FAR EAST AND INDIA NEWS BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00926A000200030015-2
• Release Decision: RIPPUB
• Original Classification: R
• Document Page Count: 50
• Document Creation Date: December 14, 2016
• Document Release Date: October 30, 2001
• Sequence Number: 15
• Publication Date: April 19, 1948
• Content Type: REPORT

25X1 C
ed For Release
0
NO. CT .?.
25X1A
1i Ii atio is on fi a in CIA: Far t3nd India 'fiewn.,,iu~..iietarnp
7 Apr 18, published by the far :amt-America Council o Co en and .duutry
r Yor o
!ETURH TO OA 1lHRAR~
Approved For Release RES1RI( ED DP80-00926A000200030015-2
 . 25X1
. Approved For Release 2001/11/21 : CIA-RDP80-00926A0002
of COMMERCE and INDUSTRY, Inc.
30 ROCKEFELLER PLAZA ? NEW YORK 20, N. Y. ? TELEPIIONE COLUMBUS 5-6375
Far East and India News Bulletin
April 7, 1948
GENERAL C OMMSNT
CHINA
~~Forei Assistance Act" provides for economic and military
gn
1
aid to China amounting to $463,000,000.
Downward spiral of Chinese dollar results in new official rate
of CN$255,000 to US31; new Sun currency rumoured.
2
Chinese Government assets including holdings of China Textile
tional
d N
a
Company, C-hina Merchants' Steam Navigation Company, an
Resources Commission may be used to help stabilize currency.
2
Central Trust resumes. buying for export during March.
2
China trade with U. S. increases substantially in December.
2
Additional items subject to purchase by Government under
r er relative to unauthorized Imports,
Agreement with Macao limits exports from that Port.
3
3
New Income Tax Schedule for 1948 are announced.
3
General conditions favorable; coconut oil added to list of
exports requiring submission of exchange to Government
Control,
Temporary surplus of chemicals, foodstuffs, and luxury items
reported.
Total trade in 1947 rose 60 percent over 1946 in terms of
value.
December trade with U, S. remained steady, 4
Bill j u re aratory to lifting of Debt Moratorium in
colon prawn Fpor Release 2001/11/21 :CIA-R-0030015-2i
For Details See
aee o.
 JAtAN
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_". Page o` .
Priys.te trade eipanding; indleation3 that reparations
program may be curtailed.
Postal regulations liberalized.
December trade with U. S. is higher, with bulk of Japanese
imports consisting Zraw cotton..
060,000,000 cotton credit under active consideration.
SCAP encouraging rayon and cottonindustry and removing trade -
controls in some cases.
Comprehensive figures on 1947 industrial production in Japan
available.
PHILIPPINE ISLANDS
February copra market records sharp drop but recovers in- March: 7
Commodity Credit Corporation re-enters the Philippine coprt'
mama , 7
Imports of quota items are recorded, 7
trade with Philippinesin December tops November figure. 8
Insurance Law continues to be source of criticism by American
business n the Philippines.
Law for establishment of Central Bank of the Philippines riovy-
up for consideration.
Rice crop now estimated at 113,000,000 bushels.`
INDIA.:AND PAKISTAN
Conditions are peaceful and the present trend is toward the
r as far as public tatements rind legislation indicate.
Minister Sarker states that widespread nationalization of
industries is not contempiated in the immediate future.
Jute quota control continues to disrupt normal trade channels.'
Pakistan Government publishes list of items prohibited for-
import.
Export licenses from India to Pakistan required on most items. 10
p o r t . regulations on iron and steel products 10
N e w Indian i m
published.
U, S. trade with India and Pakistan increases sharply in
December,,
India-Pakistan Cotton Agreement provides for exchange of
textiles and raw oo on.
10
E ore -Us'. i } x~,,.g t6q e~i881 ~ ~ ycr~A?-F~P8~~0 00200030011 2
spmens.
 Approved For Release 2001/111'1'P:CIA-RDP80-00926A000200039Q1o?~ails See
Page No.
Iisdian. Tea' C.'0 itrol Act to be extended by" irtterim'agrnt. 10,
Sterling balance agreement between India and Britain reached. 11
Britain and Pakistan agree on sterling balances; convertibility
limited in the case of both Dominions. 11
1948-1949 Indian Budget recorrmends reduction in business taxes
and increase in excise taxes; general reaction is favorable. 11
Pakistan Budget follows India Budget in most details but goes
further in encouragement of private business. 12
Currency of,akistan to be issued from April lst will-not be
freely convertible in India.
General Industrial Notes. 12
NETHERLANDS INDIES
Interim Netherlands East Indies Government established in
prepara ion. for nil e S aces o Indonesia. 13
December trade,.with,M, S. continued small but indications
for a rapidly growing grade were good. 13
Copra , ;xports in February more than double January. 13
Export regulations on rubber revised. 13
Trade conditions generally good; total trade of Singapore in,
January SS$264,000;000,
U, S.. exports to area increase in December; rubber imports
total $19,700,927.
13
Open general license announced for many products from non-
dollar countries. s, 14
1947 rubber : production-reaches all-time high. 14
Copra production.o,pntinues upward but exports are' negligible.
Rice production shows inarked increaase..
FRENCH INDOCHINA
l4
14
Port tax on imports`"iti'posed
New `Pik stye-t~ $. !Dol l as xate .s c , .
Trade control
s: j,'O.Q'rga'izsd,
Vi5
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Two outs~t:anding developments during the.past 'month forecast a possible
reorientati.on..of U. S. Gov,er3finental policy with regard to Japan and China, which in
turn, over a'period'of.time, may prove of considerable significance to-American
business.. They are, first, the approval of the Foreign Assistance Act which in-
cludes'provision for $463,000,000 of 9.c.onomic and military aid for China; andf
second, the departure of a top-level group of U, S. government officials and indus-
trialists to confer with General MacArthur on Japanese economic and export problems,
The first development is significant because it may be anticipated
that through the medium of the bi-lateral agreement which is a prerequisite to
implementing the assistance program, and the subsequent projection thereof, terms
and conditions may be stipulated and carried through which could serve as a vital
force in reactivating private enterprise in,China, particularly in relation to
procurement and distribution of program items.
The second development is significant in that-it has brought into
focus the concern of American business with regard to the general economic drift in
Japan under SCAP direction acid control, and also because it undoubtedly presages a
revamping of some of the more restrictive. directives and'stringent control regula-
tions which, it is held, have been hampering Japanese recovery.- There is a growing
tendency toward relaxation. of the rules preventing the Zaibatsu from participating
in business in the future.: Recommendations are also being made to our government
from a, number of sources favoring a cut.in the reparations program.
Thus developments in both China and:Japan over the periof of the next
several months should present possibilities for strengthening the position of
American. private enterprise, providing business in general takes advantage of the
opportunities presented it to do so* ..
The current annual budgets for India and Pakistan and the general
legislation in those areas indicates'a.definite-swing to the right and an alignment
with the philosophies of the V~'estern nations. The export and import trade of the
Philippines continues at an all time high.and the temporary break in the copra
market is being overcome by increased 'government purchases under the various relief
programs...
An Interim Government has been set up in the Netherlands Indies and
it is now, planned that the United States of. Indonesia will come into. being on
January 10,1949o There are indications that the Republic' will join in the United
States of Indonesia and in the meanwhile hostilities have virtually ceased. A rapid
recovery in the trade of. the Indies is forecast and it is expected that large-scale
orders for machinery and consumer products will be placed in the,United States.
Conditions in other countries of Avis. with the exception of China,
are reported to be relatively stable..an.d,although trade restrictions are stringent,
United States' trade with these areas in many cases continues at above pre-war levels.
CHINA
The "Foreign Assistance Act" provides for economic and military aid
to China in the amount of X463,000,000. House and Senate Bills differed slightly,
but in the compromise bill, the conferees agreed to provide ;338*000,000 for
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 Approved For Release 2001/11(2'12: ',IA-RDP80-00926A000200030015.~2
economic assistance and 0125,000,000 Pbr Oaz'diti,unal aid" on such terms as the
President may determines The presumption is t!-at this-latter amount will be util-
lied-fpr a program of military aid. The amount earmarti-ed for economic assistance
is further .reduced by a provision making available not Less, than 6% or more than
10% for a":rural agricultural ,and educational program under joint $ino American
auspices., 'Thus the prospects -are that slightly over. $30d,ao0,Q00`will be available
for a 12-month progr-am of economic assistance. Even?the availability of this
amount, however, must await ?,actiop by the Senate and House,`Approir` iations Committees'.
ldeamttl.le, - 50,0O0,000.has been advarc.ed..by the Raconstruction.Finance Corporation
for the China program pending authorization of the full amount.
Development of-the-China-program_is.temporarily,in the hands of the
Department ` of State.' With -the appointment of dir. Paul Hoffman as Admiriistratcr,
it is ant&cipated that?this.responsibility-will fie.transferred to the agency which
he-will head as soon as: it is ?organ;i.;ed, Representatives of the Council are parti-
cipating in a conference with the Deputy Adminiatrator in the D.Opartinent of State
charged with current responsibility for developing the China assistance program.
A special bulletin" giving ench detail's: as are currently,; available on the program
will be distributed t mem11ers shortly..
DowhvtLrd' Spiral of -.Chinese Dollar Centipuea;. New.Curren y Rumoured,i, The value of
th Chinese: dollar continued . o. decline steadily.: in 1Gtaro in spec of 'reports of- 6.:
sxibstential-`'loan- from the 13rrited States. and the relatively tight. money, market in
Shanghai during the latter -part of', the. month. By, the end ofrthe black' market
rate of the Chineise- dollar was CN'.600,000 to US01 and .the.'of* iq al rate was raised
on March 17th to CNt255,000 to USt1. Early in April, however, the black market'
value -bf 'the: MT dollar was reported tq. nave risen. sopewrhat and, to, by around
CNN450,000-11S.O1. Reports from Napking .indicate that the issuance of a new Sun
cur'rehcy maybe announbe to- coincide. with any large..scale. loan from the. United
States. No official confirmation of these reports" has been made,. however..
Goverthn ht Asaets }`ay be-.Used?to.S abiliz"e .Currenc yt.. It ts. reported. in both Shanghai
at th-0, :Sae Counq . has - c e to. place U0400,,0Q6;Q00 worth, of
GoYein ent a-ssetis at. "the-diepo-sa.l of tl e. Central..B nk of China as an additional
reserv ":for 'the ,Chinese currency: :about ,half .of the ;t}ssets ,would come 'from the
China Textile Company., 100 million from the China }.terchants,Steam.Navigation Com-
pany and the remainder from the National Resources Commission and Japanese
reparations.
Central Trust Ret#i.mes B in .fc .-Ex p ort t The Government of China through the
e re . ru. began Q aga -n ? y up .naive -Goods for. export during 116T.ch. Sub-
itaittial,quantities of tung ?iil and frozen eggs.have Q;lready been. purchasdd for
shipment; , Men the adjusted and- fluctuating open market rate of',exchange for
foreign currency "was instituted last. November, the. Central Trust. supposedly. ceased
buying goods for export, but the wide difference between the official 'open market
rate'and*the black: market r.tehas prevented the increase in exports which it was
hoped'vrbuld result fr n the aew:exohan,ge regulations,
U? S,-China Trades Exports to China from the United States during the month bf
December showed a considerable increase over November levels, and totalled
118,675,563 as compared with .':15,418,319 in the previous month. Imports from China
showed an even greater increase, rising tb't14,166,445 from 08,434,229. Largest
increases appear in vegetable oils and ores and metals.
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Goods to be Subject to Purca-,ase=_ Under Press Notification No. 22 of the. Export-
mpo Board, it is announce. hat "in accordance with an order of the Executive
Yuan authorizing commandeering of commodities in conformity with the General Mobil-
ization Law of the Governient, the following Registered Unauthorized Imports without
Foreign Exchange Provided" having Arrived or been Shipped*'shall be subject to
purchase by the Central Trust of China.as from February 18, 1948; gunny bags; medi-
o?ines, drugs., and medical substancesj compounds and preparations; other manufactures
of India-Rubber including tires for motor vehicles; trucks; jeeps; galvanized iron
wire (gauges Nos. 10, 12, 14 and 16); field c4bleSi telephone station, telephone'
switchboard, telegraphic apparatus; wireless transmitters; telegraphic receivers)
transceivers, vacuum tubes, headphones, and spare parts,"
Pact With Macao Limits Exerts: A financial agreement signed by China and Macao
n early- 1larch provides that re-exports or transshipment through rllacao of China
i
Exports will be permitted only if evidence can be.presented showing that exchange
derived from such exports has.been sold to appointed banks in China* Import or
export of Chinese currency notes in excess of CN(;5,000,000 will also be prohibited.
This agreement which is much similar-to that concluded between Hongkong and China
earlier this year is, designed to prevent smuggling of goods in and out of China,
New Income Tax Schedule Announced: The Shanghai Municipal. Government has published
the New Income Tax Sc edules for 1948 in accordance with. an official notification
from the Executive Yuan of China# This schedule is subject to periodic adjustments
in view of the constant changes in commodity prices and in order to avoid the
necessity of frequent revisions of the text of the Income Tax Law itself. Along
with the revision of the tax rates, the minimum taxable income levels have also
been raised, ;Members wishing to receive a copy of the current tax schedules,
including the lowest taxable income levels, as authorized for the current fiscal
year should-contact the New York office of the Council.
HONGKONG
General conditions in the Port of Hongkong continue favorable to
trade, Business is good and the political situation is.quiet, The open market-rate
for U. S. Dollars late in I:Iarch was quoted at about HK$?5.90 to US$ le Coconut oil
has been added to the list of exports requiring submission of 100 percent of
exchange to-Government Control, At the end of 1947 the list of commodities which
could not be exported from the colony to non-sterling countries, exclusive of China,
without the surrender of all or part of the exchange created by these exports in-
cluded pepper?(100%); raw rubber (100%); lambskins (karakuls) and rabbitskins (100%):
diamonds (100%); desiccated-coconuts (100%); wood (tung) oil (25%); silver (25%);
and tin (25%), ;
Sur lus of Certain Import Items: Although trade. conditions are generally good it is
reported that .there is a temporary surplus of heavy chemicals, foodstuffs, and a few
luxury items in Hongkong. These temporary surpluses are frequently caused by the
.backing up of, goods destined for China but which are not permitted entry into
Shanghai.. The recent financial agreement with China has, of course, aggravated
this situation.
