sau-huang, Chu Pai-ying, Sun Heiao-ta'un,
Yang Chen-hua, etc., the Bankers' Weekly, Aug. 30, 1948.
"New Currency and International Payments", by Ch'u Pao-i.
the Economic Review, Sept. 4, 1948.
"Appreciation of the New Currency", by WU Ch'eng-hsi,
Business World, Sept. 5, 1948.
"On the Maximum Issue of Gold Yuan Notes", by Kiang Ybng-
jen, the Economic Review, Sept. 11, 1948.
"Control of Loose Capital and Increase of Production",
by K'e Ju-Ch'ing, Sept. 16, 1948.
(continued in the note on page 14)
As the currency reform is of paramount importance
for the well-being of the whole nation, all Chinese citizens and
friends of this country are naturally taking an intense interest
in this major step of the Government. The aim of this Study is
to present in a clear summary L:.e essential points of this reform
tGgether with the various comments and suggestions made on the
subject by Chinese economists and businessmen during the past few
weeks.
------------------------------------------------------------------------
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I
Monetary inflation had reached such a critical
condition in China at the beginning of August 1948 that the general
index number of wholesale commodity prices in Shanghai marked an
average weekly increase of 18%, culminating in the third weex of
the mgr~th at 8,007,000 times the price level of the first half of
1937 )z that is to say, the purchasing power of CN$1.00 was equi-
valent to only 0.00000012 of that of one prewar Chinese dollar.
It was evident that if this state of things-were allowed to con-
tinue, the effects on the whole national economy would soon be
catastrophic.
In view of the above, the Government authorities,
after lengthy and careful deliberations among top-ranking official a,
decided to reform the currency, by enforcing on the 20th of Augus)
1948 under the name of Financial and Economic Emergency Measures,
a new econo4c programme, the essential points of which are:
a) Superseding of the old Fapi by Gold Yuan notes whose issuance
will be limited to GY$2,000,000,000, backed up by a 1002
reserve;
b) Obligatory surrender, before the 30th of September 1948, of
all gold, silver and foreign currencies still in private
hands;
o) Registration and control of assets held abroad by Chinese
citizens)
I) Readjustment of Government finance by increasing tax revenues
and curtailing expenditure; and strengthening of control over
commodity prices, salaries, foreign trade and banking
business.
I. - Special Features of the New Currency.
1. Gold Yuan Standard, maximum note
issue and reserve.
Gold Yuan notes, in denominations of GY$l.0O,
GY$5.00, GY,310.00, GY$50.00 and GY$100.00, have been issued to re-
place the old CH notes-at the rate of 1 to 3,000,000.
The new currency is based on a Managed Gold Stand-
ard: though the Gold Yuan is decreed to have a legal content of
0.22217 grammes of fine gold, the Central Bank issues only paper
notes which are not convertible into gold.
The means for gaining the confidence of the people
to which the Government has had recourse, are as follows:
a) The Gold Yuan notes will be issued against a 100 per cent
reserv , consisting of at least 40 per cent in gold and sil-
ver bullion and foreign exchange, and the remainder in
EDITOR'S NOTES: 1) According to price indices compiled by the China
Economic Research Institute, Shanghai.
2) These Measures have since been supplemented by
many rules and regulations: among the most import-
ant of these are the supplementary Measures for the
Readjustment of Finance promulgated by Presidential
Decree on the 26th of August 1948 (see Annex LXI
in this Bulletin).
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assets of State-operated enterpriseal),
b) The note issue. will not exceed a maximuc: of GY$2,000,O00,OOO
o) A Commission for Supervising the Gold Yuan Note Issue and
Reserve has been founded to examine at the end of each month
the amount of Gold Yuan notes issued by the Central Bank
and the condition of their reserve, and then publish an
official inspection report. If the Cotsnission finds the
reserve for the note issue to be insufficient or the reserve
in gold, silver and foreign exchange to be below the per-
centage stipulated (40%), it has the right to notify the
Central Bank to suspend note issue and to withdraw the amount
oT notes in excess of the reserve.
It is noted in this respect that, so long as the
Gold Yuan notes are not freely convertible into gold, the 100 per
cent reserve for note issue can at most be a psychological consola-
tion for the people. The fixing of a maximum note issue is, never-
theless, a significant check on inflation, while the supervision
of the note issue and regular publication of inspection reports
which oblige the Government to abide strictly by the restric'".-
cannot but help to consolidate the people's trust in the Gold Yuan.
Is the maximum note issue of GY$2,000,000,000 too
muoh for the needs of the country?
Various writers have compared it with the currency
of prewar days. The total amount of Fapi issued by the Government
up to June 1937 was CN$1,400,000,000, to which about CN$300,000,000
may be added for local b4nknotes in use and another CN$300,000,OG0
for silver dollars still in circulation, making a probable total
monetary medium of CN$2,000,000,000. Now, the amount of
EDITOR'S NOTE: 1) Details concerning the various items of the re-
serve as announced by the Executive Yuan on Aug.
23, 1948, are as follows:
Reserve in Gold, Silver and
it
Foreign Exchange
jfcBE
Value in USS
Gold Bullion
96,851,075.54
Silver Bullion
28,959,000.00
Foreign Exchange
74.l9.924.46 "
TOTAL
U39200,000,000.0 0
Reserve in Assets of State-operated
Enterprises
I W
Value in US
China Textile Industrles,Ino. 101,538,605.43
Enemy and Puppet Properties 74,283,809.06
China Merchants' Steazq
Navigation Co., Ltd. 71,642,739.34
Taiwan Sugar Corporation 43,000,000.00
Taiwan Paper Corporation 8,000,000.00
Tientsin Paper Pulp Company 2 000.000. G0
TOTAL UPS 30.465.05,3.8
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GY$2,000,000,000 which is to rep:.ace the Fapi notes at the rate of
1 to 3,000,000 is ncm.inellj worth 6,000,000,000,000,000 present
CN dollars but since, an an everagI for the whole country, i:aore
than 6,000,000 present C,i dollar' are necessary to purchase the
same quantity of goods wi.ic; cost CN$1.00 in June 1937, our
GY$2,000,000,000 is equivalent in actual perchasing value to less
than CN.$l,e00,000,0C0 of June 1937, that is to-not even one half of
the total monetary medium '.n circulation before the mar.
Moreover, the exter-cal value of the Chinese dollars
should also be taken into consideration. As each GY dollar eq-..ais
US$0.25, the total worth of JYQ2,000,000,000 is US$500,000,00O;
but given the fact that the purchasing power of the American dollar
has diminished by apj,roxir:ately one half as compared with 1937,
the value of the above yus: of GY dollars expressed in terms of
prewar US currency has aiec to be cut down by one half i.e.:"or.ly
USSi250,000,000, which conv.:r;ed into Chinese dollars of 1937, at
the rate of ?. to 3.30, will be equivalent to prewar CH$825,000,0O0.
The reasons wIiy the value of the present note
i+tsue cannot be raised to the same level as before the war, are
given as follows:
a) Owing to the unfavourable military situation in the Corr..cr.i3t
suppression campaign, the area under the control of the
Government has diminished and so also has the area of cir-
culation of the new currency.
b) Silver dollars or foreign currencies will most probably
continue to be used as medium in some private transactions,
and goods will also be exchanged directly against other
goods without intervention of any monay.
c) At present production in the country has decreased as com-
pared with the prewar p.:riod.
It may further be mentioned that although the
maximum issue of Gold Yuan is less than the currency in circulation
before the War, its value is ten times that of the Fapi in cir-
eulation on the eve of the monetary reform. Each Gold Yuan dollar
being worth CN$3,000,000, GY$2,000,000,000 are equivalent to
CN$6,000,000,000,000,000. The Fapi notes in circulation on the
eve of the monetary reform were declared by the Minister of Finance
Mr. 'gang Yun-wu to be CNy600,O00,000,0004O0.Therefore, unless the
velocity of circulation of the Geld Yuan is only 1/10 of that of
EDITOR'S NOTE: 1) This figure is based on the index numbers of whole-
sale commodity prices for the 6 most representa-
tive cities or the 2nd week of August 1949, as
announced by she joint Head Office of the Four
Government Banks:
Shanghai
6,340,000
times
Nanking
6,570,000
Hankow
5,630,000
"
Chungking
2,580,000
"
Canton
4,410,000
it
Ti entsi n
7,050,000
it
If the above i.rdices are added together and then
divided by 6, we have 5,430,000 times as the gen-
eral price index for the whole country. But as
prices had again risen after August 15th 1948, it-
is amply safe tc assume the general price index
to be above 6,000,OOC times.
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Bapi notes, the issue of Gold Yuan to the maximum amount allowed
by the law, will certainly bring a'',out sharp rises in prices. The
maximum amount of note issue as announced by the Government autho-
rities, however, is not meant to be reached immediately and provided
that the increase in note issue is proportional to the decrease in
the speed of the circulation, no soaring of prices needs result.
3. Surrender of gold, silver and foreign
currency notes held by the people.
From August 20th 1948, the circulation or private
transacting or holding of gold and silver bullion, silver coins or
foreign currency notes is prohibited within the territories of
China. Anyone holding the above must, before September 30th 1948,
convert them to Gold Yuan notes at the Central Bank of China or
any of its appointed banks, according to the following rates: each
Shih Liang (31.25 grammes] of gold to be exchanged for GY$200.00;
each Shih Liang of silver for GY$3.000 each silver dollar for
GY$2.00; US$1 for GY$4.00I 1 Pound Sterling for GY312.00I Hongkong
$1.00 for GY$0.75 and 1 Rupee for GY$0.90. Holders may also pur-
chase U.S. Gold Loan Bonds with the above articles, or deposit
them in the Central Bank and later use them for the payment of
imports covered by import licences-or for other purposes approved
by the Ministry of Finance.
Chinese economists point out that there exists a
discrepancy between the legal content of gold in the Gold Yuan
(0.22217 gramme of gold for GY61.00) and the rate for the conver-
sion of gold into Gold Yuan notes (1 Shih Liang or 31.25 gram-,es
for GY$200.00), because according to the former gold content in tho
new currency note, 1 Shih Liang of gold should be worth only
GY$140.66.
The explanathon for this inconsistency is simple:
the fixingof the legal content of gold in the new,currency note
had to conform with the standards accepted by the authorities of
the International Monetary Fund. Therefore, if the Gold Yuan dol-
lar is to be equal to a quarter U.S. dollar, its legal content of
gold must also be 1/4 of that of US$1.00 (0.88867 gr.), i.e.
0.22217 gr. But on the other hand, in order to induce the people
to surrender their holdings of gold bullion, the Government had to
follow 00 black
per Shih market LiPrice which d angi on the eve risen
of e the to
rearound form. CIt 'c clear or GY$
that, had the Government fixed the official price of gold at
GY$140.66 per Shih Liang or 30% lower than the prevailing price,
no private concern would have surrendered any gold bullion.
The above inconsistency may produce rather bad
effects on the new currency both in this country and abroad. If 1
Shih Liang (or 31.25 gr.) of gold is valued at GY$200.00 by the
Government, then GY$1.00 would be worth only 0.15625 gr. less t::an
the legal content. Such a depreciation by nearly 30% of the Gold
Yuan brought about by the Government itself cannot but puzzle the
common people as to the true value of the new currency note. Fur-
thermore, U8$1,00, being convertible into GY,'$4.00, will be worth
four times the latterts value in gold (0.15625 gr.), i.e. only
0.625 gr. This officially accepted depreciation of the U.S. dollar
by nearly 30p in China might be viewed with discontent by the
Treasury Department of the U.S. Government.
The intention of the Government in making the peo-
ple surrender their gold, silver and foreign currency notes is of
course to obtain large amounts of these articles to strengthen its
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financial power and prop up its new ourrency. But it is considered
ae doubtful that the people will hand over all their holdings of
gold, silver and foreign exchange. Even supposing that the Chinese
citizens were patriotic enough to do so, the Chinese Government
would not have sufficient Gold Yuan notes to pay them. For it is
estimated that a total of GY$3,795,000,000 would be necessary to
compensate the handing over of a1], the gold, silver and fore:-&n
currency notes in private hands , this amount is 802 more than
the maximum note issue. The people might of course purchase some
U.B. Gold Loan Bonds or in a few cases deposit with the Central
Bank for various uses/ yet, theoretically at least, it would seem
that a major portion of the holdings would be surrendered in ex-
change for Gold Yuan notes. Meanwhile any important intakes of
gold, silver and foreign exchange it the Central Bank would mean
great outflows of Gold Yuan notes 11 which, if not successfully
directed into proper channels, would rush for goods on the market,
thereby producing severe inflationary effects.
