Shansi has been prepared by nature to become one of the world's greatest steel producers, Really enormous de-Losits of excellent coal and iron ore exist in close proximity, in conditions permitting easy exploitation. Before the present China Incident broke out, the Chinese governor of this province had, with the aid of German and Russian advisers, erected a plant on modern lines, of modest size but giving good commercial results. This plant is now in smooth operation under the supervision of the Japanese army. In Shansi also are found outcrops of galena in the northeast, as well as zinc ore and wolfram. There exist also, probably, some copper deposits, 'A notable feature of the mineral stellations are not advantageous in countries having cheap labour, for handling bulk cargo. mistake extensively evident m the Far East, Mr. Massenet then gave comparative costs in three cases of transfer from raílhead to ship, in installations planned, built and operated under his own management, in countries where labour costs were- between those of Japan and China, before the China Incident broke out, and where the labour efficiency was probably somewhat superior to that in China.
In the first case, when the ore was taken entirely by hand and lighter from rail to ship, from 800 to 1,100 tons were moved per day at an overall cost of about ¥.220 per ton. After a complete mechanical loading plant was erected, 1,000 to 1,100 tons were moved each hour, at an overall cost of 87 sen per ton. This was reduced to 37 sen a ton by a buyers bonus for quick loading of 50 sen per ton. In the second case, hand loading from a pier cost Y.l40 per
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