MONTHLY BULLETIN NO. 21, DEPARTMENT OF ECONOMICS AND POLITICAL SCIENCES, AURORA UNIVERSITY.

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• Document Creation Date: December 14, 2016
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• Publication Date: February 16, 1954
• Content Type: REPORT

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CONFIDENTIAL
I CENTRAL INTELLIGENCE AGENCY
INFORMATION REPORT
COUNTRY China
SUBJECT Monthly Bulletin No. 21, Department of Economics and ?
Political Sciences, Aurora University.
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AND 704. OF THE U.S. CODE. ITS TRANSMISSION OR REM
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DOCUMENTARY
0.
[Available on loan from the CIA Library is a photostatic copy of Monthly
Bulletin No. 21, dated October. 48, prepared by the Department of Economics
and Political Sciences, Aurora University, Shanghai. Chapter titles are
as follows:
Main Trends of China's Foreign Trade after the War.
bade between, China and the South Seas, Past and Present.
Metallic OresiniKiangsi.
ANNEX
Supplementary Methods for the Investigation and Collection of the
Income Tax on Profit-seeking Enterprises in the 37th Year of
the Chinese Republic. (Sept. 26, 1948)
Regulations Governing the Readjustment of the Capital of Private
Banks. (Sept. 6, 19)18)
Explanations of the "Regulations Governing the Readjustment of the
Capital of Private Banks". (Oct. 12, 1948)
Order of Procedure for the Readjustment of the Capital of Private
Banks. (Sept. 21, 1940)
Regulations Governing the Utilisation of that Part of the Readjusted
Capital of Private Banks which is Deposited as Cash, (Oct. 8, 1948)
Mineral Product Tax Regulations. (Feb. 5, 19)4-7)
Rules Governing the Collection of the Mineral Product Tax. (July 9, 1948)7
LjeRMY B4ECT? &AREA CODES
-end-
IDISTRISUTI0Y4 STATE .4
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751.4 IL/c
751.3 1L/c
751.215 1L/c
751.5 IL/c
751.3 IL/c(3u)(21..)
751.3 IL/c(50(HL)
751.3 IL/c(T)(si.)
751.3 IL/c(s)(DT)
751.4 11../c(3u)(214
751.4 IL/c(50(Ho
751.4 1L/C (T ) (SL)
751.4 IL/C(S)DT)
751.3 S(CL)
751.3
751.3 ,
751.3 4.1./G CCU-)
751.3 2L.CC i--)
751.3 5L (C1.2,
751.3 3u
751.3 981 L/G (di.)
751.4 13TCci-)
751.i $(CL)
751.4
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751,4 '4L/GC Li
751.4 21. (fid-)
751 .4 5L.
751 . 4 3u CCL)
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1/735.1 1931_
735.1 193L
2/735.1 11931.
4/735.1 193L
5/735.1 193L
7/735.1 193L
1/733.1 681L
733.1 '68iL
732.11 681L
1/732.11 6811..
2/732.11 681L
732.2 681L
1/732.2 681L
4/732.2 681L
732.18 681L
4/732.18 6811..
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4/732.04 6811_
1/732.04 681L
1/732.18 681L
732.14 68IL
1/731.1 681L
731.1 68IL
731.2 68IL
732.09 68IL
732.22 681L
1/734.04 68IL
2/734.04 681L
1/732.08 681L
771.21 IL/c
773.2 IL/c
774, IL/c
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UNIVERSITE CAURORE
SHANGHAI
BUREAU DE DOCUMENTATION
ICCO1161411 coturoisiO
. _
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' 'U N I V'E STrE A U
SHANGHAI
r,FACULTE DE DROIT
- SECTION DM. SCIENCES
?'? POLITIOUES IT CCONOWOUES
BUREAU DE DOCUMENTAWON
ISCONOMI( CHINGOS()
- 210 CHUNGKING NAM LU
TEL. AMID I
MONTHLY BULLZTIS
A. BONNICHON
M. THORNTON
A. SUNG CHIA.-HUAI
MICHA2L W.Y. LbE
JOHN T.S. CHEN
E. S. de BREUV1gRY
Dean of the Department of Eeonomics
and Political Sciences
. Editor
Advisory Board
Dean of the Faculty of Law
Dean of the Department of Sociology
Professor of Chinese Civil law
Research ^ssistant. Bureau de Documentation
Research Assistant. Bureau de Documentation
THIRD YEAR NI.XXI - October 20th 1948
Csntente.
DOCUNENT NOS.
105. Main Trends of China's Foreign Trade after the War.
106. Trade between China and the South Seas!, Past and Present.
107. Coal Mining and Trade in Taiwan.
STUDY NO.
XXII. .letallic Ores in Elangsi.
ANNEX NOS.
LXIII. Supplementary aethode for the investigation and Colle:
of the Income Tax on Profit-seeking Enterprises in th-
37th Year of the Chinese Republic. (Sept. 26, 1948)
LXIV. Regulations Governing the Readjustment of the Capital
of Private Banks. (Sept. 6, 1948). -
LXV. Explanations of the "Regulations Governing the Readju3t-
ment of the Capital of Private Banks". (Oct. 12, 1946)
LXVI. Order of Procedure for the Readjustment of the Capital
Cf Private Banks. (Sept. 21, 1948)
=VII. Regulations Governing the Utilisation of that Part of
the Readjusted Capital of Private Banks which is
Dep.Aited as Cash. (Oct. 8, 1948)
Mineral Product Tax Regulatione, (Feb. 5, 1947)
IXIX. . Rules Governing the Collection of the Mineral Product
Tax. (July 9, 1948)
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The MONTHLY BULLETIN is edited by the "BUREAU
DE DOCUMENTATION" of the Department of Economics and Political
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Part of the work of the "BURSail DE DOCLWENTaTiOn,
is th systeamtie filing of all articles in the chief Chinese
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LIST OF CHINESE PERIODICaLS
RcCEillE.1) aT TH:c
?BUhlaU DA LOCU-ENI,TICN-
(October 20th. 194S)
-----
MONTHLY
Agricultural Promotion
Banking Informetion
Capital Market
The Central Bank Monthly
The Chekiang Economic Review
Chemical dorld
The Farmers' Bank Monthly
The Financial Review
Flour Industry .
The Imprt-Export Monthly
The Industry & Mining Monthly
The Industry .,:onthly Magazine
The Journal of Finance & Industry
The Juristic & Economic Review of
aurera University
The Lih,Hsin Monthly Review
-
The Maritime Development .Monthly
Modern Econ.mics
The Native Bank Monthly
National heconstruction
Oriental eview
The Popular agriculture gonthiy
Ropular .dngineering
The Popular ocienee monthly
The Rural affairs monthly
Scientific China monthly
Scientific World
The Taiwan cingineering Monthly
Textile Reconstruction monthly
The Textile Review
Business World
Kung Yih Industrial & Commercial
Bulletin
The New China Magazine
itd-E'421g1ILY
The Bankers' deekly
The Central Bank Weekly
Economy Inspector
The Economic Review
The Economics deekly
The Observer
The ileekly Review of Laws
Chin Yung Jih Pao
Pod-
Nung Yeh T'ui Kuang T'ung '?:ni,t;
Yin Hang T'ung Hein)
Tzu Pen Shih Chiang)
1 Chung Yang Yin Hang Yueh Pao;
Chekiang Ching Chi)
Hua Hsueh Shih Chieh)
Chung Rung Yueh Klan)
Teal Cheng R'ing Lun,
Allen Fen Aung Yeh)
Chin Ch'u Klou Mou Yih Yue
Ki-n)
1 Kung Kiwang Yueh Klan)
Kung Yeh Yueh Klen)
Shih Yell Chin Jung)
Chen Tan Fa Lu Ching Chi Tn?