11. - Means for Stabilising Prices in
the Preliminary Stage.
If reserve for note issue plays only a psychologi-
cal role in favour of the new currency, which, in any case remains
unconvertible, all the writers agree that the stabilisation of com-
modity prices is a powerfully convincing FACT for winning the full
confidence of the people. The means used by the Government for
keeping down prices in the preliminary stage can be summarised as
follows:
EOTFSs 1) According to the estimate of an economist Mr. Wu Ch'eng-
hsi in his article "Appreciation of the New Currency"
published in the Business World, September 5th 1946, the
private holdings of gold, silver and foreign currency
notes in China are as follows:
Item
Ouantity
Value in GY
Gold bullion
5,000,000 Shih Liang
1,000,000,000
Silver bullion
o~
340,487,617 ounces )
2
000
255
000
Silver dbilars
551,373,586 pieces )
,
,
,
U.S. currency notes
$60,000,000
240,000,000
Hongkong currency
notes
$400,000,000
300.000.000
TOTAL
-
GY$3,795,000,000
9) Compare with figures given in "An Estimation of the
Quantities of Silver still in Private Ownership in
China" by Yang Erh-ch'eng, Monthly Bulletin No.XIII
(Dec. 1947) Document 74.
2) According to information in the Chung Yang Jih Pen 1Sran -
hai) of September 22nd, 1948, up to the 18th of September,
a total of GY$556,520,000 odd had been issued by the
Central Bank for paying the gold, silver and foreign
currency notes surrendered by the people.
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a) Freez'-:gig of a1.1 ccn'modi ty prizes and salaries at the lev.ls
of August 19th and of A:u&,st 15th 3.94.? respectively: the
salaries of Government off; c. als and employees of State-
operated enterprises ar 1 to be re-djusted once for all wi,ile
emg oyoes of private firms and factories will be entitled to
a salary corresponding to what they received. for the first
half of the month of August 1948.
b) Suppression of hoarding, by examining godowr:s and prohibiting
the undertaking of purchase and sale of supplies by finan-
cial organs; '
c) Dumping of surplus supplies at prices lower than those pre-
vailing on the market;
d) Regulating of supplies and banning of the export of certain
daily nezessities;
e) Msiti.ng the extension of credit by ordering the increase of
the capital of banks within two months, suppressing the hand-
ling of deposits and credits by non-financial institutions,
and suspending the granting commercial loans by Government
banks.' When ban&9`-increase `6heir capital, of lees than 50H
of the latter must be i n the form of cash;
f) Avoidance of factors which provoke price fluctuations for
exes:ple forbidding tza,usaotionb of gold, silver and foreign
currencies, stopping the operation of stock markets, lowering
the interest rate, and prohibiting the publishing of any
black market prices.
While one cannot deny that-if strictly enforced
with the help of a strong economic police; the above mentioned
price freezing policy may be a useful curb on market fluctuations,
it is nevertheless pointed out that a blind oppression will entail
serious consequences. As everyone is well aware, the sudden rise
in the foreign exchange rate by 50% as compared with that on the
eve of the currency reform greatly augments the production cost of
those goods which are manufactured with imported raw materials or
whose manufacture requires the consumption of imported fuels. In
like manner, the cost of many fabrics will go up as a result of the
rise in prices of raw materials purchased from other regions not
subject to strict control. Another factor of universal effect is t're
raising of tax rates which will certainly add much to the cost of
production in all fields. Under such circumstances, if manufactur-
ers are not allowed to make the necessary readjustment in their
selling prices, they will soon be obliged to cease operation; on
the other hand, merchants will abstain from selling, foreseeing that
no more goods will be supplied by the producers. And then dangerous
paralysation of economic activities will again be experienced.
The freezing of salaries in private enterprises at
the level of Aug. lst-15th. 1948, while prices are pegged on that
of Aug. 19th, is certainly irrational, for instance, the average
price for 1 picul of rice for the first half of August was still
around CN$ 42,000,000; but on ;he 19th of the month, it had already
jumped to CN$ 63,000,000.
Nor are Government employees by any means better
off. It has been laid down that their salaries shall be paid in
Gold Yuan notes according to the following provisions, the basic
amount will be $40 to be p;tid in full in Gold Yuan notes; a dis-
count of 30?% will be applied to any suns in excess of $40 up to $300,
and a discount of 90% applied to any sum in excess of $300. .That
is to say a Government employee with a salary of $40, will receive
the suns in full Gold Yuan dollars; if his salary is $200, he will
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actually recg~~ve GY$72 1)1 if he has a salary of #400, he will be
paid GY$102 and a Government official who according to his rank,
should be entitled to #600, will touch only GY#122 3). As the pur-
chasing power of the Gold Yuan is less than one half of that of the
prewar Chinese dollar, the average Government employee will be paid
as little as 20 or 30% of what he used to receive before the `Aar.
Can the Government expect loyalty and efficiency from such badly
paid employees?
It is further to be added that with their income
frozen, the salaried classes from now on will have to bear a much
increased burden of taxes placed on then by the Government after
the currency reform.
In connection with the increase of the capital of
banking institutions, the Executive Yuan has recently passed a set
of Supplementary methods wherein it sets the minimum amount of
capital required for banks and trust companies in Shanghai, Tien-
tsin and Canton at GY$500,000 and that for native banks in those
same elties, at GY$25O,000, the amounts prescribed are comparatively
lower for other cities. Since 50,x. of the readjusted capital must
be in the form of cash, the successful carrying out of this order,
will undoubtedly exert an opportune tightening effect over the
monetary market, and help to keep down commodity prices. But it
is to be feared that many banking institutions, not being able to
fulfill these exigent requirements, will have to close down.
Considering that interest on loan forms part of
the production cost, the Government has made a point of keeping
down its rate: Thus, it has announced a compulsory reduction of
the interest rate from the former 30% or 35% per mensum to 2
within a short time limit. This quick reduction is estimated as
probably unnecessary, for it should be clear that it is the soaring
in prices which causes a corresponding rise in interest rate and
not vice versa.
Furthermore, during the preliminary stage of the
currency reform, it may be advantageous to maintain for some time
a relatively high interest rate in order to induce people to de-
posit their money in banks, instead of searching for goods on the
market.
The prohibition of the publishing of black market
prices is also considered a futile measure. For the point is
whether such clandestine transactions exist or not. If they do
exist, people will know every detail about them even though no
newspaper implies anything. The Government should therefore stress
the suppression of the black market itself rather than the publish-
ing of its prices.
ADITOR'S NOTES: 1)
$40 + $160 x 20,'%
= $72.
2)
$40 r $260 x 20%
+ $100 x
10% =
$102.
3)
$40 + $260 x 20%
+ $300 x
10% =
$122.
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III. - Government Finance and
Long-term Stab'-lity.
one afcre-manti---r,:d means, instrumental though
many of them are in bringing about stability of market prices during
the initial period, are totally incapable of perpetuating it. F?r
long-term stability, the balancing of the Government Budget is one
of the main points on which all the writers agree.
The Emergency Measures give o.i:y the following
brief outline of the methods for readjusting Government finance:
a) Increasing tax revenue by revising tax rates according to
their prewar level and by imposing heavier taxes on luxuries;
b) Readjusting charges made by State-operatea communications
and public utilities so as to make them self-supporting;
the National Treasury shall provide su5sidies only to a=eau
suffering from military deatruct4on; curtailing expenses b;.-
dismissing superfluous personnel in State-operated enter-
prices and ordering the latter to remit their surplus pro:
fits, if any, to the National Treasury;
e) Strictly cheking the personnel in all civil and military
organizations as well as the number of soldiers.
In order to materialise its plan to increase tax
revenue, the Government on Aug. 26, 1948, pronrulgiled the Supple-
mentary Measures for the Readjustment of Finance , in which it
raises the tax rate on salt to GY$8.00 per Shih Tan (50 kgs),
imposes an additional tax on imports equal to 40% of the import
duty, changes slightly the method of collecting the income tax on
profit-seeking enterprises, and effects minor adjustments concern-
ing the rates of the inheritance tax and revenue stamp duty.
With the above revision of tax rates, the Finance
Minister counts on an annual revenue of about GY$2,460,000,000
which will be composed of:
Customs duties .... GY$480,000,0OO
Taxes on commodities (incl. mineral
prdducta and native toticco and
wines ..... ....................... 700,000,000
Direct taxes 360
00
000
,
,
0
Salt taxes 320,000,000
Other taxes, fees and income from
State-operated enterprises ......., 200,000,000
Receipts from sale of surplus supplies
and enemy and puppet properties ... 400,OCO,000
Supposing the annual output of salt in the future
can maintain the level reached in 1947 which was 43,000,000 odd
Shih Tan 2), the above estimated annual revenue from salt taxes is
Quite in confors ty with actuality. But not so the other estimates:
It is doubtful whether with an ever diminishing import quota, the
annual income from import duty can amount to GY$480,000?000. As
the tax rates on commodities have not been much changed in the
?--'-------
MOTF$: 1) For a full translation of these-Measures , see Annex LXI
in this-Bulletin.
2) This compares favourably with-the output in 1937 which
was 42,000,000 odd Shih Tan. I
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recent revision of the Commodity Tax Regulations 1), it remains to
be seen how the receipts from this source can be raised to the
above-mentioned level. The estimated income from direct taxes also
seems a bit exaggerated, unless the method of collection and
collecting efficiency are vigorously improved in the future. Finally
the sale of surplus supplies and alien and puppet properties is but
a temporary resource; and cannot be counted as a permanent item on
.the revenue list.
In view of the urgent necessity of curtailing
Government expenditure, experts-advise that all State-operated
enterprises be rendered self-supporting, by raising prices charged
and by removing all superfluous personnel. In the past, it has
been nearly a general custom that when State-operated enterprises
make gains, they keep them for their own uses; but when they sustain
losses, immediate appeal will be made to the Government for subven-
tion. The result has been that people in charge of the undertakings
have become inefficient and extravagant.
attention; these undertakingspbeing ofiail6caldnature, their) ex-
penses should be borne by their direct beneficiaries, that is, met
by receipts from their sale of goods or services. If, nevertheless,
the local government considers it advisable to lower the charges for
public utilities connected with the people's livelihood, it shoa'l'
raise subsidies from its local revenue and never shift the burden
over the whole nation by turning to the National Treasury for help.
It was particularly absurd for the Government to subsidies in recent
years the public-utilities of some municipalities: for that is
tantamount to making the poor village folks all over the country
pay for the comfort of a few rich municipalities where the greatest
portion of the national wealth has been concentrated.-
true above delay necessary for readjusting the charges for State-operated enterprses.
For at a time when the.Ggvernment intends to bring about market
stability by pegging all commodity prices to the level of August
19th 1948, it would be giving a bad example to start right now to
raise prices in its own enterprises. Nor would such a move be wel-
comed by the salaried classes whose income has been frozen.
It is regrettable that the Emergency Measures did
not touch upon the attitude of the Government towards local finance, -
which certainly needs to be revised. One single instance may suf-
fice to demonstrate the irrationality of its subsidising policy in
the pasts the municipal government of Shanghai which it undisputably
the wealthiest metropolis in the whole of China, has still in recent
years depended on subsidies from the National Treasury, to make
ends meet.
With respect to the immense and expensive bureau-
cracy, a mere checking of its actual numbers as laid down in the
Emergency Measures, is insufficient; the Government should go further
and effect a general reduction of personnel. It is believed that
a removal of 44 to 50% of the public servants would not lessen the
efficiency of the administrative organs. On the contrary, a sys-
tematic reshuffle of personnel and works might even improve the
efficiency of the Government machinery, while an increase of salary
NOTES 1) This recent revision was made on April 2nd 1948 (cf. Monthly
Bulletin No.XIX - June-July 1948 - Annex LVIII).
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would certainly win more loyalty from the Public servants.
With all the above measures for curtailing Gov-
ernment outlay, the Finance Minister estimates the total annual ex-
penditure at around GY$3,600,000,000 of which only 70% will be
covered by the expect@d annual revenue, leaving a budgetary deficit
of GY$1,140,000,000 1 The Ministry of Finance implies that this
deficient amount will be made up by US relief and the issuance of
Gold Yuan bonds.
According to general observation, the people cannot
be expected to purchase Government bonds of their own Volition at
the present moment. If the bonds are to be issued immediately,
large scale compulsory apportionment among the rich class is advo-
cated. Such a conversion into Government bonds, of the greater
part of the wealth of the millionaires and billionaires of the
country, would-make them realise that they will be the first to
suffer losses from any possible depreciation of the Gold Yuan; and
they will take an intense interest in collaborating with the Govern-
ment authorities for maintaining the value of the currency.
