The legitimate sugar business has been absolutely dead since last October. The regular foreign agents, neluding Japanceo, have not been able to sell a single bag since then. Nor is this strange, seeing that white sugar is selling at present on the Tientsin market for $13 per _picul, which is just about half the proper belee, with the import duty at $14.60 per picul. Even a lowering of the duly by og much as $0 per cent, would not help legitimate business, unless other and more forcible measures were taken to. stop the smuggling. The East Hopel tax is only $4 per bag of 1.35 piculs. Nor can the sugar trade derive any comfort from the fact that, for the moment, the Tien-sin market is so flooded with sugar that "even. the smuggled cargo no Tonger can be absorbed. Chinese dealers have hired every kind of ein. the Japanese Concession where the sugar can be stored until Eradually. It'Is shipped away "upcountry.
'The all business has only in the last month or so received the atten ion of the smuggling fraternity, but the illegal impens are growing, rapidly and are having a disastrous effect on the legitimate trade. Dur-Ing April,' about 20,000 cases of kero-one and 1,000 cases of gasoline have been landed in East Hopel from Dairen, about 85 per cent. of which from Japanese refineries, 'This is being sold at about $2 per 10 gallons Below the price of the established brands of the legitimate companies. The Jatter have to pay import duty'
kerosene of $430 and on gasoline of $5.11 per 10 gallons bulk, as against the duty levied by East Hopel of about $1 per case (10 gallons), These very rough and condensed figures will give some idea of the huge dimen-Slons of this illicit trade, Apart from loss of revenue, one of the most serious effects of this trade smuggled cargo is that money i being diverted from legitimate maret requirements. A lot of the cargo is unwanted and never would have been brought in but for this illegally arented free-trade. area. As. the market in each article becomes saturated, the smuggling companies turn to fresh sources. 'Thus, not only the volume, but also the number of articles' affected gradually must me crease until every branch of trade has become involved. In. time, the natlunals of other countries besides Japan will be forced to Join in, oF will have to go out of business' altogether. In the ordinary course of business, they then will be shipping to the free port of Dairen and from there through the Japanese smuggling transportation companies across to East Hopel. Even. that, however, might not help them for long. As the illicit trade increases, the storage accommodation at Dairen and. the shipping facilities across the gulf will give out, and the Japanese will, of course, take every opportunity to favour their own nationals. so that, in the and, foreign firms will not be able to compete even in the smuggling business.
The Japanese claim that the smuxsling Is due to the unreasonably high import duties. It is generally admitted that the duties are too high, particularly in the case of necessities Such as wheat, sugar, kerosene, and forth.
That, however, should be rectified by negotiation and not forddly by smuggling tacitly proved of by one of the importing countries, Nor are the high duties they were, then one might expect the same conditions along the whole coast fof China as now exist in East Hope
Text read from the printed page and cleaned; old type leaves the occasional error.