The Yangtze River remained closed to Third Power shipping throughout the year. There was some talk of opening the Yangtze to Third Power shipping as far as Nanking, but conerate steps (0 this end could not be discerned, on the contrary, such trade fas has existed in the Yangtze Delta is gradually being closed down to certain third power shipping. In the ease of the Peat] River Delta the shipping of Third Powers was permitted to operate under a skeleton schedule with many restrictions. Restrictions against Third Power Shipping exist also in practically all Chinese. ports, and although some relaxation was made in Tsingtao the general situa~ tion continues to be regarded by Third Powers as unsatisfactory. Practically all southern ports are lose to the detriment of general trade.
The Anancial position remained unduly complicated owing to the variety. of currencies in force in different parts of the country. In Shanghai, In addition to the local dollar, "Hua Using notes sponsored by the' "Reformed" Government at Nanking are sed! in certain eases, and in January, 1940, Japanese yen were being accopted by the Chinese Postal and Telegraph OMices, whilst in territory under the control of the Chinese National "Government the Chinese National dollar remained the only Tegal currency, the value of the dollar being quoted at Js.2%d, although it was Impossible to purchase foreign currency except at the "Black" market rate which in Shangh: varied from 4d to Sigd, and latterly appeared to have stabilized for the time being between those limits. The system of allotments of foreign exchange made available in Shanghy by the Central Bank of China was discontinued during the year. In addition to the above, Japanese mili tary notes continued to be issued by the Japanese military forces in large numbers in the territory occupied by hem and the same, together with ordinary Yen notes, are now in use very largely in the area under Japan. ese control North of Soochow Creek.
Text read from the printed page and cleaned; old type leaves the occasional error.