Chih)
1 Lib Hein Yueh Stan)
-Rai Chien;
Helen Tai Ching Chi)
Ch'ien Yeh Yueh Pao)
(Chung Ku-; Chien She)
Tung gang Tea Chill)
(Ta Chung Nung Yeh)
(Kung.Ch'eng Chieh;
ne Hsueh Hua Pat))
(Rung Ts'un Yueh it'an)
(ZellauehTa Chung;
{4e Hsueh Shih Chieh)
Taiwan Kung Ch'eng Chieh)
Fang Chih Chien She)
(Fang Chih Yen)
1 1i E1
Kung Shang Trien Ti)
Kung Yih Kung Shang T'ung Hein)
(Rein Chung Hwa;
WEEKLY R4ArtgAL
-1 Yin- Hang Chou Pan)
Chin Yung Chou Pao)
Ching Chi Kuan Ch'a)
Ching Chi Pling Lun)
Ching Chi Chou Pa.-::)
ruan Chia)
Fa Ling Chou Klan;
palLY PAPERS
Chung Yang Jih Pao - shang Rao - Shen Pao -
Sin Wen Pao - Ta Kung Pao
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Topic:
UNIVERSITE L'AURORE
- Shanghai-
BUREAU DE DOCUMENTATION
(Econonie Chinoise)
280 Chungking Nan Lu (Dubail)
Te1:85761-
Main Trends of China's
Foreign Trade after
the War.
Author: Chang Chun-te
Periodicals Business World
(Kung Shang T'ien Ti)
Date of Issues Sept. 5th. 1948.
Document No.1105
Natures Digest
Numtor of pages:
Remark's Original ti-
tle ies "New Trends
of China's Foreign
Trade".=
MAIN TREADS OP MU'S
FOREIGN TRADE AFTER THE UR
Civil warfare together with the unreasonable
foreign exchange rate and import control policies of the Govern-
ment have been the principal factors responsible for the great
decline in China's foreign trade since the war. The former has
affected the volume of available farm products, which used to
represent about 3/4 of the total Value of our exports; whereas the
latter -has more directly hindered the normal exchange of goods.
I. - Changes in YOreiign Trade
Caused by the Civil War.
Civil strife, converting many producing regions
into battlefields and causing disruption in communications, has
brought about far reaching effects on China's foreign trade.
Despite the fact thee a few exports in 1947 could
still maintain, or even surpass, their prewar level, a general
depression was seen in the export trade. Th t quantity of egg pro-
ducts, leather and cereals exported in 1947 had decreased by several
times as compared with prewar years. Tobacco, cotton and coal which
used to be exported on large scale before the war, became the
country's main import items in 1947, though meagre amounts continued
to be shipped abroad in that year (See Table I below).
Where production was not affected by the civil wart
as up to 1947 in the recovered North-East, and in the Taiwan island
ever since its emancipation from Japanese domination, exports which
were negligible in Chinese trade in 'prewar time become major items
in 1947. Thus the export of soya beans from China was 60,000 quin.
tale in 1936 and 10 times as much in 1947, similarly sugar rose from
200 quintals to 86,000 quintals. Since the North-East has fallen
into the Communist's' hands, however, the export of :soya beans has
spin diminished.
??????????....
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Table
Chinese Exports
Item
Pigs
Bristles
Dried Egg Albumen &Yolk
/Frozen Eggs
Fresh Eggs
Pig's -Intestines
Dry and Wet, Salted &
Unsalted Cos Hides
Untanned Goat Skins
Tanned and Untanned
Lamb Skins
Groundnut Oil
Shelled Groundnuts
Black Tea
Green Tea
Sugar
Soya Beans
Wood Oil
Tobacco
Coal
Raw Cotton
Ramie
White Raw Silk
(Steam Filature)
Cotton Yarn
Shirtings & Sheeting.
Silk Piece Goods
Wolfram
Regulus Antimony
Tin Ingots
I. Comparison between
in 1936 & in 1947.
1947
319,000
52,648 quintals
91,457
404,028
380,021,000
29,970 quintals
103,866 ?
8,105,000 sheets
1,994,000 ?
311,084 quintals
. 446,416 ?
96,030 ?
155,931 ?
269 ?
61,591 "
863,383 "
172,007 ?
1,324,544 m. tons
368,426 quTals
197,427
27,908 m
86,807 n
44,108 ?
4,272 ?
70,499 ?
131,675 n
112,804 "
477,000
44,352 quintals
534
35,164 ?
139,867,000
8,472 quintals
671 ?
1,463,000 sheets
608,000 ?
22,788 quintals
11
103,170
53,479
11
93,198
85,660
0
604,158
Ii
805,373
5,239
16,154 m. tons
4 quintals
1,557 H
3,909
34,842
57,416
910
61,086
11
85,249
11
41,150
The oivil war has also greatly affected China's
imports. AA already stated China has now to depend more and more
on foreign countries for many of Mr former main agricultural
products. The comparative size of the import of gasoline, diesel
oil and banknote paper has also increased. Whereas in 1947 the
aggregate import value of raw cotton, tobacco, rice, wheat, wool,
gasoline, diesel oil and banknote paper represented only a little
more than 1/2 of the total value of Chinese imports, they made up
over 1,/3 in the months January-April 1948.
Table II. Percentages
in the
1947 and
1,123
of Main Items
Total Imports for
Jan.-April 1948.
--1.2Z_TotellaRRqrta__
1947 Jan.-April 1948
Raw Cotton
0.9
9.2
Tobacco
0.5
2.7
Rice, Wheat and Wheat Flour
0.7
6.0
Wool .
1.1
2.1
Gasoline
0.54
5.9
Diesel Oil
0.46
6.9
Drawing & Bank-note Paper
0.02
1.9
TOTAL:
4.,ag
34
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There is another aspect of the trade problem which
deservee our attention. The foreign trade of North China having
been stifled by the battles raging there, the trade centre ie moving
towards the South. Thus the percentages in China's importp and
exports representing the northern ports of Ch'inhuangtao and Tien-
tsin are steadily shrinkingj while those related to the southern
porta have been increasing' in Shanghai, Kaohsiung and Kowloon for
exports and in Amoy, Keelung and Swatow for imports (See Tables
III & IV below). There was, however, an exceptional drop in the
official, export figures for Canton in 1948 as compared with the
previous year, but this fact can be explained by the smuggling
activities between Canton and Hongkong.
Table II/. Percentages of China's Exports
Representing Various Ports for
the Periods Jan.-May 1947 and
Jan.-May 1948.
L2E1
Jan.-MAY 1947an....12zia_Y-19.41i
5.88
Ch/inhuangtao
0.20
Tientsin
10.44
7.60
Teingtao
1.37
1.26
Shanghai
47.93
62.26
Foochow
0.22
0.20
Amoy
0.73
0.21
Keelung
2.17
0.97
Kaoheiung.
1.68
6.27
Swatow
2.16
1.99
Canton
13.72
7.68
Kowloon
6.22
9.56
Table IV.
Percentages of China's Imports
Representing
the
Jan.
29EI
Various
Periods Jan.-May
-May 1948.
Jan.-Max 1917
Ports for
1947 and
Jan.-May 1948
Ch'inhuangtao
1.59
0.78
Tientsin
6.13
2.48
Tsingtao
1.39
1.30
Shanghai
79.38
79.18
Foochow
0.07
0.10
Amoy
0.38
1.86
Keelung
0.24
2.80
Swatow
0.95
1.12
Canton
4.60
3.52
Kowloon
4.05
3.57
M
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II. - Foreign Trado Sacrificed to Finance.
It may be said that in the economic conditions of
the past few years, the Government's foreign exchange and foreign
trade policies have been motivated almost exclusively by consider-
ations of national finance. The Celitral Bank fixed the foreign
exchange rate at an extremely low level, with the purpose of arti-
fioially raising the external value of the Chinese dollar,.while
the activities of the Central Trust in monopolising the exports,
and the strict control exercised by the Import-Export Board have
been aimed at securing foreign exchange for Government needs and at
curtailing its expenditure whatever may be the consequences for the
normal ohanwas of trading activities.