If even the receipts from compulsory sales of Gold
Yuan bonds to the rich cannot-balance the budget and prices tend to
soar, then a critical phase is near at hand. At such a juncture,
in order to avoid the. usual rush on goods, some propose that the
Government should provide the people with a trustworthy instrument
for maintaining the purchasing power of their savings; and that is
where comes again the long debated "price index savings" scheme
according to which any savings lodged with Government banks will be
repaid according to the price index of the date of withdrawal i.e.
the Government will compensate the depositor for any loss resulting
from soaring of prices.
L
IV. - Currency Reform and International Payments.
According to an estimate of the Far Eastern Econo-
mic Committee of the U.N.O., China's international payments showed
a deficit of UB$326,000,000 during the year 1947, which was larger
than the total amount of her income. The causes of such an unfa-
vourable balance were none other than trade deficit, diminution of
- - - - - - - -
NOTEs 1) It may be mentioned here that the Chinese Government has
never been able to balance its budget during the past
dozen years. The following table shows the ratio between
revenue and expenditure during each of these years s-
Year Ratio between revenue
and expenditure
1936 79%
1937. 48%
1938 52%
1939 27%
1940 29%
1941 9%
1942 16%
1943 24%
1944 36%
1945 12%
1946 19%
1947 26%
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overseas Chinese remittances through Government ba;:ke and the fight
of capital to foreign countries. Conmen';s are few in this reap^t
and can be summarized briefly.
1. Imports.
According to'the Emergency Measures; the import
quota shall, beginning with the 7th quarter, further be cut dcv;:
at least ]./4 on the basis of the average set for the 5th and 6th
quartersl)). This quota reduction coupled wit:: thy: raising of the
foreign exchange rate by 507, the recent increase 5y 501 Lo I.C)%
of the import tariff"2) and the levy of an additional tax equal o
400 of the 'import duty S),_will obviously out down the Government's
expenditure of foreign exchange.
Parallel to the above are& a) _. t:;.iiibition o=
the sales of goods whose import has been banned by explicit ord=:-
of the Government; and b) Redo ction of the nugber of licencen ap
proved for all kind of motor cars in Shanghai and other municipal-
ities, by 1/4 to 1/3 within two months, so as to lower the cnns:::i--
tion of imported gasoline. The former measure aims at the surpre--
oion of smuggling and the latter at saving foreign exchange.
But, in order to turn the trade balance into a
ore favourable one, the question at present is not so much lvny to
diminish imports as how to foster the export trade, sirce China
still needs large quantities of industrial raw materials and tools
of production for her postwar reconstruction.
2. Exports.
The new raising of the official foreign exchange
rate by 50% might undoubtedly be a great impetu,, for exporters.
Many goods which could not be exported in the past as a res.alt of
the unreasonably low exchange rate, will now be shipped abroad.
Yet whether any sharp increase in the export fi-
gures will follow still hinges on three factors: the production of
articles for export, their domestic prices and the demand on
foreign markets.
First, the principal exports of this country are
agricultural and mineral products the production of both of whi::h
has been steadily diminishing as a -result of military devastation.
Secondly, the domestic prices of articles for export may soon jump
in the same proportion as the rise in the exchange rate, reversing
the propitious situation created by the latter. The repression of
such a tendency will depend upon the strict enforcement of the
MQTESc 1) The import quotas for the 7th and 8th quarters actually
approved by the Executive Yuan on Sept. 15th 1948, totalled
US $42,14l,000, showing a reduction, of nearly 43% as cc.x-
pared with the aggregate appropriation for the previous
2 quarters.
2) The revised Customs Import Tariff was promulgated by the
President of the Chinese Republic on Aug. 1st 1948 and
enforced on Aug. 7th 1948.
3) See Supplementary Measures for the ; c:?.djustmert of .F't.nar?e
promulgated by Presidential Decree on Aug. 2Sth 1946,? TIE.
Concerning the revision of tax rates. (Annex I,XI in this
Bulletin).
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price-freezing order. Thirdly, after the long depression of China's
export trade, many foreign marketz. .ave already found other sources
of supply abroad or are using locally manufactured substitutes;
and besides that, Chinese producers have long lost the habit of
adapting their products to the taste or requirements of foreign
consumers. It will therefore be a difficult task to win these -
bask to Chinese goods.
Judging from past experience 1), nevertheless, one
can safely count on some improvement in the export trade, though
there seems little hope Of completely doing away with the trade
deficit in the bear future.
Before the War, remittances from overseas Chinese
used to constitute about 1/3 of China's international income,
totalling from US$80,000,000 to US$100,000,000 every year. But in
recent years, owing to the too low official exchange rate, the
majority of remittances have been made through clandestine channels.
Thus the remittances amounted only to US$31,498,i0O in J9' ,and further
dropped to VS$20,000,000 in 1947, becoming a relatively negligible
item on China's international accounts 2).
Now that the official foreign exchange rate has
been made equal to that on the black market, there should.no longer
be any reason for the remittances to avoid the Government banks.
4. Flight of capital.
This has been a most serious problem since the
conclusion of the War. This year, especially, large amounis of
capital have moved to Hongkong and the USa. It is expected that
the situation will improve, after the stabilisation of the currency
and-upon the gradual recovery to a normal economic condition at
home.
NOTES: 1) Take the export figures of this year-for instance:
As a result of the pegging of the official foreign ex-
change rate, the value of total monthly exports fell from
US$16,000,000 in January to US$12,000,000 in February
and still further in the following months; but after the
introduction in June of a new "foreign exchange account
settlement system" which actually raised t}le exchange
rate, the export value increased to nearly US$20,000,000
in June and again in July.
2) For details concerning overseas Chinese remittances in the
last two decades, see "Problems of China's Post-war Inter-
national Payments", by Chow Chung-yin (Monthly Bulletin
No.I'- Oct. 1946 - Document 1, p.2); "Remittances from
Overseas Chinese in the First Half of 1946",. by Chi
Chung-wei (Monthly Bulletin No.I - Oct. 1946 - Document
2); "An Analysis of China's Balance of Payment during the
Past Ten Years", by Chang Hsiao-mei and Chang I-fan
(Monthly Bulletin No.XI - Oct. 1947 - Document 63, p.11-
13); and "China's Balance of Payment for the Year 19470,
by Wei Yuan-li (Monthly Bulletin No.XII - Nov. 1947 -
Document 67, p.3).
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Regarding foreign exchange assets held by Chinese
nationals abroad, most of which represent capital flight, the
Emergency Measures-require their registration with the Chinese
Government, which will have the right to utilise them. An exo6-
tion is made however for natiu:ials whose normal livelihood is
proved to be established abroad and who are considered as "overseas
Chinese". This proviso will be a loophole for many rich Chinese
in foreign countries who will disguise their wealth as possession
of "overseas Chinese". Furthermore, as the Chinese Government
has never enjoyed any extraterritorial right, it can do nothing
towards actually controlling its nationals' assets on foreign soil.
Unless the approval and support of the foreign Government concerned
tfas been secured, there will therefore be no way of enforcing the
above-mentioned measures.
As a conclusion to the above analysis, it should
be noted that most of the writers emphasize that the whole destiny
of the new monetary reform will rest on the belancing of the Gov-
ernment budget and the promotion of stable business activity on a
profitable basis. If these conditions are fulfilled, stability
in the value of the currency can be expectedi if not, recourse will
have to be made again to note printings prices will soar and the
currency rapidly depreciates these are natural economic trends
which not even the most stringent enforcement or police measures
can defy.
( End )
NOTES "Articles and reports..."continued.
"How to Carry Out the Financial and Economic Emergency
Measures", by Yang Chen-hua, Chin Yung Jih Pao (Shangha#),
Aug. 23, 1948.
"Criticisms of the Present Monetary Reform", by Yen dc-n-;
keng, The Economics Weekly, Aug. 27, 1948
"On the Managed Gold Standard', by Yu Wen, Idem.
"Currency Reform and the Salaried Classes", by Fang Shih-
tung, Idem.
"Salaried Classes after the Currency Reform", by P'u, The
Economic Review, Aug. 28, 1948.
"Balancing of Budget under the New Currency", by Te, Idem.
"On Gold Yuan", by Kao Ching-yang, Chung Yang Jih Pao
(Shanghai), ,Aug. 28, 1948.
"Glance at-the New Currency", by Yang Yu, Tung Nan Jih
Pao (Shanghai), Aug. 31, 1948. ?
"The Right Attitude towards te- the Financial and Economic
Emergency Measures", by Hsiung Kuo-ch'ing, Chin Yung,
Sept. 2, 1948.
"Increase of Capital of Banks", by Chieh, The Economios
Weekly, Sept. 2, 1948.
"How. to Stabilise the Value of the Currency?', by Chu Sheng-
tao, The Economics Weekly, Sept. 2, 1948.
"Financial Meksures in Connection with the New Currency",
by Feng Hua-te, The Economic Review, Sept. 4, 1948.
"New Money and Price Control", by Fang Ping-chu, Idem.
"Financial Market in Shanghai after the Monetary Reform",
by Yung Lung-kwei, Idem.
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"Criticisms of the Financial and Economic Emergency
Measures", by Chao Nai-chu&n, Idem.
"Monetary Reform and Inflation", by Ting Hung-fan, Idem.
"On the Currency Reform", by Lou Li-tsai, Business World,
Sept. 5, 1948.
"Monetary Reform", Conference sponsored by the Economic
Research Institute of Fu Tan University, Shang Pao (Shanghai),
Sept. 6, 1948.
"Loopholes in'ibs Currency Reform", by He Shi h-ch'i , Chin
Yung Jth Pao (Shanghai), Sept. 9, 1948.
"Issue of the Gold Yuan Notes", by Yu Ju-lung, Chung Yapg
Jih Pao (Shanghai), Sept. 9 & 10, 1948.
"general Review of the Economic Situation during the Past
Week", by Yen Ling, The Economics Weekly, Sept. 9, 1948.
"New Industrial Crisis", by Su Chi-mei, Idem.
"The Interest Rate Policy after the Introduction of the
Gold Yuan", by Chu, The Economic Review, Sept. 11, 1948.
"Main Points for the Preliminary Stabilisation of the New
Money", by Teng Mou-t'ung, The Economic Review, Sept. 11,
1048.
"Outlook for the New Currently", by Yang Yin-fu, Bankers'
Weekly, Sept. 13, 1948.
0
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U N I V E R S I T E L A U R O R E
S h a n g h a i-
BUREAU DE DOCUMENTATION
(Economic Chinoise)
280 Chungking Nan Lu (Dubail)
Tel:85761
Production of Raw Silk and Silk Trade STUDY NO.: XX
in?China: Annotated Statistics. Number of pages: 14
1, '"'M, gemarke: See important
Appendices on P.10 ff.
Articles and reports digested and
combined in this Study.
Ir "Monthly Returns of the Foreign Trade of China", by the
Chinese Maritime Customs.
"Output of Raw Silk in 1947", Information, Shang Pao
(Shanghai), December 9th. 1947.
"Silk Trade during the Past Year", by Ke Ching-chung,
China Silk Corporation Review, Jan. let?1948.-.
"Silk Production and Sales in the Various Regions during
the Last Year", Information, Shen Pao (Shanghai), Jan.
14th 1948.
'Purchases and Salts of Raw Silk by the Central Trust
? during 1947", Report, Chin Yung Jih Pao (Shanghai),
Feb. 22nd 1948.
'China's Sericulture during the Past Year", by Sun Po-he,
Bankers' Weekly, Feb. 23rd 1948.
"Silk Output and Marketing in the Past Year", Information,
Shang'Pao (Shanghai), March 22nd 1948.
"Activities of the China Silk Corporation during 1947",
Information, Chekiang Economic Review, April 30th 1948.
'aroiuction of Silk Cocoons in Kiangsu and Chekiang",
Information, Chung Yang Jih Pao (Shanghai), May 17th 1948.
PRODUCTION OF RAW SILK AND SILK TRADE
IN CHINA: ANNOTATED STATISTICS.
1. - Sericulture and Silk Output in 1947.
a. Mulberry Planting.
The number of mulberry trees grown in the KIANGSU-
'CxKaANG-ANHWEI region increased greatly in 1947. The Haining,
Ch'ungte and T'ungheiang districts of Chekiang province, for
EDITOR'S NOTE: 1) As very few reliable data are yet available con-
cerning silk production and trade in 1948, the
scope of the present Study is limited to the year
1947. For conditions in 1946, our readers are
referred to Document No.57: "Chinese Raw Silks
its Present Production and Trade" (Monthly Bulle-
tin No.X - September 1947).
