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“............................................................................5
Decrease in customs revenue and its causes ......................................................5
Taxation of foreign goods ......................................................................................................0
Favourable seasons and good crops generally......................................................6
Condition of Manchuria ............................................................................................................'>
New customs regulations for Manchuria ..................................................................8
Exchange ................................................................................................................................................8
Shipping interests adversely affected..............................................................................9
Reforms needed in currency and taxation ........................................”
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“... of the
country.
Seasons favourable to increased exports.—As I have said, the
seasons of 1907 were generally favourable to the farmer; they were
also exceedingly favourable in the silk and tea districts, and it is
to greater production in these two important industries, coupled with
heavier shipments of raw cotton, hides, bean cake and & few other
items, that the increase of 27,923,958 Haikuan taels (4,537,643?.) in
the export trade to foreign countries is attributable.
Condition of Manchuria.—Manchuria again, proved a disappoint-
ment. I visited its chief commercial centres in the autumn of 1907,
from Dairen (Dalny) and Antung in the south to Harbin in the
north, and I found that Japanese competition, severe and serious
as it is, was not the only cause of the unsatisfactory commercial
conditions prevailing there. Prices had not reached their normal level
since the war, overtrading as in the case of China generally was
having its effects, currency was in a chaotic condition, taxation...”
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“...mind, however, that our knowledge of the trade of
Manchuria is incomplete. A custom-house was established at
Antung on March 14, 1907, and as, like Newchang, it is icebound
during winter, the customs returns may be taken to represent
the water-borne traffic of the port for the year but not the goods
that passed over the frozen Yalu, which divides Manchuria from
Corea. It was not till October 1 that a branch office of the Antung
customs was established at the port of Tatungkow, so that the
returns for the latter are exceedingly meagre. After considerable
delay a Chinese custom-house was established at Dairen (Dalny)
on July 1 in accordance with the precedent of Kiaochowin Shantung,
and the returns represent only six months' trade. Turning to
Northern Manchuria we find that the custom-houses at Manchuli
(which will probably be known as Manchuria) and Pogranichnaia
(S.ui-fen-ho), where the Chinese Eastern Railway enters and leaves
Manchuria on the west and east respectively, did not commence...”
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“...imports into the
Kuantung territory found their way into Manchuria during the
year; but a special table annexed to the Chinese customs report
for Dairen for the six months from July 1 to December 31, 1907,
states that the value of foreign goods forwarded to the interior
by railway during that period was 1,567,587 Haikuan taels, or
254,733?., and of these goods the most important in point of value
were 318,356 pieces of cotton goods (390,737 Haikuan taels) and
rice (value 212,932 Haikuan taels). Of this total value of 1,567,587
Haikuan taels, 1,179,310 Haikuan taels represented goods forwarded
to Mukden and neighbouring districts, 141,577 Haikuan taels to
Liaoyang (south of Mukden) and vicinity, 171,033 Haikuan taels to
Haicheng and vicinity (south of Liaoyang) and 75,667 Haikuan
taels to Kaiping and vicinity (south of Haicheng).
Customs regulations for trade in Manchuria.—I shall return to
the subject of Japanese trade with Manchuria later, but I must
mention here that very satisfactory ...”
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“...30,235?.
I Trade ivith non-Asiatic countries.—The value of the direct trade
of the continent of Europe, including Russia (through her European
and Pacific ports and via her land frontier so far as the latter is
under the cognisance of the Imperial Maritime Customs), was
16,737,844?. against the United Kingdom's direct trade of 14,571,431?,
I have included Russian trade through Pacific ports, for the tea
trade of Russia has now gravitated to Vladivostock, whence it is
carried by rail across Manchuria and Siberia. The tea which now
goes by the land frontier is nearly all consumed in Mongolia. Little
of it reaches even Siberia. On the European continent Ifrance
heads the list with a direct trade as follows :—■
Country. Imports. Exports. Total.
£ £ £
France ............ 4,982,020 513,277 5,495,297
Germany ... 992,744 2,628,828 3,621,572
Russia and Siberia 2,795,196 148,420 2,943,610
Belgium ... 646,531 1,719,420 2,365,951
Italy ............ 1,306,187 98,932 1,405,119
Netherlands ...........”