There is no doubt that the unreasonably 7..)%v ex-
change rate has had an adverse effect on China's export txade.
The exports dropped from a monthly average of US$19,200,000 in
1947 to one of US$16,500,000 ring January-May 1948. Though
relative improvement was witnesseQ in March-May 1948, this was
mainly due to seasonal movements as exports of agricy:tural products
usually increase in spring and summer. Another re:ay.: for this
slight improvement was that the Government undertool huge amounts
of exports at conditions which, though uneconomical in the classic
sense, could offset the hindrances imposed by the unfavourable
exchange rate.
Conversely, exports improved whenever the exchange,
rate was readjusted to higher levels. The experience of June 1948
is a good instance of this matter: as a result of the introduction
of the new "foreign exchange certificate system" which actually
raised the exchange rate, the export value increased to nearly
U8$20,000,000 in that month. But it dropped again in July to
US$18,000,000 owing to the new and growing gap between official
and black market rates.
. As has been mentioned before, the Chinese Govern-
ment has continually out down the import quota with the purpose of
saving foreign exchange. Fr9m Feb. 1947 to July 1948, the average
quarterly reduction was 20%.4)
Table V.
Quarter
let quarter
2nd s
3rd II
4th n
0th2)
loth s
I'
??
Import quotas for the First Six
quarters (Jan.1947 - July 1948).
1 Feb.-April 1947)
May-July 1947
Aug.-Oct.1947
ov.1947-Apr.
Feb. -apr.1948)each
say-July 1948)
Reductiog
US$991700,000
0
72,600,000
27;1
67,900,000
53,400,000
21g
averaging 36 700,000 30%
?
EDITOR'S NOTE: 1) The import quotas for the 7th and 8th quarters
actetally approved by the Executive Yuan on Sept.
15th 1948, totalled US$42,141,000, showing a re-
duction of nearly 43% as compared with the aggre-
gate appropriation for the previous 2 quarters.
NOTE: 2) It may be pointed out that goasoline, diesel oil and tobacco
were listed under items of U.S. Aid in the import quota for
the fifth quarter (Feb.-Apr.1948). Since they constituted
44.7% of the fifth quarterly quota, the actual amount of
permitted imports was only US$20,300,000, or approximately
US$6,800,000 per month.
?
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Before September 1947, imports were comparatively
free from control and were undertaken in large quantities; their
value averaged US#45,000,000 monthly during the first eight months
of 1947, and was US459,000,000 in July and US453,000,000 in August.
The figures descended sharply, however, after the enforcement of
the import quota system. They went down to US#34,000,000 in Sept-
ember and US$22,000,000 in December, the monthly average for the
period September-December being US$29,000,000. The situation was
at its worst in February 1948 when only US414,000,000 worth of
incoming shipments were reported. The meagre increase in the
following months was due to the Government rather than to Orders
from private firms. This may be seen from the fact that the chief
items which recorded a rise, were, on the one aide, foodstuffs,
Cotton and fertilisers, all imported by the Government, and on
the other, diesel oil and gasoline which had been put under the
management of the Government-operated China Petroleum Corporation
and of a few foreign firms.
It must be admitted that the Government's strict
impart control has brought some improvement in the trade balance.
The trade deficit of China during 1947 amounted to US$250,000.000,
averaging usao,eomoo per month for the whole year and US*19,00.,,
000 during the period January-May 1947; while in the same period
January-May in 1948 it was only US$8,300,000.
1
It is interesting to note in this reapect that .
although the trade returns of the Chinese Customs' showed trade
deficits, the Import-EXport Board reported a favourable balance.
Imports inside and outside the scope of the quota approved by the
Lpport-Export Board, aggregated US#9,921,000 in May and US$7,921,000
in June 1948 (see Table VI below), whereas according to incomplete
figures issued by the same Board, the Government's intake of foreign
exchange derived from exports approximated to US$16,000,000 in May
and US#20,000,000 in June, thus netting a gain of US$6,000,000 in
the former month and of US$12,000,000 in the latter.
Table VI. Foreign Exchanoe Granted for Imports
during the Months Jan.-June 1948.
MorIth
released
Schedule II
by the Import
Schedule I and
?chedule III (A
-Export Board
Zotal
January
US#10,233,000
US$2,101,000
US$12,334.0P0
February
8,351,000
2,957,000
11,288,000
March
6,178,000
2,532,000
8,710,000
April
11,584,000
2,412,000
13,996,000
May
8,508,000
1,413,000
9,921,000
June
6,632,000
1,289,000
7,921,000
TOTAL
51,486,000
12,684,000
64,170,000
MOnthly Average
8,581,000
2,114,000
10,695,000
However, this improvement in the trade balance,
was only achieved through sacrificing the country's needs. As a
result of import restrictions, the prices of many important neoes-
sities imported from abrOad, rose higher than other oommodity
prices. For instance, white newsprint costing only CN$3.00 par
ream before the War, *eared to CN#47,000,000 in Shanghai at the
beginning of August 1948, i.e. 15,700,000 times higher; and the
prices of metals at about the sane time were 8,900,000 times their
prewar level. Meanwhile the contemporary index number of general
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4
wholesale prices in the eity, ao oomoiled to, the China Institute cf
Economics; was only 5,500,00o. Another coneequenoe was that many
industrial enterprises in this 000ntry handiapped by the shorace
of raw materials, had to reduoe tie scale of their operations or
suspend business altogether
Things roo.m.. eocn a lce.2 stage that the
Government itself began to roaOise %hat new measures should be
taken to break the deadlook, o..0 undersi.:ed howover that any
new move should not rick curt.ailirg the GovernmeLt:s foreign ex- ?
change resources, nco be allowed ti stimu',.ate bio-;k market operator
in gold and U.S. currency ncs, Tins, impoot-exoort linking uro-
posals were rebuked as 1.o;.ndering the_oveonment from increasing
ite disponible currency, while impore aga).no'; psymonO with self-
provided foreign exchange we:toe c:ins;?iesed y the ':overnment autn,-
rities as a. emptation to black-malketing greo,nbacks
After many d.?lbtraA,:ori, -.1e*Go-:ernmont promul-
gated on July 30th, lO4e, the Measuoen for .AppAinat:.ors to impor-;
Capital Held by Overseas Chioote co. captal 7.M.d Abroad by Cnineso
Nationals for Investing in Home P.roduitive EnLerorisos. Anc,)oding
to these Measures, proof had to .3e estaoliohed t?:iat the capital
concerned really belonged 9--erim%al .ThOnese: or in the case e.r
deposits made abroad by Chineoe :latonals certificates had
obtained ?that they had been lodioed in foreign beoks before June i/Ith
1948. With this new set of measre..i the :Ito7.ernment expected a
forthcoming supply of raw materials sufficient for 6 months'
requirements without incurring the dangers allnded to. -Too many
difficulties were involved in this device and it proved of no avail.
III. - Concentration of Export Business.
The third f-,..ature of the Mineee Foreign Trade .
since the war has been the nature of 1;11, exporL business.
A common practice among expertars has been to
hoard export commodities hen the exchange rate was unfavourable
and to ship them at once as soon as the rate was revised, This,
however, could only be done by firms disposing of a large capital
and thus the smaller ones were pr000nssioely e'liminated. Smuggling
also could be successfully carried on only with he backing of a
few magnates usually associated with powerful c2.iqu6s.
Such a de facto monopoly gave the remaining
exporters the power to control prices of export commodities at hors
and thus to rep huge additional profits. Tea from T'unch'i and
Chlouchen for instance was contracted at US10,50 per pound C.I.F.
North Africa a short time agog yet tea eiporters' firms consented
to pay only US0.30 per pound F.0,B.. Shanghai, The same happens
to bristles whose prices at home are many a time heavily cut down.