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I
instance, :raised altogether l25,c)00,000 "Shih Sheng" 1) seedlings,
3,000,000 "C'ri.a C'hieh' 1) seedlings and 1,300,000 'Hu Sang" )
seedlings in Spring. .di the 'Chia Chieh" seedlings of 1947 were
distributed tc Kiangsu, Anhwei nd other provinces, while the
"Shih Sheng" seedlings were pa_?t'!y so distributed and partly r-
served for propagation in the foflcwing year. K'NANGTUNG should
have been the most promising province for increase of mulberry
tree plantationt but owing to dissastrous floods, the number of
seedlings raised there was restricted to 30,000,000. Few seedlings
were available !r SZECHUAI', owing to the fact that only very 8!-All
numbers were raised `.n this province and transportation from other
regions was difricu).~:.
Table T. Numbers of Seedlings Raised
and Propagated in 1947
JLegion Ne` of Secdli Us Rained NO. of_Seedlinc.a
Kiangsu-
Chekia.ig-
Chih2) Propagated
Shih I
r;hi EL Total G,hih Chia Total
nAn~ Cry g?e Shena Chi eh
Anhwei 20,000
Kwangtung 30,000
GRAI1T`. TOTAL 50,000
24,240 35,780 0os440 45,000 1,200 46,200
24,240 35,780 11.0,020 55,000 2.9200 ' 501200
Mulberry orq arda in China covered a total area of
4,530,000 Mow in 1947r 0) 2,000,000 Mow in the East China region,
1,500,000 in the West China region, 230,000 in South China and
800,000 in other places.
b. Silkworm Eggs.
The output of silkworm eggs in Kiangsu and Chekiang
fell much behind the demand of the region in Spring 1947. The
same. may be said of the supply of "Silk-seeds" in the Szechuan
province. The production of eggs in Yunnan also showed a marked
decline. But the autumn output as a whole was far more favorable.
It should further be noted that most of the sheets were of an
improved quality.
Table II. Silkworm Eggs Produced in
Various Regions in 1947.
Region FK, produced in
prj? &194 Z_f or
rparin&_in utumn
Kiangsu &
Chekiang 557,415 sheets
Szechuan 325,000
Yunnan 16,000
T0 TAL 898,L415
Fzgga produced in Total
autumn 1947 for
raring in Spring
1948.
1,086,239 sheets 1,643,654 sheets
145,000 470,000
140.000 156,000
),` 71239 2.269.654
NOTES ).) 1 i t3ral' y, "Shi.:i Sh,:ng+' means, grown from the seed;
''Chia Ch.teh"; g:rafte.io and "Hu Sang': lake-mulberry.
Chili" means= transplanted,
3) 1 ions _- 6.744755 arcs.
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c. Silkworm Rearing and Silk output.
According to the estimate of a Chinese eoonomdst
Mr. Sun Po-he, the total of raw silk produced in the whole of China
reached 73,000 Kuan Tan 1), about 150% of the total of the preceding
year.
Table III. Silkworm Rearing and Output
of Raw Silk in 1947
Region
Lm-roved Eggs (Sheet q)
M
t1mat
d 0utvut of
+Sp_j1zg Autumn Total
-
i
Raw Sil Sua
n Ta
~
KianBsu-
_
~
Chekian
g-
Anhwei
1,100,000
500,000
1,600,000
40,000(incl. 6,000
Kuan tan of
Sxeohuan &
lustring)
Yunnan
140,000
325,000
465,000
13,500
Kwangtung
3,000
5,200
8,200
8,500
Other regions
---
- -
---
11,000 (incl. wild
GRAND TOT
L
1
2
silk)
A
.
43.300
830.20
0
2.073.200
73.000
The Shang Pao (Shanghai) of Dec. 9th 1947, however,
gives the following detailed figures concerning the classified out-
put of raw silk in the various regions, which are slightly different
from those given abovei
Table IV. Estimated Classified Output
of Raw Silk in 1947.
Rexion 48tigated nutpu
t
(Units Kuan Tan)
KIANGSU-CHEKIAVG-ANHWEI
41,000
Ra 4,11-
t
L
w s , s
eam-filatured 28,000
Lustring 7,000
Raw silk, not re-reeled nor
steam-filatured 6,000
SZECHUAN-YUNNAN
Raw silk, steam-filatured 35,000
Raw silk, small steam-filatured
(Hsiao Chang Ssu) 2,000
Raw silk, not re-reeled nor
steam-filatured 8,000
KWANGTUNG
Raw silk, steam-filatured 4,500
Raw Silk, not re-reeled nor
steam-filatured 6,000
OTHER RVGIONS
Wild silk (Cha Ts'an Ssu)
& silk pongees 8,000
Raw silk 1,200
GRAND TOT" 74.200
NOTE:1)Kuan Tan (Customs picul) = 60.48 kgs.
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After reviewing the divers phases of the production
of silk, it is interesting to know what part the Chinese Government
has played in fostering this industry.
The Government made large loans to the provinces
of Kiangsu, Chekiang and Anhwei, in 1947, to implement their plane
for silk production and marketing. 317 cocoon collecting stations
were opened in the spring and 159 in the autumn of that year, at
which altagether 185,223 Shih Tan of fresh cocoons were collected.
It is reported that 10,298 reels were put into operation for pro-
ducing 12,370 Kuan Tan of steam-filatured silk.
The loan policy of the Government was carried out
on a much smaller scale in Szechuan and Kwangtung with corresponding
results for cocoon collecting and silk filature as shown belows
Table V. Loans to Silkworm Rearers and Silk
Reelers in the Various Regions in 1947.
(Units CN l,000J
. n ion
$pring
autumn
Total
Kiangsu-
Chekiang-
Anhwei-
341,100,000
20,484,000
361,584,000
Szechuan
17,600,000,
26,000,000
43,600,000
Kwangtung
8,350,000
.8,350,000
TOTAL
358,700,000
54,834,000
41,534.000
Table VI. Cocoons Collected as a Result
Of Loans in the Various Regions
in 1947.
L&gi on
fiRri n g
Kiangsu-
Chekiang-
Anhwei
174,829 Shih Tan 10,394 Shih Tan
18N
223 Shih Tan
Szeohuan
Kwangtung
TOTAL
23,600
198,429
10,100
3,263
23,757
,
$3,700
3,263
222186hih T~h
Table VII. Filatured Silk Yielded from
the Cocoons Collected in the
Various Regions in 1947.
Region
p.ring
ALitqrLp_j
Totl
Kiangsu-
,_. .
Chekiang-
AJthwei
11,780 Kuan Tan
590
Kuan Tan
12,370 Kuen Tan
Szechuan
1,500
630
2,130
Kwangtung
211
211
TOTAL
13, 280
1,431
14,~~11 Kuan._~a
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a. Export Figures
The export of raw, manufactured and waste silk it
the year 1947 totalled 2,189,806 Kg., showing a 23% increase over
the silk export of 1946. -
Table VIII. Quantity and Value of the Export
of Chinese Raw, Manufactured ~nd
Waste Silk in 1946 and 1947 1
I4in1
Year
1946
Year
1947
Quantity
Value
uantit
alu
(kg)
(C
T,300)
(kg)
(C .000)
Raw silk 2)
Manufactured
860,876
31,591,351
523,557
175,789,582
silk3)
178,382
11,548,265
512,690
158,147,701
Waste silk
740,834
1,926,113
1,153,559
25,297,983
TOTAL
1.780.092
45.065.729
2.189.806
359.235.266
An analysis of the shipments during the various
months 4) indicates that a great depression was experienced in
the export of raw silk during the second half of the year 1947,
beginning in June (when the quantity shipped abroad fell to hardly
1/10 of that of May) and beeoming continually worse during the
following three months. As a result, the exports in this cate-
gory for the whole year of 1947 equalled only 61% of those for
1946. Conversely, a great increase took place in the export of
manufactured silk in 1947, which was equivalent to 2.9 times the
figure for 1946, while the export of waste silk marked a rise of
56% over the preceding year.
In order to grasp the real significance of the
above figures, it is useful to compare them with exports in pre-
vious year. The annual export of Chinese silk during the 10 years
preceding the War (1927-1936) averaged 14,924,050 kg., which,
being worth 156,858,000 prewar Chinese dollars, represented about
14.69% of the total export value of the same period, and equalled
10.08% of the total import value.
Owing to war devastations, the average annual ex-
port of s4lk and silk manufactures decreased to 7,608,800 kg. duri;:
the period 1937-43., ant further dropped to 1,059,300 during 1942-45.
So, despite its slight increase over 1946, the total silk export in
1947 was equivalent only to 1/7 of the figure of the prewar years.
NOT$Ss 1) Compiled from the Monthly Returns of the Foreign Trade of
China, 1946 and 1947 (Chinese Maritime Customs).
2) For classified exports of raw silk in 1947, see Appendix
I on p. 10
3) This includes silk piece goods (mixtures of natural and
artificial silks, with or without other fibres), and also
silk and cotton mixtures. For classified exports of manu-
factured silk in lS:7, see Appendix II on p.10
4) For a comparison between the corresponding monthly exports
of Chinese raw, manufactured and waste silk in 1946 and
1947, see Appendix III on p. 11
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It is especially unsatisfactory to note that the
value of silk exports in 1947 represented only 5.63% of the total
value of all exports of the same year, as against 11% in 1946.
Table IX. Percentage of Silk Export Value in the Total
Value of all Exports in 1946 and 194?.
Year Total Value of Silk export Total value of all exports...
1946
CN$ 45,065,729,000
CN$ 412,111,811,000
11.00
1947
CN$355,235,266,000
CN$6,376,504,297,000
5.63
b. Ports of Export.
The silk exports via the Shanghai Customs was
76.31% of the total exports for the whole of China in 1947, as
against 71.84% in 1946. It is particularly to be mentioned that
85.07%-of China's exported raw silk and 89.09,: of her exported
nufaotured silk were shipped from Shanghai. The reason for the
predominant role played by this port is that its neighbouring re-
gions, Kiangsu, Chekiang and Anhwei, were assuming ever increasing
importance in Chinals sericulture.
Table X. Percentage of Silk Export via the
Shanghai Customs in the Ti)a,)Silk
Exports of China in 1947 .
Export via Shanghai
Export of China
%
Raw silk
445,390 kg.
523,557 kg.
85.07'
Manufactured
silk
456,799 "
512,690 "
89.09
Waste silk
768,770 "
1,153,559 "
-66.64
TOTAL
1,670,959
2,189,806 "
76.31
Canton and the other southern ports of Kowloon,
Swatow and Lappa were formerly important centres for the exporta-
tion of silk products, but their shipment of raw silk in 1947 reached
only about 22% of the figure for the preceding year. This was due
to the fact that the Kwangtung province produced smaller quantities
of steam-filatured silk than in 1946, but yielded more non-re-
reeled And non-steam-filatured silk, destined for domestic consump-
tion. These same ports, however, exported 11 times as much manu-
factured silk as in the preceding year, which implies a growing
market of silk fabrics in the various countries of South Asia.
A total of 53,683 kg, of raw silk was exported via
Kunming and Mengtzu in the South-western province of Yunnan, but no
export was reported either of manufactured silk or of waste silk.
All the silk exports of Sinkiang, in the North-
west, went to the USSR.
NOTESt 1) Compiled from the Custom's Trade Returns.
2) For classii?ied exports of raw mannfggtured and waste
silk via the Shanghai Customs during the year 1947, see
Appendix IV on p. 12.
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Table XI. Ports of Export for Chinese Silk 1).
r`
Port of Export
"~' ~ac%urec}
aw 8i lk t
Waste Silk Total
Shanghai
C
445,390 kg.
456,799 kg,
7 3*
:kg. 1,670,959 kg
anton,Kowloon,)
Swatow & Lappa )
K
9,926
51,012
384,789
.
445
727
unming & Mengtzu
Si
ki
53,683
---
---
,
53,683
n
ang
Oth
14,558
871
15
429
ers
---
4,008
-
,
4,008
I*
c. Lestinatione of the Exports.
Among buyers of Chinese silk in 1947, European
countries continued to hold the first place, as in 1946 2). countries such as India, Burma and Indo-China ranked second, ant .n
Hongkong and Macao were the third largest customers. Then tame
H. & B. America and Africa, lagging far behind. Exports to Auetr?:-
lia and the Philippine Islands were negligible.
Table III. Destinations. of Chi.nt;gg.
Silk Exports in 1947 331
3G in the Total
European countries
900,736 kg.
