Mr. Tien-tsung Sih has given 2 valuable survey of the progress of Sino-Japanese economic ce-operation in the bulletin prepared by him for the Couneil_of International Affairs, Nanking, The iden of - that cooperation is credited to Mr, Kenji Hirota's now famous formula for "ea operation between China, Japan and 'Manchoukuo' in the development of North China", Mr, 'Sih questions the Soundness of limiting' the issue to North China and also of bringing into it the controversial question of Ma choukuo. In various ways endeavour was made to carry" Mr. Hirota' scheme into effect, Mr, Sih shows how political -difeulties cropped up but he also sets out the details of such schemes as have found execution some form or other, Japanese Interests in the coal-mining Industry of North China have acquired considerable importance which is all the mote significant because of the crea lon of the so-called autonomous regime of East Hopel in which are situated the coal-mines of the Sino-British Kailan Mining Administration, Efforts to develop the coal-mines of Shansi have so far been vain owing to the absence of communications, The organization known as the East Asin Cotton and Wool Federation was formed with a capital of $1,520,000 0 secure for Japan. control over wool and cotton production in the North, 'The hostilities in Suiyuan have at present blocked it, A eontract—for tone year only—for the purchase of Changlu salt up to 70,000 tons, was signed last September, By the' middle of November it was reported 70,000 tons of salt from North China had been delivered to Japan through the regular trade channels—or the full amount contracted for under the agreement signed two months earlier, that agreement thu requiring renewal long before its date of expiration, Last month another contract for the purchase of 230,000 tons of salt was signed between the salt manufacturers "and a Japanese concern, with which it, war reported that the Nippon Salt Manufacturing Company and the Showa Fertilizer's Manufacturing Company were in ass0- ciation for the annual production of 50,000 tons of salt in' East Hopel. Projects for railway development in the North have been mentioned but do rot appear to have been put into ex= ecution. Japanese share holders have however. secured complete control of the Peitang Navigation Company, formerly a Chinese organization with six coasters whose operations under the Chinese fay wer alleged, made impossible by Japanese competition fortified by. restrictions Im= posed from Manchoukuo. An aire service was started between North China and Manchuria in Novem ber 1936 by a Sino-Japanese company heavily subsidized and fering low fares. Although its status ambiguous, it is actually maine taining a regular commercial service. Expenditure of $80,000,000 on harbour construction at Taku is also project fed, dependent onthe completion of the Shihchiachwang Railway' and its extension to Taku. That too Is: stil in abeyance. Japinese interests have Gsserted effective control over the cotton industry in North China. A Sino-Japanese combine handles "the match industry, Cement, rayon, lass and paper are other commodities in which Japanese enterprize is moving.
The new power plant in Tientsin under Sino-Japanese aus piees is expected to start business next month, Ar. Silvis by no means hostile to this economic ce-operation but insists that before it can be re~ garded. with satisfaction the smug-fling issue and the political read~ justment of Sino-Japanese. relations ju the North must be settled.
Text read from the printed page and cleaned; old type leaves the occasional error.