'The question was raised as to what attitude the Government would take in the event that it was found that the foreign all companies had provided, at any single centre, duplication' of equipment which, while essential for the operation of competing firms, might be found in excess of the requirements of the all monopoly at that point, Mr. Hoshino made the very definite and reassuring statement that Manchoukuo authorities in their negotiotions forthe purchase of proper! of the all companies would not be Umited by the future utility to the Manchoukuo Oil Monopoly of such Properties and equipment.
When informed that the matter of British claims had been the recent question in the British Parliament, Mr. Hoshino remarked that negotiations were proceeding between the interested parties, recalling his statement that one part of the question had been settled satisfactorily and commented that it was hardly worth while for parliament to also the question of claims made on the [Japanese Government.
reply to further questions as to the operations of the monopoly and the probability of its further extension Mr. Hoshino stated that it was tke expectation of the Hsinking Government that if and when the lcapaclty of the Dairen refineries re-Quired to be increased, no investment lof additional capital would be need-fed, but that additions could be f-naneed from earnings.
It was explained that the Department of Finance had opened investment accounts for the various enterprises for which the Government had subscribed capital, and that such prot and interest as might accrue would be utilized for additional in-
Vvestment. It was further pointed out that two of the Government mono-polles, namely the Central Bank and the Manchurian Telegraph and Telephone Ca, had earned substantial [profits and that it was expected that! the oil monopoly and the Manchurian Electric Industries would also show profits with the closing of the a counts for 1935.
Controt of Opium Trade The subject of the opium monopoly was then raised. Mr. Hoshino explained the policy of the Government as one of gradual reduction the area planted, and indicated that steady progress was being made in that direction. "The disturbed con-had been mentioned in an oficial report from the monopoly officials in Jehol, in which the statement also appeared that in certain districts the' area planted with poppy greatly exceeded the area permitted by regulations. But Mr. Hoshino gave assurance that there would—be, "severe control of planting" and plained that the procedure to be followed would be frst, the control and limitation of supplies and then the limitation of smoking.
Tu the matter of profits to be ferlyed from the operation of the Manchoukuo Oil Monopoly, the matter of duties is involved. In the monthly returns of the foreign tradi lof Manchoukuo for the end of October 1935, it is recorded that 11, 302,845 American gallons of petrol valued at 6,164,811 Yuan, and 7,040,- 188 American gallons of kerosene all valued at 3,758,844 Yuan had been Imported in' twelve months, The figures given at the end of July, 1935, had showed nearly a million gallons more of petrol and a little over 4,100,- 1000 gations more of kerosene, From authoritative sources it is learned that the consumption of these pro Jducts during 1934 was over 18,000,000 gals. of kerosene and 15,000,000 gals. fof petrol. The consumption of kerosene might tend to diminish with the rapidly increasing use of elec tele light, but the great advance in Javiation and the steadily mounting fuse of motor trucks, motor cars and 'e.xses, entirely apart from the army. Indicate that' the requirement for petrol steadily must be mounting.
Text read from the printed page and cleaned; old type leaves the occasional error.