41.13
Asia
593,977
27.12
Hongkong and Macao
493,649
22.54
N. & S. America
167.610
7.65
Africa
Australia and Philip-
23,430
1.07
T9pine Islands
4,319
0.19
189 8O6
100.0
L
importer of both Considerrawed the greatest
. p4rcha8 ikg ))
163,851 kg. and 349,560 kg. reB ectivel
y, while USA (
USSR (59,875 kg.) and Burma (531,683 kg.) ranked next for~raw silk,
and Hongkong for manufactured silk (9Q,067 kg.). Waste silk was
almost exclusively destined for Europe, Belgium b;t~ing 276,429 kg.,
France 172,569, Great Britain 134,808, Switzerland 102,268 and
Italy 66,345. Though the export of waste silk to Hongkong reached
the high mark of 390,878 kg., most of the cargoes arriving there
were further shipped to either European or American countri es.
It is U:B.A. as a large consumertof Chinesecsilkawas rapiidlytdimin shin,;.
In 1946, she was still the leading importing country for Chinese
raw silk (353,363 L?g.) and silk product as a whole (427,275 kg.).
But in 1947 her import of Chinese raw silk dropped to 145,398 kg.
and her total silk import to 165,226. This striking fall was
caused by the following factors t before the War, t%. 3/.8..i6used to
consume annually more than 30,000,000 kg. of raw silk. But owing
to lack of raw silk, artificial silk gained ground during the 'War,
and the ourrent requirement of raw silk in that country has dre;ped
NOTESt 1) Compiled from the Customs' Trade Returns.
2) For a detailed tabulation of the destinations of the ex-
ports of Chinese raw, manufactured and waste silk in 1946
and 1947, see Appendices V and VI on p.13 and P.14
respectively.
------3) Compiled from-the Customs' Trade Returns.
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to only 1/5 of the pre-war level. Purthermore, the Azeriean Com-
mercial Company, in coordination with the policy of the U.S. Govern-
ment, has dumped large quantities of Japanese silk on the U.S.
market.
As against the disturbing slump in American demand
it is gratifying to stress that exports to India, Burma and Indo-
China have made great strides, and China should make efforts to
further this development.
d. The Central Trust and China Silk Corpora-
tion's share in the Silk Trade.
As the Central Trust and China Silk Corporation
were the two biggest silk traders in China, it is interesting to
have a look at their activities during the year 1947, in so far
as.the scarcity of information on the matter allows.
According to report by the Central Trust itself,
its purchases and sales of raw silk that year were as follows :
Table XIII. Purchases by the Central
Trust during 1947.
Grade A
135 Tan
"
B
1,214
"
C
1,755
D
3,065
"
E
1,175
25
G
2
TOTAL
,L 71 Tan
Table, XIY.'Sales by the Central Trust
during 1947
EXPORT
to U.B.A. (incl.
consignments)
India
1,350 Tan
1,350
U.S.S.R. (barter)
600
Burma
370
Great Britain
340
France
73
Indo-China
SALES AT HOMZ:
40
Allocations to
various factories 1,000 Tan
GR,,,MD TOTAL
The Chekiang Economic Review of April 30th, 1948,
reports that the China Silk Corporation sold altogether 2,708 bale')
of raw silk in 1947, receiving; C1?$].5,3rD5,577,981 and US$941,018.07.
The details of the transaction may be seen below :
MOTS: 1) 1 bale of silk or luetring weighs 60 kgs.
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Table XVII, Sales of Raw Silk by the China
Silk Corporation in 1947.
Shipments
to Great Britain
82 bales
France
70
Siam
60
India
20
Export through the Barter Department of
the Central Trust 400
Export through Foreign Firms 226
Sales of Precious Consignments of 1946
in U.S.A. 900
in France 100
Sales to Bactorics and Coneumers at home 841
TOTAL 2,708 bales
Apart from the above, the Corporation allotted
445 bales of raw silk to its Experimental Factories Noe. 1 & 2.
With regard to l1)tring : the Corporation is said
to have actually sold 212 cases and 2246 bales, receiving in
return CN$3o,448,366,5001 53 cases and 8 bales were sold in Grea:
Britain and India and 59 cases and 2238 bales were supplied to
factories in this country. Six cases were also allotted to the
Experimental Factory No. 1 of the Corporation itself. It may also
be mentioned that 3 separate lots of lustring totalling 225 cases
were sent to India for sale on-the basis of consignment. However,
they were not entirely sold out at the end of 1947 and accounts of
the transactions thereon have not yet been published.
The three Experimental Factories of the China Silk
Corporation sold up to the end of December altogether 12,046 pieces
of silk piece goods of a total length of 605,031 yards, 16 pieces
or 817 yards of these being shipped to.U.S.A. These sales brought
in CN$27,526,071,092 to the Company.
The Silk Corporation at the beginning of 1947,
purchased large quantities of silk piece goods left by the Japanese
and the puppet regime in Tein,-?`ao. After dressing, these goods
were put on the market in March and at the end of the year sales
totalled 45,9:5 pieces (or 1,428,662 yards plus 7,618 pieces - the
latter's number of yards is not being given) and brought in
CN$49,996,309,823. Of the above quantity, 5,544 pieces were exportuc:
to India, 27,992 pieces sold on the domestic market, and 54 pieces
allocated to employees of the Corporation or distributed to buyers
as samples.
In addition to the above, 4 lots of silk piece
goods were shipped to India as. consignments, but not having beer
sold out they are left out of account here.
Finally, the Silk Corporation sold 4,263.42 Kuan
Tan of waste silk for CN$2,003,892,966 and 598.66 Kuan Tan of waste
cocoons for C11$790,945,135.
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Classified Exports of Chin se
Raw Silk in the year 1947 e 1).
Raw silk, reeled from doupions
Raw silk, white, not re-reeled
nor steam-filatured
Raw silk, white, re-reeled
Raw silk, white, ateam~-filatured
Raw silk, wild, filatured
Raw silk, wild, not :ilatured
Raw silk, yellow, not re-reeled
nor steam-filatured
Raw silk, yellow, re-reeled
Raw silk, yellow, steam-filatured
Silk ooooon strippings
Silk yarn waste
Silk cocoon refuse ( including
yuantit Va1u
(Kg.) (Unit:CH 1,000)
1,980 155,717
55,765 4,947,253
33,053 5,174,610
390,937 162,158,051
2,497 277,826
489 15,088
20,524 1,195,645
11,093 1,2^,3,730
5,719 586,555
pierced.na;ocnb) and wild silk 1,500
TOTAL 523.55 175.789.584
Appendix II. Classified Exports of Chinese
Manufactured Silk in the year 19471)
Classied items Quantity Value
Silk embroideries
Silk piece goods, natural
Silk piece goods, natural &
artificial (Mixture)
Silk piece goods, Mixtures of
Natural & or Artificial Silk
with other fibres
Silk pongees, Honan
Silk pongees, Shantung
Silk pongees, n.o.r.
Silk products, n.o.r.
Silk and Cotton Mixtures
Kg. ) (UnitzCN$1,000)
18,073 5,742,580
90,991 36,299,675
6,569 574,300
35,708 10,801,570
6,699 983,523
17,761 3, 15,121
10,804 768,356
578 91,787
TOTAL 512.690 158.147.701
L
N0T-W ].) Comb ' _: ,h~ .^.""atone' Trar1A Returns.
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APpendix III. Comparison Bet*aen the Corresponding
Monthly Exports of Chinese Raw an4
Manufactured Silk in 1946 & 1947 )
(Unit s Kilogrammes)
a. RwSil
January
58,068
33,099
February
42,853
158,256
March
15,718
4,414
April
38,105
33,173
May
78,715
76,615
June
21,487
7,369
July
184,261
5,245
August
223,201
2,065
September
120,70
1,556
October
10,488
November
70,522
December
33,087
January
797
19,138
February
3,732
39,447
March
1,&81
16,492
April
2,311
17,253
May
4,747
28,114
June
4,459
86,036
July
7,504
36,749
August
35,291
112,601
September
52,969
5,827
October
10,216
November
29,125
December
18,380
o. Waste Silk
Month
1946
January
12,805
50,360
February
100
88,176
March
1,483
43,447
April
15,538
84,035
May
1,240
105,088
June
75,107
90,390
July
85,354
55,865
August
81,983
223,959
September
242,179
90,535
October
90,115
November
72,185
December
77,549
NOTES
1) Frio "Silk Trade during the Past Year", by Ke Ching-chung,
China Silk Corporation Review, Jan. let. 1948.
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January
71,770
102,592
February
,
...46,6~9ti., ?
?-
..
285,879
March
y
, 18,762.
_
94,353
April
45,954
134,461
May
84,702
210,217
June
101,053.
183,795
July
277,119'
97,859
August
340,482
338,625
September
415,855
97,918
October
].10,09
November
171,832
December
129,020
Appendix IV. Exports of Raw, Manufactured and Waste
Silk via the Shanghai Customs in the
year 1947 1
Raw Silk
Raw Bilk, reeled from doupions
1,219 kg.
Raw silk, white, not re-reeled
38,058
nor steam-filatured
Raw silk, white, steam-filatured
27,330
Raw silk, wild, filatured
372,864
Raw silk, yellow, not re-reeled
2,497
nor steam-filatured
Raw silk, yellow, re-reeled
429
Raw silk, yellow, steam-filatured
209
Silk cocoon strippings
302
Silk yarn waste
2,482
Silk ooooon refuse (including
1,100
pierced cocoons) and wild silk
TOTAL
446.49 kg.
danufactured Silk
Silk embroideries
i
10,948 kg.
S
lk piece goods, natural
54,759
Silk piece goods, natural &
324
841
artificial (Mixture
,
)
Silk piece goods, Mix~ares
of
5,477
Natural & or Artificial
with othe- fibres
Silk pongees, Honan
Silk
35,708
Silk pongees, Shantung
5,671
Silk pongees, n.o.r.
i
17,169
S
lk products, n.o,r.
i
1,699
S
lk and Cctton Mixtures TOTAL
527
456,799 kg.
Waste Si 3.k
766,77 kg.
NOTES 1) Compiled from the Customs' Trade Returns.
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V. Destinations of the Exports of Chinese
Raw, Manufactured & Wafpe Silk in the
Year 1946 )
(Unit s Kilogrammes)
Raw Silk
Manufactured
Wa
t
Si
k
Silk
s
e
l
of
196.129
16
449
284
55?
`
.
497,135
France
58,446
6,038
170,866
235
350
Belgium
22,596
1,428
66,857
,
91
881
USSR
76,854
,
76
854
Switzerland
27,169
1,867
43,517
,
72
553
-Great ..Britain
10,044
2,754
1,690
,
14
488
Italy
60
643
22
,
725
Others
3,719
1,565
5,344
HONGKONG & MACAO
50.511
2.976
414_89896
494.66
Hongkong
50,211
2,976
411,903
491
390
Macao
300
2,993
,
3,233
N. & S. AMERICA
353.363
31.053
55.096
43? 436.51
U.S.A.
353,363
28,816
55,096
427
27A
Canada
642
,
642
C. & S. America
1,595
1,595
&OUTHASIA
232.299
84
206
1
89
.
.0
347,594
India
235,798
75,884
1,089
312
771
Burma
20,195
25
,
20
220
Indo-China
1,519
1
,
1
520
Others
4,787
8,296
,
13,083
24.917
7
782
.
32,699
Egypt
Others
24,917
4,
1
2
2
29,039
6
2
0
3,660
/lUSTRALIA & SQL
PACIFIC ISLANDS
2
199
.
AD
2.2
OTHER
94
GRAND TOTAL,
-171,051
755
683
1
813
?=
.
.
?
13
NOTE: 1) of. "Silk Trade during the Past Year" by Ke Ching-than,,
China Silk Corporation Review, Jan. lat. 1948.
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I
L
Appendix VI. Destinations of the Exports of Chinese
Raw, Manufactured and Waejc Silk in
the Year 1947.
(Unit : Kilogrammes)
Destination Raw 811 Manufactured Waste Silk Total
Silk
1U RO E 109.604 38.713 752.419 900,7
36
Belgium 888 8,120 276,429 285,437
France 14,120 12,705 172,569 199,394
Great Britain 31,625 6,519 134,808 172,952
Switzerland 3,096 457 102,268 105,821
Italy 3,059 66,345 69,404
USSR 59,875 59,875
Sweden 7,002 7,002
Others 851 851
(NIA 235.079 358.89 8 9 977
India 163,851 349,560 513,411
Burma 53,683 53,683
Indo-China 16,888 16,886
Others 657 9,338 9,995
HONGKONG & M CitO 12.283 90.488 390.878 493,649
Hongkong 12,283- 90,067 390,878 493,228
Macao 421 421
Y.& S. AMERICA 145,498 11.950 10,262 167.610
U.S.A. 145,398 9,566 10,262 165,226
Canada 799 799
Mexico & S.