1947 Trade of Hongkong: ,Hongkong's foreign trade in .1947 rose 60 percent over 1946"
in terms of declared-value.' Total imports for the year were valued at HK$1,,540,000,
000 and exports. at HK5?2,216,000,000. Of that total the British Empire accounted.,
for imports of %?444,000,000 and exports of HK$358,000,,000; China for imports of
HK~$379,000, i000 and exports of HKy"265,000,000; and the United States for imports of
HK $298,0006Prd d FEQIOR&Fe3 -11W M4QId1RDP80-00926A000200030015-2
 Approved For Release 2001/11121?; CIA-RDP80-00926A000200030015-2
Hongkong-U,. S. trade j Exports to Hongkong from - the tYhited Statew showgd, little
-''~ 'k#r~tspetred with Y'T,832,768? in November: Principal items of export were coal tar
~r~~ptddtr';'spsper; metal. products and tobacco.
Vbbt'.1, '. slat ion to'be Considered by Hon kon Legislative Councils A bill has been
drawn up fo; purpose-of lifting the e ;more orium in the C olony by,establish-
ing, the basis for legality of debt payment during the occupation. The main features
,,of the bili'deal'with the discharge of prewar debts during the occupation and debts
'Aduhred during the occupation, According to trade sources in Hongkong, discharge
-during the occupation of prewar debts which were payable during the occuppAibn or
due before or during the occupation are generally considered valid. However, pay-
, menus inay` be revalued which were made in occupation currency under duress; in cases
,w}iere the payment was not due or demanded at the time of payment; or where-payment
due or demanded was not made within three months, Payments during the occupation
of debts incurred during the occupation are considered valid. -The table of values
.of military yen in terms of Hongkong dollars which will be used in connection with
debt settlements varies according to period, From January through December 1942,
?1,000 yen equal HM4800; `from January through April 1943, '1,0+00 yen equal HK600;
from May, 1943 to May, 1944 .the value of 1,000. yen ranges - f'rom .HKy560 to HKO120;
from May, 1944. to. Llay,. 1945, the rate is from IIKC120 to HKt16; and from May, 1945
to July, 1945 the value covers a range of HKv12 to HKa40
During the past month the regulations surrounding private trade with
Japan have been further loosened and postal regulations are less stringent than
previously, Comprehensive figures onJapanese trade and industry for the year 1947
have been made available by SCAP and indicate a fair degree of recovery in many
fields.. The Secretary of the Army has recently released a summary of a comprehen-
sive.report submitted on the subject of Japanese reparations, indicating,that if
Japan is-to recover her economic independence it may be necessary to curtail the
proposed reparations program and maintain much of the plant equipment in Japan that
was previously scheduled for shipment abroad... Details of this report are included
in the'erclosed Japan Bulletin No. 14. ,
Postal Re ulation s Liberalized: Effective February 26th*regulation$ covering air
mail, registered mail,, trade samples, parcel post, books, newspapers and other
periodicals were liberalized to afford Japan greatly expanded international postal
service. The new regulations will allow mailing of books,. newspapers, magazines
and other periodicals from Japan to all countries of the world; use of air mail to
and from Japan for all matter authorized for transmission by regular mail service,
except parcel post or relief parcels; registration-of-all matter authorized for
transmission'in the regular mail service to and from Japan; mailing to and from
Japan of trade samples,too heavy for the lowered sample postage rates, as parcel
post under a weight limitation of 22 pounds; mailing to and from Japan of.-ordinary
items of merchandise in commercial quantities within a weight limit of 22`pounds.
,' All. parcel post packages mentioned above must be accompanied by a certified.-or
photostatic copy of a license validated by SCAB? per t ins the importation or expor-
tutign of the items involved. This license must be. enclosed in the package.and the
words:"Import License Enclosed" or "Export License Enelos.$" and the statement
This package may be opened for customs inspection" must appear on the outside
label. In addition a customs declaration .must also be enclosed in parcql post
packages.
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? 5-
U, S.4-Japan Trader Expor#,s from the United States to Japan during December were
Ql4 519,5'6 o which 9"13,291,875 consisted of raw cotton, Imports into the United
States for the same month totalled 04,442,241, most of which were-silk, silk
manufactured goods, and "zinc; This represented a substantial increase over November
imports from Japan of 02,524,263?
Cotton Credit Negotiationst The proposed 060,000,000 cotton credit for Japan for
the purchase of American cotton is still under active consideration by the Export-
Import Bank and the three private banks who are to extend the loan. This loan, if
approved, will provide assistance in the amount of 29 million from-the Export-
import Bank aiid. 31 million from the National City Bank of New York, the Chase
National Bank, and the Bank of America.
Rayon and Cotton Expanding: SCAP is attempting to encourage the rayon industry of
Japan by liberalizing regulations and it is now announced,that traders, formerly
limited'to 100,000 pounds of rayon yarn per month, may now order 300,000 pounds per
month, Trial orders of filament yarn Trill continue to be sold in quantities as low
as 5,000 pounds. Orders for staple fibre and rayon fabrics may now be placed
through the New York Office of SCAP which is located at 292 1.1adison Avenue and
fabrios.and price lists may be examined at that office. So far the quality of the
Japanese rayon coming in has.been reported,to,be low,
Steps have been taken also to place more responsibility on the
Japanese Government's Board of Trade in the marketing of cotton goods. Buyers of
cotton goods may now contact'tho SCAP New York office which in turn will contact
the Board of Trade, or the prospective purchasers may negotiate directly with the
Board of Trade or individual manu.facturersor,agents. in,Japan. Japanese cotton
goods are now being brought into the United 'States for use in this country for the
first time since before the war. By eliminating the requirement for a surety bond,
guaranteeing re-export of cotton goods brought,into the United States, SOAP has
opened the way for unlimited quantities ofJapanese fabrics to be brought into this
Japanese Economic Statistics, As indicated above,, the Economic and Scientific
Section of SCAP has compiled detailed figures.on the annual production of Japanese
industries for the calendar year 1947. A summary of the monthly averages of these
production figures appears below in comparison with 1940 monthly average figures.
1947 llonthly Average 194j0 Monthly Average
Coal,.,..,,..?..,.,..-s..?...t
Croke,,, ?~... !5 ? ???..??... ..?
Pig Iron..',.,..,...?..~,...r..
Crude Steel.,,,,,,,,,,,,,,,,,,,
Ferro-alloys.....?,,.r...?.,,.
Crude Petroleum.....,,.,,,.,.,
Aluminum t
Refined Copper ...............,
Refined Lead..,.. ,,,..?.......
Refined zinc,,............,...
Agricultural Implements
2,269,000
154,000
232000 ' 0
30, 000 }
79, 000
1,004
16,827
98 7
.3, 068
- 697
1,'236
4,367,000 metric tons
562,000, metric tons
23,000 metric tons
291,000 metric tons
571,000 metric tons
12,141. metric tons
27,008 kiloliters
n.a.
7,819 metric tons
1,522 metric tons
4+864 metric tons
Plows.,,.? ..................r. 20,158 32,881 units
Hoes...-?.??????????,...,...,, 58,51144 96,513 units
Harrows Approved?For Release $bb~1111/21 : CIA- Pa5a 211
8D-00926A0002600~60j i s
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w
1947 Lontb1y Average 1940 Monthly Average
Earth-scattering'Scoops..??...
Weeders??..a.........s.....?.. '
Forks .........................
Sprayers ......................
Sickles.... ...................
Threshing Machines.-.,., .. ,*,to*
Rice Hullers ..................
Railway Rolling Stock
Steam Locomotives .............
Electric Locomotives..........
Passenger Cars...........,....
Freight Cars..................
Industrial Rol1ir-g Stock
w r.ir r ri .
Steam Locombtives?,.,.??.....a
Electric Locomotives...,......
Battery Locomotives...........
Gasoline Locomotives.,.,......
Freight Car6,...:..:;.........
Motor Vehicles
Truck Chassis.......?:::,...:.
eatandard Size Cars;......:....
Small Cars..'.......,.....:????
Electric Cars................
Three Wheel Cars ....:.........
Motorcycles and Scooters......
Machine Tools....,.......:......
Household Sewing Machines.......
Industrial Sewing Machines......
Yfatcihes..........,.....,........
Clocks,.....................a...
Sulphuric c d....?...............
Soda .ash,...... .................
Caustic Soda..,. .....a....r....
Salt. .......2....?.....aa,......
Ammgnium Sulphate ...............
Calcium Cyanamide..:........t,..
Calcium SupQz'phdsphate......:...
Industrial -ExFlosives.......1...
Calcium Carb de .....a,..........
Paper...:.:.a.....aa.....aaaaa?a
Ma . ches ? ..... i a ? .. e . a a ... a ...-. ?
Wheat f our.i........ .......i...
19,450
26,884
25;.717
9,496'
341:730
11,555
2,026
10
4
78
72
4
15
16
682
774
4
137
79
619
168
479
5,760
848
27,716
103,885
123,962
3,168
"3,616,
11, 676
'$0,082
'14,594
' 59, 078
.830-
17,833 units
350836 units
34,433 units
60174 units
985,615 units
150696 units
1,361 .units
60 units
2 units
..87. units
''12 units
6 units
2 units
7 'units
31 units
562 units
3'029 units
133 units
224 units
15 units
`640 units
34 units
4,842 units
6,433 units
0 units
145,584 units
65,750 units
262,123 metric tons
49,583 metric tons
'34;200'metric tons
" ''63,028'metric tons
. 92,417 metric tons
166;083 metric tons
""'136,667 metric tons
2, 620 metric tons
'20;036 29,746 metric tons
'26;368 119;346 short tons
'26$048
14,985
'G4,083
58,834 short tons
.', '.,..35,562 match tons
' 81,261 metric tons
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1947 Monthly Average 1940 Monthly Average
Textiles
paw. S~.lk..a,,.7...r..,.....i,.
.Cotton Yarn..rr.......,...,...
..++.....,....e.?
Worsted tarns
Woolen Yarn,...r.r..........?
Rayon Yarn.,+ .................
Rayon Staple..... a.a........,r
.....,.....?..'.?.
Cotton Fabric'
Woolen and Worsteds..,......,,
Filament Rayon Fabric.........
Spun Rayon Fabric..............
9;287 59,400 bales of 132 lbs.
22,434 76,368.thou.sands of lbs.
515 3,188 thousands of lbs.
1,674 4,233 thousands of lbs?
1;363 18,008 thousands of lbs.
19562 23?818 thousands of lbs,
550?192 218P667 thousands of sq.yd.
1, 761, 6$305 3,852 52,637
2,670 37,0575
Sheet Glass........ .............. 97,494
Polished Plate Glass ............. 363
Cement +..--......, ..............9 102
297, 537 cases of 100 sq.ft.
2.,323 it
500 thousands of
metric tons
The copra market Which recorded a drop in February back to a price
of about $240 per short ton recovered rapidly in March to more than ";300. This
increase is accounted for by reports of increased government purchasing under SOAP
and under the European Recovery Program. Hemp prices failed to recover so quickly
but here again the increased government demands will tend to keep the market steady,
Flour supplies in the Philippines are still low and the Government is commandeering
20 percent of imports from the United States and 50 percent of the imports from
Canada, There is still a marked shortage of building materials and petroleum
products. A black market is developing in these items'in spite of government
efforts at control it is reported.
February Copra Shipments Record Sharp Drop: Copra exports from the Philippines
declined percent in February from January levels and were 29 percent below
February a year ago. Of the 63,148 long tons moved last month, the United States
received-47,148 long tons. Other shipments included 7,250 to the United Kingdom;
7;200 to Yugoslavia,; 6,479 to Switzerland; 6,000 to Austria; 5,800 to Denmark;
4,003 to Canada;.2,706 to Noruay; and 2,000 to French Morocco. Philippine exports
of. coconut oil increased slightly in February, however, with 3,635 long tons moving
as compared.with 3,140 in January.
Commodity Credit Corps Re-enters Philippine Copra Markets The CCC has announced
a it will -entertain offers of Philippine Copra FOB t e Philippine-port of load-
ing, This is the first time , in two years that this U. S. government purchasing
agency has entered into the copra field. The copra *hich is being purchased.,
however, is to be shipped to Europe in connection with the European Relief Program
and is not to. enter into'domestic consumption.
Imports of Quota Item's: Imports for consumption of commodities on whic'i quotas were
prescribed y the Philippine Trade Act of 1946; from January 1, 1948,'to February 28,
1948, incTuaive, were as follows: buttons, 16,681 gross; oigars, 151,995; coconut
oil, 15;636;414 pounds; cordage, 137,775 pounds; sugar, 62,884,809 pounds; and
tobacco, 85,215 pounds.
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U. Si-P sili ine Trader' Exports frcim the United States to the Philippine Islands
In the mbnt of December topped their high level of November, totalling 340.,211,697.
The largest items of export represented food products, tobacco, cotton and rayon
products, petroleum products, steel mill productsa ~e~eq#~ri;eal ;mgrh!?1gry and-. auto-
'tnotive equipment. .,Imports from the ljhilippines in December?werq jikewise higher
than during the-previous month, equalling Z0,640,A11. Oil,eeec}s and vegetable
?fibers were the chief items of import.
Insurance Laws The Philippine Insurance Law which i.s row up.fqr, consideration is
the source o much criticism by American business., -The tkev~ lai, would. raise deposit
requirements from 100,000 to 250,000 pesos; would not alder United States firms any
preferential; treatment; and would make mandatory the,investnent of 50 percent of
statutory reserves in securities of the Islands. It is thislatst provision that has
caused the most criticism and a second bill has been prepared which would provide
for the mandatory investment of 30 percent of the reserves in the Islands. This
has failed to meet the basic objections to the enactnept of the. Bili,and negotiations
,are still continuing,
Banking Law: Another important piece of legislation now up for consideration by the
Philippine Congress is a law establishing a Central Bank in the Philippines. Ameri-
can firms operating in the Philippines indicate that in general it is felt that it
tries to cover too many contingencies and provides too many different kinds of power
and that it represents a considerable departure from typical patterns of central
banking systems. The propos-d Central Bank Bill will be, considered at a meeting
of the Council's Philippine Committee to be held on April 12,
Rice Crop Estimates The 1947-1948 rice harvest of the Philippine Islands is now
eit ate- at more than 113 million bushels of rough rice, an upward revision of 5
'million'bushels over the earlier estimates. The crops-of the preceding year amount-
ed to 107,700,000 bushels and during the three pre-war years production ranged from
113,000,000 to 117,000,000 bushels, It is the rapid recovery of the Philippine -
agricultural areas nrhich are responsible largely for the favorable conditions now-
existing in the Islands,
INDIA ',;NTD PAKISTAN
Conditions in India and.Pakistan have been relatively peaceful during
the'past few weeks and there has been an increasing tendency to settle differences.
through mediation and discussion rather'than through armed warfare, Both India and
Pakistan have extonded'the financial agreement with the United Kingdom Which limits
the amount of sterling which India may convert into dollars and tjzere are several
indications that the economic and political ties of India and the United Kingdom
will be much stronger in the future than appeared likely during the early days of
independence. .