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“...other Asiatic countries showed substantial increases in the whole
trade. Japan (and Formosa), with a total value of 15,731,444/.,
was 201,807/. ahead of the figures for 1906, for although Japanese
exports to China (according to the returns of the Chinese Imperial
Maritime Customs) were short by 710,721/. there was an increased
taking of Chinese produce by the island empire of 912,528/. Ac-
cording to the Japanese trade returns the total value of Japanese
merchandise exported to China (including Manchuria) and the
" Kuantung province" in 1907 was 106,019,916 yen (about
10,822,867/.), while the imports into Japan from China and Kuan-
tung were valued at 67,992,044 yen (about 6,940,854/.). The
Japanese figures, which do not include the trade between China
and Formosa, are much higher than the Chinese customs values,
but the latter do not, of course, give the value of the trade of Dairen
for the first six months of the year, which has been estimated at
2,000,000/. In the absence of statistics of...”
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“...pieces, would appear to have
entered Manchuria by other channels than Dairen (Dalny), for the
Kuantung leased territory in which Dairen is situated is credited
with an additional 10,497,107 yards or 262,428 pieces. I have no
means of tracing this latter quantity to its destination, but there can
be no doubt that the bulk of this consignment, was, or is, intended
for consumption in Manchuria. The Japanese returns also give
3,865,036 yards of T-cloths exported to China (of which Manchuria's
share is given as 3,236 yards), while 14,363 yards were sent to Kuan-
tung. This export to China does not differ materially from the
quantity given in the Chinese import returns. The 355,956 pieces
of drills of the Chinese do not appear as such in the Japanese returns
where the quantity is omitted, but, to judge from the values (1,195,974
Haikuan taels and 2,279,890 yen) they must be included under
" Other cotton tissues," of which a value of 142,059 yen went to
Manchuria and 782,117 yen to Kuantung.
There...”
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“...previous five years. The United Kingdom, Hong-
Kong and Tonkin added 323,599, 2,502,267 and 89,467 lbs. respec-
tively to their 1906 totals, but Indian spinnings fell by 2C,592,801 lbs.
and Japanese by 12,029,601 lbs., representing percentages of 9-68
and 15-25 per cent, less than the previous five years' averages.
According to the returns of the island empire the cotton yarn ex-
ported from Japan to China (including Manchuria) in 1907 weighed
75,640,037 lbs., of which Manchuria took 483,467 lbs., while Kuan-
tung is credited with 707,289 lbs., so that Japan's total export to
Manchuria (the consumption of Kuantung cannot be very great)
may be placed at 1,190,756 lbs, or 8,930 piculs. If the 707,289 lbs....”
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“...Yangtsze Valley from
warps made from spinnings of the Shanghai mills and hand-spun
wefts. This trade with Manchuria has dwindled very much (some
3,000,000 taels in 1906) and yet Japanese competition can hardly
be blamed for the decrease, for according to the Japanese trade
returns for 1907 Japan's total export to China (including Man-
churia) of dyed imitation nankeens amounted to only 130,339 pieces,
valued at 154,405 yen. Of this quantity 104,954 pieces were sent
to Manchuria with an additional 289,708 pieces to Kuantung, so
that the total export of Japanese nankeens to Manchuria in 1907
did not exceed 394,662 pieces, of a value of 542,250 yen.
It must not be forgotten that the trade of Manchuria received
a severe blow during the year by the failure for a very large amount
of one of the principal native banks at Newchwang having connec-
tions all over Manchuria.
In spite of the depression, however, mills continue to increase
in numbers. Two of 18,000 and 11,000 spindles (the latter second-...”
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“...1907 than
in 1906.
Berlinette.—The import of wooloa or berlinette, which declined
69 per cent, in 1906, had a further drop of 55 per cent, in 1907,
when the total weight was 6,800 lbs. of the value of 735L
Thread.—Ball and spool thread fell from 183,200 lbs. and
411,868 gross in 1906 to 131,333 lbs. and 367,451 gross in
1907, but the 1905-06 imports were above the average and the
decrease lias no great significance. According to the Japanese1
returns of trade, Japan sent to China (including Manchuria and
Kuantung) in 1907 204,715 lbs. of " cotton threads " of the value
of 106,752 yen (about 10,897/.), but no distinction is made between
ball and spool.
Table E.—Return showing the Import of Woollen and
Miscellaneous Piece-goods into China during; the Year 1907
o O
compared with that of 1906, ancl the Average Annual Import
for the Quinquennial Period 1902-06.
Woollens.—It is safe to predict from year to year that
the value of woollen goods imported into China mil he between
4,000,000 and...”
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“...china.
