ECONOMIC VALUE

Evening Star, Issue 22524, 17 December 1936, Page 9

ECONOMIC VALUE

TO CHINESE PEOPLE Some arresting facts illustrating the vital economic importance of North China are contained in an article contributed by Hr Franklin Ho, one of China’s leading economists, to the ‘ Fasteru Miscellany,’ a Chinese fortnightly published in Shanghai (says the ‘ Manchester Guardian’s ’ Shanghai correspondent). Hr Ho maintains that, just as the provinces of Hopei, Shantung, Shansi, Chahar, and Suiyuan formed the cultural centre of China centuries ago, from an economic point of view these regions to-day constitute a ‘‘ control centre ” the loss of which would shake the national economic structure to its foundations. The five province's occupy about onetenth of the total area of uhina, Hr Ho points out, and contain about one-fifth of the total population. The total area of cultivated land in the North represents about 30 per cent, of the total area in China, and produces 30 per cent, of the wheat, 51 per cent, of the rice, 54 per cent, of the kaoliang, 37 per cent, of the millet, 12 per cent, of the barley, and 37 per cent, of the peanuts grown in China. In the production of cotton (34 per cent, of the total) and wool (90 per cent.) North China also occupies a leading position. TEXTILE INHUSTRIES, Amongst North China’s industries cotton spinning and weaving are the most important, 19 out of a. total of 92 Chinese factories being situated in this region and one-sixth of the total number of spindles and loonis. The flour industry comes next in importance ; of tho 81 mills in China in 1934, 33 were establishe 1 in North _ China, mainly in Shantung and Hopei. The capital of these mills represents ouethird of the total sum invested in the Chinese flourmilling industry. Important match, tobacco, wool, cement, and chemical industries are also to bo found in the North. Turning to natural resources, Hr Ho finds that, excluding Manchuria, coal production in North China represents 70 per cent, of the total for the whole of China. He estimates that 54 per cent, of China’s total coal reserves and 46 per cent, of the total iron reserves are situated in this region. _ Next in importance comes salt, of which North China furnishes one-third of the total production. in foreign trade Tientsin, North China’s principal seaport, stands second only to Shanghai. Exports in 1935 from the various North China ports, including Tientsin, Chinwangtao, Lukow, Chefoo, Wei-hai-wei, and Tsiugtao, were estimated at 159,000,000 dollars, or 28 per cent, of the total Chinese exports; imports totalled 150,000,000 dollars. North China also occupies an important position in tho matter of communications, with 34 per cent, of the total mileage of railways (46 per cent, excluding Manchuria) and 15 per cent, of the total mileage of highways. The total length of rivers open to inland navigation is estimated at 6,124 kilometres, one-fifth of tho total for the whole of China.

From a fiscal standpoint the loss of North China would mean a serious loss to the national income. In .1935 the Maritime Customs revenue was estimated at more than 70,000,000 dollars, one-fourth of the total for the whole of China, and the Salt Gabelle revenue, amounting to 40,000,000 dollars, also represented a quarter of the total. Dr Ho estimates that the revenues collected in North China from all sources constituted one-fifth of the whole national income from taxation. “ From the facts and figures given,’’ Dr Ho states at the conclusion of his article, “ it will be seen that the five provinces of North China are vitally important to the existence of the nation,, and the country would suffer very seriously in tho event of the loss of North China.’ As Dr Ho has been appointed to succeed Dr T. F. Tsiaug, Chinese Ambas-sador-designate to Moscow, as director of the Department of Political Affairs of the Executive Yuan, he will have an excellent opportunity to impress these views upon the Nanking Government.