In spite of sharp criticisms from radical elements in the Government,
the legislation passed so far has been moderate and has made-few changes in the
existing structure of industry and eo2mnerco at this time. India and Pakistan are
both undoubtedly aiming eventually at a socialized economy but, at present are making
no move toward the sudden destruction, of private enterprise. As a matter of fact,
the 1948-1949 annual budgets of the two countries lighten the tax load on private
corporations somev. at; and public. statements of officials in both areas.indicate
that any change made will be gradual and 7"i11 be based on practical considerations.
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z .. r
i
Debate on Nationalization of Industries.; The following statement made recently
? ore the House by Sj Na ini Ranjan arker, Minister in Charge for Industry, in
reply to criticisms from left-wing members is encouraging. He indicated that wide-
spread nationalization of industries is not contemplated. in the immediate future
stating that, "the resources in money and personnel at our disposal would not permit
a programme of large-scale nationalization as an immediate step. If we concentrate
only on-the existing industries with a view to acquiring control over their proprie-
torship, it will not, as many seem to think, lead to the creation of more wealth and
employment, which is the paramount need of the country today. Even if the entire
wealth of the nation now in existence were distributed equally among the people, it
would effect no noticeable improvement in their conditions of life. On the contrary,
large-scale nationalization of existing industries in the present transitional etage
of the country's economy after the Great War and the partition,tangle, is quite
likely to entail many undesirablb repercussions and the very object of increased
production is sure to be thwarted. If there is any illusion in any mind that
nationalization of existing industries is a ready. means to the creation of more
jobs, I must tell the. critics at once that it will not be so in the present stage
of.our development."
Jute Quota Control Still in Effect; In spite of widespread criticism among jute and
jute products exporters in India and consumers in other countries, the Indian
Government has shown no sign of lifting., the quota controls placed on the jute
industry earlier this year. Recent statements indicate that the controls are
political as well as economic and a communique issued by the IvIinister of Commerce-
states that "there has been some transfer of business from non-Indians to Indians,
but that was one of the objects of the new scheme", and then speaks of the elimina-
tion from the ranks of the quota holders of those business men who are not genuine
while "those who are in a position to do business will have been given a foothold
and the concentration of the export business in the hands of a few shippers will
have been diluted,"
Although the controls themselves are still in effect, an encouraging
note is found in the fact that a representative of the Minister of Commerce has
recently been in Calcutta with a. view to rationalizing procedure where necessary and
reallocating to bona fide shippers those export quotas which the holders have failed
to support with the necessary firm orders and letters of credit, It is further
reported that the jute quota to the dollar areas will be substantially increased.
Items Prohibited for Shiment.into Pakistan: The Pakistan Government has announced
That for e remainder of the first six rraonths of 1948 no licenses will be issued
for the importation of bacon, ham,"vegetables (except potatoes), lard, molasses,
confectiot.ery, cakes, fruit juices, canned fruits and vegetables, vinegar in bottles
and casks, live animals, living plants, coral, cowries, shells, manufactured ivory,
rubber seeds, fodder, bran, and pollars; perfumed spirits, perfumery,' opium, opium
alkaloids and derivatives, fireworks, hides, skins, dressed fur skins, used boots
and shoes containing no rubber, boot and shoe uppers not entirely of leather; furni-
ture and cabinet work, except moldings; fabrics containing gold or silver thread,
Ghoonsis and Muktakesis cotton braids or cords, jute manufactures, silk or artificial
silk socks and stockings, lace, and embroidery; cement, stone, marble, articles made
of stone or marble, tiles; unset precious stones (except diamonds), jewelry, jewels,
lametta, metallic spangles and similar articles, gold and silver plate, gold or
silver leaf, gold or silver thread and wire, other gold and silver articles, articles
(except cutlery and surgical instruments) plated with gold or silver, chemical or
imitation Cold; stirrup pumps,. tin or galvanized buckets, obsolete arms and swords
intended only as antiques or for theatrical or ceremonial purposes, and dahs; print's,
engravings, pictures, photographs, picture postcards, postage stamps, rubber stamps,
complete fountain pens, brooms, and celluloid zippers.
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It will be noted that this is much shorter than the list of.items
prohibited for shipment into the Dominion of Ind'{ a.
Ex 'ort Licenses from India to Pakistan Re uireds As of'March 1, export of-most
commodities to Fakistanfrom India r,111 be allowed only under a license granted by
the Chief Controller of Exports,'Yew Delhi, and on payment of customs duty, wherever
leviable. 39 Land Customs stations have been established along the frontier of Vest
Bengal by the Land Customs Department of the Government of India. All goods intended
td be-exported to Eastern Pakistan or to be imported from Eastern Pakistan will have
to. pass through these Land Customs stations where duty, if any, will be levied or
the goods allowed to pass duty free. under cover of a license.
New Import -Regulations for Iron and Steel Products: Indian importers of iron and
steel products have been advised by e gcrrernmen of India that all import licenses
for certain' iron and steel products, issued pr- ox to?Aur.ist 1, 1947, expired on
December 31; 1947', and cannot be revalidated. -Licenses issued from AuCust l to
December 31, 1947, will not be extended beyond the date indicated on-the licenses
Applications for import licenses for a number of items for shipment during the first
six months of 1948 will not be considered unless they were received before January 1,
1948, A number of other, iron and steel products will be curtailed in importation
from dollar areas but may be freely licensed from"nofi-dollar areas. 'For'-,the list of
products so treated, member firms should contact the New York office of the Council.
U?,'S,-India Trades Exports from the United States to India and Pakistan during
ecember'-ncraased sharply over November-levels, totalling X2.,082,474 as compared
with'$25,963,100. The chief items exported included grains and preparations, tex-
tiles, petroleum products, metals, electrical machinery, industrial machinery, -
automotive equipment, coal tar products, and drugs and pharmaceuticals. Imports
from India likewise increased substantially in December and equalled $21,270,126-.
The most important products shipped in terms of value were jute,and manufactures,
hides and skins, nuts, tea, spices, and guns and resins.
India-Pakistan Cotton Agreement: An agreement has been reached between the Govern-
ment of India and the Government of Pakistan on the subject of making cotton tex-
tiles available to-Pakistan in exchange for raw cotton for the period ending August
31,,-1,048, according to a press note issued by the M. ird stry of Industry and Supply
.on March 13. Under the agreement India will make available twelve bales of cloth
and yarns against every twenty bales of raw cotton received from Pak_-.stan, both
cotton textiles and cotton being subject to customs duties in-the two Dominions.
The Government of India have also agresd to make an ad hoc 6116tment' of 25,000 bales
of cloth to Pakistan against cotton already received in the Dominion.of..India..
Indian Cotton Shipmentst As e: result of the ban placed on the exportation" from
n a.o most grades o ,rawr cotton, exports of Indian ootton dropped,to 99,274-bales
in the six months ended February 26, compared with 569,Q12 during the same 'period of
the preceding year. On the other hand the domestic consumption of-cotton in Bombay
showed little change and domestic cotton stocks remained..at,a high level.
Indian Tea Control Acts Cornneroe Minister Bhabha introduced in the Dominion Parlia-
ment on Marc. 10 a 1 to amend the Indian Tea Control;Act, She Bill-seeks to give
official sanction to the interim agreement reached by the- International Tea Committee
for the regulation of the export of tea t-nd for the control of the extension of tea
cultivation.., This Committee, consisting of representatives of the tea industry in
India, Ceylon, and the Netherland,, has recommended to the governments of those
countries that the existing International Tea Agreement which expired on March 31,
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1948, be replaced by an interim agreement for a period of two years from April 1,.
or for such'time till a r tular agreement is concluded, whichever is shorter, India
is the largest tea exporting. country in the world. Out of a total production of
550,000,000: pounds por year, about 110,Q00s000 pounds are consumed in the country
and the balance is;exported
Sterling Balance Agreement Between India and Britain: On March 2, Finance Minister
Cie y announced to the Indian Parli&meh Ta termsof the extended sterling agree-
ment With Great Britain which will be. effective through June, 1948. According to
the agreement'a further 18 million-pounds will be transferred-from the blocked
sterling account to "Account No. 1," the existing balance of which will be carried
forward at'the disposal of India except for a certain amount to be transferred to
Pakistan under the Indo-Pakistan agreement of December. One important feature of
the new agreement is the limit on convertibility. Under the original agreement the
whole of India's sterling in 'Account No. 1 was fully convertible for current
transactions into'any currency including that of the United States. Under the.
present agreement, however, India's right to multilateral convertibility will.be,
limited to the extent of 10 million pounds? (The-Government of the United Kingdom
is entering into separate agreements with:Pakistan.)
It is further agreed that the Government of India will cooperate with
other members of the sterling area in.conserving the exchange resource.s'of the area
by limiting expenditure in a number of torritories,(including the continents of
North and South America) to the fullest extent oompa.tible. with the purchase of
India's essential needs: %
'Pakistan Sterling Balancess The financial discussions between the Pakistan and
United Kingdom delegations relating to Pakistan's sterling balances, have been con-'
cluded and the financial agreement of August 14, 1947, has been extended to June 30,
1948. Ada result'of this extension, there will be a further transfer. of 6 million
pounds for Pakistan from the blocked'storlingaccount in addition to the'ba.ance of
4 millibn pounds carried over from 1947. In view of the worldwide dollar shortage,
however, and the strain to which the Central;reserves. o.f.the sterling area are being
subjected, the Government of Pakistan have agreed to restrict their net drawings on
the'Central reserves for hard currencies to a total of 3.3 million pounds in the
first half of 1948, Pakistan will, of course, have available at'her disposal her
own earnings of hard currencies in addit`..on to this amount.
1948-1949 India Budget:, On February 28, Finance Minister Chetty outlined to the
706n Parliament his budget for the 1948-1949 fiscal year. Major points in this
new budget included a reduction in the business profits tax from a rate of 16 2/3%
to 10% and the raising of the amount-of abatement from. Rs. 1 lakh to Is. 2 lakhs
or 6 percent of the capital employed, whichever was greater; the reduction of the
supertax; the reduction of the income-tax on companies- with an income of Rs. 25,000
and below to half the usual rates;-an increase in the rate of Corporation Tax from
2 to 3 annas and a provision for the return, of one army. to companies which declare
and d.istribute'their dividends in India (this measure is aimed at those foreign
firms Which-pay dividends outside of India); conversion of the export duty on cloth
to an ad valorem duty of 255 with handloom cloth and yarn exempted; withdrawal of
the excise duty on betelnuts; the placement of export duties on oilseeds., vegetable
oils and manganese; an increase in-the import duties for motor cars, cigarettes,"
cigars and manufactured tobacco; a levy of 25% as an excise duty on cigarettes;.an
increase of the excise duty on coffee and tea, vegetable. products, and matches; and
an increase in postal and telephone. rates.
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The announcement of this new budget met with widespread criticism
from many Parliament members and from the publi',, Business had been looking forward
to greater reductions in corporate taxes and other elements felt that the budget
should have provided more funds for relief purposes and resented the placement of
excise duties on a number of items. Editorial comment in India, however, was
generally favorable toward the Budget and felt that in view of the existing situa-
tion it was a conservative compromise during a very difficult period in India's
economic development.
1948-1949 Pakistan Budgets The Pakistan Budget for the coming fiscal year was in-
rocuce also on February 28 by Finance Minister Mohammed in his address to the
Pakistan Parliament. The details of this Budget-included; the establishment of a
Refugee Rehabilitation Finance Corporation with a capitalization of 3 crores of
rupees; provision for a loan for Provincial governments of 10 crores of rupees for
rehabilitation purposes, the establishment of a State Bank of Pakistan with a
capital of 3.crores of rupees, 51% of mffich would be subscribed by the State; pro-
vioicn that new industrial undertakings using power-driven machinery and employing
more than fifty men in Pakistan should, during the next five years., be exempt from
all direct taxation on so much of their profits as does not exceed 5% of the capital
employed; the introduction oJ' a Central Sales Tax as soon as practical; the place-
ment of export duties on hides, skins, and cotton seeds and the retention of the
export duty on raw cotton; reduction of undistributed profits tax; reduction of
income tax on cor.panies with an income of Rs, 25,000 and below to half the usual
rates; exemption from taxation of contributti.one to charities, etc. and payments of
municipal taxes on property; increase in Corporation tax with similar provisions
to the Indian measure described above; the conversion of the export duty on cloth
and cotton yarn to an ad valorem basis;. placement of export duties on oil seeds,
vegetable oil, and manganese; increase in import duty on cars and tobacco products;
andwithdrayml of excise duty on betelnuts,
Pakistan Notes Not to be Legal Tender in India: The Reserve Bank of India announced
on; r, that new ban notes. inscri ed rn the words "Govornment of Pakistan"in
English and Urdu, to be issued in Pakistan, will not be legal tender in India, and
wi,l not be accepted by the bank at its offices, branches, or agencies in India.
The existing latest patterns of Reserve Bank of India bank notes of the denomina-
tions of Rs. 2, 5, 10, and 100 inscribed with the words "Government of Pakistan" in
English and Urdu will be issued in Pakistan from April 1, 1948, and will be full
legal tender in Pakistan.
Government of India currency notes or Re'serve Bank notes without the
words "Government of Pakistan" in English and Urdu inscribed on then will, until
September 30, 1948,?be legal tender at any place in Pakistan in payment or on
account of the amount expressed therein,
Railway Control Extendedt The Indian Parliament on March 19 passed the Transport
.nister's bill to amen the Railways (Transport of Goods) Act to extend control for
another year. This move ryas necessary, it x:-as claimed, in order to conserve and
control the limited Transport facilities available in India and to regulate ship-
ments of critical food and industrial items by a system of priorities,
General Industrial Notes: Freight car shortages continue to slag terminals --- A
shortage of farm equipment and'large-scale demand for these items is reported ---
Production of paper and paperboard has declined sharply during 1947, totalling only
86,000 tons --- United Provinces plan installation of two textile mills,,, one acetate
rayon plant, two contact sulfuric-acid plants, and two electrolytic caustic soda
plants --- The 1947 flue-cured tobacco crop in India totalled 56,000,000 pounds, a
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decline from 1946 levels --- Preliminary work on the Ramapadasagar Dam by the Madras
Government has been completed --Food grain production in India and Pakistan for the
current year shows little change from 1946-1947 levels --- Substantial quantities
of steel and rails are being purchased in this country.
NETHHERL,LTADS INDIES
The Dutch on March 9 formally installed the-Interim Netherlands East
Indies Government and renewed the invitation to the Indonesian Republic to join.
The Interim Government will function until the establishment of a United States of
Indonesia and January 1, 1949, has been set as the target date for the inauguration
.of this government. Conditions in to Indies are reported to be steadily improving
al--hough foreign trade will undoubtedly be closely controlled by the Government for
a considerable period of time. Many of the functions of the Netherlands Indies
Government Import and Export,0rgani.zation which was dissolved'late in 1947 were
taken over by the General Import"organization Which has financed the purchase of
such important items as textiles, foodstuffs, bulk goods, sundries, fertilizers,
and chemicals,
According to foreign exchange regulations announced on January 1,
1948, importers must obtain an import declaration from the Bureau of Supplies to be
submitted t.o the customs officer at the port of entry before they can take posses-
sion of the goods. No goods shipped aft-r February 29, 1948, will be permitted to
enter the Netherlands Indies without an import declaration, with the understanding
that any shipments coyered by a foreign exchange permit will be permitted to enter
until April 30, 1948.