This is of course very detrimental to the production of goods
destined for export and to the 'arm ezonomy as a whole.
As already Mentioned, the Government has been under-
taking exports on a large scale, it activities not being hindered
by the low foreign exchange rate fixed by ths Central Bank. It
must be noted in this respect that while some exports can he undPr
taken by private exporters, others are completely reserved to the
Government, such as cotton yarn, cotton oiece goods, mineral pro-
ducts, soya beans from the North-east and sugar and camphor from
Taiwan.
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wholesale prices in tie eety, ae com.;eled ty the China Institete GI*
Economics, was only 6.6047eCeo- Anoteor coneequeeee was that XanY
industrial enterprises in thee eoontry handi...apped.tee the sherAtee
of raw materials, had to reduce rseeee of their eperatiens ue
suspend bueinees altogether.
leeege e ...3 a a:stage that the
Government itself began te ecaeise ei.t new esasures should be
taken to break the deadlook. ).ete underatend however that any
new move should not rtek cureaelirg the 3cetenmeee's foreign ex-
change resources, nce be allewed ei stemueats eleek maeket operatfnee
in gold and U.S. currency ect4s, ireocet-exeort linking pre-
pose's were rebuked as heedeleng teaeceeeemen.; from increasing
its disponible currency, while impur'e agene'; par.:en': with self-
provided foreign exceange weeeC ms 4 Me eeeernment auea..-
rities as a %empeatLon to black-Telkeeing L.: greerfeecks
After many deleeete;:ee, eweeeeenment promul-
gated on July 30th, lel?, eht liessuete fee epplicaeeere to imecre
Capital Held by Oeersese Chi:lett ce caettae leld Atread by Cninesi
Nationals for Investing in Nemo P.roducttee YelLeeerises. eaceeding
to these Measures; proof had te este: 1:ahee !eeit the eapital
concerned really belonged .Theeeeee; er en the ceee ee
deposits made abroad by chine ee 'a,..enals- certiff.caeee had
obtained that that they at b2en ledeed en foeeign balks tefoet Jun.! eeth
1948. With this new see of measeree. tee eevernietne expeeted
forthcoming supply of raw maecriels euffeeient fer C menthe'
requirements without incereing the eaugers aleedee to. Too many
difficulties were involved in this device and it preyed of no avail.
III. - Concentration cf Export Business.
The third f,atuel cf the ehinse ereign Trade
since the war has been the natere f th... teepee:. 1.-eeiness.
A common practice among expereers has been to
hoard export commoditieseehen the exchange rate was unfavourable
and to ship them at once as soon as tht raze wee revised. This,
however, could only be done by firms despoeing of a large capital
and thus the smaller ones were proeeensieely eeeednated. Smuggling
also could be successfully caeried on enly with the backing of a
few magnates ueually associated with pewerful cliques.
Such a de facto monopoly gave the remaining
exporters the power to centrol prices of export commodities at hove
and thus to reep huge additional profits. Tea from T'unch'i and
Chtouchen for instance was contracted at USe0,50 per pound C.I.F.
North Africa a short time ago; yet tea eXporters' firms consented
to pay only US$0.30 per pound F.O.B. shanghai. The same happens
to bristles whose prices at home are Lally a te me heavily cut down.
This is of course very detrimental eo the production of goods
destined for export and to the eerm ezenomy as a whole.
As already mentioned, the Government has been under-
taking exports on a large scale, its activities net being hindered
by the low foreign exchange rate fixed by thR Central Bank. It
must be noted in this respect that while some exports can he ender.
taken by private expertars, others are coepleeely reserved to the
Government, such as cotton yarn, cotton eicce goods, nineral pro-
ducts, ooya beans from the Noeth-east and sugar and camphor from
Taiwan.
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The same phenomenon of concentration has been
witnessed in the import field. large prtion of the business
has been monopolised by the Government-, while the greater part of
the inporta accessible to private concerns have been eared among
a few privileged merchants and foreign firms.
Among importers to whom foreign exchange was
granted by the Import-Export Board for the month of March 1948
under Schedule II, 6 firms got appropriations totalling US#3,290,000,
or nearly 53.3% of the total import quota. Of these 6 firms, only
one waa Chinese, i.e. the Government-operated China Petroleum
Corporation, while the rest were all foreign companies. Again, in
April of the same year, 7 firma shared altogether 42.3% of the
total quota; and though 4 of these firma were Chinese, viz. the
Central Trust, China Textile Industries Inc., China Petroleuk.
Corporation and the Chung Hwa Boox Company, they received only
one half as much as the 3 foreign firma.
The same thing happened in the distribution of
permits for non-quota imports undvr Schedule I and Schedule III (A).
Although 100 firma were granted foreign exchange for these items in
the month of March 1948, 15 of them aggregated US$626,000 or about
24.7% of the total; of these firms, 11 were owned by foreigner?
and secured US$430,000, while 4 Chinese firms, the Government-
operated China Vegetable Oil Corperation, Hai-Nan Railway and
Mining Company, China Textile Machinery Company, and Hai Hain
Development Corporation, were allotted US$230,000. Again, in
April 8 firms received a total allotment amounting to US$245,000
or about 13.1% of the total amount under Schedule I and Schedule
LII (4). Of this amount of US$245,000, US4117,000 was shared by
4 Chinese companies, the China Vegetable Oil Corporation, the Tai-
wan Aluminium Company, the Yung Hua Coal Mining Company, and the
China Portland Cement Company, and the rest was granted to foreign
firms. ,
According to the Far Eastern Economic Review,
"imports undertaken by private concerns represented only 30% of
the total imports in the first quarter of 1948, while private
exports made up only 20% of the total exports during that same
period". 51pch is the magnitues of the Government's interference
with the foreign trade of our country.
The foregoing analysis, however, has not shown
all the aspects of the monopolisation of foreign trade by bureau-
cratic and foreign capital, for this hsa also infiltrated into
some private factories and it is no easy task to make an estimate
Of it. Furthermore, with the newly activ-ated U.S.Aid, the trend
of concentration is becoming even more acute, as foreign firms
alone are said to be entrusted with the import of supplies coming
under the agreement.
( End )
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UMIYERSITE l'AUROBE
-Shanghai-
BUREAU DE DOCUMENTATION
(Economies Chinoise)
Topic:
Authors
Periodical:
Date of Issue:
280 Chungking Nan Lu (Dubail)
Tel :85761
Trade between China and the
South Seas,Paet and Present
Chou En-Jung
New China Magazine
(Ham n Chung Hua)
July 16, 1948.
Document No: 106
Nature: Translation
Number of pages: 10
TRADE BETWEEN CHINA AND THE SOUTH SEAS,
PAST AND PRESENT
?
Although the Peace Treaty with Japan has not yet
been concluded, the third year'after the war has seen the re-
opening of Japanese private trade by SCAP on Aug. 15, 1947, in
epits of strong remonstrances, and the jarticel recovery of her
South Seas markets. As a retaliatory measure against this policy,
the Chinese of these countries have started a movement there to
boycott Japanese goods.
The South Sea Ian* with their tropical or sub-
tropical climate, abundant rainfall and fertile soils, produce
many valuable exports, such as coconuts, rubber, hemp, sugar, rice,
cosoa, and pepper which, together with tin and petroleum, are
exChanged for daily necessities and manufactured goods from all
?seer the w4r1d. With such valuable natural resources it is no
wonder that these countries, with their population of 130 million,
have tempted the cupidity of colonizing powers.
As early as the Ts'ing and Han Dynasties Chinese
were migrating to the South Seas where their industry built up a
solid economic foundation. The tradition has been continuous and
even to-day, in the Dutch East Indies, Malaya and the Philippines
most of the merchants, both wholesale and retail, are Chinese.
Penetratimg deep into the countryside they exchange Chinese goods
for the products of the native villages which they then ship to
their home markets in an ever increasing trade.
