Inaugural Meeting Fails to Arouse Enthusiasm Japan's Programme Outlined' ose Oum Owy Comsroxoest Peiping, Sept. 24.
For several months the public has been regaled in the Chinese ai Japanese press with details of gran-lose schemes of Sino-Japanese col-Iaboration for the economic development of North China.
The inauguration of the Hopel Beonomle Association which took place here at the Peiping Bankers Union on September 21 comes asa considerable wet rag to all this high-flown talk. The mountains in travail would seem to have produced a particularly feeble kind of mouse. There are no Japanese on this Hopei Economic Association, and its programme Is limited to the very modest intention of "devising measures for the development of industries in Hopel province." Certain persons in touch with these circles are inclined to believe that the Association has been called into. existence by the banks here—most of which have their head offices In Shanghal—in the hope of thus being able to stave off the urgent Japanese requests for capital which they themselves are unable to put up. One thing is very obvious: the development of industries has no jon whatever to the Japanese plans for the economic exploitation of North China. It is just about the ast thing that the industrialists in Japan would want: Consequently it not surprising to find the Japanese press throwing cold water on the Hopel scheme and criticizing the new association very sharply, even to the extent of accusing it of being a fresh example of Chinese insincerity.
According to what has leaked out through certain channels the Japanese have quite different and very clear ideas of what they understand by the economic development of North China. Their plans are directed to lon, if not control, of raw Minerals, and railways. One Of their main objects is to increase both the quantity and quality of cot ton grown in the North, through improved methods of cultivation and by Atnding fresh cotton-growing areas, whereby they hope eventually make themselves independent of the Indian market, Similarly, the pasture Jands of Charhar and Suiyuan are to provide the feeding grounds for the herds whose wool will enable them to decrease Japanese purchases Australia, The more efficient and {intense exploitation of the mineral resources is another important part of the scheme, Here, the fact that the majority of existing mines are in the hands of Chinese banks, either through mortgage or direct "owner ship, will doubtless be of consider-fable' nasistanee to the Japanese in obtaining control over "them. The production of salt in North China has In recent. months also become of considerable interest to the Japanese. Hitherto they have been buying part of their requirements from Abyssinia, but now with the impending Italian control of that country they are seek-Ing for new sources Such economic development would, however, be incomplete without the control of the chief means of trans~ port, the railways. For this purpose It 1s proposed that the SMR. shall take over and run the railway system of North China, and in return finance the construction of several new lines, The following possible extensions are already talked of:
'A line to connect the Peking-Suiyuan line at Kalgan, probably, via Dolonor, with the Jehol system. This would connect the North-West direct with the ports of Manchoukuo.
An extension north from Kalgan towards the frontiers of Outer Mongolia, Under existing conditions this could only have a strategical value, would seem to be highly improb-line from Shihcblachuang (the terminus of the Shansi railway) to 'Tsangchow and thence to a new port to be constructed at Chikow, south of Tientsin, cutting out the' latter place altogether.
'A line connecting Chengchow (the Junction of the Peking-Hankow and Sianfu-Haichow lines) with Tsinanfu, thus bringing the products of Kanst and Shensi to the port of Tsingta:
The agency through which these various schemes are to be carried into effect would appear not yet to have been definitely settled. Two alternatives have been discussed. Japanese circles. "One idea is to leave the development of North China in the hands of large business undertakings such as the SMR. and Mitsubishi and treat it asia purely buslness concern. In recent months these interests have been paying considerable attention to the business prospects in North China, and have been Sending out survey: parties to Shansi and the Northwest.
But those strange experts in finance and economics, the younger officers (dor the Kuangtung Army, have different ideas on the subject. In accordance with the nationalist-socialist ideas with which they are infected and despite the lessons of Manchoukuo, they are in favour of direct political and administrative control. Some time ago it was given out in Hsinking thatthe Kuangtung Army had arranged for an appropriation of /70, million Yen. for "certain enterprises in North China." Moreover, a [corporation called the Sino-Japanese Development Ca, which was said to be merely a subsidiary of the SMR. Japplied for a charter at Hsinking in [July last. And on the 25th of that month, a Mr. Takaki, a director of the company, called 'a meeting in (sin at which a number of Chin-jose bankers, together with a repre-Jsentative of the Kuangtung Army fand the Counsellor of the Japanese Embassy were present. The proceed-Ings of the meeting were never divulged, but as no moves in this direction have taken place since and Jas_one has heard nothing further Jabout this company's activities, it oaks as if its operations had been held up for the time being.
Text read from the printed page and cleaned; old type leaves the occasional error.