appears that protracted smuggling in the north has not yet affected local trading conditions to any large extent, but as a distribution centre of imported goods, Shanghai has suffered. Demands from the interior, especially from the north, are declining rapidly:
As far as could be gathered, the actual quantity of smuggled goods brought into Shanghai undetected is almost insignificant very minor amount has actually been smuggled direct into Shanghai but most of it, is said, has been brought down here from Tientsin by rail.
It is agreed in most quarters, however, that the potential influence of the illicit trade is considerable and is bound to have Mr. W. a marked effect on certain commodities in the very near future.
Foreign importers interviewed by the "North-China Herald" express-the fear that the northern markets were perilously near saturation point, and that Shanghai would be the over-flow region for goods smuggled into the north, One Brit-Ish firm stated that in the case of their particular commodities, traders in the north were now over-stocked, and had had to refuse to buy even smuggled goods at exceedingly low prices, The main markets in Shanghai to have been affected at all are the paper, kerosene, pro-ives, and sugar markets.
According to the head of a large kerosene-importing frm here, Japan, due to its immense refinery' plants, has an annual surplus of approxi: mately 1,500,000 units, or 16,000,000 gallons of thi Atter deducting an amount needed' to meet commit ments in Slam, Manchoukuo, and other extra-China territories, there 780,000 units, ar. 7,000,000 liable for import into ound 10,000,000 units, and although the 780,000 units from, Japan did not at Arst sight seem to) represent a very serious menace, yet, because of the consignment system used for the sale of kerosene in China this quantity, smuggled In and sold. at tke rate prevailing. tox a tin less than that of kerosene sold by legitimate traders, would very damaging effect on price throughout North China and in the] Yangtze Valley.
'At the moment, he was glad to say, Jocal Kerosene markets (: ad not been affected by conditions in the north. Since the beginning of April, how-fever, over 40,000 tins hed' been smuggled in, and it only needed the IMlegitimate import of, say, 70,000 units a month to alter things considerably. As it was, practically no Kerosene had been sold in Tientsin during the past mantis by legitimate traders.
'The situation in the petrol market, fon the other hand, was not quite bad, For one thing, Japan's surplus; of gasoline, after meeting her own needs, was' not nearly so great, and the second place, otices of petro-Teum importers in' Dairen, for instance, were doing all they could to see that none was sold for export purposes.
Text read from the printed page and cleaned; old type leaves the occasional error.