U. S.-Netherlands. Indies Trade: Exports to the Netherlands Indies from the United
Sates during December to al ed $5,852,663 and consisted primarily of foodstuffs
and automotive equipment. Imports from the Netherlands Indies were valued at
N2, 345, 2.29 of which rubber and tin were the largest items #
Copra Exports Gain: In February, copra exports from the Netherlands Indies totalled
14,600 long tons, more than double those of the previous month and 51 percent larger
than in February 1947. March and April shipments are expected to at least equal
and possibly exceed the February level. 'Total production in February was 19,192
tons ofw'hi -ch .16,731 were produced in East Indonesia. Local oil. mills reported
very small. deliveries since the bulk of the copra is being produced for export at
the present time.
Export Regulations on Rubbers It is announced that as of February 1, 1948..
licenses for the export of rubber, previously issued by the Netherlands Indies
Rubber Fund, will no longer be necessary; nor will deliveries for export be further
subject to.a charge of 2 cents per kilogran previously collected by the Fund to
defray certain of its expenses,
BRITISH LALAYA AND SIPTG,dPORE
Trade conditions in British Malaya and Singapore are generally good.
The rubber market, after its earlier slump, was reported to be steady in early
March although drops in. the manufacturing schedules in the U. S. were felt later in
the month. The textile market was reported quiet and apparently awaiting the result
of the resumption of private trade by Japanese textile interests before making too
many commitments in other areas, Produce markets in March showed little fluctuation
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although pepper declined because of heavy shipments"into Singapore, but later rose
AS foreign demand increased, Increased rations of rite in Singapore have depressed
open market prices -for that c6iimcdity and the price of tin declined following the
trend in the London market, Negotiations are being carried on looking toward the
lifting of the foratorium on debts,
Total imports, into the.Port of Singapore for the month of January
were 58$129,000,000 and total exports were SS4136,000,000, of which rubber com-
prised SS$87,000,000,
U. S.-MalTrades Exports to British :ialaya and Singapore increased in December
to a total of v6,903#714# The major items of export were cotton manufactures, dairy
products, grains, rayon fabrics and metals. U. S. imports from that area totalled
$25,,416,164` of which rubber was valued at ^19,700p_927.
Open General Licenses for Goods from Certain'Areas, ' In an' announcement of January
ZbF,, iv4b, the Governmen of-the a $yan ".era on placed under open general license
all imports from the. United Kingdom, British colonies and mandates, Burma, Southern
Rhodesia, France, French Morocco, Tunisia, Algeria, Netherlands, Austria, Poland,
Czechoslovakia, Yugoslavia, Denmark, Hur?ary, Italy, Greece, Norway, and China,
with the exception of a,ridul.tural commodities under international allocation and
eertaih Un?itcd Kingdom mft'nu.ufacture's in s' crt supply, namely, cotton linings and
poplin, vnirete l suitinps, linen piece goods, lead serilmanufactures, cutlery, china-
ware and earthenware, liquors, manufacturei foodstuffs, manufactured tobacco, flat
'glass and wool arpets-. These announcements make the import control schedules of
the Malayan Federation and Singapore practically identical.'
1947 Rubber Production at All-Time Highs :ialayan production, imports, and exports
of natural rubber broke all earlier records. Rubber production .in 1the
Malayan Union totalled 645,229 long tons, averaging C3,769 tons 'a month,_. An
additional amount of about 1,100 ton: mss produced on.Singapore Island. Imports of
rubber into the Malayan Union and S tngapore totalled 313, 549 long tons in 1947, and
gross exports 953,697 long tons. Net exports were 640,148 tors, an increase of
11 percent aver 1941.
Copra Production Continues Upwards Malayan cohmercial.copra production amounted
+0 long tons in 194'"c paredowIth the 1935-1939 average of 225,000 tons.
^hile- production is approaching average, -however, exports arw negligible since large
quantities are consumed domestically in the production of coconut oil and as food,
January shipments of copra and coconut oil *.:Pere considerably larger than in the
same month last year and well above the 1947 monthly average. January copra and
coconut oil exports were 800 and 5,384 long tons, respectively. Coconut oil ship-
ments were: the largest since the industry was resumed in July, 1946.
Rice Productions The 1947-1943 rice crop of the r'Ialayan Union now being harvested
is repo e o e 26,986,000 bushels compared.''ith an average in pre-war years
of 27,009,000 bushels. The latest official estimate of the current crop shows a
marked increase over last year's harvest of 21,314,000 bushels. The total planted
acreage is forecast at 904,x,000 acres compared with the corresponding estimate of
810,000 acres in the preceding year.
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. 15 -
The new autonomous tariff for Indo-China brought into operation in
1947 carried substantial reductions in duties on products essential to the country's
rehabilitation. It levies the same duties on goods of all origins and is applicable
throughout the Indochinese Federation. Prior to the war, French products had been
admitted free or at considerably lower rates than goods from other sources. All
importations require prior purchase authorizations, which are granted only on
essential products. Vlhile importers' requests for foreign credits need no longer
be referred to Paris for approval, they are to be authorized only if similar
French goods are not obtainable or would be subject to unreasonable delay in
delivery.
A port tax of 1.20 piastres per ton or cubic meter, as stated in the
bill of lading, of imported merchandise, has been imposed. The tax on exports
varies as to commodity.
New Piastre-Dollar Rate: Effective January 28, 1948, the buying rate of the
n oc inese piaster is 12,55 piasters to the United States dollar, and the selling
rate 12.70 piasters. This announcement came as a result of the devaluation of the
metropolitan franc to which the piaster is linked.
Trade Controls: Under Government decree, the Central Committee of Supplies has
been replaced aby the creation of the Central Committee of Supplies and Commercial
Exchanges. The principal duties of the new Central Committee include the approving
of the Supply Plan for Indochina; the fixing, periodically, of quotas of controlled
imports to be shared among the States of Indochina, also exportable surpluses from
each State; and the fixing of general rules and regulations for importing and
exporting merchandise. The Central Committee is assisted by an Office of Foreign
Trade and Supply and the Permanent Internal and External Exchange Commission.
The functions of the latter Commission include the approval of import and export
licenses, and internal exchanges; and the approval of lists of products which may
be exported directly.
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25X1A
M TQS4 s AMUC e, C?ff I M
of COMMERCE and INDUSTRY, Inc.
30 ROCKEFELLER PLAZA ? NEW YORK 20, N. Y. ? TELEPHONE COLUMBUS 5-6375
Far East and India News Bulletin
NOT FOR PUBLICATION
March 1, 1949
Ch NA
OIV15sON
GENERAL COITME1IT
President Truman's "Point Four Program" announced in his
inaugural address when he said: "We must embark on a bold new program for
making the benefits of our scientificadvances and industrial progress
available for the improvement and growth of underdeveloped. areas," is now
reaching the blueprint stage.
The State Department defines the Point Four Program as
"Mr. Truman's 'Point Four' Program for the World Economic Progress through
Cooperative Technical A:sistancel' and outlines the methods of carrying out
the program as follows: "The means by which the United States and other
countries which have developed their technical and scientific resources
can make them available to und.erdevcloped areas include2 sending abroad
missions'of technical experts? assisting in cooperative demonstration
projects, helping to conduct surveys of basic economic resources, bringing
workers, supervisors, engineers and executives to the United States to
observe or train in American industrial and other establishments, organ-
izing international conferences on economic problems, and providing
technical data, publications and samples of materials for research and
experimental purposes."
It is expected that most of this Assistance Program will
be funneled through the United Nations and its Agencies, Its implementation
would probably require legislation to appropriate from fifty to one hundred
million dollars, which it is estimated would to the UQSo share of the
-initial cost o
It is reported that this. technical aid plan is the first
art of a program, the chief object of which is to attract a large amount
f private capital for investment into areas with. Productive potentials,
nd that it is hoped, that if the first part of the program can be made
ffective, it will, in the long runs assist in creating more favorable
oriditions for investment of American private capital in foreign countries.
The matter of "Guarantees to the Investor" mentioned in the
'resident's address (now referred to by the State Department as "Assurances
r Protection") has yet to be worked out.
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CHINA
"Watchful waiting" best expresses the present status of business interests and
overnmen In the current China situation.
During the past month, war in China has seemingly shifted from a military to a
political phase -- the joint U.Sa Military Advisory Group has left China, ending
American military guidance for training-of the Chinese army, airforce and navy
the American Embassy remains in Nanking, but an Emba?ssy office has been opened
in Canton, formally established as China's temporary capital -- Lewis Clark,
Minister Counselor, is in charge -- U. S. Consulate personnel remain in Mukden,
Tientsin and Peking, now under control of Chinese Communists.
The present phase of events would seem to have China divided edTinto three areas
of control l northernmost China = under Soviet expansion -evidenced in
the reported Sinkiang-.U.S.S..R. Fact under negotiation reported to provide a
fifty-year U.S.S.R. mining monopoly of Sinkiang mineral resources -- a U.S.S.R.
monopoly on raw materials (wool especially going to Russia in return for finished
products) -- a civil aviation agreement renewing the U.S.S.R. virtual air monopoly
through a Sino-Soviet airli~,e; (2) Southern Manchuria and Northern China under
control of Chinese Communists; (3) the area below the Yangtze under the National
Government of China.
Revised Foreign Exchange Control Regulations, governing foreign exchange-and
Trade,, were pror~:ul ;aced by the: rese onal Government on December 1, 1948?
(this material availao e for Membw%s)
A BROAD NEW PROGRAM OF FINAT?CI L AND ECONOMIC iEFOPMS AND RFVISED TAX SYSTEM was
announced by Finance-Tnter` fisu Kan on February 24th to become effective when
approved by Acting President Li Tsung-jen.
Provisions include a free market in gold and silver - with the Central Bank
selling bullion whenever necessary to stabilize the market -- minting and
circulation of silver dollars by the Government -- circulation of foreign currency
remains banned - a system of foreign exchange certificates will be inaugurated.
Reports from Shanghai are to the effect that - cotton mills in Shanghai area have
curtailed operations about 50% (some mills have closed down) due to shortage of
raw cotton and powers
First reports from Tientsin (as of February 15th) state that the Communists have
taken- over the Tientsin branch of the Choi na Textile Corp., the Central Machine
Plant, the three steel plants of the North China Steel and Iran Corp. -- passenger
train service was resumed between Peking and Tientsin on February 4th -- electric
light, telephone, streetcar and water supply were restored January 20th -- strict
ban has been imposed on the circulation or private buying and selling of foreign
currencies -- notes issued by Chinese Peoples' Bank are sole legal tender for all
financial transactions -- the Communists are ignoring foreign businessmen in
Tientsin - they may move freely about the city but may not leave precincts --
their requests to the Foreign Affairs Officer appointed by the Communists were
being tabled.
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The visit of Kenneth C. Royall, Secretary of the Army, said to be for the purpose
of speeding up Japants economic self-sufficiency along the lines of the nine
economic principles (announced in our Japan Bulletin #13) highlighted developments
there last month. Deputy Chief of Staff, Lto General Albert C. Wedemeyer, and Q.
staff of eight, accompanied the Secretary, also Joseph M. Dodge, President of the
Detroit Bank, and a staff of three, Dodge will remain in Japan for three months
or more to act as Chief Financial and Economic Adviser to General MacArthur.
Despite the issuance of SOAP on January 14th of the regulations widening the
latitude of foreign participation in Japan's economic life, the Japanese Govern-
ment's exact met'.zods of inviting foreign capital have not been clarified as yet.
Legislation is needed to eliminate some of the more a,mportF.nc obs acles to foreign
investment. Difficulties to be cleared includes (1) the settlement of questions
regarding old investments made before the war; (2) the questions involved in
reimbursing foreign investors of losses during the war; (3) obstacles lying in
the way of new investment in Japan -- including the setting of an exchange rate,
the lowering of the current high corporation and enterprise taxes (now in the
vicinity of 56 to- 57;0 of the entire profits), assurance of adequate foreign
patent protection, revision of existing labor laws in keeping with the 9-point
economic stabilization program.
Boekicho has announced. now export trade regulations effective as of February 15,
949, indicating a b c,ad tre.nsfer cf export trade from a government to private
basis. Under this, exporters will need only-trade board's permission to export
all but border items, including scrap metal, ships, rolling stock, machine tools,
all textile products, all raw materials currently on import epproved programs, and
commodities requiring special handling or contract agreements, which require prior
SCiiP validation of export licenses.
1948__ Japan exports are reported to total approximately $272,300,000 - 46% increase
.-r-..---?--------
Drat 1947,
Textile export for December are estimated by ;CAP at $30,000,000 - almost twice
those of November and $17,000,000 over October'. Japan Textile Sales Commission
reports January foreign woolen yarn sales of 1,114,000 pounds -n- 90% going to
India. Textiles are expcted to -constitute about two-- irds of Japan's 1949
exports.
1948 total imports were over $695,400,000 -- 32% over 1947, 1948 imports of pulp
wore 218147 Mons (5,00 tons_froi~_U. S.f Pulp Purchasing Board now reported
purchasing rayon pulp.
The Japanese Government has asked SOAP for permission to import 200 items of
machinery ranging f. om rocs: drills and- underNater welders to meters needec in
coal minng,"iron and steel production, oil drilling, textile plants, fertilizer
plants, etc, totalling $2,500,000 to be drawn from the EROA fund,
Production -- April-D?cemberr coal output was 25,242,906 tons -- pig iron output
rn December was reported 82,625 tonne Jajants 1948 raw silk production totalled
132,936 bales (44,416 bales exported to UoS,). 297 billion units of penicillin
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are reported to have been produced in Japan in 1948. The production of chemical
fertilizers is nearing 1941 prewar figures - 1948 production reported at 917,000
metric tons of ammonium sulphate, 997,000 tons of superphosphate and 227,000 tons
of calcium cyanamide.
Other Japan production figures (previously announced in bulletins) are available
at Council Headquarters upon request?
Exchange Control -- On February 1st, General MacArthur ordered the Japanese Govern-
ment-to establish a Foroign Exchange Control Board for the purpose of implementing
coordinated control over the movement o' foreign exchange and trade into and out
of Japan. Controls will be subject to general supervision of SOAP.
Dodge Studying Exchange Rate -- It is reported that the establishment of a single
exchange rate Le: ively set by the Japanese Covornm.ent for April 1st will be
postponed until Dodge has completed a study of financial and economic problems
in Japane Speculation is that a single exchange rate will not be established
until July lst.