America 1,585 1,585
A ,tICA 15.950 791M 23.430.
Egypt (incl.
Anglo-Egyptian
Sudan) 15,949 4,498 20,447
British East
Africa 1,709 1,709
Union of South
Africa &
Rhodesia 1 1,273 1,274
AUSTRALIA & PHILIP- 3.013 1.506 4.319
PINE ISLANDS
Australia 3,013 591 3,604
Philippine
Islands 715 715
OTHERS 2.838 ?.855 69
IMPORTE]FRO~S - 608 ?
GRAND TOT.:L 523.557 512.690 1,15;?-55 9 2.1 .806
( End )
NOTE: 1) Compiled from the Customs' Trade Returns.
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I
(Econ.,,::ia Oh. noise)
280 Chungking 1u Lu (Dube.il)
Tels65761
Articles and repcrts -combined and
digested In th:a Study:
Notes on Coal in Kiangsi STUDY NO.s XXI
Y2.imber of pages s 9
"Geology of Western Kiangsi" by P. Kan and K.C. Hsu, a
memoir published by the National Geological Survey of
China and the Institute of Geo.:gy of the National
Academy of Peiping, Lecc::sr 1940.
"P'ingheiang to Use Machinery", Shang Pao, May 13,1947.
"Coal Deposit in Kiangsi', National Journal of Commerce,
September 30, 1947.
"Output of K'engk'ou Coal Mine", Chung Yang Jih Pao,
Shanghai Edition, January 23, 1948.
"Coal Mines in Kiangsi", Shang Pao, March 29, 1948.
"Coal Production in Kiangsi for 1947", Economic Development
quarterly, (Kiangsi), No.V. April 1948.
"A Plan for the Development of Mining in Kiangsi", by Heia
Hsiang-yung, Yen K'uen-yuan, Heiung-Kung-heiang and Chang-
Jen-chum, Economic Development Quarterly (Kiangsi), No.Y.
April 1948.
"T'ien1yd Coal Mine Plans Increase of Production", Chin
Yung,44ih Pao, June 24, 1948.
'Inorease of Coal Production in Western Kiangsi Planned',
8hdn Pao, September 6, 1948.
"The Kaok'eng Coal Mine" by Liu Tsao, Shen Pao, September
8, 1948.
"Colossal Future for the P'inghsiang Coal Mine" by Liu
Tsao, Shen Pao, September 9, 1948.
L
Coal deposits in iiangsi are distributed in four
belts running in the same direction across the province, ENS to
WSW-s two of them, the Northern and Southern, are of minor import-
anoe,-.while some mines in the two central Be;.ts may be of basic
value for the economic de'?elonnent of Kiangsi and neighbouring
provinces.
i/ The Northern Belt, the smallest, extends along the Haiuehui
Valley in the districts of Kiukiang, Jiiich'ang, Teen and Wuning.
ii/ The Main Central Belt extends from Lop'ing,South East of
the Poyang Lake, to P'ing:zsiang rear the border of Hunan, with other
coal bearing areas found in P?' oyang, 'lrsnni en, Yukan, Chi nhsi en,
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Fengoh'eng, Kaoan, Hsinyu, Feni, Wanteai and Ioh'un. Both bitumi-
nous and anthracite are abundant in this belt.
iii/ The Secondary Central Belt with a predominance of anthra-
cite includes Kuanfeng in the East near Chekiang Province, Shangjao,
Kuangfeng, Yuanehan, Nanch'eng, Ch'ungjen, Chishui, Chian, Anfu,
Yunghsin and Lienhua.
iv/ The Southern Belt covers the anthracite bearing coal fields
in the mouth of the province. They are much broken up by the ab-
normal growth of igneous rocks and are of little economic use.
There are most varied estimates concerning the
coal reserve of the province. Recent surveys however assuming that
the exploitation will be limited to 500 m. in depth, arrive at
about 700,000,000 m.t. of which 460,000,000 are bituminous and
240,000,000 anthracite.
Haien
Reserv
Heien
Beserv
P'inghsiang
177,424,000
Yutu
5,000,000
Y zkan
72,945,000
Hsinfeng
5,000
000
Fengeh'eng
55,138,000
Linoh'uan
,
5
000
000
Ioh'un
34,920,000
Te'ingkiang
,
,
4,000
000
Loping
32,506,000
Juich'ang
,
4
000
000
Chinhsien
22,945,000
Waning
,
,
4
000
000
Chian
23,171,000
Yukiang
,
,
3
000
000
Kaoan
22,400,000
ibhliang
,
,
3
000
000
Hsinyu
17,000,000
Kiukiang
,
,
000
3
000
8hangj ao
16,830,000
Wanan
,
,
000
000
3
Ch' ungj en
15,000,000
Shangyu
,
,
2
000
000
Poyang
12,324,000
Lungnan
,
,
2,000,000
Kuangfeng
12,000,000
Ch'ungi
000
2
000
yeni
11,627,000
Heinchien
,
,
2
000
000
Wantaai
11,200,000
Tehaing
,
,
1,500
000
Yushan
11,000,000
Wuyuan
,
1,000
000
Yuanshan
10,000,000
Yunghsin
,
1,000,000
Aengfeng
9,020,000
Kweich'i
1,000
000
Anfu
8,610,000
Ch'iennan
,
1,000
000
$hangkao
8,400,000
Anyuan
,
1
000
000
Chishui
8,107,000
Tean
,
,
1
000
000
Yungf eng
7,000,000
Heiakiang
,
,
520
000
Lienhua
'7,000,000
T'aiho
,
84
000
Wannien
5,325,000
Others
,
5,000,000
1. - The Polo Coal Fields.
The F-'olo Coal fields are located between Hung-
menk.'ou in Poyang and Mingehan in Loping.
The thickness of the coal measures varies from 250-
400 M. It is composed essentially of an alternation of sandstone
and shales, together with several layers of limestone as at Mingi`.an
in Loping. Only one principal coal seam varying from 13.15 feet or
more in thickness is worked, though several minor coal seams mostly
unworkable, occur both above and below the principal one. At Ming-
shan, the most famous mine in Loping district, coal seams are re-
ported to be quite regular and persistent, whereas in other places
there is usually great variation in thickness.
The coal is of a very particular kind, so remarkable
that it should form a special type by itself. It is exceptionally
rich in volatile matter (30.37 - 62.78%) and low in water (0.20.1 -
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1.78%) . Before the war, fourteen analyses of the Loping coal had
been made by different analysts. In eleven out of these fourteen
the percentage of volatile matte.' greatly exceeds that of the fixed
carbon while in an extreme case the volatile matter content is
nearly twice that of fixed carbon. On the whole, the coal is rather
rich in ealphur varying from 2 to 5.5%. Ash content is extremely - -
variable (3.72 - 64.9) The calorific power is rather low vary-
ing from 6,000 to 8,000 BTU or more.
The reserves of the P'olo fields, according to the
Economic Development Quarterly, (April 1948) are e,jtimated at
33,000,000 metric tons of which 10,000,000 lie in Ch'iaot'ouch'fu
and 23,000,000 in Mingshan.
Before the 'Mar, the production under the Polo
Coal Mining Company totalled some 300-tons daily at Mingshan and
some 500 at Hungmenk'ou. Theae'two mines, shortly after V-J Day,
were placed under the operation of the Hain Lo Enterprise with the
aim of producing 4,800 tons per month. Since the monthly produc-
tion had never exceeded 1,300 at the end of 1946 exploitation was
interrupted. In Feb. 1947, these two mines were taken over by the
Huainan Coal Mining Company and are being oparated under a new name,
the Kiangnan Coal Mining Company. Native methods are still eaploy-o.
The production totalled 11,890.85 metric tons for the first Six
months of 1947. As repo$ted by the local Shang Pao, March.29, 1948,
the daily production has been raised from 63 to 600 tons since ":eat
winter. New pits are being sunk with a view to supplying coal for
Kiukiang Nanchang Railway. Production is expected to reach 1,000
tons daily.
II. - The P'inghsiang Coal Area.
The name of P'inghsiang is commonly associated
with the Han-Yeh-ping Iron Works which it provided with metallur-
gical coke in prosperous times. P'inghaiang is in fact one of the t 4w
few places and the most important in South China, where good coke
can be obtained. Analyses made before the war give the following
resultss
Water:......... 11119 0.840
Fixed Carbon... 86.941 88.060
Aah...,......., 10.940 11.100
Sulphur........ 1.000
In this study however, we are mainly concerned with
coal reserves and mining.
In reviewing the P'inghsiang coal ores we shallfir-t
consider the two principal mining districts, Anyuan and Kaok'eng and
then two minor oness Maling and Ch'ashanli.
1. - Arquan and Kaok'eng coal mines.
The whole mining area of P'inghsiang, stretching
from N,g-SW, is 9 kme. in length and 4 kme in width. In the North
and Northeast are Tertiary red beds, and in the South and Southeast
are Triassic sandstone shales. Coming down from Huengk'eng to the
Bast, the altitude declines from 400 to between 1 and 2 hundred
metres near Kaok'eng, Wangchiayuan and Tzuchiach'ung. The outcrop
appearing here is said to be 8 ions long. Its thickness however de-
creases very much on approaching the western edge near Huangk'eng,
'
so that the workable length is only 7 kms.
1948 -----
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Coal sampled from Anyuan.
L
The coal seams, totalling some 13 altogether, yr=
mainly in Kaok'eng, Wangchiayuan and Tzuchiach'urg. These seams
run along thg same ENE to 'NSW trend and have a synclinal struct.re
of 150 to 30 (average 25). The main seams a- re known a: ? he
"P'eng Tsao" and "Ta Tsao". Theis thickness varies considerably
but on the average it is said to be about 4 metrea. 3oth are in sr-
ealated with limestone shales 0.5 - 2.0 metres thick. Secondary
coal seams are known by various: names such as I Heia Tsao, San Hsia
Tsao, Yentse Tsao, Yingtae Tsao, Ma Ku Tsao, Sao Pien Tsao, etc....
The reserves still exploitable in Anyuan, in T%u-
chiach'ung-Shiaok'eng and Anyuan-Huangk'eng, which had been estimated
at 8,600,000 metric tons in the 1937 report of the Kiangsi Geologi-
cal Survey, were put at crime 37,600,000 metric tons by P. Kao and
K.C. Hsu in more recent surveys.
Estimates established by Chu Chien in 1933 gave
the coal reserve in Kaok'eng (including Wangchiayuan) at 30-40
million metric tone. Here again a new survey made by the Coal :.iin-
ing Administration of 'Nest Kiangsi arrived at 63,000,000 tons.
Various analyses of coal samples from Anyuan an
Kaok'eng are given below.
e Taken
Water
of t
Fixed Car b.
Ash
uS lnh,
BTU
Ta Teao
1.02
28.24
63.88
6.86
0.35
7773
Ta Teao
1.10
30.07
61.80
7.03
0.34
7559
I Baia Tsao
1.31
29.67
65.30
3.72
0.74
7823
San Heia Tsao
1.04
32.22
57.16
9.58
0.46
7291
P'eng Tsao
1.18
29.50
63.57
5.75
0.38
7793
Changkungt'an?
(BE of any-sang )
0.83
23.41
52.97
22.79
0.56
6351
Ban Hsia Teao
1.02
28.63
49.98
20.34
0.57
6330
I Pen Ching
2,44
23.18
54.04
20.34
1.27
12065
San Yen Ching
2.19
23.44
58.60
15.77
0.8
12968
Sze Fen Ching
3.29
21.95
55.94
18.82
0.3
12207
Since V-J Day, exploitation of these coal fields
has been placed under the Coal Mining Administration of West Kiang-
si of the National Resources Commission.
An engineering section of the Administration has
been detailed to Anyuan to supervise the native pits, numbering
some 100 units, which the local people began to exploit during the
Japanese occupation and which are now a problem to the Administra-
tion. Very little can be done to bring the pit proprietors into
line with the Government policy of production. However, 4 of t!:_
biggest units have been bought over for Government exploitation.
The condition in Kaok'eng is much better.