I. - Before the War. ?
In spite of its long history, before the war
China's trade with the South Seas was kept on a comparatively
small scale,by the active competition oS Great Britain, the USA,
Holland and Japan.
1) IN THE PHILIPPINES, both export and import trade
were mainly with the USA, in virtue of a preferential trade agree- ?
went. After 1933, Japanese imports were on the increase, and only
a small percentage of trade fell to China, which ranked after the
USA, Japan and Great Britain, while the Philippines ranked tenth
among the countries exporting to China. The balance of trade was
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favourable to China, whose exports, from 1934 to 1941 axceeded
her inverts by about C1413,(62,000 per yqar.
These exports consisted mainly of textile geode,
including fibres, cotton piece goods, yarn, thread and knitted goods;
foodstuffs, largely eggs and egg products, ham and bacon, of which
the Philippines took 30f; of Chinn ,s total export, and lard; coal
and other fuels and vegetable oii. In retarn China received most
of her supply of raw heev, together with timber, sugar, melasses,
coconut oil, fruits and tobacco.
2) THE DUTCH EhST INMaAS supplied 6% of China's
total imports: coning after ysil, Japan, Great Britain and Germany;
while China only supplied aa of the im,nrts into the Dutch East
Indies, ranking eighth woong the importing nations. The balanae
.of trade was therefore unfavourable to China waieh piled up a trade
deficit amounting to 436,4a1,525 customs ail7er taels in the years
between the inauguration of the Chinese Oustomul service in 1868,
- and 1933. This continuous de:. was counterbalanced, howe7er,
by Che remittances of oversee. Chinese settled in the East Indies.
China's principal exports were cotter, goods, beverages and foods,
with considerable quantities also pf enina and earthenware, paper,
timber, wooden wares, chemical products, machinery and tools. '
From the outbreak of the Sino-Jnpanese War until
1941, the Butch East Indies imported large qmantitien of Chinese
cdtton yarn, for whinh there was a steady market in the Java and
"Matulaa region. Textiles imported were mainly jean, sheetings
and native cloth, with increacing supplies of towels, socks and
underwear, both for natives and for local Chinese. The latter
were the chief importers Cf foodstuffs such as meat, dried vege-
tables, frenh and dried fruits and tea) and also of firecrackers
and tinfoil. In return the lutch East Indies exported to China
in 1938, 67.6% of its petroleum which fell to 66.9% in 1939, ani
54.8% in 1940. Other exports were eugar, petroleum products,
quinine, kapok and pepper.
3) MALAYA was one of Chinas largest customers,
taking much more than she sold, so that the balance of trade was
favourable to China until 1933. She imported fGods, including
animals and animal products, vegetables, fresh and dried fruits,
fish, seeds, wine, tea, drugs and spines; textile products such as
cotton piece goods, yarn and thread; paper and tinfoil; china,
chemicals, leather and leather goods. Exports were chiefly rubber,
foodstuffs, innluding beverages and eea food, pepper, timber, tin,
paints and t'es.
4) INMOCHINa maintained a favourable balance of
trade against China, owing to 'alr,bulk experts of rice and to the
keen competition of Torench goods. China's trade deficit averaged
13,184,000 customs gold units from 1934 to 1938) but she had a
favourable balance of 16,610,000 CGU. in 1939 and of 34,319,000
in 1940. Her chief imports were rice and coal, for Which during
the war years Indo-China was almost her only entropot and source
of supply, cement and fish. in return she exported ectton goods.,
vegetables, paper, wheat flour, tea, fauitn, segar ant tobacco,
with small quantities of raw silk and sponge.
5) SIA.d. The trade between China and Siam has
always been small, averaging 10,000,000 customs silver taels in 1932
and between 12 and 16 million customs gold units from 1935-39. It
was also one-sided-, ,?,nsisting a]most entarely of Siamese rice
which made up 88.4lc. of the imports, with another 5.7a% teak and
other timber. Chinese exports, mainly cotton yarn, cotton goods,
?
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vegetables, fruits-and_paperI--anar-averaged a total -falue_of 3 to
5 million (materna gold units, no that from 1935-1939 she had an
average annual trade deficit of 6,483,000 customs gold unil:s.
6) BURMA. China's trade with 3urma has also
been small in volume, averaging less than 1% cf her total foreign
trade up to 1939 though there has been a slight increase since
then. It is of much the same type as the Siamese trade: imports
of rice and timber set off by small quantities of silk and cotton
goods and foodstuffs for the use of the overseas Chinese.
7) HONGKONG has always been a very important
entrepot and transhipment centre not only for British goods but
also for foodstuffs from South East Asia destined for China.
Before the war it dealt with 30$ of China's total exports, mainly
seeds, mineral ores, vegetables and vegetable products, silk and
cotton piece goods, drugs and spices, raw silk, peanut ell, tung
oil, lard, livestock and fresh and dried fruits. In return China
imported through Hongkong manufactured goods such as metal goods
and machinery, chemicals and woollen goods, sea products, cereals,
books and paper, maintaining however a favourable balance of trade.
8) BRITISH NORTH BORNEO. Trade with British
North Borneo was controlled by the North Borneo Trade Company and
the population there is scanty and undeveloped, so that the volume
of trade has never been large and the balance has been unfavourable
to China, in return for timber and mineral oil she exports mainly
vegetables, stoneware and earthenware with a few miscellaneous
trade goods.
II. - The Years 1946 and 1947.
Trade with the South Seas, suspended during the
war, has revived underfnew conditions, since the colonies have all
been fighting for their independence from the war exhausted coun-
tries of Europe, China }As need to exert herself if she lo to
regain her prewar markets. Sinoe the war her trade has been chiefly
with Hongkong, Singapore and the Philippines. In 1946 over 50%
of her imports from the South, with a value of CNI67,220,125,000,
came from Hongkong, 23% come from Malaya by way of Singapore and
the rest from the Philippines, Siam, Burma, the Dutch East Indies
& Borneo. Her exports for the same year were valued at
ON1146,099.,000,000, 79.68% going to Hongkong; 6.7% to Singapore
and 3.7% to the Philippines. Exports to Perth Borneo totalled
only C1435,000.
In 1947 the South Seas supplied about 8.6% of
China's total imports. Out of a total of CN$920,365,578,000,
38.58% came from Singapore, and 21.32% from Hongkong. Exports
increased from 33.02% of her total exports in 1946 to 44.65% in
1947. 76.64%, with a value of C1424179,373,506,000, went to
Hongkong; 7.55% to the Philippines; 6.86% to Siam; 5.95% to Singa-
pore; 2.07% to the Dutch East Indies; 0.62% to Burma; 0.4% to Indo-
China and to North Borneo only two thirds of the preceding.year's
amount.
If the South Seas trade itt taken as a whole,
China's trade balance was favourable in both years, with an expor-1
surplus of CN#16,635,719,000 in 1946 and CN#1,926,970,003.000 in
1947. If however the trade with each place iseconsidered separately,
she had a favourable balance only with Hongkong in 1946, and with
Hongkong, the Philippines & Siam in 1947. With Singapore her trade
deficit in 1947 amounted to nearly OP4184,000,000,000.
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?
The following table shows-the actual values of
China's South Seas trade in 1946 & 1947, and their relation to the
total volume of her exports and imports.
