Some months ago a scheme was mooted by business men in Manila to bring about a usurpation of Shanghai's place as the chief port of the Far East, by the Philippine city. It was believed that Shanghai was then suffering so much destruction that the work of rehabilitation would be so large, and the time in which it could be done so long that prompt, effective action by Manila interests could prevent her ever regaining her pre-eminence in Far Eastern trade. The idea seems to be founded on the belief that the port machinery of Shanghai had suffered so much damage that, during the period of restoration, if Manila summoned up enough enthusiasm it could outpace any Shanghai efforts and capture most of the business of the latter city. Mr, Paul V. McNutt, U.S. High Commissioner to the Philippines is now, according to a United Press despatch, supporting the idea, probably being fully acquainted with the situation as a result of his recent visit to Shanghai to, discuss Philippines matters with Admiral H. E. Yarnell, Mr. McNutt is reported as saying that he foresaw the successful prospect of a transfer to Manila of many trading activities now conducted at Shanghai. Commerce, he is quoted as saying, could be handled on a large scale in Manila just as well as in Shanghai, and he drew attention to the fact that twice Shanghai had been the focus of military activities in recent years, causing shock to and disrupting the commercial life of the port. The destruction of Yokohama by earthquake in 1923, and the possibility of a recurrence of such a catastrophe did not deter the Japanese from rebuilding that port, nor will the now remote possibility of Shanghai being again subjected to the strain she has eventually restrain commerce from again coming to the port which is most convenient for it, especially in relation to the whole of central and some of south China. It would be idle to contend that Shanghai's position from an economic point of view is invulnerable but it is contended that despite reverses it is so strong as to make it possible to offer a very stubborn resistance to any such scheme as that under consideration by some Manila interests.
It has to be remembered that, while an enormous amount of damage to industrial concerns was done during the hostilities around Shanghai, the city's essential services have mot suffered to anything like the same degree. The machinery of the port has not been very badly damaged, as the increasing number of vessels handled in Shanghai readily proves. It is quite clear that were the Japanese to permit free utilization of the whole of the Hongkew, Wayside and Yangtszepoo districts, especially so far as the wharves and riverside godowns were concerned, Shanghai would very soon be able to do a large amount of business, if conditions in the hinterland were returned to normal. Shanghai's facilities for handling cargo are such that if and when the trade of the Yangtze valley is again resumed, it will be able to handle all that is required, with something approaching the same ease as that which existed before the outbreak of trouble. Industrially Shanghai is still capable of being supplied with cheap power, land is by no means expensive yet, and there are still large resources of skilled labour, at present, it may be, idle but anxious to return to work immediately the opportunity offers, Municipal taxation is not high, and so far as these aspects of the case are concerned there appear to be no real obstacles to a rapid return to normal, or at least more rapid than many other cities would find possible in the circumstances. It has to be admitted that a great deal depends upon the revival of the internal trade of China. With scores of millions of people refugees from their homes, and the land being reduced to destitution, it will be some time before the excellent trade figures of the first seven months of last year are again to be recorded, but if there is no trade there can be no cargo and Shanghai with its present equipment can handle that just as easily as can Manila with its more limited resources.
Interests in Manila may very well regard these proposals with a great deal of scepticism, for they amount to a proposal that it should invest in preparations for the purpose of
Text read from the printed page and cleaned; old type leaves the occasional error.