A large scale power station is being built at
Ch'uanchis.ng-yen by the Administration. According to this proipct,
a total capacity of 14,000 KW will be generated. At present, the
installation of a 1,000 KW generator has just been completed and it
is to be followed by two more of 1,000 KEN and 2,000 KW each. Two
5,000'x'8 generators will be installed next year to provide enough
power for production in three years' time of 5,000 tons of coal daily
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Two new pits at Ch'angt'angwei are being dug bit
only at a rate of about 20 ft. monthly on account of power she-rt ge.
However, the work has doubled its speed since April 1948 when a 5O
HP winch, an air compressor (315 cu.ft. per minute) and 75 ICR
diesel generator arrived. The diameters of these pits are of 18 ft.
each. The shaft will reach a depth of 950 ft. At 625 ft. and 925
ft. two separate stone entrances communicating with the various
coal seams will be opened. -In the No.1 pit a 600 HP electric winch
will be installed. In the No.2 pit two 7-ton coal carriers, to be
raised by a 1,200 HP electric winch, will be installed. Kaok'eng
is boon to be equipped with modern machinery from electric coal czrs
to automatic coal shoots, compressors, and ventilators.
Meantime the present coal production may be expect..
to rise to 600 tons daily in ICaok'eng and 250 in Anyuan. The two
mines combined gave 10,091.40 metric tons during the first six
months of 1947.
2. - Maling and Ch'ashanli Coal fi: Ids.
The Maling coal field is located 5-6 kms west =f
P'inghsiang with a mining area limited to Ts'ingshanp'u in the
North, Liu~ungmiao in the Southwest, the vicinity of T'ungch'eng
in the South, two kms beyond the west gate of P'inghsiang in the
East. There are some 7 coal seams in this field but only 3 or 4 are
exploitable. The average thickness totals 3 metres and the cutcrup
is 4 kme in length. The reserve is estimated az 7,020,000 metric
tons. Coal found in this area is chiefly semi-Litumi,ous and ar.thra-
cite. During the 'War, the Maling coal used to have a wide market
in Changsha, Hunan Province.
The'Ch'ashanli coal field, 16 kms southwest of
P'inghsiang in the vicinity of Liukungmiao and Huchiafang has an
outcrop only 2 kme long with a deposit of 3.240,000 metric tons.
Semi-bituminous is mostly found throughout this field, but bitumi-
nova is also obtainable in the vicinity of Wuk'out'ang at Liukung-
miao from which coke was once obtained and sold locally. Various
samples taken from Ch'ashanli were analysed as follows:
Water
Vol.Mat
Fixed Carb.
Ash
Sulph.
Calor.
3.83
16.10
65.71
'_4.35
0.95
6467
1.17
11.21
72.84
14.78
0.81
7050
III. - Other Coal Fields of the Main Central Belt.
1. -- The Fengchiang coal field.
The only information avs lable on this field mentions
that it has a reserve of about 50,000,000 m.t. of bituminous proper
for coking.
L
2. - The Fengchieng coal area :
There are many native mines operating near Fe:mg-
?h'eng, central Kiangsi; but only those under the Chierfeng Calliery
are worth mentioning.
The Chienfeng fields are located at Kuanmaoshan,
Yents'angehan and Yachiaoshan covering a total area of 4,781 mow
with an estimated reserve of 1,100,000 tons.. One seam of 10 ft. in
thickness produces bituminous coal rich in fixed carbon :
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'Water 1.4
Volatile "tier 2 6. 7
Fixed Carbon 69.80
nsh content. 12.51
In 1947 the Kiangsi Provincial. Government made a
survey to Linghsia where it was fo'.cnd that good quality cox?e tluv: $3,OrC btrt less than 030,004, r.
ro emus ster$7 nS y40 a be affixed; where the amount c:)
the oo:rt_ect is egv!?;'-.lent is or atr?e t:?is;i $30,000, a
resree;uo a L?;o c. $1 shell. a. affixed.
the Steeps a Mao party seul:;g -:1a '?k.o)rmant.
Exerption . Totel rnatmt lcs!: 010
ANNOTATION i The ao.strewto a;:d3ol.ers hero *scr!.ianed shall ssmn those n?:c
by giteee1 brokers,, customs brokers, stoc;k oxchange brokore era va:-ious x??'d.
of commission agot:ta,
U. C(r--'V ?icatds or Pass Books for Bu?:c t;u)tcca,
ft'rk.%S Deposits sad the De ouit or
MUM-*xwssi of Money.
Mature of 1roo. Any asrt3fL; ;o or 7u.&S ?:aok issuer, h 7inkir.p or sa;I+t~s
irstitutiona roc,iv "s d:;posi:s :5r
z.3cr ya=~ _ od.t
?1;anOos, cr ,y p:>r'!?r~y_^n:,>?rc.4 fox' too purpose of zrlth :-a:us.L,
'r;? those who :ia -o mds re-e- tisanes or ea - nCs deposits,.
Rate o! Tarty .t recanus eta,.-p o_ #; shall be s fired o): each doour-art;
a ra^orato :than of 0Si she_'- be e-TTxod ,rt ones pose tank
ow-1 year; :.:?r rya,, s-teen;, of '?2:0 shall be `+?fixsd o) ou':
boo P:;.- s?:y rg ro):oy or er,~rt-v`?t 7tsa book.
Party to Affix
the, Stomps s 791e p-iv-ty l.ssa:h:r t:bee
Mosc?rtion t Tote. ana: r' +.na: ';}tie. $ .. Choq:;as wr 'h+: t,.:bli.c troaru-j,
cheques p:?o) i so_ry nntoa~ ~_?J:II;.t;eGty no-s913 of native b-DJ.:_e,
3r.;: per t.ifjcates an'. Pass `,oohs _'cr post-l us-r Re d9?ccttr
5h02.1 bo ems: :tad r ?oe: d:r$ y?
ANNOTATION `Th. .?,;ourar6s en= pass :woks here rsri:uta3 sltsll 32,11uC??
deyoeit.;pass boo", etc*~+r:a dopos':t books;, she ne b,)uk.v, 3rfts, ban'kar's
drafts, reco:i,I?ts for uot:ey r?umi,tsir ea; . m:ttanob fo.'on, re,-'ipts for ssy'^Eit'.
and monetary gif;; ao,;.Mats ^.1 1ss' e.i by ::inks. Lt. if eny reai!ttance fora
epeoiies th3 am- )uats of re itt.v:oe cl?.atgas and other fien repaired, rw'ws:tt
st:ups shall be aff`_xe:i thareo:s s:oo~n:r$ to tho pr(w.tsions of item 2 of th.`.s
Tebla. 112 the case of L. ?`hC _:>a'r? e)t+: a= :he ro):e; she.:, bo 'e?;ardo1 a.j
the party issui:v the dooinnen':.,
i2,; T>a4C_ x -i or itoke for t1:. .......maw L
of Coals,
Natlrre o' ?k.,,, _ 1 . ; orao o : h aaL L i ~:;,r.?lu* s or 'SG .. B i.e ;:ted by c;:i*trt -:-e eJ.
fzxas o: indi ic1:+F!.s icr t;ta tf .r e, ie ?''+.cr. iw.-c t_a
deposits for ao,.t:ir o? ordered i.r;
EDITOR'S N'.Ms 1) :Lo:ietary gift u,::ti~a-,- ~.r~ "~
................ ~.e .. c^ noaeq.
i. s
T,f01?!i1l,Y Btfiih'TIs' ne., .
1nt:ex- X10.1, t': Pogo :.L
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Rate of bray a r?rrenuc? Grim o' y{4 1 be fixed on ewh d4)-:=;:s'; a
rws,uo star': :! 0,14 EAall be aff:.x!d cn eeah bcok aea:; y . ,
Party to Aff.; -
tho' Stanpa L The party : se. rg tho Jbowoent
motion & Total wtoL.t less w*m: $3.
ANNOT.AsICII F 'Vre coc=en- i d 'hooks 4+a s.ined this item shag i y, udr
oleaning cnd d,a;_cW, vorash,,rd.. as:d olock srd :aatoh repair Vot;chsro. 1:'^.oru g_cc:
are cold without ar.y invaica? if any )f the dorm its r5~: cried in his its.;: Ir
used as a subtititufe., -the% re'ro:iun atsaps s:mli b af_'i,LOd :hers: sccordJrs -to
the provisions for sated invoices urdsr itar 1.
Fa:c:. fv~, Iv j,, it or
tha S?taeps x tnu :;cu-:.,h,,,
Exemption ; "ate . r_^x::rnt asc t'ur C3.
ANNOTATION s The c; Ltrac:r reae`,s hr ue t _ -a b: 3 : ^02'c s a
h o u t r y reoei,ptas, storage ce:~t_'. e& 5s exd ,J. ' 3 ids of s fe?-dcpjnit rate:,):
Where warahouse r gat ipts exa us ,d by c O=. a-?.i er firma .'~. ?; a place Cf .+.-7ei.r.
for the seta c:? gcoda, then rswusz?. Gi:;gAps Nhs'. be a?fir.e9 3r..,:" 1)a:aco,--. !X.3 'e
the prov..aione `o_ ,,ales ....,oiass :r::., ta.
Nata:o of Doc. C??nnt_sats c te r'.aeuc:: by .ru;r!" j'.ej'?3 cr s'e
ra u; ?u --he ssSrr-koc~ r.*k; of +.he goods o. . doouu ^a: :,f ct.?.
Rate of Th.rt;~ , A re:enas cter{a of' i,,1n a.'wli ba aff . e:! on coon :-
14, ?'3ooirs .':era :? ? Pf_. ss P.:rp ,aese
Nature of Doc. Moo- .zt bocis e;c Fcuso ?asd In business by public or pr r u
firms or e: te:; _5e h,
Rate of My a A reve%is ate ::' q!_q shall be a.:?izea on sac bcok e!oh ; -.
Party to AL?iz
the Stemps s z as p_:ty issa : t:1o ;ew ? ox ;~
ANNOTATION a 7,,re tss csp_;e'_ is rc- ets:~,s c.: e::~ ayPe-eie cae
aacourrt, book, Share
as^::t? rite sSreec:e-it or, .u?Y. re-enua steams ha-,, ben::
affixed, but '-e o'tared ii the D:e ;ie3, buzk3, then Cho bo.k in which the u-_,.ct
of oapiiai is stated, shejl be the z~ ~zf+::t r je- 3o s'er : au-,v as
p-.r:':,?, :_:
item 4 of this Tsh s., Tf any a+n1: :_.jourt book eothizes t?.?:o or mar, p ;r^aes, .t
ahall bet duty according to Vow p- ;: izaiur c r f -003 ! ? of this Z.. : 3 e I
leaves or b1_ls o- doolme;nts used ritr-J tho are t:oww.d Lp tcgothe i^.ta
books, revenue ote7,s Qnu_1 bq affixoc? :hereon as provided_ in. thF item.
T 5, ^c ,rats c: :ao su ie.. s for "ra .3pcsr taticn,
Nature of T,oo.. i Doeimm-it or oo_L;?a a or transp ortati.c n 'Sued ty n~':i:n ?
yr!v~to tranapoi- at'a. oc_PeW es to c3. -kats who di:.?ect .:, a:
i-ndlrectly oura_g. .:15 ?ssx.5pcrtntic.. of 'hei: goo _5 Rate of i)l:ty . ~ a A : et a ee stamp of : each y? > ?::e< ':n on etc: doc;:.^.>:ci .,_.
7ontrac. t..
Party tc Affis:
the Stamps c The Par;_ eater trio ccns:zeat fo_? cres:spr: tn;;Ic:r"
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Exemption $ Total amount less than "v3. Oontreotc or dooumesnte for rai".-
way, transportation shell be exalted from deity.
ANNOTATION s If the contract or dooumen-v' for transportation indicates the
amount of transportation fee received and no separate receipt for money has
been made out, revenue stamps shall be affixed on such contract or document as
provided under tho item of receipts for money.
16. Mandatory Documonts.
Nature of Doc. s Documents mandating others to manage business or act as agents
or undertake the conduct of affairs.
Rate of Duty s A revenue stamp of ?1C shall be affixed on each deed.
Party to Affix
the Stamps s The party issuing the Document.
17. Admission Tickets to'Places of Ee:tortain-
mont, Contests,. or *bxhibitions.
Nature of Doc. $ Tickets for admission to various places of entertainment, tests or exhibitions, dance tickets 1), and. earphone 2) t+o.:ets.
Rate of Duty s For every $1 contained in the amount on each ticket, a
revenue stamp of ?5 shall be affixed. Any fraction of ?1
shell be considered as ?1.
Party to Affix
the Stamps f The party selling the ticket.
Exemption s Total amount less than 010.
ANNOTATION s The places of ent--:'ainment.mentioned in this item shall mean
theatres, cinemas, singing and dancing halls and other amusement resorts.
