Feb, 20.
As against a short time ago the. communist-bandit menace has shifted from the borders of Szechuan to the southern parts of Hunan and Kiangsi. It is certain that the communists would not be welcome in any district where Liu Hsiang main-ins his authority, and so with the elusiveness which has been characteristic of all thei doings they have betoken them selves to regions. which may possibly be more friendly to their activities and doctrines, if any. In view of the recent discussions in Parliament of the China Indemnity Bill this menace to the peace of these provinces is all important, for it is obvious that there will be. no chance of pushing the railway through from Hankow to Canton until the Chinese Government forces have removed this particular scourge. The reports military activity against. the communists do not suggest that as yet any great advance has been made in suppressing them in the country where they now operate, and in view of the fact that the campaign against them ely to be a long drawn out it would afford sal jon to know that adequate measures are being taken. The effect which the railway is likely to have upon trade is important to so many places in China that there will naturally be inquiry as to when such effect is likely to come into operation, In connection with this matter conditions in the province of Hunan are all important. Not only because of the intense provincial patriotism of the Hunanese but likewise the fact that it was one of the last of China's provinces to feel the effects, of foreign influence, Hunan has allowed little to be done in the way of utilizing its natural wealth." It is believed to have the biggest zine deposits in the world, while in antimony, tungsten and coal nature has been very generous to it. During the war fortunes were made out. of the antimony produced there, and prices rose to extraordinary heights. Unfortunately when conditions subsequently altered there was a general refusal to accept as genuine the lower prices ruling, the result being that much trade has been lost to the province. Another instance in which Hunan failed to take advantage of her wonderful resources was in the case of the plant, erected by French enterprise, for extracting zinc from the crude ore. A contract:
og made whereby the refinery had the first lien on all ore, but this was immediately broken, ore being freely sold to other firms, and the plant ceased working. It is believed that other instances of a similar character could be placed on record. There is every reason to believe, however, that with trunk railway running through the province, the prospects of the enormous wealth accruing would "be sufficient to. bring about a change in attitude. "Nor is it only in minerals that this wealth will be found, but the possibility of increasing the port of rice, finding new markets, it Jo exceedingly great and tive, As matters ave at present the trade in such articles as anti~ many goes through Hankow, but it will readily be appreciated that with a railway line in operation the tendency would be to divert it to Canton and there~ after Hongkogg. In fact it will be seen that the future of these two ports is likely to be immensely enhanced by the rail~ way, especially if the resources of Hunan are developed in the way in which it is anticipated. As a result there is the possibility that Hankow and Shanghai, would be affected by certain elements in its trade also being diverted, but this would be infinitesimal in comparison with how the southern ports would gain, always postulating that Hunan responds to the influence of the line through her midst. Hankow would still have the main source of her present business, the produce of Szechuan, which given improved conditions there is likely to be a steadily increasing quantity, and in turn Shanghai would therefore benefit. It is, however, essential that there should be a continuous effort to rid the district in question of the bandit-communist curse, and this cannot be commenced. too early. There is no question about the difficulty facing the Government in dealing with it, and while operations have taken place to some extent they have hardly been on- a sufficiently large scale to reduce the evil in any marked degree. And if the evil still continues Hunan will not be in a position to develop her natural wealth even when there are facilities for having it exported.
Text read from the printed page and cleaned; old type leaves the occasional error.