Export Standards -- The Japanese Governtient has announced grades and standards
far expos productions, except textiles, which exporters must meet or be subject
to imprisonment or fine,
PHILIPPINES
On January 24th the Philippine Congress received President Qiiirinots report on
the State of the Nation -.. a balanced budget and vir .ual restoration of peace and
order in Central Luzon were accomplished facts -- other items reported were ..
U0S. assistance for hospitalization of veterans campaign against leprosy and
tuberculosis had made progress - new census of the country had been taken (shows
19,000,000 population) - 5260 kilometers of roads rehabilitated - 605 schools
built - 381 public buildings constructed - 2231 temporary and 6 permanent bridges
constructed - Central Bank set up with a system for stabilizing Philippine currencye
The broad program presented for 1949 -- plans for increased production - social
amelioration, 1egislati_on5o elimir_nte slums, fire hazards etc. - redemption of
emergency currency - rebommended need for irrigation syster,-.s, for increased
agricultural production, the development of oil resources.
Philippine imports during; 1943 totalled 1,037,557,000 pesos - exports for 1948
araountec ato'~649,'71 C7C~ pesos == atli a:p~rt old lnipuF totals increased slightly
over those of 1947a While copra and coconut oil exports fell off over 30%,
exports of sugar and base metals were substantially increased.
Sugar Import Controls are expected to be limited to 10% of 1948 total import
commode zes -- abouE 200 tons.
Exchange Rate -- The Central Bank of the Philippines fixed the United States dollar
rate at 200o75 pesos per 100 dollars on telegraphic transfers and 200.70 pesos per
100 dollars on sight draftso
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Philippine Import Control Regulations -- Clarification of several classifications
in the lis o lux uryand non-essential goods, subject to Philippine import
controls (as announced in the Council's Philippine Bulletin of January 13th), has
been issued and is available upon inquiry at the Council's Nev, York office.
Public Lands -- Foreign firms and corporations may lease public lands for indus-
tral d -and purposes but are disqualified from purchasing public lands
for exploitation of natural resources or agricultural purposes -- last year the
constitution was amended to allow Uo S. citizens equality in exploiting natural
resources9
INDIA
India's foreign trade fbr the half year ended September;, 1948 totalled approximate-
lyy4, 4 Oa 00 pee of which imparts amounted to 2,325,500,000 rupees and
exports 2,145,000,,,000 rupees, The main commodities imported were machinery,, grain
and flour; metals and 'ore, vehicles, chemicals, drugs and dyes, Chief exports
were jute, tea, cotton, oils, hides and skins.
India's food imports for 1:49 e.re expected to exceed all records. It is estimated
that the Inian Food I~Ti;.iis :i~y ire?. r Ylave to ouy 2 million tons of food grains this
year (3 million tons were imported in 1948). An arrangement for the import of
300,000 tons of food grain from. the U. Sr is contemplated. To improve the food
situation the Government of India has launched a five-year plan for the reclamation
of million acres of unbulti.vated land This plan includes construction of 4000
tube wells, buying of 10,000 tractors, 150 boring rigs and associated equipment.
Reports are that India will put in a formal application to the International Bank
for Reconstruction and Development for a loar. of 150 million dollars upon the
completion of the survey there now being completed by the Bank's Mission, headed
by A. S. G. Hoar, Assistant Loan Director of the Bank,
India's Industrial Production shows production increased in cloth, cement, paper,
electrical gocas ea-v c em-foals, metals & alloys, machine tools, sugar and salt.
Steel and coal production were slightly decreased. Export of cloth of finer counts
and wider widths now unrestricted, including hand loom as well as mill-made piece
goods.
India's Jute Mill Industry has been having difficulty in securing sufficient raw
jute to keep the mills doing -?- continued high prices of jute has been another
disturbing factor, while prices for burlap, though fluctuating,, have steadily
declined*
New Manganese Ore deposits a with traces of gold and copper have been discovered
in Saudur, adjoining -Manias Province. India is now the largest supplier of
manganese to the United States.
The Goverment of India is makcin.g substantial progress in its radio expansion
'
program.* All India Radio, aGoverrraent enterp
se, is re~iortad to the fourth
largest broadcasting organization in the world - the largest in Asia -- broad-
casts in 31 languages. A new radio station (the eighth since August 1947) was
opened at Allahabad, United Provinces in February and a radio station in Ahmadabad,
Bombay Province will start functioning the end of this month. Receiving sets and
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loud speakers are being installed in villages in the proximity of national
transmitting stations.
Six Indian engineers employed by the Government of India arrived in the United
States during Feb -y for a three months' training program in making chemical
fertilizers, These engineers will eventually operate a 50--million dollar
fertilizer plant, now being built' for the Government of India at Sindri, The
,Chemical Construction Corporation, a Council member, is the engineer for the
new planto The Chemical Construction Corporation will also handle the plant's
operations until Indian engineers are trained sufficiently to take over
management duties.
An Italian Economio Mission composed of about 40 representatives of banks, trade
and industrial or a.iTzar,iors is reported to be in India for a six weeks' study
of Indian economic conditions, markets and problems of industrial development,
PAKISTAN
Pakistants trade balance is reported to be favorable for the year ending August
31, 1-048, Expor 'to counttries other than India amounted to 724,2000000 rupees
in value -- re-export of forei n merchandise was valued at 85,500,000 rupees,
imports wore valued at 275,800,000 rupeos -- leaving a favorable trade balance
of 533,900,000 rupees,
Pakistan raw jute exports to hard currency areas will, continue without license
until June 30,19;-9
An excise duty on raw jute of 12 rupees per bale for cuttings, and 5 rupees per
male for other than cu-Ftinngs, will be levied during the next baling season --
according to an announcement from Karachi on February 28th, Export duties on
sheep and goat skins have been cut to 10%.
Import duties on machinery will be halved to 5%,
INDONESIA
Reports indicate that during the first eleven months of 1948 Indonesia exported
2662J.000 tons of rubber and 242,000 tons of copra? In January, _994_ , Indonesia
a
exported 33, 000 "among ions of copr . +4s 4 ta.mes f.? .e quantity of copra exported in
January 1948. On February 1st, The Co-pre. Loard ee.nnounced a decrease in the price
of all grades of copra -- 149,15 for s?raTriad, 141 Q50 for mixed, 130,03 for
inferior grade (all prices per long ton)4
Indonesia changes in Import Duties and Export Levies -- On February 1st the
eft apse aanr`etra' rTduis, r~inr>un~ 'ti Z{ jerecnt8 were r. evoked by the
Indonesian Governmento This was replaced by a-general export duty of 8 percent
ad valorem with- exceptions made in common wood., soae spices, citronella oil,
topics products, rattan, coal (all 3%), reptile skins (except snake), tea -
1947 and later crops, sugar 19.19 (first 25 guildors), forestry products from
the Outer Provinces - all 5%o Exception is also noted in tin -- taxed 6,t 42
guilders per 100 kilograms,
A new schedule of export tariffs on rubber will go into effect on May 1, 1949.
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7
.
Import Duty on iron and steel drain pipe has been reduced from 12 to 6% ad valorem,
Indonesia's statistical duty has been raised from 1/4 of 1 percent to 1/2 of
1 percent ad valorem on imports and from 1/4 of 1 percent to 3/8 of l percent
ad valorem on exports.
A Trade Mission Prom Siam will arrive in the United States this month. This
Mission is reported to be primarily interested in obtaining steelf railway
equipment and repairs, aid machine tools*
Customs Duties on wines, beer and spirits were increased last month by the
Government fSiam.
Reports from Bangkok indicate that the effect of the Import Controls of Siam
(see January 14th Bulletin) will result in a 5% decrease in imports from the
United States during 1949a .
HONGKONG
Hongkong imports increased 35% and exports increased nearly 30% in 1948 over 1947
-- lea innggrimportS during 1918 were foou pro aotsa everages, tobacco, textiles,
chemicals and pharmaceutical products -- leading exports cover practically the
same products.
Hongkong-South China trade is on a sharp downward trend -- Hongkong-Japan trade
is increasing -. Hongkong-Manchurian trade routed through North Korean ports is
believed to be increasing - Hongkong-Korean trade iti 1948 totalled approximately
20 million dollars -. Hongkong exports being $ 11,600x000 and imports $8,400,000,
Import Duties on unmanufactured tobaccos and cigarettes were increased January 6#
1949 -- new duty rates are available lable upon requesto
MALAYA
The value of Malayan exports during 1948 was reported more than 192,000,000 pounds
imports worth naeT7 000x000 pounds, The adverse balance is greater than
in tt-7e prowions ye7r, 'fT :iiex:ports _ i:icru sed over thirty percent.
That United States exports to Malaya will probably decrease during 1949 is
evidenced in foie restrictions on iriports from hard currency areas as revised
in December 1948. Imports of textiles there wore suspended last June and the
present ruling implies that no U., So textiles will be imported there this year,
The importation of cars of over 20 horsepower and trucks, from hard currency
areas, is continued,
A list of U, S. export items which may be imported there is available upon
request..
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RECEVIT PUBT.,ICAT IONS OF
INnRITAT IONAL rEFEREITCE SERVICE
Bulletin
BTIBMA
83 Pr7paring Shipments to Burma - November 1948.
rHT
119 onamio Review of China., 1947 - December 1948.
117 Trading Under the Laws of China - December 1948,
111 Chinas Import Tariff ? December 19480
102 Preparing Shipments to China - December 1948.
FRENCH OCEANIA
115 -T,Faxy ofurrent Economic Information ?? December 1948
INDIA --
136 ar feting Areas in. Indic. (Part I General Summary) -- Dec* 1948
137 (:art II -- The Delhi Marketing Area)
-- December 1948.
138 (Part III ..? The Calcutta Marketing Area)
-- December 1948.
139 (Part IV ?? The Madras Marketing Area)
-- Decorator 1948o.
140 " " wr 'r (Part V -- The Bombay Marketing Area)
-? December 1948,
INDONES IA
98 Econ0m c Review of Netherlands Indies +- 1947 - December 19484
JAPAN
224 economic Review of Japan, 1947 ?.- December 1948,
112 Doing Business with Occupied Japan -- December 1.948.
KOREA
3.31 economic Conditions in South Korea,. 1947 -?~ December 19480
PHILIPPINES
1Q6 --T ou+nrT7 tview of the Republic of the Philippines, 1947 .. Decr1948
94 Establishing a Business Under the Lays of the Philippine Republic
December 19480
PAKISTAN
Tz-po-rT Licensing Policy -- December 27, 19480
CEYLON
114 -"Wcparing Shipments to Ceylon -- December 1948..
NIS CEL1,F. NEOUS
116 - U ' S , T-M e" with China, Japan, and the Republic of the Philippines,
(A Statistical Summary) December 19484
Bulletin of Department of Commerce, office of International Trade
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 25X1A
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FAR EAST-AMERICA COUNCIL
OF
COM'IERCE AND INDUSTRY, INC.
30 Rockefeller Plaza New York 20, N. Y.
UNITED STATES FOREIGN TRADE WITH MAJOR COUNTRIES IN THE ORIENT
First Five Months, 194-8-
1st Four Months
May
Total 5 Months
Country
u
u5.
ports to:
Phil i rapine Islands
168,615,049
39,424,328
208,039,377
~
an
Ja
103,679,399
12,082,481
115,761,880
_.
p
India
95,707,349
24,450,842
120,158,191
China
94,570,450
35,450,848
130,021,298
British Malaya
32, 740,527
10,744,234
43,484,761
kong
Hon
29,971,900
8,474,430
38,446,330
g
Netherlands Indies
26,989,830
6,943,235
33,933,065
Korea
26,861,590
4,462,306
31,323,896
Ceylon
6,814,689
1,112,517
7,927,206
Frenoh Indo-China
5,760,534
1,417,695
7,178,229
Siam
4,202,290
1,476,368
5,678,658
Taiwan
2,657,873
363,261
3,021,134
Pakistan
2,606,843
542,119
3,148,962
Burma
1,568,661
293,008
1,861,669
Portuguese Asia
381,365
54,743
436,108
Manchuria
895
895
603,129,244
147,292,415
750,421,659
Imports from:
India
98,504,101
23,761,131
122,265,232
British i:Ialaya
92,451,091
20,236,735
112,687,826
Philippine Islands
81,726,249
17,641,991
99,368,240
China,
36,474,393
8,402,301
44,876,694
Ceylon
16,614,013
4,815,143
21,429,156
Japan
,,
15,146,055
3,524,351
18,670,406
,
Netherlands Indies
14,849,875
3,038,482
17,888,357
141
902
5
Siam
12,971,377
2,930,764
,
1
,
Pakistan
8,199,595
3,159,794
11,359,389
Hongkong
1,320,589
258,230
1,578,819
French Indo-China
810,402
39,150
349,552
Burma
318,007
72,311
390,318
Taiwan
297,839
80,002
377,841
Korea
196,186
54,504
250?690
Portuguese Asia
139,609
33,063
172,672
380,019,381
88,047,952
468,067,333
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,' PORTS TO THE PHILIPPIIIES FROM . ,HE. tmIT,ED STATES
.. ,..: ~~.:.,v.,._y...:Mari.~,~.:..~~g,~:::.....~..~,....~... ~...u.
Commodity
Meat Products
Dairy Products
Leather
Leather Manufactures
Grains and, Preparation
s
Veget ,ble? and Preparations
Fruits ana Preparations
Table Beverage Materials
Sugar and Related Products
Beverdges
Rubber and Allied Gums, and.PIanuTobacc'n a?a factures
Manufactures
Synthetic Fibers and Manufactures
Misc. Textile Products
Paper;'Relbted Products and.Hanufactiates
Petroleum end
Products
Glass And Products
Steel Mill Products
Iron and Steel Manufactures
Aluminum and Manufactures
C
a v p
Electrical Machinery and
Apparatus
Engines, Turbines and Parts, not elsewhere
specified
Mining tell' and Pumping Machinery
Textile Sewing and Shoe Machinery
Industrial Machinery,, not elsewhere ~specif.ied
Printing and Bookbindirig'Mac}finery
Automobiles, Parts and Accessories
Aircraft Parts and Accessories
Vehicles and-Paris, not elsewhere specified
Medicinal and Pharmaceutical Preparations
Chemical Speci
lti
a
es
Industrial Chemicals
Pigrients, Paints and Varnishes
Soap and Toilet Preparations
Photo and Projection Goods
Scientific and Professional Equipment
Misc. Office S
upplies
Firearms, Arimunition
P
,
yrotechnics
Books, Maps,,. Pictures and'Print, not elsewhere
All others ,( specified"
incl. all items less titan X200,000)
TOTAL
4lue, ,U, S. Dollars
1,, 439, 879
: 2,.42, 983.
273,655
'::;.!77,.7,-1g
-1r~;82~x j 386
36 2,.c 42.
x,60;161
..438, 7l1" G.