Burma
Imports from
Exports to
Balance
Indo-China
Imports from
Exports to
Balance
Siam
Imports
Exports
Balance
Hongkong
Imports
Exports
Balance
worth Borneo
Imports from
Exports to
Balance ( -)
toh East Indies
mi
. Imports from
. Exports to
Balance
ngapore
Imports
Exports
. Balance (")
Philippines
?Imports from
Exports to
iBalance
JUL:
Imports
Exports
Favorable trade
balance for China
from
to
from
to
( - )
( - )
( + )
from
to
(-)
Remarks:
1V6
Value % of total
1242
Velue $ of total
ln CNS1.00Q trade
In C141.000 trade
of Ching
of China
1,489,738
0.10
119,364,944
1.12
635,196
0.15
17,764,027
0.28
854,542
(-)
101,600,917
9,377,344
0.26
43,126,387
0.40
1,063,910
0.62
11,530,349
0.18
8,313,434
(-)
21,596,038
6,640,631
0.44
76,856,107
0.72
2,635,913
0.64
195,394,556
06
4,004,718
(+)
118,538,449
67,220,723
4.48
196,271,026
1.84
116,415,863
28.25
2,179,373,506
34.16
49,195,140
( + )
1,983,102,481
1,423,582
0.10
25,778,176
(624
38
22,070
1,423,549
(-)
25,756,166
5,051,291
0.34
92,165,466
0.86
130,194
0.03
59,151,442
0.93
,
4,921,097
( - )
33,014,024
30,383,722
2.02
353,309,784
3.31
9,801,6*/3
20,582,049
2.3E1
C-)
169,624,339
183,685,445
2.66
7,876,699
0.52
13,493,68%
0.13
5,416,667
1.31
214,475,292
3.36
2,460.032
(+)
200,981,603
129,463,730
8.62
920,365,578
8.62
146,099,449
33.02
2,847,335,581
44.65
16,635,719
1,926,970,003
Source of material: Returns of
published by the Chinese
trade deficit.
favorable trade balance.
Foreign Trade of China,
Customs House.
The goods exchanged since the war between China and
the South Seas are almost the same as before the war since both
demand and produotion have changed very little. Cotton products
have been exported in greater quantity however, owing to the .rapid
development of the Chinese textile industry, and in 1946 textile
fibres, yarn, thread, piece goods; knitted goods and other textile
products made up 34.31% of the exports to the South Seas, increasing
to 53.58% in 1947. This represented 25.21% of China's total export
of textiles in 1946 and 37.93% in 1947. 60% of these exports of
textiles went to Hongkong. ?
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The principal other productsexported to the South
Seas in 1947 and the relatively fe* imports are shown ia the
following Tables.
Item
allga
in CN41.000
% in China's
Remark'
Totalpsport
of Said Item
Oils & Waxes
528,346,188
43.23
95% to Hongkong
Animals & Animal
463,216,180
38.92
Largely to
Products
Hongkong
Metals, Mineral
109,862,751
32.04
Orea & Metalware
Fresh & Dried Bruits
68,802,499
96.95
Largely to
Hongkong
Vegetables
64,119,879
93.77
Paper (including
34,143,203
91.83
tin-foil)
Since imports from the South Seas was not active,
the varieties of goods were limited. The following table shows,
by order of their importance, some of the main items and their
values
Item Valuq ,Z in China's
in CNS1.000
Total Import
of Said Item
Candles, Soap, Oils;
and Fats
237-073,774
14.00
Rice
196,780,288
56.54
Hemp and Manufactures
thereof
193,401,943
84.1
Metals, Mineral Ores,
46,308,735
58.50
? and Metalware
Medicinal Substances
and Spices
20,754,149
73,49
Geographically, historically and economically it
seems obvious that trade should develop between the tropical ,newly
developed States of the South Seas, as yet without industries and
temperate China with her urgent need for large quantities of rubbers
petroleum, iron, coconut oil and rice. Another factor is the
presence of 10 million Chinese among the 150 million population of
the South Seas. Growing industrialisation on both sides, with a
consequent rise in the standard of living, will only inorease the
possibilities for mutual trade.
III. - Competition with Japan and Measures
necessary to meet it.
Though the breaking up of the prewar
South Seas trade, which was dominated by Great Britain and Japan,
has in scme ways created a situation favourable to China, there are
still many difficulties to be '.'aced. The independence of India
and Burma, together with her internal problems, has reduced Bri+ish
trade, now confined to Malaya and Hongkong, far below its prewar
levels but Japan remains a formidable rival. The formidable trade
deficit resulting from her heavy imports from America were formerly
set off by trade with the South Seas, her most important foreign
market. Since her defeat,although no Peace Treaty has yet been
signed, Japan has already resumed her foreign trade, in the form
of international barter in September 1945, and by the revival of
private foreign trade on August 15th 1947. For the past year and
- -
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a half from 60 to 75% of Japan's exports have been sent to Asiatic
countries; principally in the South Seas. In 1947 20% of her total
exports went to the Dutch East Indies and the percentage doubled
in January 1948. These exports were mainly textile produnts but
also comprised large quantities of clothing, glassware, porcelain,
enamelled goods, stationery, metalware, toys, sea products and
industrial raw materials, all at low prices.
Under American protection Japan is aiming at still
further development of her South Seas trades 52% of her exiorts are,
according to plan, to be sent to the U.S.A. and China, the entire
remainder, 48%, to the South Seas. From an estimated total pro-
duotion for 1948 of 1,100,000 400-pound bales of ootton yarn,
900,000 bales are destined for the Dutch East Indies, Siam and
India. Textile products ace estimated at 50.6% of the total
exports the first year, and 40.6% of the second.
Sinoe the exports of China and Japan cover
practically the same items, their trade comes into direct conflict,
and if definite plans are not made and put into effect China may
lose her markets.
The following measures are suggested as most
essential:-
1. The Government should change ito present neglect of the South
Seas trade for encouragement expressed in a definite long
term trade plan and policy.
2. Protest should be made against any help being given by the
U.S.A. to Japan to pnable her to gain the South Seas market
against the interest of allied nations.
3. Chinese resident in the South Seas should be helped to re-
build their business and also used as agents to extend
Chinese trade among the villages. The native peoples should
also be helped to increase their production and so raise
their purchasing power.
4, Chinose products should be standardised in quality and size
and adapted in form and colour to the demand of the South
Seas markets.
5. Prices should be kept low, both by diminishing production
posts and by being content with smaller profits until trade
14 well established. The Japanese gained the South Seas
markets by working on the principle that where purchasing
power is low the cheapness of the goods offered is more
important that', their quality.
6. The Government should develop the shipping facilities to
the South Seas in order both to increase the freightage and
lower its cost.
Annexed Tables....
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A,NNEXED TABLES
(Unit CN41,00))
i) The Philippines
Exports to China:
1946
Most Important Items
Hides,Leather &
Animal Produets 1,049,540
Miscellaneous
Metalware 886,169
Metals & Mineral ores 814,510
Total Exports:
7,976,699
1947
Most Important Items
Hemp & Manufactures
thereof 4,263,88C
Machinery & Tools 2,619,202
Vehlolec &
Vessels 1,498,503
Total Ekports:
13,493,689
Imports from Chinas
1947
Most Important Items
Cotton Piece Goods
Other Textile Products
Animal's & Animal Products
Total Imports:
214,475,292
2) The Nten_Bast 'Wept
1946
Most Important
Candles,Soap,Oile
& Fats
Fishery & Bea
Products
Total EXportst
5,051,291
1946
Most Important
Textile Products
Yarnahread &
Knitted Goods
Total Importer
130,194
Exports to Chinas
/terse
4,141,542
619,046
103,323,212
21,741,125
21,001,448
1947
Most Important Items
Candles,ftap,Oils
& Fats
Miscellaneous
metalware
Chemicals .& Phar-
maceuticals
85,022,884
1,958,221
1,352,567
Total Exports:
92,165,466
Imports from Chinas
1947
Items Most Important Items
31,705 Yarp,Thread &
Knitted Goods
30,000 Cotton Piece
Goods
30,726,600
25,694,800
Total Imports:
59,151,442
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3) Malaya 0.noludinx Sinaincrels
1946
Most Important
Candles,Soap Oils
& Pats
Miecellansous
Goods
Fishery & Sea Pro-
duete,Timber, etc.
