JAPAN'S INDUSTRY

Evening Post, Volume CXXV, Issue 115, 18 May 1938, Page 9

JAPAN'S INDUSTRY

HOLD IN CHINA

TRADE FOLLOWS ARMY

Japan's advance in China is conducted by bankers and industrialists as well as by battle and blockade, states the "New York Times." A few major items, selected from the financial pages of recent newspapers, show how the military and'economic fronts in Japan's campaign to make all East Asia her economic domain, march together. They reveal on, the one hand ,- strain and scarcity and'on the other the vigorous expansion of»Japan's productive power under the forced draught war conditions create. The < Japanese are tightening their belts , \ hopefully, since they see their econo- . mic penetration of Ch'ina beginning almost within the Sbund of their guns. The first group of.clippings marks the progress of the economic advance in China. They report the foundation in Shanghai today of the Hwachang Iron Mining Company, capitalised at 10,00,000 yen,, to exploit the iron mines in Anhwei and Kiangsu Province*. The company expects to produce 5,000,000 tons annually after completing a five-year development programme. The Nltto Flour Company has taken oyer thirteen Chinese flour mills along the Peking-Hankow Railway with a daily output' of 5800 barrels. Coal mines in Chungking Province operated for the Chinese "National Government by a German engineer have been taken over, by the Japanees authorities in • North China. The Mtsubishi interests have acquired Standard Vacuum selling rights in Shan tung\ Province. ' BUSINESS PERMITS NECESSARY. Regulations have been issued in Shanghai requiring all Japanese proposing to engage in business in Central China to obtain permits from military,' naval, and consular authorities. Those businesses are to be controlled "in the light,of Japan's national policies." They include virtually everything above vegetable stores. The newspaper Hochi says the provisional Government is planning a second revision of tariffs aimed at promot- .- ing •''the mutual prosperity of Japan. Manchukuo, and China." Manchukuo contributes Industrial raw materials and synthetic- oiL The Japanese-Manchukuo" conference decided to - increase the coal liquefaction output to 2,400,000 tons annually. The present output is 800,000 , tons. A pulp manufacturing company has . been established in Manchukuo with a capitalisation of ,100,000,000 yen. Its purpose is to speed up the exploita/tion of timber lands and to 'produce - pulp for Japan's-expanding industries. 1 PERSONAL SAVING URGED. Japan's function mainly is to proVide- funds and to co-ordinate the nation's" efforts, Okinoby Kaya, ' Finance Minister, told a' savings banks conference that the Government wanted, the people to save 7,000,000,000 to 8,000,000,000 yen'annually'and invest a large portion of it in Government bonds so the Government ■'can avoid - compulsory measures regarding bond' absorption. But the savings banks are not asked to buy Government bonds v exclusively and may invest in industrial debentures. A steel and iron distribution council' was forme"d to allocate supplies of . steel. .Military requirements. and I.heavy will 1 get the prefer- . ■'entitle.'-"i:Boilding supplies are a-£--re* " : stricted. The output of staple fibre in ■ March Teached a new high -with • M,«52,0001b. : The price of beer rose two sen.a bottle and. at the same time' . voluntary war contributions. were 870,000 yen, a new record. •From these and'similar, items the' man.in the Tokio street draws' the,inference that the war has brought its ' but also opportunities, and he - .contrasts this condition' after nine months of warfare with the economic debacle prophesied. Abroad when the' struggle started. ' ' _ ,