3],x;193
1,.2,02.;, 87.7
4.,750;3.76.; .
.~, 218,532: .
424,415
,1,091,280 ..
1,702,135
472,648
1,416,179
997, Q16.
489,520
239,109
1,440,576
282,646
270,349
305,849
912,618
212,625
2,73!9, 673
1 54'x, 539
244,,777
1,144,681,
250,, 702.
244,558
39.4,785.
630, 348
319,163
2l3,,?'64
260,224
207,627
515, 08'2.;
3, 583, 712
39,424,328
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EXPORTS TO CHf`A FROM THE UNITED STATES
.,Commodity
Dairy Products
Grains and Preparations
Rubller and Allied Gums and Manufactures
Tobacco' and Manufactures
Cotton, Unmanufaotured
Paper, Related Products and Manufactures
Petroleum and Products
Steel T:iill Products
Value U.S. Dollars
Electrical Machinery and Apparatus
Engines Turbines and Parts, not elsewhere specified
Textile Sewing and Shoe Machinery
Industrial Machinery, not elsewhere specified
Autoaobles, Parts and Accessories
Airoraft?Parts and Accessories
Vehicles and Parts, not elsewhere specified
Coal Tar Products
Medicinal and Pharmaceutical Preparations
Industrial Chemicals
Soigntific and Professional Equipment
BQo'ks, Maps, Piotures and Print, not elsewhere
specified
All Others (inclo all items less than2OO,b00)
TOTAL
EXPORTS TO INDIA FROM THE UNITED 'STATES
May, 194$
424,673
4,883,657
337#32i
1,212,578
15,343,852
820;372
945,547
535,382
54% 3,39
472,264
303;629
643, 8'89
'` 2'1'9,235
1,840,292
1,450,305
Ws., 466
873,216
304;333
343,542
1,357,684
2,213,987
,.'Commodity Value Us S, Dollars
Dairy Products
267,640
Grains and Preparations
1,832,893
Tt l~acco and Manufactures
2,540,327
C?tton Semi-manufactures
491,711
Cotton Manufactures
482,376
Sravmill Products
222,973
Petroleum and Products
930,256
N?o.s.metallic Minerals, Incl. Preei,ous,.Act elsewhere
specified
259,498
Steel.Mill Products
585;'748
I'tpm- apd. Steel Manufactures
322,233
Copper and Manufactures
22& n7F
May, 1948
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 Approved For Release,2001/11/21 : CIA-RDP80-00926A000200030015-2
Exports to India from the United States (Cont'd)
May, 1948
Cw=odity Value U. Sj"Dollars
Af
Zinc and Manufactures
228,941
Electrical Machinery and Apparatus
783,849?
Engines, Turbines and Parts, not elsewhere specified ?
674,435
Metal Working Machinery
258,199
Textile Sewing and. Shoe "Machinery
532,705
Industrial Machinery, not elsewhere specified
105398654
4pplances
Office.
279,486
.
Printing and Bookbinding Machinery
.,-4,58#124
Agricultural Machinery and Implements
'294,889
Automobiles, Parts and Accessories
2,807,324
Aircraft Parts and Accessories
386,973
855
L27
.,1
Vehicles and Parts, not elsewhere specified
Coal Tar Products
,
,
2,722,969
Medicinal and Pharmaceutical Preparations
318,519
Industrial Chemicals
833y568.
Pigments, Paints and Varnishes
X60,786
All Others (incle all items less than x'200,000)
1,782,336
EXPORTS 'TO JAPAN FROM THE UNITED STATES
May, 1948
Commodity
Rides and Skins, Raw, Excluding Furs
'Animals, Animal Products Inedible, not elsewhere
Grains and Preparations
'Fodders and Feeds, not elsewhere specified
Vegetables and Preparations
Vegetable Oils and Fats, Edible
Beverages
Rubber and Allied Gums and Manufactures
Oil $6044,
Misc. Vogetable,.Prbduets, Inedible
Cotton Semi-manufactures..
.Vegetable Fibers and Manufactures'
Papery Related Products and Manufactures
Coal and Related Products
Non-metallic Minerals, Incl. Precious, not
Iron and Steel Manufactures
Automobiles, Parts and Accessories
Coal Tar Products
Medicinal and Pharmaceutical Preparations
24,450,842.
Value V, S, Dollars
97,824
spec. 52,500
2,263,840
1,241,387
519,494
206,856
65,032
143,713
1#7-290376
273,477
148,145
1,012,539
80,601
4879457
spec. 754.933
96,654
56,093
485,929
175,063
Approved For Release 2001/11/21 : CIA-RDP80-00926A000200030015-2
 Approved For Release 2001/11/21 : CIA-RDP80-00926A000200030015-2
Exports to Japan from the United States (Cont'd)
May, 1948
Co ao dity .
Value U, S, Dollars
Chemical Specialties
399,950
Fertilizers and Fertilizer Materials
766,926
Industrial Chemicals
92,677
All Others (Incl. all items less than $50,000
953,015
TOTAL
12,082,481
EXPORTS. TO BRITISH MALAYA FROM TEE UNITED STATES
irrr'~r~rr~r rr~~r.r.
May, 1948
Cormnodi
Value U. S. Dollars
Dairy Products
444,011
Grains and Preparations
161,211
Cotton Manufactures
6,5871,882
Synthetic Fibers and Manufactures
918,679
Paper. Base Stocks
95,825
Petroleum and 'rroducts
112,765
Glass and Products
610915
Steel Mill Products
217,626
Iron and Steel hanufactures
54,613
Aluminum and Manufactures
134,606
Electrical Machinery and Apparatus
184,610
Engines, Turbines and Parts, not elsewhere specified
60,P669
Construction Conveying ;.iachinery
218,914
Mining Well and Pumping Machinery
65,572
Industrial Machinery, not elsewhere specified
264,412
Office Appliances
55,932
Automobiles, Parts and Accessories
202,218
Coal Tar Products
62,323
Chemical specialties
88,185
Industrial Chemicals
151,466
Photo and Projection Goods
52,195
All Others (Incl* all items less than )50,000)
548,705
10,744,234
EXPORTS TO HONGKONG FROti THE UNITED STATES
May, 1948
Comoro it
Value U. S. Dollars
108,974
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 Approved For Release 2001/11/21 : CIA-RDP80-00926A000200030015-2
.. 6.,
M. M
C omiziod:t~r
Fruits and Preparations
Rubber and-Allied Gums and Manufactures
Drugs, herbs and Roots, Crude
Tobacco' and Manufactures
Cotton Manufactures
Synthetic Fibers and Manufactures
Paper Base "cocks
Paper, Related Products and Manufactures
Exports-',t,.:?f ingkong 2rorc t te??
Mar, 1948
;1 .States ('G4! d)
Value ::u;: S a -.Dollars
Petroleum and Products
Steel Hill Products
Iron and Steel 11anufactures.t
E7a ctrical Machinery' and' Apparatus
Construction Conveying Machinery'
Textile Sebring and Shoe Machinery
Coal .Tar`...Prbdudts'
Medicinal and Pharmaceutical Preparations
Chemioei1. Specialties
Industrial Chemicals
Soap`.an.d Toilet Preparations
Photo;acid Projection Goods
Misc.. 0i'f.ice Supplies
All'Ot:librs (Incl. all items less than 0100,000)
1P9,87p
104
8G3,
r{
.
419, 5a2
107,124
252,619
142,977
356,696
134,828
320,391
104,452
794,283
.:?..:287..;416
?1,052,754.
. 149,609
152,442
`107, 915 .
1'49, 353
3'61,146
703,'802
TOTAL '8,474,430
EXPORTS TO THE IIh'THERLANDS INDIES FROM THE UNITED STATES
May, 1948
Commodity
Value U. S. Dollars
Dairy Products
208,345
,.nimal..roducts,,Edible, not elsewhere specified
123,168
Gains:a-nd Preparations
448-i533
Fruits and Preparations
1500361
Rubber hn.d Allied Gums and Manufactures
451,805
Cotton Vnmanufactured
178,482
Cotton M,anufaotures
232,959
Petroleum and Products.
442,771
Steel Mill. Products'
717,378
ron '? and Steel Manufactures
Iron'
203,875
Eleotribal Machinery and Apparatus. .
307,337
Engines; 'Turbines and Parts,'iot elsewhere specified
267,779
Approved For Release 2001/11/21 : CIA-RDP80-00926A000200030015-2
 Approved For Release 2001/11/21 : CIA-RDP80-00926A000200030015-2 .
Efforts to the Netherlands Indies from the United States (Cont'd)
Corm-odity
Conatruc#fon?Conveying I.Iachinery
Mining,Ytell and Pumping Machinery
Industrial Hachinery,, not elsewhere specified,
Automobiles, Parts and Accessories
Airors^ P4prts and Accessories
Indust al Chemicals
All Otters (Incl. all items less than 0300,0OO)
Value V. S, Dollars
?PORTS TO KOREA FROI THE TRTITED STATES,
Hay, 1' ?
Coimmodi
Grains and-Preparations
Petroleum and Products
Non-metallio Minerals, Incl. Precious, not elsewher
Steel Hill Products
Copper. and Ianufactures
Medicinal and Pharmaceutical Preparations
Fertilizers and Fertilizer Materials
Photo and Projection Goods
Soientiho?and Professional Equipment
All Others (Incla all items less than 050,000)
Value U. S, Dollars
137,829
3528560 '
?313;52$
? ' 961,829
' ' -
186834
-150, 743..
1,107,129.'
6,943,35
2,189,600
68,615
sped. 131,592
61,470
533,845
1260051
895,354
73,157
109,048
273, 574
EXPORTS TO SIAM FRQI THE UNITED STATES
May, 1948
Cgrm odity
Cotton ;Manufactures
Synthet i.c Fibers and Manufacturev~
Petroleum and Products
Electriroal Machinery and Apparatus
4,462,306
S. Dollars
194,227
65,531
62,787
1628040
50,407
166, 84x7
1500008
624,321
1,476,368
Enginet, Turbines and Parts, not elsewhere specified
Automobiles, Parts and Accessories
1iedic,inal and Pharmaceutical Preparations
All '.Others (Incl. all items less than S50r,000)
TOTAL
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 Approved For Release 2001/11/21,,: CIA-RDP80-00926A000200030015-2
EXPORTS TO FRENCH INDO-CHINA FROM THE UNITED STATES
May, 1948
Commodity
Value 'U. 5,,, Dollirs
Dairy Products 77,568
Cotton ILgnufaotures 64,02
Petroleum and Products 1189579 "
Eleotripal Machinery and Apparatus.,, 89,461,
Engines,,,Turbines and Parts, not elsewhere specified 112,9.65.
Construction Conveying Machinery 257,067
Agricultural Machinery and Implemext s .65,898
Automobi;os, Parts and Accessories 208,593
Vehicles and Parts, not elsewhere specified 83,649
All Others (I,oi, all items less than U90,000)
TOTAL
EXPORTS TO CEYLON FROM THE UNITED STATES
May, 1948
Commodity
Dairy Products
Cotton Manufactures
Sawmill. Products
Printing and,Bookbinding Machinery.
All Others (;nals all items less than $50,000)
3690889
1,417,695
--Value U. S. Dollars
68,750
595,958
1140700
69,735
273,374
1,112,517
EXPORTS TO PAKISTAN FROM THE UNITED STATES
Maki,,. 1948 ...
Commodity
Misc. Texii1e 'Products
Mining Well and Pumping Machinery
Printing, and, Bookbining Machinery
All Otters (Inclo all items less than $50,000)
Value U. S. Dollars
83,888
82,711
93,237
282,283
542,119
OTHER EXPORTS TO; THE FAR EAST FROM THE UNITED STATES
May, 1948
Burma
293,008
Portuguese Asia
54,743
Taiwan
363,261
Approved For Release 2001/11/21,&-gB0-00926A00;`b0b%1~52
 Approved For Release 2001/11/21 : CIA-RDP80-00926A000200030015-2
Corn:'. o`d it
`Skins, Raw,
ccl~-ding Furs .
sides
6g~ZO~
Leathar bons i
Ruts aU4 . rePa d To& 124,413
Gacoa, Ooffee 6140367
03
Materials 1540
spices ctuas and ,Lesine
Stores*, and Tanning 160185.417
Zjaval
DYOI-nE
pec 1170879
Vegetable tured
nufac 581,990
Cotton ,factures n envhere . spec*
tares, ot els ec. 889,921
Cotton d .,factures fo
not elsewhere sp 4070170
Jute ?~ ribers and
Vegetable ufact"ures 3ecified 614.18
NIS actured and Tian ot alge~therp00
VZOIA,
~YYool Iliner
1S n
etals 0 _..230761.131
11i
an-meta Ores and less than 100,
All pthe rey ~Z 3no. all items OTAL
~~-YA
+~ BRITISH
Comcit.
and 4509000)
Sptoes ~d Allied G\06 500000)
~
,Lubber ~ ll its less than
Tin , (Incl. a 'rOTAL
Co
._ d preparations
Ku st d retjoi-A
d -productf
r ;id Relate Bible
Dollar
14,104
90920,024
7000680662
945
1850
20,236,735
Sug- Ina
Oil see &$ and `taxes, not elsewhere spat
stable p11s
Veg of acturee factures' ttoll Veetable' Fibers and '
123011
20298, 9 8
20Z73,
70311,890
47 82
1;724,49
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 Approved For Release 2001/11/21 : CIA-RDP80-00926A000200030015-2
United States Imports from the Philippines (Cont'd)
May, 1948
Ci y,
Wood Unmanufactured
Savmiill Products
Value Ulk S. Dollars
Ferro-alloy's, Ores and Metals, not elsewhere specif'ietl
Coppery and Manufactures
Brass and Bronze Manufactures
All Others?(Incl. all items less than $50,000)
68,r Q98
1, 1, "748:
i Z, 370- ..
68,741
97,606
156,583
TOTAL 17,641,991
UNITED STATES IMPORTS FROM CHINA
May, 1948
Commodity
Hides and Skins, Raw, Excluding Furs
Furs and Mani factures
Animals; Animal Products, Inedible, not elsewhere spec.: 1,572,306'
Vegetables and Preparations
Fruits and Preparations
Drugs, Herbs, Leaves, Roots, etc.
