Peking, Feb. 7.
According to reports from Manchuria, the Japanese are showing a keen interest now in oil. In contemplation of the possibility ofthe return of. North Saghalien to Russia at some time, near or remote, the Japanese Government—more particularly the Japanese Navy—in the interest of nationa] defence is keener than ever in the search for oil near home. A scheme has been_suggested by the South Manchurian Railway company which. may at once guarantee a useful, if limited, oil supply to the Navy and at the same time prolong the life of the Fushun collieries. Many of the deeper coal beds at Fushun are buried under heavy shale deposits. 11% has always been realized that the commercial value of these beds was doubtful unless the removal of the shale would in some way pay for itself. Recent tests seem to show that the shale will yield something like 74 per cent. of volatile oil which would make the beds well worth exploiting and would at the same time serve to uncover the lower coal deposits. It is suggested now that if the Japanese Government will take the output the Railway will mine the shale at the rate of 10,000 tone a day and extract the oil.
The above letter only reached this office onthe evening of the 19th instant.
Text read from the printed page and cleaned; old type leaves the occasional error.