4 R
200,000 cwts. of refined and candy sugar to China (including Man-
churia and Kuantung) during 1907, and of this quantity Manchuria
(with Kuantung) is credited with 37,079 cwts. In addition to sugar
there was an import of cane to the amount of 145,240 piculs against
177,426 piculs in 1906, worth in each year a little over 1 tael per
picul; but this no doubt refers to Chinese canes passing from one
part of the country to another through Hong-Kong, and thus credited
as an export from the colony. The export of Chinese sugar to
foreign countries, once a great industry, steadily declines; it fell
to 132,982 cwts. in 1907
Kerosene.—Atthecloseof 1905 there were heavy stocks of kerosene
oil in China, and the import in 1906 fell to 128,687,690 gallons, a
decrease of 24,784,141 gallons. The yeai 1907, however, witnessed
an increase of 32,596,665 gallons, the increase in American oil alone
being 32,654,420 gallons. Sumatran increased by 316,259 gallons,
Russian again put in an appearance...”
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“...from America and Australia. The quantity landed in
Shanghai in 1906 was 4,490 tons, but, as in the case of flour, the
country of origin is not given in the customs returns and the figures
for 1907 are not yet available. These mills have suffered from the
depression which has visited other industrial undertakings during the
year : the fine new mill at Kowloon has come to grief, some have
suspended work temporarily at least, and others have been working
short time. During a visit which I paid to Manchuria last year
I found that the eight large roller mills at Harbin with an output
c apacity of nearly 1,500,000 lbs. per day of 24 hours, were idle,
and that only enough flour was being made to satisfy local require-
ments. The Russian army for which they provided food had gone,
and no attempt was being made to capture the Manchurian market.
Butter and cheese fell in value from 60,554/. to 56,432/.
Fish and fishery products.—The most important of the remaining
food-stuffs are fish and fishery products...”
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“...278,661 pieces, with a
decline in value of 84,809?., but the increase in 1906 exceeded
the average annual import of the previous five years. The
value of real and imitation jewellery rose from 40,905?. to
43,159?., the increase in 1906 as compared with 1905 having
been about 5,000?. There is a great demand for jewellery among
Chinese ladies. Not long ago I was a passenger on a train
between Peking and Tientsin, and a young Chinese couple joined
the train at the Tientsin city station bound for Manchuria, I think.
The gentleman paid but little attention to his companion, and I
judged she was either his sister or his wife. He bought a number of
native papers and at once commenced to read. She attracted atten-
tion by her wealth of jewellery. Her thumb and the four fingers of
each hand were simply covered with gold rings encrusted with stcnes
of every description, from diamond to torquoise. The only ring
that'was absent was the plain gold hoop which, however, would have
no special significance...”
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“...4.6
china.
Cigarettes dropped in value from 962,282?. in 1906 to 603,648?.
The placs of origin of these cigarettes is not yet ascertainable, but,
according to the Japanese trade returns, Japan sent to China
(including Manchuria and the leased territory of Kuantung) 757,735
mille of the value of 1,228,303 yen (777,407 Haikuan taels, or
126,329/.). Of Japan's export 62,560 mille (100,641 yen) were sent
direct to Manchuria, 180,160 mille (297,967 yen) to North China,
121,790 mille (214,591 yen) to Central China, 15,000 mille (28,240 Ven)
to South China and 378,225 mille (586,864 yen) to Kuantung.
Assuming for commercial purposes that Kuantung is part of Man-
churia, the export to the three Manchurian provinces amounted to
440,785 mille worth 687,505 yen, or a little over 70,000/. The
import of cigars increased in silver value from 408,081 to 410,894
Haikuan taels, and in gold from 66,363/. to 66,770/., while the value
of tobacconists' sundries was almost the same in the two years—
25,645/...”
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“...exceedingly interesting product. As is
well known, its natural colour prevents its taking any but the darker
dyes and for many years experiments in bleaching have been made
with a view to overcoming this drawback. When I was stationed
in Manchuria some years ago I made a study of wild silk, among
the other industries of the country, but Newchwang, then the
only open port in Manchuria, is some distance from the centre of
production, and I was unable to fill in those details which are
essential to the value of any special study of the kind. What
I then wrote* has recently been ably supplemented by Mr. Palen,
Acting Commissioner of the Chinese Imperial Maritime Customs
at the new Manchurian port of Antung, in a memorandum on
wild silkworm culture in South-Eastern Manchuria,! the perusal
of which will well repay all interested in silk. In this memorandum
he describes carefully and minutely the moths, the laying and
hatching of the eggs, the feeding and tending of the larvae on three
varieties of oak...”