Vegetable Oils and Waxes, Inedible
Cotton Semi-manufactures
Cotton Manufactures
Flax, Hemp, and Ramie and Manufactures
Wool Unmanufactured
Wool Manufactures
Hair and Manufactures,- not-- elsewhere specified
Misc. Textile Products
Wood Manufactures
Clay and Products
Tin
Explosives, Fireworks and Ammunition
All Others (Intl, all items less than $50,000)
'257,857 ,
409,031"
89-9004,
78,167
66#436
10806,212
57,542
105,779
385,747
62510 ,09
963,821
167;,C79
8 Cl3
12,566
75y 2.C7
1, 2 .9 `)43
42,'076
704
745,
TOTAL 8,402,301
UNITED STATES IMPORTS FROH.CEYLON
May, 1948
Commodity Value U, S, Dollars
Nuts and Preparations l3 ,a33
Cocoa, Coffee and Tea 2,722,485
Value U S., Dollars
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 Approved For Release 2001/11/21 : CIA-RDP80-00926A000200030015-2
United States Imports from Ceylon (Copt#d)
May, 1949
Co dity Value U, S. Dollars
Rubber and' Allied Gus and Manufactures 1,763,313
Vegetable Oils and Waxes, Inedible 50,226
Non-metallic funerals and Manufactures not elsewhere spec,, 64,585
All Others (Inol, all items less than 150,000) 82,401
TOTAL 4,815,143
UNITED STATES IHPCRTS FRCM JAPAN
May, 1948
Corm>iodi
value U, S, Dollars
Shellfish and Products
52,179
Furs and l4anyfaotures
"
144,668
Fruits "and:
Preparations
73,732
Cotton $aufactures
553291
Silk and Manufactures
10843:5
00
Misc, Textile, Products
,
73,706
Wood Urmaanufactured
105,818
Wood Manufactures
51?,569.
Clay and Products
211,039
All Others (Ii}ol, all items less than $50,000)
414,649
TOTAL
3,524,351
UNITED STATES IMPCRTS FROM PAKISTAN,
May, 1948
Commodity
Value U. S,' Dollars
Hides and Skins, Raw, Excluding Furs
634j316
Furs and Manufactures
94,923
Nuts and Preparations
67,677
Cotton Unmanufactured
96,147
Jute and Manufactures
1,601,352
Wool Unmanufactured
589,698
Hair and Manufactures,-nQt.elsewhere specified
57,639
All Others (Inclo all items lase than , 50,000)
18,042
3,159,794_
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 Approved For Release 2001/11/21 : CIA-RDP80-00926A000200030015-2
May, 1948
Commodity Value U. S. Dollars
Cocoa, Coffee and Tea
119,817
Spices
253,258
Rubber and Allied Gums and Manufactures
2,010,322
Tobacco and Manufactures
315,163
Vegetable Fibers and Manufactures, not elsewhere spec,
92,174
Aluminum and Manufactures
91,165
All Others (Inclo all items less than $50,000)
156,583
TOTAL
3,038,482
UNITED STATES IMPORTS FROM SIAM
May, 1948
Commodity
Value U, S. Dollars
Rubber and Allied Gums and Manufactures
2,110,788
Naval Stores, Gums and Resins
1869801
Oil Seeds
80,392
Stones, Precious, Semi, Imitation and Indexed
103,973
Tin
330,173
All Others (Intl, all items less than 050,000)
118,637
2,930,764
OTHER UNITED STATES I14PORTS FROM THE FAR EAST
May, 1948
Burma
72,311
French Indo-China
39,150
Portuguese Asia
33,063
Korea
54,504
Hongkong
258,230
Taiwan
80,002
88,047,952
Approved For Release 2001/11/21 : CIA-RDP80-00926A000200030015-2
 Approved For Release 2001/11/21 : CIA-RDP80-00926A000200030015-2
FAR EAST-AMERICA COUNCIL
OF
COMMERCE AND INDUSTRY, INC.
June 10, 1949
MEMORANDUM
TO: Council Members
FROM: Mildred Hughes
.Due to the limited time spent in each country I am visiting on this
trip, and the resulting heavy schedule of daily appointments, my reports
to you while enroute will necessarily be brief. For on this trip I am
"listening and learning'k, devoting every possible moment to obtaining a
well-rounded picture of current trade conditions and the trend of economic
developments and policies effecting U. S. trade.
My first impressions in Tokyo were those of a clean city, well-fed,
healthy people, and well-stocked stores. Mile in Yokohama, Osaka and
Kobe, I saw many remaining evidences of war destruction; the center of
Tokyo itself appeared untouched by war and not unlike other crowded busy
commercial centers.
During my stay in Japan I conferred with the officials of the
Occupation and ESS, Japanese officials, American business men, and
Japanese business men and industrialists. We discussed present controls -
Japan's tax structure - labor legislation (including the Labor Standards
Law) - Deconcentration and Anti-Monopoly Laws - The Zaibatzu Purge -
Patent Trade Marks and Copyright Legislature - ways and means of estab-
lishing a system of free enterprise and a score of other things affecting
American business interests in Japan.
ESS efforts are directed toward the economic recovery of Japan.
The issuance of the Interim Economic Stabilization Directive last'
December brought a shift in Ocoupational*policy. Beginning in January,
primary emphasis was, for the first time, placed on Japan's economic
rehabilitation and a new phase of the Occupation was initiated. In this
new phase, the operations of ESS are geared to "Japan's economic recovery".
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 Approved For Release 2001/11/21 : CIA-RDP80-00926A000200030015-2
and that they are seeking ways and means of their solution.-:
To say that the economic problems in Japan are abundant and. complex
is indeed an understatement. Many of the basic broad ones have'receritly
been studied "r the Dodge'Mission, others, are now being studied,. or will be
within, the next few weeks, by technical missions. It was encouraging to
find that these problem's are well-known 'to Occupational and ESS officials
Memoranda to Council Membe~S during the past two'years have-.,carried
reports of Japan's increasing production of materials and goods for export.
Continued progress in production is best evidenced in the following data
taken from: weekly operations report (May 21)'.. of the Industry Division of
the Economic and Scientific Section of ESS.'?
Industrial Production is increasing.
COAL Production)
Revised production figures for the first ten days of May 1949 indicate
that total production was 750,100 metric tons, or 71.4% of planned production.
Notes Coal production in 1948 shows an increase of.ovea 60% over 1946
production.
CHEMICALS
um Su
a? Calm
the first
the periodo.
b?" Salt Imp orts? During April 137,900" metric tons of'.salt`:wers imported,
representing a inoreasa over receipts during March.1949, and an' 80% increase over April 1948. Domestic production ix 'April 1949 was :19,300 MT?
This favorable supply situation will greatly aid industrial chemical production
as well as 'supply the necessary salt ' for alimentary uses,
c?? Film'. ' April production of film was 152,33Q 'square meters, ''the
highest mon y production attained since the begirifiing'of the 'Occupation*
There was a large gain in production of oine-film for export, increasing
from 26,688 sqs meters in March to 48,718 in April. Total film stock
increased from 143, 908 sq* meters in March to 217, alb ?in Agri .
d? 'igr.oultur+ 1 ln's6cticides.' Production of r'~f erad'ars~enate `during
March amounted to 1bbWj a etc eases of 40%'fr~n. the February figure of 260 MT,
Mile stooks dropped from -481 to :404 We Calcium arsenate rose 87 MT to
11V 1r MT,' ri ~i~cr"es$e -,of 441%, :roh`i1e: stocks- "decreased' from 125 to 113 MT.' March.
production .of 'lead-4reeziate ie "e?qual :to appr'ozinately 'll2%.of t"he-'average
monthly d'emstrid 'while produatl:on of- calaium?'&rsenate is: sufficient' to met
about 20% of the 'i 6iaiid. " However,' this ' eliresents a abh`' bett?r' balArve
between supply and demand than prevailed during CY 1948, during which period
calcium arsenate production was 51% of annual requirement and production of
lead arsenate wasp about 5% above the required amount.
eerrhosphate. Production of calcium superphosphate during
ys of-May amounted to 26,500 MT,? or 20% ,more than planned for
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 Approved For Release 2001/11/21 : CIA-RDP80-00926A000200030015-2
aK Launching The 3,600 gross ton steel cargo vessel, "Tbnzai
Maru No % 5", was launched on 12 May 1949 at th. c' Mit aut4i.shi Shipyard,
Yokohama. Upon completion,'this vessel will be operated in the Japanese
3Lerchant Plee#"bi iii oriner the Tonzai Steamship Company.
b. Refrigeration. Permission was granted for the installation
'o1 modern sboi freeze re rigeratio'n equiment? in a 10,900 gross ton whale
MOO carrier, the "Tenyo Maru". It is estimated that this near equipment
wiill make,possibie asaving of 40% in most weight which it lost by'the
salted s' orage preseri#1jr used by this vessel.
Public Utilities.
a`.''`Nattiral sireamflogr of Japan as a'whole, during the period
yea+` 194546-4148', the hydro-electric power' generation' of February 1949
roias' 140.5%, 123.2%, 125.8% and 122.3% respeotivelye General industrial
production level for February was 64.4% of the 1930-34 level.
19481. Compared to-'the hydro-eleotric power generated in February of
aars '11 0034. and'82 r,5 of the previous high ' of the last- 12 months (May
efcly period;
'b. Japan received unseasonal extra rainfall during the month of
February. The "Fydroaelectric power g?nera#ion by public .~uti1i'tiee in all
Japan .during k"ebruar 1949 was 2,`298,384r,,000 KWE which was 225of the
ve ge hydro-electrio power generation for February over the
year avers,
R May o ' 8 l a inclusive, was relatively high, being ludo or -cne pasti
3 year average for tt1ie .same period, and also 106% of the streaiflow of
e "roe ,dini weekly period. Thermal generation~'was 85% of the preceding
The reeling of 14 604, bales of rave silk during`March eet anew postwar
record, an increase 05f '466 bales over previoushigh point 'readhed in
December, 194$.
with 26.2 for `February and 21.8 for March 1948. (1930-34 average a 100},
During March 1949 ?' overall -textile production 'slightly.
the textile produot3ott naex for March being estimated: ;at 27.1 compared
lir,eWa- Wale
a, Steel'Mill. Interim production reports received from Nippon Koka
m6n0i i
Kawasaki man, he second largest steel mill in Japan, indicate that as a
result of recommendations made by varioma',risJ.ting consultants. uud'a..the
industry Division Visiting Export Program, fuel aonsum ion per ton of steel
ingbt_''has dropped 1'5% to' 20% in the last . 3 }" i' ys
b,, 1Stee-1-Product1on, ` on the basis of daily operating reports from the
ma3;or steel pro uoers, production in May should increase10o to 20%. over
,. hat ?if -~Yprf3.' Although preliminary reports have not deem `received for the
Ontii -oi` April, 5% to 10% inorease over MarcTh production 3'. s expected for that
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 Approved For Release 2001/11/21 : CIA-RDP80-00926A000200030015-2'
Non-Ferrous Metals. 50 MT of forromolybdenum-in excess of requirements
in Japan have been approved for export.
, 0 : Qtalli.o
as Petr
h
the mont
ij,sl 4i1 Y_,-
Nvy ;special, Oil s 11
rte. as_.
The. following petroleum' products were imparted during
47,036 'kilgliters
18, 712 rr
7-950 3, 691a rr
Grease .. 41 kilotons
Paraffin & Tax 424
Waste 01 9,785 rt
Waste Crg ee , 6X8 "
F41 4t1...G.rado 2?
Lube Oil
The above products were distributed by ten private petroleum companies
under the supervision and direction. of the Japanese ovornment and SCAPI
thesq, qoi pan es -replaced the Petroleum Distribution,Xodan on 1 April, 1949.
,U- a majority of imported petroleum products are con timed by land and marine
' raz portation, fishing a: d agricultural' industries, an c Moth or 4.nc3u6tr al
eq -. In adc itl9U to he_ bove.,praducts, 4764 kiloliters of bunker oil
were'oonsumed on SCAJAP vessels carrying petroleum produets.from the Persian
Gulf*
coral gnt tha4,..4QSir,,ed; these, stocks will be a `we come addition4to .oritigally
s Qcpected this week. Although of considerably lower calcium fluoride
from cgstady of 1,958 LIT of, fluorspar, held under suspicion of bung looted,
retported cons ption .o 1,420 DST, . headed the list.Qf consumers, followed
r ,the aluminum. industry which reported the use of x,02 MT.,. The release
'
F uor,s are During March, consumption of fluorsparreaohed a new
postvgar_. ea amountin to 2,850 MT. The iron and steel industry,With
lowv suppJiee.
a?;, a .,g}~a,zver}es or, acemexi Lopgneseaorx) proauctts -co manu-
'acturers tiring 1948 JFY totaled 10,98.6 MMT, against 7,765 MT in 1947 JFY.
The greatest 1948 JF'Y increasb is reflected in the deliveries of.'709,473 -
insulation sheets a ainst 481,783 during the corresponding period in 1947,
rand represents a47 -increase. A furtherinorease is anticipated during
.1949.x, due to scheduled imports, of 1Iedit?rran an and Korean o6rk,for
the processing'of end products for exports
d. Coke. Final coke distribution report for Maroh shows deliveries
to all consumers totaled 349,159 MT, or 34% of first quarter.Jn allocation.
Of this total 161,007 MT were consumed by the producing industries, .e.,
iron and steel, gas and chemicals. Deliveries for the quarter totaled
927,839 MT, which is 91% of the quarterly allocation.
wade is in a ti.on period.
transactions (with the approval of SCAP)', opened a trarisitional perioii
""The -relaxing of opcupation , contro1.s. to .permit private commercial
which is a trying,and most diffioult time for all concrned.
of their efforts to project American business interee s iv'hile at the same
11h it Jai-Ir' 0' ' 1 ~
ile in Japan I heard no ersf . Geral MacArthur or .'General
qua, or of General Marquat's top men:. In fact them wasuniversal.praise
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w
w. '. 13
time apportioning equal benefits among the private business nationals of the
of the Supreme Commander for
oche countries who fall under the jurisdiction
the 11 e rowors in Japan.
'Thane vuae. gener`e1 sympathetic understanding,, tao di` the policy directives
effecting Japan's economic revival. Few Americans took issue with the .policies
~nvolved*' There arcs plenty of unhappiness, discontent, and ?warranted criticism
expressed, " howe?trer, regarding the 'implementationof these policies and par-
'tin erstvod`by most, that `understanding does' not ease the continuous exaspera-.
tion and, frustration experienced by, "traders" trying to develop. "trade" with
of - ci executive ranTc In ESS. For, while administrative difficulties are
Japan.,
18efore leaving Tokyo I discussed many o1'' the present - pressing -
, ?~rob'lems of the American "tr"r in Japan with Occupation and TSS officials.
WhiTe f Y i fl take time-.t6 as. solution for' some of then '(our members can
ie1pn this} have reason to' believe that=many (if tha condytion most"
Irritating to our members in Japan re being *orkod out-,o I believe,, too,
that a good "Trader-SCAP Relations Departm.-s it" could do a much-needed. and"
effective job - not only in ironing out raan,r of the existing difficulties,
but in savin time of businessmen said ke SCAP officials
Present economic -conditions in Korea'must.be viewed against the,-back-
ground of political changes since V-J Day, which ended Japaneso control and
divided Korea into a Nor ,h and -South 4gRq._along the 38th parallel. Political
developments there during this next year will, to a major extent, determine
trhe amount of economic recovery.
