If the international situation worsens then an acute shortage of tobacce may be experienced to such an extent here that many cigarette manufacturing factories can no longer operate states the "Chinese American Daily News" quoting authoritative quarters, The consumption of tobacco in Shanghai is said to be extremely rapid despite the recent increase-of prices of all kinds of cigarettes specially the foreign ones, While the increase of prices of foreign cigarettes is chiefly due to foreign exchange rates, Chinese cigarette manufacturers have increased their prices chiefly because of difficulty in obtaining tobacco leaf. Formerly, Chinese firms mixed tobacco from Virginia,—Hsuchow (Honan) and Chingchow but it is very difficult to obtain Hsuchow tobacco now, Strict control over Chingchow tobacco by Nanking will not permit shipment to Shanghai.
Chinese firms are using tobacco from Fengyang (Anhwei) and also large quantities of Japanese and Indian tobacco, Tobacco leaf is priced five times more than before and cigarette paper is 10 times greater. Ordinary, the tax is about 50 per cent, but in occupied areas the tax has been increased to 80 per cent. Any cigarettes sent to occupied districts are also taxed. Business of Chinese firms has been reduced by two thirds.
"Yes, sir," Captain Harry W. Hill answered he is a member of the Commander-in-Chief's staff. He ex4 plained the increasing importance of air power had given Samoa new and strategic importance and that Samoa "was now regarded as the "south. western point in the whole Paciüc line."
The Committee approved without extended comment a proposed US $4,700,000 appropriation for Fleet-operating facilities and bomb-proof shelters at Guam. However, this controversial question was expected to be discussed fully at an executive session later,
Text read from the printed page and cleaned; old type leaves the occasional error.