Nature of Doc. s
Party to Affix
the-.Stamps $
Ssasption s
CATEGORY II. - DOCIA02M OF PROPERTY.
18. Documents for the Granting or Division
of Property.
9ny paper propared by the owner of a property to give the e,hole
or a pa-t of his props ty either intorvivos or oausa mortis
to his heirs or to others.
For every $10 contained in the amount on each deed, a reveruu
stamp of 03 shall be affixed. Any fraction of 01 shall be
counted a ?1. -
The party preparing the Document; in case of his failure to
affix the stamps, the beneficiaries shall be hold liable for
them.
Total amount less than $10.
EDITOR'S NOTESs 1) A ticket entitling its h3ldor to one dance with a dance
partner at a cabaret.
2) For the earphones fixed to a seat in the cinema, by means
of which the translation into the vernacular of the dialogue
of a foreign film is oommm46ated to the spectator.
----- -??--- -__-... --_-....-------'--------?-----~...--~
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ANNOTATI01! The doounyrts 'fora mon4onsd shall iv,-ludo deeds of divisiu,::
of property, d?_ode of d_visioi of assn, t operties, and testaments bequeathing
properties. Where tyro or r3oro uoploe of a deed of division of property are
issued, each oopy shall hoar re a+.;uo &.M ,)e according to the amount allotted.
Nature of Doc.% :~',ertificatss of ma."s+Gsmcnt of land, certificates of ownership
of land and otho: nertificates of rights issued by oonpetent
government o:Tanisetions when undertaking the registration of
iniave.ble propnrties.
Rate of Duty t For every $100 cntrtainned in tht ay overt on each certificate,
a ?rsrenu? yi,aq., of ?2 she.:l " affixed? Any fraction of 1
bball bo oovri~C'( es-1ti i
Exemption Total amount 1(199 F''j; $10.
AN1'OTATION r The oertificates horo nor.tionod shall include certificates of
ormorabbip of land, ca.-tificatea c ,msrnl;enon~y,of land, and certificates of
Party to Affix
the Stamps t
20. Dooume::?Ys of Tien, isle. Transfer
or P;ro?,nss of Frope:ty.
Any document drawn up for Tien or sale, transfer or purchase
of movable or i norebl properties or securities.
For every $100 oontri!iad in tha amount on each deed, a revenue
stamp of ?3 shall bt..ffixed. Any fraction of $1 shall be
coo ?sd as 01.
Exemption S Total ano+wt.lees than $10.
21. Doouoen?.s Establishing Super_*iciea
or Fraedlel Serritudes.
Nature of Doe. t Any papor oaLfor:irg a right to utiliso land by building,
census)- ;rg or an sterp of $10 oha:.i. be affixed on tech
oorti.ficate ;f re;;ie.retior. of }e_te.:t or of a finsnoie , ..:.it
or ;,.s..:sQrlae buai::oss*
the Sta:x e t T:-Ao reeipionto
ANNOTAT=CN _,o psiml's and :,y,cenosa hsre mentioned shat' -rc_ude ell
pernii;or .ertifir,?^;ou or 1acenoos for pu?''ooes cther than texation; sc'h
as valla::.a Lueia)e3s ticerezc, ragiotre,.icn cor;ificates, patents, tradooar<
regist:stion occ :??'iuc:tas, exhort or iz'CO: rer:l s, licences for p::rchtei:. cr
sollng epeoi:5.od rcois, :Fie i't or p;lb].iot.terZ'iceneos, curt:?ios.ec
that goods i.a' a been comml:.c:1 a.id fcurd up ?;, ste.dard, o-;,o. The eoliectien
of the :ust of tho po)mit, eertifioato or 1:.eenoe isored, serrioe fees or
rtr_ stration fees a .P.7.1 no. be rer:er vLl as inx=tioi.
i. Cordificateo or Liotnces of Vo`iolee,
V~sad:.s cr AeropieM4e.
Nas'..re of +)oa. t Cer,:ifiratce or ] _vc,Aos of ve.iF.:,los. ?eesels or aeroplanes,
ics:s }y ocnr.ra::t p vcaz: w t rsreres_iisl for purposes
ct;lor t:rsr: coi:cc=.:in. tr,.eo o-_ du-Acs.
Rate of T:t; t ... u-. a :uv 4 s`p of $ . 87%3!'_ :e of ixod on each oe-tificate
or Ltc n,e.,
Party to . 2f'x
the Stamps . T'ns reci_aiea .
ANNOTATTO:: Tl: oorL IzS: ;is a_d 1_c>roea ho_ a ?nentionod ehe:.1 inc' ud?,
Oe^tifio 36 v.ttt:o D:i:,.On91 :Y Of v3sc009y ti:.i the huaineS3 i OO Pea O ftz9;r
eh`,ps or 't11e: JPa37..Sy O Cr _;. AS, -Aat.' . . -L.. ;1Ci.99 dram: by i.i'>R1 E;
e.eT0);13'.1.I11.
:D.Cl.IL'J 1v0'rss w3r.lz ii ?i
-J
IVITFII,T?'9d.STi'Y ?dt: ::d~_.-...;,r, -y44`-__. ..`.. ....__......__-- ...~-.... .....-._
lutnox NO. TLC' - vejyi :.8
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Nature of Doo. a
Rate of Duty s
Party to Affix
the Stamps I
Nature of Doe. $
Rate 3f Duty s
Paarty to Affix
the Stamps S
32. Perr.ls be Carry Arse fvr Self-?isfonoe
or Ht t g.
Permits issued to individuals by oaccseteet gorernxent organ-
isations :o_? carrying arms for salf-defence or hunting.
,? rerenuo stamp of V50 eha__ be affixed on each permit.
Peraito issued by oompeyesr govarnma7; arganisation for tre
txrnspoe,atior of co::ur dities or of duty-free goods.
A reverr. s 3ta;Qe c 050 shall be aff:.xo3 on eao'.: pe nit.
ANNOTATION t Mo perms:e hare ne:ri_.oned ohal*_ inoludo thoso for tr^.ns-
porting luggage? m. eoiel dLdy- -ee goode,. coffins (oontaiaing corpses) .)r
money.
Party to Affix
the Stamps s
Passports or permits -issued by corpeten-t goro_rnment orgar..`sa-
ticns for tra-roili_n inside the country, or as exit visas,
or for studying or residing abroad.
A revalrse stamps of 020 shall be affixed on each passport
or permit to be usod?inside this country; a revenue stamp
of $1 shall be sifixed on easy passport or permit to be
used in foro3gn cout ios.
As recipient'
Dfplomatic passports are exempt.
CAi GORY V. - UK 7A.
35. Regeipta or Books for Cho Remrnsration
of Serviecs.
Nature of Doe. s Receipts or books issued by gorernoent officials, teachers
or school staff members or pere:ns engaged in various
profese?J.ons on th3 receipt of their salaries, or issued by
persons engaged in the liberal professions as receipts for
the remuneration of their professional or artistic, se vices.
Rate of Duty For every $10 contained in the amount on each receipt or
pass book, a revoun stamp of ?1 shell be affixed. Any
fraction of 01 shall be coua:ed as ?1.
Party to Affix -
the Stamps s The recipient.
Exemption $ Receipts for the pay or remuner$ttion of private or non-
0omanissfaned soldiers or policemen shall be exerpted from
duty.. Where the to.al ionthJ.y imams of other employees or
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labourers is lees than $20, the receipts for their selaris=,
wages-or remuneration shall. also be exacpted frog duty.
ANNOTATION t The remuneration of eervioes here mentioned shall include
all salaries, allowanoes, annual pensions, bounties, retirement pensions, old
age pensions and other grants. Sums drawn by persona in public services for
expemees incurred in the performance of their duties are not included here.
36. Documents of Application or Petition..
Nature of Doo. $ All statements, petitions or applications olaiains certain
rights or benefits.. submitted by indi'duals or grows to
Rate of goverment organisation.
Duty i A revenue steep of 010 shall be affixed on each document.
Party to Affix
the Stage a The party issuing the Document.
Exemoption i Applications submitted by students or soldiers and applica-
tions for registration of land shall be except.
ANNOTATION s The documents here mentioned shall include applications for
iaport or eqiort permits, for settling foreign exohange accounts or purchasing
foreign exchange, bills of entry used by importers or exporters, applications
by foreigners for naturalisation and all other applications for claiming
rights or benefits;
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U N I V E R S I 11 E L ' A U R 0 P
Amex No.: U11
Annex Cor?cerned:
LVtII.
Number of pagers 2
Remarks :
REVISED TEXTS OF ARTICLES 3, 4 and 5
OF THE CCirWODI TY T?X REGUI ATIONS1)
Article 3.
The following commodi`i.es shall be subject to
the commodity taxi
1) Rolled Tobacco: coy.; ?ising all kinds of Cigarettes
made with rolls of tobacco enclosed in cigarette paper,
Cigars made with tobacco leaves, as well as Foreign-
style Tobacco.
2) Flue-cured Tobacco leaf.
3) Foreign Winos and Beer: comprising all kinds of for-
eign-style wines manufactured in this country, with the
exception of alcohol.
4) Matches: including buth those made with phosphorus sul-
phide and safety matches.
5) Sugary including brown and white sugar, orange sugar,
crystal sugar, cube sugar, lump sugar and refined sugar.
6) Cotton Yarn: comprising machine-made unbleached cotton
yarn, singed cotton yarn, cotton yarn waste, yarn made
with artificial cotton and all other kinds of cottu.,
-,tarn.
7) Woollen Yarn and Woolly,; Thread: comprising woollen yarn
and woollen .'.m=ead. and yarns and threads made from wa_?
mixed with other fibrez.
8) Furs.
3UREnU L'3 D0 UifBNT;tTION'
Ecenomi a .,i?.i:,oise )
2GO"Chungking Nu Lu (Lubail)
Tel:n5 761
Revised Texts of ~.rti,;].es 3, 4 and
of the Counoii:y Tax hegulaticus,
Promulgated by Presidential Decree
on the 30th of July 1946i
Published in the Weekly Review ?,f.
Laws (Fa Ling Chou K'an),
August 11th IS48.
EDITOR'S NOTE: l.) The Commodity Tax Regulations were promulgat?i
by the National 3c?rernmer:t on the 2nd of April
1948 !cf. Mon;:hly Bulletin No.XIX-June-July
!S40--Annex T,VIII).
The present _eviair, n concerns chiefly tae
tax rates in Article 4, as only very slight
,hanges have ben;:; brought in Articles 3 and b.
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9.)
l Y
Cemoati.
Beverages:
syrups.
comprising aerated wate
r, fruit j
uices and
11) Tin Foil and Paper used for Superstitious Purposes: refer-
ring to all kinds of tin foil and paper used for superati;ieas
12)
purposes.
Cosmetics:
including hair pomade,
brillianti
ne, face powder,
rouge, shavi
eyebrow penc
Th
ng soap, lipstick, perf
il.
e rates of the commodit
ume, nail
y tax shal
polish and
l be as follows:
1
Rolled Tobac
co:
120% ad valorem
2
Flue-cured T
obacco Leaf:
30%
"
3
Foreign 'Hine
s and Beer:
120% "
u
4
Matches:
20,E "
fl
5
Sugar:
25% "
u
6
Cotton Yarns
10%
7
8
Woollen Yarn
Fure:
and Woollen
15%
9 Cement:
15%
10 Beverages:
30%
u
11 Tin Foil and
Paper used for
Superstitious
Purposes:
60%
12) Cosmetics:
45%
Article S.
The taxable value of a commodity subject to the
commodity tax shall be computed on the average of its wholesale
prices for one month in the markets near the producing region.
The above-mentioned average wholesale price covers:
a The taxable value of the commodity concerned;
b) The original commodity tax to be paid, i.e.
the tax rate to be applied to the taxable
value of that commodity;
(c) The expenses for transporting the commodity
from the producing region to a nearby market,
being fixed at ten per cent of the taxable value.
The formula for computing the taxable value shall
The assessed taxable value =
average wholesale price on markets near the producing region X 100,
divided by (100 + tax rate on the commodity concerned + expenses for
transporting from the producing region to a nearby market i.e. 10)
All goods whose price has been agreed on by a gov-
ernment office may be dealt with according to the provisions of the
preceding paragraph, taking the agreed price as the basis for com-
puting the taxable value.
In order to facilitate the examination of goods
subject to commodity tax and the levying of the tax, the liri st:-y 3f
Finance may, after consideration of the circumstances, adopt a
graded tax; the method of ealcul%tingi.the grades shall also be laid
down by the Ministry of Finance.
( End )
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