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“...through Chungking has declined in recent years
and the falling-off in 1907 as compared with 1906 is attributed to
hailstorms which brought great destruction to the worms on the
oaks. Whatever may be the cause of the decreased export of wild
silk in 1907, whether lack of demand or increased pongee weaving
in Northern China, the Manchurian cocoon crop of 1907 was un-
usually heavy and there should be sufficient wild silk in China in
1908 to meet all reasonable demands. To show the position which
Manchuria occupies in the wild silk trade of China it may be men-
tioned that the Chinese customs authorities at Newchwang, Antung,
Tatungkow and Dairen recorded the aggregate export through
these ports of 1,398,666 lbs. of wild silk and 12,196,400 lbs. of
cocoons in 1907. Nor is that quantity complete, for it is estimated
that an additional 4,800,000 lbs. of cocoons were shipped from
Manchuria's southern seaboard by junk during the year.
The following table gives the distribution of China's silk export...”
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“...claims to have taken 2,003,840 cwts., of which Manchuria contributed
1,266,775 cwts. So with bean cake; the Chinese figure gives
4,978,588 cwts., or 316,632 cwts. more than in 1906, of the value of
1,486,600/., whereas Japan's total import of oil cake from China
amounted to 10,670,898 cwts. of the value of 28,045,014 yen
(2,884,376/.). In oil cake may, of course, be included rape, cotton
and other seed cake ; but of the total Manchuria contributed
4,831,771 cwts. of bean cake, or nearly the total export from the
whole of China. But the Chinese figures include shipments from
the Yangtsze valley and the province of Shantung, amounting to
17 per cent, of the whole export, leaving the balance of 83 per cent,
to Manchuria. The discrepancy is accounted for by the fact that
there was no Chinese custom-house at Dairen until July 1, 1907,
and that during the whole of the year beans andbeancake, especially
the latter, found their way from Northern Manchuria by the Chinese
Eastern Railway to Yladivostock...”
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“...e
necessary to have the combined levies to arrive at the actual amount
of taxation. A native custom-house is a lamb compared with a,
likin station.
VIII.—Telegraphs, Posts, Railways and Mining.
The Chinese Imperial telegraph lines were added to during the year
by the recovery from Russia of the lines outside the reserve of the
Chinese Eastern Railway in Northern Manchuria, and the length of
the whole Chinese system, which was 22,419| miles in 1906, amounted
to 25,913 statute miles in 1907, with a wire length of 39,196 miles.
No arrangement was arrived at for the recovery of the lines in
Japanese hands in Southern Manchuria. The mileage of submarine
cable—946-11 nautical miles—remained the same. The number
of telegraph offices was increased from 379 to 490, and the instru-
ments in actual use numbered 888 against 768 in 1906. These lines,
which are under the control of the Chinese Imperial Telegraph
Administration, are exclusive of lines erected in many of the pro-...”
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“...from other sources by the Chinese Government. The chief engineer
will be British, and it is understood that the line mil be completed
within three years of the date of signature of the agreement. I
have already stated that a line is in course of construction by Chinese
between Shanghai and Hangchow, and is already partly open at the
Shanghai end, so that no time limit is fixed in the agreement for
commencing work.
According to the Japanese returns of trade there was an export
from Japan to Manchuria (including the Kuantung leased territory)
of 60,347 tons of coal and coke in 1907 ; but there can be no doubt
that much of the coal used on the South Manchurian Railway is
derived from the Fu-shun mines which are being worked by the
railway company. These mines are connected with the railway at the
Su-chia-t'un station south of Mukden by a branch line 34 -6 miles in
length.
In my 1906 report I called the Ching-Ching (or Ching-hsing)
coal mine which lies within the province of Shansi, near the...”
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“... owing to various causes,
delay has occurred in getting to work in that scientific method which
alone can ensure success.
IX.—General.
New ports.—I have given on page 7 the dates of the effective open-
ing during 1907 of the ports of Antung and Tatungkow in Manchuria
by the establishment of custom-houses thereat, as well as at Dairen
in the Kuantung leased territory. A custom-house was also estab-
lished at the port of Nanning on the West River in March of that
year, and, as stated in my last report, the Chinese Government
declared the remaining 7 of the 16 inland marts named in the addi-
tional agreement between China and Japan of December 22, 1905,
open on June 28, 1907. Exclusive of Mukden and the 16 inland
marts in Manchuria, there are now customs reports and returns from
40 ports in China ; but two of these—Kowloon and Lappa—are only
customs stations, not ports, in the neighbourhood of Hong-Kong and
Macao respectively.
River Conservancy operations at Tientsin and Shanghai.—The
efforts...”
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