While in Seoul 'I had several conferences} aril h' our able Ambassador,
John J. Mucci.. I also had two conferences with President Rhee - during
?? rhich `he rep6at'edly referred to the Not that the Co*funists wore only 35
miles away. In addition several-hours were spent discussingthe Korean
BOA program with our ECA officials there,
R. -s r
ff.gh1ights of present economic recovery in: Korea.
There has been n steady improvement., ovement , in power .~en*e,tion, and through
it South 3iorean Ian,?RY proda?ed more, elebtric3.ty thin In any earlier
r - _.
sit r x~ inorit . it was est .mated that this :re d ao ` ia~p=^overnent Muld
proving;
? of allooationa to industry. Recovery of. power ,generation,{ in - fact, has
been more rapid than the capacity of industry, to absorb it.
The improved power position was reflected in the ipiard'trend of
industrial production, - particularly in the' textile field. During April
he? "production of coawl machine made paper, cement and truck 'tire output
wss 'inareaaed. The product -Ion of copper. is :continuing at appxroximately
the 1948 monthly average. Tungsten output of'..7O.5 MT, (metal content) is
'cro tir ins ana that` there wouia die' suffic eint power produc=t i:on to take care
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1949 Budget .
#r ECA Aid supplies.
0n April 30th the Korean Natiohal Assai~lyy approved t ~-e budget' for
the fisbal ;year'beginning April' let, 1949. The projected budget deficit
of .W 27,500,000.000 looms large, especially in view or. the slow,oollections
.as or" 3o April, Government collections. for such aid goods totaled oaily
F 845,000,000. Cash collections, for aid goods covered by. Civilian Supply
40c, cunt,. for last i'i scat year (1 April 1948 to 3I March. 1x'4'9) totaled! only
stet .de_Pos.zts for EGA aid goods as of 30 April,? totaled . 15.x. b ? lion, but
The Goyer2ent expoots to cover the defioit. of rr 27.5; billion y wi rawer
of A9ji`?`itp. a Nnds, Srs; addition to. requesting utilization of most of the
remaining W 60 billion estimate to be paid into the eoLr.-terpart fund .da_iring
py Ic.19-50 :'or sp,~ +9.a1 pro jects Q Most dis?1-urbi.r g clement in -rhis situation
4 .fie very -slow x to of collectior..s for a-.-..d goods. by the. Go.va ;iexn`' - Govern-
.
is" nu," from taxes and Government, enterises totaling about W 67.3 billion.
U the 1
'the ltd et' provides for: Government expenditures for operation .of the
Government enterprises of about,W 9,6 'billion.. with Government
oyernment and
-30#1 percent of sales posted.
r3. ng the ;last week of April, the Korman Goverment Is, Current US,, Dollar
Account in the Korean Foreign t'xchange Bank, inbreased 45,291,07. The Special
US Dollar Account remained unchanged at $23,.646,812.85. During the same week
the Current Hong Kong Dollar Account decreased BKOv 136,800, The net exchange
held by the KFEB for its own aodbunt totaled US$ 287,257.74?
Proposed new exchange and trade controls.
oregn trade. Briefly these would include:
Korean Government was considering new regulations and control of exchange and
Bank fqr, deposit.
Acceptance of'foreign currencies by-the Korean.Foreign Exchange
Inauguration of a periodic "open market" buying and selling rate
on the basis of the US dollar; the existing rate of W 450 to
13$ $1,00 wou7 d,,~ ,be maintained only in- apnn etton with, official
Korean Goverdmiant transaetionse .
estimated value of a trustee export shipment.
Waiving' of't`he" currently required deposit of 10 pergent: of the
roreigin cttrrenpies under irrevocable letters of oredit.
Bar purchases: in Won of documentary drafts drawn in, negptiable
exports.
d. Grants of fore-.'gn'exchange loans against shipping documents for
frexports,such certificates not to be transferrable and to be
utilized within .90 days fear. purchase of, approved imports,, or sold
U; the Bap.1t at i-t$? buylzig rate on the date, of transaction*
Issuance of fore .gn currency deposit-certificates against proceeds
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911minat on 6f 'the- ofTrent praotite' of 'fining prices on goads
exported from and imporbed'to?Korea,'excepting certain controlled
commodities.
niiistrat'ion of`th&t'rro,gram under presont conditions in Korea, is not
The ECA program for Korea will, of course, depend to a large extent,
.upon the amount of money authorized by Congress for this purpose*
Hang Kong is now avery overcrowded city. Rumors. are everywhere and
facts hard to find.= 1}ii16iii Hong' Kong, however- I have tried to secure
inforfation on the amount and character of Hong Kong-North Korea-Manchuria
trade, and to run down some of the statements I heard in Japan, rolative
to immediate trade d~elogmen:,passibilities in Hong'Kong-Chin. trade.
f I' a 1+~ rn `mast ok the':Unrth Korea-Mazic"huria=Hong Kong
a
K9rea'have been in. Hong non; for several months negotiating barter details
d 1 th ,t r hi e ` ~ted ' e ts'' ar+s in the city for the same purpose. As
e a
C n
,
s,aras an
tradehas'been conducted on a barter basis which has not been profitable
to the'HOng Kong firms. It`is reported that three buying agents from North
gn
s
aso a
'ar as Irr can learn the. latter group have yet to proricte evidence of their
aitthoritjr"tii' sat mar"the Ch.triese Communists.
Hone Kong-Japan trade is also a matter of considerable interest here.
fie trade, too;` "is on 'a barter basis:and is controlled by the Government
anti clearei"through SOAP as well as the Hong Kong Government Supplies
Trade and Industry Department...' Bong Kong imports frcm-Japan are restricted
to'44% of the value of exports from Hong Kong by the firm doing the importing
other Hong Kong-Japan exporters. These certificates bring premiums of 15-20%.
oing to be an easy task.
When Japan-Hong Kong trade waS first started, lino ted ? quotas' of US
dollars were given to over one hundred Hong Kong firms Few 16erican firms
were' included in thli 'gist The only chance far a Hong Kong firm not on
this list to do business with Japan, in-through that firni first exporting
to Japan ? for every 100 units exported, permission to import 40 units from
Japa ,,: g'ante-d. The uncertainty._of developments in"3hanghai-Hong Kong
trade has everyone worried. Some British. and Chinese firms in Hong Kong
are said 'to- be' negotiating 'direoi ly irrlth Chinese Communist agents. American
firms are-waiting clarification of T S; Government policies, while at the
same time, are trying to ascertain just what China trade will be permitted -
and how - under Communist rule.
PHILIPPINES
and intear in the ernat`ional issuesi are'`being Apirit of nationalism
re a'.bombstic election
r r. ' ' g j` 3ected ed which the
:
politicians feel have the greatest amount of appeal to voters and particularly
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\i &.9
to the organized minorities. Some of these are --of ,,great concern-to American
bus" nesss 'interests in :'the Philippines.
During conferences with representatives of Counocl Ddemoer firms there,
concern was repeatedly evidenced in the current trend of the political and
economic relationship between United States and the Philippines and the hope
expressed that a reversal of this trend might be effected aft'er' he-elections
'tore over.
The- attitude of the -Philippine Congress toward restricted commercial
legislation and tighter trade regulations, wh#Ich could be imposed by'the
Philippine Government within the framework of existing treaties, was
mentioned by several. It is rather universally recognized that Communism
is a serious threat - and is on the increase - in the Philippines. The
present Philippine Government is having difficulty in maintaining law and
TtIordee-inn the country. Small groups of armed bandits are reported operating
'
,. almost everywhere: They are not unknown evenn Manila.
Weed and possibilities in agricultural development.
`1i-'4 , - ??hile;talking with off 4ials of the Ph,lippine Goverrment,.I was told
s- 1of their plans, now underway, for increasing- and diversifying .the..,agricul-
tural output of the country, At the same, time tthey admitted-.that; more
rapid progress would,:have been ;made except for the political aspects
tnvolved in. the program.:. Agricultural experts estimate-,that the Philippines
.-t=eazi produce an adequate food supply for the country and, after the elections
are over, it is hoped'that.the.present agriculture.a.evolopment-progrem will
progress more rapidly.
This program includes.an expansion in.tbe cultivation cf fruits and
stables,.. greater production of rice and corn (preferred to rice by about
of the people),,-.the raising of cattla, hugs,,and poultry and. the develop-
ment'of the fishing industry, The domestic-:economy of?the Philippines can
e' be:greatly strengthened if this program is promptly and effectively,. carried out.
~~3eeelo.p ent bf: atajor. export products....:
rrrPr...rr t ^^ r ..~.~~
nea major export
There are possibilities:in the expansipn.of the Philipp,* -
items. such as: :
.w 7 . . , - ..- .. h. , is - .. - ..,.1 -q . ?.r W
"-aoox~it.. roclucts co .ra coconut oil coao t mead etc.
-;y, >, Thaw .,conist gate: a. high percentage of.the .Fh , :ippine,
4~4 1, ~. rece pts from.. oreigp trade.
It is estimated sugar will soon reach 75% of prewar production*
estractions.
her i 0now av)a ject. to -alit, is a-lt? governmental r
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-1a-
Metals
Minings There is a real need, and an opportunity as well, for
development of the natural resources of the Philippines.
Rehabilitation of the mining industry continues to lag, and
production in all fields of mining is being retarded by labor
demands, proposed Philippine legislation (which would permit
the employment only of mining engineers of Philippine citizenship)
and other Government restrictions.
RME
An industry which is"not regaining its prewar position because
of domestic politics.
Although forecasts for the 1949 tobacco season vary widely,
Philippine Government officials estimate that there will be
a substantial increase in the production of leaf tobacco.
Throughout Manila one sees reconstruction going on on damaged public
buildings and business properties as-well as the repair and erection of
residential units. Housing shortage, however, is still acute and rents
are high.
Development of Philippine natural resources is vital.
The development of the natural resources of the Philippines would open
new fields of industry and would greatly promote the general economic welfare
of the'country. Investment of foreign capital, including technical super-
vision, should be encouraged. Labor issues should be clarified, government
controls limited and the present fears of foreign firms of more and tighter
restrictions being imposed, eliminated. This may be accomplished -- if,
as, and when the full attention of the Philippine Government is fully and
realistically directed toward the establishment of sound policies.
At this time it is essential that both our Government and American
business use every possible media to improve U. S. political and commercial
relations with the Philippines. It is important to us that the facts
relating to the benefits which the Republic of the Philippines derives
from the Philippine Trade Act of 1946, .the Bell Trade Bill, the Military
Bases Agreement, eto., be made known to the general public there in order
to oombat the nationalistic anti-foreign propaganda of ambitious politicians
and Communist groups.
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FAR EAST-AMERICA COUNCIL
OF
COMMERCE AND INDUSTRY, INC.
JAPAN BULLETIN #1.6
January 13, 1949
l# In so far as is compatible with the Basic Post Surrender Policy for Japan
(approved 19 June 1947, and forwarded to the Supreme Ccminander on 26 June 1947)
and other policy decisions of the Far Eastern Ccmnmission, including this policy
decision,, Japan's foreign trade should be so conducted as to=
ae foster the development and balanced growth of Japanese foreign trade
to a level consistent with apan'e peaceful needs as defined by the Far
Eastern Commission;
b, encourage an increase in Japanese exports1
(1) in order that these exports may, as soon as possible, pay for
the import6 roquirod for the prevention of dilseaso and uneostAwithin.-
Japan, and 'for the roosta,blishmont of a solf-sustaining economy; and
(2) in order that Japan may participate in providing goods for
international trade.;
o, insure competitive conditions in trade free of contracts or arrange-
ments which limit access to markets or foster monopolistic controls, and
prevent eicessive concentration of economic power in Japan and monopoltes
in Japanese foreign trade, whether with the participation of Japanese or
foreign capital.
2, In addition to Allied trade representatives whose entry into Japan has
been or may be approved consequent upon policy decisions of the Far Eastern Com-
mission, persons in the following categories should be permitted to enter and
reside in Japan in accordance with regulations established by the Supreme Commander
for the Allied Powers;
a, Merchants and other traders (including representatives of commercial
arganization , Governmental or othe liaise) who are. prepared to'purchase or to
make arrangements for future purchases of potential exports, or to provide
raw materials or other commodities which Japan must import;
b, Representatives of banks, insurance companies, airlines,, shipping
and other companies who are prepared to render necessary services in connec-
tion with Japan's foreign. trade either to private non-Japanese businessmen,,
to the Supreme Commander for the Allied Powers, or to Japanese persons or
agencies approved by him;
c. Representatives of companies or individual1 wh h d roperty
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interests in Japan, the renewed. operation of which would contribute to the
accomplishment of the objectives in paragraph 1;
d, Representatives of companies or individuals who had substantial
prewar property interests in Japan, for the purpose of inspection of those
interests,
3, Nothing in this policy decision is to be understood as requiring the
reoponin; or operation of ?factoriet. In Japan,
4, There should be no discrimination a ainst any foreign trade representa-
tives or businessmen in Japan and all should be accorded equality of opportunity
to transact business. Accommodations should be allocated to such persons enter-
ing Japan under the provisions of this policy decision on an impartial basis,
5. Yen acquired by foreign nationals through activities envisaged in this
policy should be usoablo for local expenditures in accordance with laws and
regulations enforced in Japan.
6. The Supremo Commander for the Allied Powers may impose port and service
charges upon foreign vessels entering Japanese ports for commercial purposes with
the exceptions enumerated below;
for direct access to individual Japanese firms of their ownfchoosing,pandusiould
have the opportunity to move freely in Japan. subject only to availability of
transport and accomodations, Any regulations pertaining to the participation of
firms or government agencies, whether Japaneso or foreign, in foreign trade should
be non-discriminatory in character and confined to measures essential to achieving
the principles and objeet:rcs sot forth in this policy and should be based upon
criteria established by and under the supervision of SOAP,
S. Foreign trade may be conducted by the Japanese Government or agency
thereof to the extent deemed, by the Supreme Commander for the Allied Powers to
be necessary for the purpose of maximizing export proceeds or for other purposes,
consistent with the principles and objectives stated in this policy.
9, An exchange rate for the yen should be established as soon as practicable.
a,, No port charges should be imposed on vessels entering Japanese ports
in so far as they arL carrying occupation force cargo or are engaged in the
removal of reparations or restitution goods. '..here vessels are also engaged
at the same time in normal commercial oocrations, port charges should be
imposed in proportion to the bulk of commercial cargo carried,
b. All port charges on commercial vessels as well as the services
rendered to commercial vessels in Japanese ports should be subject to appro-
priate and non-discriminatory payment in any foreign exchange useful for
the purchase of imports for Japan or in local currency, in accordance with
laws and regulations enforced in Japan,
7. The persons referred to in paragraph 2 sh uld b
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