Gold, than, is at the back of the South African trade boom, which, has not yet reached its peak. Bue the South African Government has by means lost interest in another of the principal industries of the Union—diamond production. Diamonds still form a large part of the revenue of the government, which Is largely responsible for controlling their output by means of the Diamond. Control Board. This consists of re~ Dresentatives of the Government, and of the diamond mining industry. In the interests of the Union, the Government is working in ce-operation with the 'Diamond' Syndicate, comprising the owners of the mines, to see that the price of diamonds does: not full below a certain level, The Government itself "hoards" large quantities of diamonds, the exact quantity of which is" only. known to a very few people official positions. If this knowledge became accessible to the man in the! street, the price of diamonds would {fall and hoarding is the only means: by which their value as Tuxurles can bbe maintained. The Diamond Control Board is alone responsible for putting them on the "market, Cerinin quantities are taken from the diamond voulis, and issued at a definite brice, which is not altered. The Government is thus in a position to dictate its own terms as far as the. price of diamonds is concerned, Lower taxation leads to a greater spending power among the people of South Africa, which again hus a Deneficial effect upon the country's trade. Recently customs tariffs and Income tax were reduced, The rise In the price of gold is having its effect right the way through South Africa, The prosperous state of the country has Jed to a rear increase in emigration during the last few months, many of those coming to settle in South Africa being technical men, Builders and engineers have also been emigrating in large numbers owing to the unprecedented demand for their services, occasioned Increase in building operations. In the early stages of trade boom, there was a shortage of bricklayers for a period, but this has also been met, Building activity, of course, is at its highest around Johannesburg. the rear gold mining centre. The extent of these building operations may be gauged by the fact that in 1935 plans were passed for the erection of Dulldings to the value of $6,000,000. The railways have also benefitted from the trade boom and the amount 'The base metal industry has also been affected by the trade boom, while wool, maize, hides and skins, and sugar are fetching considerably' higher prices. The farming industry ison a very sound footing. oes very tittle trade with China at the moment, as the only articles that China would re-Quire from the Union would be raw: materials, which China herself exports. China and South Africa are: actualy competitive in certain markets, principally in supplying] goods to Japan. "China buys a' small quantity of South African diamonds, But not direct from South Africa, They are bought through Amsterdam and other markets, mossily as. the Fesult of trade customs. It would actually pay China to buy diamonds direct from South Africa, as there is 2 10 per cent. duty on uncut diamonds. exported from the country. The diamonds are, however, sent to Amsterdam, where they are cul and. then exported to China. There is. one' small diamond cutting business. operating in Shanghai, "NAE, Herald" Photo Police are taking measurements
Text read from the printed page and cleaned; old type leaves the occasional error.