Total Exports:
EXporto to
Items
11,236,703
8,820,157
China:
1947
Most Important Items
Miscellaneous
Goods 181,715,310
Candles,Soap,Oile
& Pate 117,794,684
Medicinal Substances
& Spicea 10,361,166
Timber 8,046,413
Dyes & Paints 6,502,231
Total Sxperts:
30,383,722 363,309,784
Import. from China:
1946 1947
Most Important Items Most Important Itemo
Paper 1,499,507 Cotton Piece
Vegetables 1,206,965 Goods 41,677,592
Textile Productsoto. Yarn,Thread, &
Knitted Goods
33,409,493
Paper
13,403,285
Sugar
11,804,314
Beans
10,948,818
Vegetables
8,622,220
Total imports:
9,801,673
Zvi/Shins:
1946
Most Important
Mee & Other
Cereals
Coal & 3Uels
Export, to
Items
Total Exports:
90779344
1946
Most Important
Madieinal Subs-
tances & Spices
Textile Fibres
5,088,416
621,482
Imports
Items
Total Imports'
1,063,910
Total Imports:
169,624,339
China:
1947
Most Important Items
Rice & Other
Cereals
Coal & Fuels
Misoellaneous
Goods
Medicinal Subs-
tances & Spica
Total Exports:
43,126,387
from China:
15,243,825
12,441,697
7,511,426
3,147,786
1947
Most Important Items
Animals & Animal
429,801 Products 3,401,84c
109,051 Cotton Yarnahread
& Knitted Goode $2,600,570
Textile Fibres 2,597,955
Miscellaneous- Goods 496,134
Total Imports:
11,530,349
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Exports to China:
1946 1947
Most Important Items Most Important Items
Cereals & Ylour 3,824,753 Cereals 62,798,037
Timber 852,106 Timber 4,676,983
Candles,SoappOils
& Flats 4,50/,521
Total Uportes Total Ekports:
6,640,631 76,856,107
1946
Most Important
Cotton Piece Goods
Paper
Textile Products
Total Imports:
2,636,913
6) Dam:
/mporte from China:
1947
Items Most Important Items
388,537 Cotton Yarn,Thread
326,516 & Knitted Goods 151,512,869
312,226 Cotton Piece Goods 23,338,345
Other Textile
Products 4,993,202
Vegetables 3,177,751
Paper 2,347,214
Total Imports:
195,394,556
Exports to China:
1946 1947
Most Important Items Most Important Items
Cotton, Yarn & Rice 109,309,441
Thread 1,067,241 Cotton, Yarn &
Rioe 19,826 Thread 8,048,781
Timber 1,142,389
Total Exports: Total EXports:
119,364,944
1,489,738
1946
Most Important
Textile Fibres
Total Imports:
635,196
Imports from China:
1947
Items Most Important Items
415,065 Metals,Mineral Ores
& Metalware 7,802,627
Textile Sibres 4,526,837
Yarn,Thread &
Knitted Goods 3,306,520
Total Imports:
17,764,027
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7) Jionakongs
1946
Most Important
Metals & Mineral
Ores
Candles,Soap,Oils
& Fats
Fishery & Sea
Products
Exports to
Items
7,743,458
5,849,988
4,239,437
China:
1947
Most Important
Miscellaneous
Goods
Metals & Mineral
Ores
Chemical & Phar-
maceuticals
Candles,Soap,Oils
& Hats
Lyes & Paints
Items
50,230,731
37,438,132
25,363,898
11,006,869
9,690,30U
Total Experts: Total Exports:
67,220,723 196,271,025
Imports from China:
1946
Most Important Items
Seeds 21,757,061
Medioinal Subs-
tances & Spices 12,795,871
Animals & Animal
Produots 11,319,290
Metalsaineral Ores
& Metal Products 10,711,748
Total Imports:
116,415,863
8) prth Borneqs
1947
Mbst Important Items
Oils& Wakes 527,817,679
Animals & Animal
Products 434,804,408
Cotton Piece Goods 345,636,140
Yern,Thread, &
Knitted Goods 211,363,557
Metals,Mineral Ores
& Metalware
Fresh & Dried
Fruits
Vegetables
Medioinal Subs-
tances & Spices
Exports to Chinas
1946
Most Important Items
Candles,Soap,Oils
& Fats
Timber
Total Exports:
1,423,582
907,919
488,805
Imports
1946
Most Important /tens
Mostly Stone,Sand
Clay & Their
Manufactures
94,523,314
56,510,664
48,835,659
44,084,343
Total Imports:
2,179,373,506
1947
Most Important Items
Candles,Soap,Oils
& Fats 17,863,366
Timber 7,019:195
Miscellaneous Goods ,-i0,814
Total Exports:
25,778,176
from China:
1947
Meet Important Items
Animal & Animal
Products 14,350
33 Vegetables 1,900
Fresh & Dried Fruitsale-
oellaneous Goods, etc..,
( End )
Total Imports:
22,070
MONTHLY BULLETIN NOMI - October 1948 - Document 106 -.page 10
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UNIVERGITE LIA
Shanghai
BUREAU DS DOCUMENTATION
(Ecorom Ch1 noise)
Topic:
Author:
Periodical;
Date of Issues
280 Chungking Nan Lu (Dubail)
Tel:85761
Coal Mining and Trade
in Taiwan
Chien Pai-yao
The Taiwan Engineering
Monthly
(Taiwan :Clang Ch'eng Chieh)
May 20th & June 20th,1948.
UR ORE
Document No.: 107
Nature: Digest
Number of bages: 17
Remarks: Original
title is "Coal
Mines in Taiwan".
COAL MINiNG AND TRADE IN TAIWaN.
Coal reserves in Taiwan aTe estimated at
400,000,000 tons, or about 1/555 of the total reserves of China.
Though this figure is not high, exploitation of
the mines has always been active. The average output of coal under
Japanese domination was 1,500,000 tons per year in prewar days or
about 1/12 that of China; it reached a.peak in 1941 with 2,850,000
tons but dropped to 1,910,000 tone in 1944, owing to shortage of
labour, capital and equipment.
The present output is approximately 1,800,000 tons
per year, the value of which reziresents over 80% of the total value
of all minerals produced in Taiwan and is equivalent to 6 times the
value of the bananas 'produced on the island, 7 times that of the
pineapples and 15 times that of the tea. Besides supplying the
Province, aoal is shipped regularly to Canton, Amoy, Foochow and
the Shanghai-Nanking areas.
It is also worth mentioning that over 40,000 per-
sons are directly engaged in coal mining and if their families and
other people more or less dependent on the business are taken into
account, the total number ip well over 600,000 or about 1/10 of the
entire population of Taiwan.
I. - Geolcgical Formation and Coal Measures.
Coal beds
are mostly found North and
lower beds lie among clay,
still, gneiss, crystalline
metamorphic character.
in Taiwan belong-to the Tertiary Era and
Wes+ nf 4h.. Central Ununtai n Range. The
slate and sandstone, and lower down
limestone and crystalline schists of a
There are three series of coal measures, containing
from 2 to 5 seams each: the upper lying 1,200 metres above the
middle and the middle 900 metres above the lower. The thickness of
the various seam is tabulated below:
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(in metres)
Measures 1st seam 2nd seam 3rd seam 4th seam 5th seam 6th seam
(upper) (lower)
Upper --- 0.39 --- 0.45 --- ---
Middle 0.24 0.30 0.39 0.60-0.90 0.37
Lower --- 0.30 0.37 0.50 0.37
The interval between the seams is from 10 to 30 m.,
while their dip varies from less than 10 to more than 80 degrees .
though it is most commonly between 20 and 35.6 degrees. 2 seams in
the upper measures are being exploited at present, 2-3 seams in the
middle measures ani 2 seams in the lower measures.
In general, the coal field sinks gradually in a
southerly direction.
