Feb. 2.
Trade figures for 1934, thanks to the new expedition shown by the Customs in preparing its port, as well as encouraging [better methods of cultivation and marketing, in order that the Janomaly of an import of rice and wheat to the total quantity of 12,000,000, as in 1934, may be eliminated. If the large areas covered by the poppy could be given up to food-crop cultivation China would be in a happier state.
Contemplation of these figures; cannot afford, in the interests of accuracy, to ignore the smuggling factor. The recent high tariff increases have given an enormous impetus to smuggling, as was to have been expected. The Customs authorities have taken step- to Jintensify measures of prevention. Their preventive service has keen extended and reinforced but it would be idle to pretend that in the peculiarly favourable cir cumstances governing the smvgglor's operations, "there is, as yet, an effective grip on the situation. Therefore, the figures of the|Divine Providence he has Imports recorded during the past year may be really below the! brought Into China. "The process of redressing the balance Payments may be even less satisfactory than the returns ape: to show. No doubt, the framer: of the new tariff will take this important. factor, into consideration. They will also' not forget that the new difficulty of using a tariff for the dual purpose of raising revenue and protecting indigenous incus-tries "is. ever present when a country thus ventures along the path of fiscal ambiguity. The other day Mr. H. E. Arnhold pointed out to the Institution of Electrical Engineers, China Centre, tha' a scientific tariff should give every encouragement for the entry of foreign capital into China. The tariff cannot, of course, do everything. As Mr. Arnhold noted, security and currency stability were other necessary factors calculated to promote industry and, thereby, raise the volume of exports. The story which the Customs returns tell does not, therefore, cover the whole record of China's financial and economic history in 1938, Nor does it exclusively provide the pointer for future policy. Nevertheless study of the figures gives suMir'ent material for assessing certain trode tendencies of which due acerunt should be taken in proceeding to further tariff revision.
Text read from the printed page and cleaned; old type leaves the occasional error.