The Upper Measures have a total thickness of 1.400
metres. Their strata are formed alternately of con sandstone and
shale; and since they have been much affected by weathering, a
strip of hilly terrain has resulted. The outstanding feature of
these measures is that the upper part contains white, crisp sand-
stone, with very indeterminate stratification, which is suitable
for making glass. This sandotone is especially abundant in the
Hsinchu dietri3t where its thickness reaches 100 metres. Some out-
erops occur in the Hsinchu district at Enanhsi and Nanchuang; but
it is mainly found in the Taipei district at Wnliao, Shuiliutung,
Tachli and Pachieh in the Tachli sub-district; Sanhsia in the Hai-
shan sub-district; Ankleng in the Wenshan sub-district; and Hsiehib
in the Ch'ihsing sub-district.
The Middle Measures, with a thickness of 1,500 m.,
are the most important of the three. They are well represented by
what is locally called the "Szuchiaot'ing System" to which belong
the majority of the mines under exploitation in Taipei. Above the
octal seams, at 400m. deep, is the so-called "Mankang 'sandstone",
45 in. thick, of a dark brown colour and containing limestone. The
rocks here are hard enough to withstand weathering, and many preci-
pitous cliffs have thus been formed. The lower part of the measures,
300 in. thick, oontain sandstone and shale.
The Lower Measures are 1,000 in. thick and like the
upper measures have the special feature of containing soft1White
sandstone. Their outcrops are mainly found at Shihmen and Nanku in
Panchliao; T'utzukleng in Yingkel and at Neihuhsiang and Tawulun.
The upper part of these measures lies among limestone, basalt and
tufa, while the lower part contains strata of white rough-grained
sandstones called the "Yuanshan strata", 1,000 in. thick and hard.
The outcrops of these 'Yuanshan stratdo occur half way up the Northern
elope of the Tawulun Mountain and on the Southern elope of the
Mallen. No such "Yuanshan strata" appears however* in the Hsinchu
district. The coals of these measures are very hard and suitable
for coking.
Changes in the earth's crust have caused much folding
and faulting in the various coal measures which have thus become
much more irregular than those in China Proper. The faults follow
an east-westerly direction, but their axis lies ENE-WSW, parallel
to that of the island.
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These irregula: thrust planes coupled with the
thinness of the coal layers conatitute a great handicap to pros-
pectihgand explsitation. It is, huwever, partially offset by the
relative frequency of the outcrops.
Measures ?
Taipei Region
Hsinchu Region
Total
"Upper
1 outotop
7 outcrops
8
Middle
16
7
25
Lower
9
1
9
TOTAL
25
15
40
GEOLOGICAL DISTRIBUTION OF AAIN
COAL 4:114iS IN TAIWAN
(Namesunderlined are those of the more impor-
tant mines whose reserves or output are
recorded in the subsequent tables.)
I. - UnDer Measures:
.81,stivp i Mine Location
(Sub-district)
Chinpaoli Keelung
Pate Fute Ch'ihsing
AUanhsi Lichiu Hsinchu
U Kuanhsi No.1 u
? Hsik'eng of Khanhoi u
^ Shihmen u
* Takuan ?
Shihtioushan Shiht'oushan ChunAn
0
Its
P
61
ILIAini
a
a
Viiiiiaei
P
Chutung
Amais Ohunan
II. - Middle Apaures.
9ysteM &as: ImoatkOn
(Sub-distriet)
Eteniswebiao Malien Keelung
Wanli No.1 ?
Lengshuiktu Chlihsing
? Fute
Malingkieng Keung No. Keelung
Jung9.ungkieng
Shihli ?
Patu
? Shihtslo
U Heyi No.2,
Peilang Nos. 1..11.) ?
9Ufenkteng Ohlihsing
Ssuchiaot'ing Juihek'eng Keelung
? Chlengtekleng
Yungfukleng ?
" Juifang Nos. 1. 0
Nuannuankleng
? Shihshao ?
Yuanfeng Chliheing
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8Yetem
Szuohiaot'ing
0
T'uchteng
U
to
Shantzuchiae
tt
Sanheia-Taeh'i
II
petrol
Waimushan
peit^ 'en
Nan *? ng
Tilahuangch'i
?
Ting^ tzulan
Nanshihchiat
Lowe^ r. Shantzuchiso
Pa4hi
ChentioushaA
lags
AP.cAti.IP
4.4)-4i10.7)=.t
Sungehan Ns. 1, 2, & 3 Ch'ihsing
Chinligng
Hal*PE
Tehsing
Tefelg
ILlagtRE
Huafang
Juichiang
LIMBS.
Tiaths
gushan.
Lungehlang
T'aisung
Chenshan
'renshan
rringohih
Hui ling
Yinhe
Juioan
Ch'iyi
Chlanghua
HALtilla
Ch'engfu
Hungming
iuch'eng
Lungchl
Kungt'ung
Kungiung
=IRE
Chinmin
rTigyi
Juich'un
Chaojih No.2
Ch'ichow
Yungfa
III. - Lower #easures.
? U102.
Chenhsing
YUngyu
Iuliao Nos. 1 & 2
Juiaan
=MADE
Rate
Shengheing
T'aite
Yuhsing
Tungfa
Tech'ang
WUtan
Sanheing
Ponch'iac Hoc. 1 &
FUhsing
Shihmen
T'aayuank'eng
l'utzukleng
Tafeng
Tai 'U
Paichi
11
Wenshan
Keelung
a
Jene^ hlitn
UI
Ch'ihsing
Yenohan
Haishan
II
T'acynan
Haighan
UI
Haishan
T'acpruan
0
129A0141
(Zat-clistrie.
Keelung
0
Ch'ihsing
Ch'ihsf-tg
Keelung
tl
TUI
Hsin^ chu
T1aoyuan
Haishan
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I
II. - Coal Fields and ReserTes.
There are two mai
Northern and the Southern. Taken
south-westerly direction from the
Taipei district to the Ta-an-chi
covering an area of 2,000 sq.km.
regions is 160 km., while their wi
near Keelung; 20 km. near Yingke,
near Chnnan.
n coal fields in Taiwan, the
as a whole. they stretch in a
coastal areas near Aeelun;-;i.
(River) in Hsinchu district,
The total length of the two
-.1ith is mcst variable: 35 km,
10 km. near duanhsi Rnd 20
The Northorn Coal Field consists mainly of the
Szuahiaot'ing and tie viusban systems. The former lies along the
Keelung River from Juifang to Heichih and NRnkang, the latter
along the Tsungkuan Railway, from Takanlin (N.d. of Keelung) to
Tawulun, Haientung, Luliao, Hungnei, Peshihhu, Shantzuchiao,
Shulin and Tlaoyuan Among other systems belonging to the northern?
coal field are the-T'ienliaokang, Chinpaoli and Shihti. The
Southern Coal Field comprises the Sanhsia-Tach'i, Kuanhei, Shin-
t'oushan and all other systems located in the Hsinchu district.
There ere also small coal fields scattered hra
and there, as in the districts of Taiehung (Chichitashan), TRintn
(Alishan, Kiengreitioiang & T'ainan), Kaohsiung (Ch'ishan, Hsinwei,
Lilungshan, Hengch'un & Sant'si, Tuitung, Hualien and P'enghu
(i.e. Pescadores). But whether they have economic value has ns,t
yet been ascertained.
It is estimated that the coal mining regions will
in the future occupy 733,772 hectares distributed as follows:
Taipei district
Hsinchu district
Taichung district
578,907 hectares
137,501
17,554
The mines at present under exploitation are all
located in areas north of the Ta-an River in the district of
they 04:soupy a total area of 85,032.2 hectares.
7aipeis
Approximate reserves in the various measures are
evaluated as follows:
,Meapuges
Reserves (unit: metric ton)
,.tbove Sea Level Below. Sea Leve
22181.
Upper 6,023,000 30,438,000 36,461,000
Middle 55,3o2,000 285,464,000 340,826,o00
Lower 8,154,000 35,807,000 43,96,1,000
-T0TAL 0.5290009 351.799,000 421..248.0C/0
So far 52,720,000 metric tons or about 1/8 of
the total has been ez?:loited.
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