COMPARATIVE Table of the Trade of the remaining Four Open Ports

during the Year 1909.

The whole of the trade of the above four ports is with foreign countries, principally China.

Proportion of foreign and Japanese trade.-From the above tables it will be observed that 55 per cent. of the trade of the district is with Japan and 45 per cent. with foreign countries.

Exports. The total exports of the district were valued at 2,107,8207., of which the principal are tea, 620,8277.; camphor and camphor oil, 611,356.; rice, 525,431.

Tea.-18,000,000 lbs. of Oolong and 5,500,000 lbs. of Pouchong were shipped during the season, the former being valued at 466,9977. and the latter at 153,830l. With the exception of 650,000 lbs. shipped to the United Kingdom and 56,000 lbs. to Australia, the whole of the Oolong tea was exported to America.

Oolongs. Tamsui has ceased to be a port for the shipment of Oolongs, practically the whole crop being exported from Keelung, which is a regular port of call for all the Trans-Pacific liners during the tea season. Some 10,250,000 lbs. were shipped to the United States by the Pacific route, approximately 4,500,000 lbs. being in Japanese, 4,000,000 lbs. in American and 1,750,000 lbs. in British bottoms.

The whole of the shipments to the United States viâ the Suez Canal (6,250,000 lbs.) were in British bottoms.

The rates of freight were as follows:-To New York, from Keelung viâ Pacific, åd. per lb. gross; to New York, from Keelung viâ Suez, 17. 17s. 6d. per ton (40 cubic feet); to London, from Keelung or viâ Amoy and Hong-Kong, 21. 58. per ton (40 cubic feet).

The Oolong tea export trade is entirely in the hands of three British and five American firms.

The tea season of 1909 opened on May 13. Buying immediately became active, as exporters were anxious to rush forward shipments to America by Trans-Pacific mail steamers, in order to avoid the import duty proposed by the United States Government. This duty was, however, not imposed. June, July and August were very dry months and supplies were consequently curtailed and prices enhanced. During the latter part of the season, supplies were abundant, but prices remained firm. Spring, summer and early autumn teas were considered of fair average quality; those bought late in the season were poor and some of the shipments to America were of very inferior quality.

The crop should have proved a remunerative one to the growers.

This was the first season that vessels loaded at Keelung for London direct.

Pouchongs.-Pouchongs are all shipped from Tamsui by the Japanese Steamship Company which runs a weekly service to HongKong viâ Amoy and Swatow. Shipments are all made to these three ports, but their ultimate destination is the Malay Peninsula and the Dutch Indies, for consumption by Chinese residents there.

Black tea.-Black tea is being manufactured at the Government Tea Experimental Factory at Anpingchin, the output for the first 10 months of 1909 being given as 40,000 lbs.

Endeavours are being made to compete with Hankow teas in Russia, to which country about 120,000 lbs. were exported.

The same factory produced 120,000 lbs. of Oolongs during the above period. A proposal has been brought forward to turn the factory over to a Japanese company with a capital of 100,000l.

Camphor. The shipments of camphor-a Government monopoly -were as follows:

Owing to the lowering of the price of camphor, in order to drive Foochow and synthetic camphor from the market, profits from the monopoly were small.

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Camphor oil. The output of camphor oil was 4,795,907 lbs., all of which was shipped to Japan for manufacture into camphor; the yield of camphor being about 40 per cent. of the weight of the oil.

The vigorous action which the Government propose to take, during the next few years, against the savages in the interior will result in enormous tracts of forest abounding in camphor trees being brought under control.

The supply of trees in the settled districts is steadily diminishing, but plantations are being made in suitable localities.

The Government Monopoly Bureau is stated to have restricted the output of camphor and camphor oil for 1910 to 6,670,000 and 7,330,000 lbs. respectively.

The recent establishment of two celluloid factories in Japan will doubtlessly favourably affect the camphor industry in Formosa.

The distillation of camphor from leaves is still in the experimental stage.

Rice.-80,000 tons of rice were exported during the year, the whole amount being shipped to Japan from Keelung.

Sugar.-Upwards of 6,000,000 lbs. of sugar, valued at about 50,000l., were exported to Japan; the majority of this is brown sugar. A considerable quantity of land along the west coast is being brought under sugar cultivation. The climatic conditions of the north of the

island compare unfavourably with those of the south as far as the cultivation of sugar is concerned.

In the prefecture of Taichu, which is the only part of this Consular district enjoying climatic conditions similar to those of the south, there are 17 improved style brown sugar mills, with a daily crushing capacity of from 40 to 150 tons of cane each. The percentage of sugar obtained is about 8 per cent. Several of these mills will be closed when the large modern-style mills, with vacuum boilers, centrifugals, &c., of two large companies recently established, commence operations. The daily crushing capacity of each of these new mills will be 750

tons.

In the prefecture of Shinchiku there is one modern style mill and 23 improved style brown sugar mills, and in Taihoku prefecture four improved style mills.

The Taihoku Sugar Mill Company will, at an early date, commence the construction of a modern style mill, with a crushing capacity of 500 tons of cane.

Coal.-Coal, valued at 9,6851., was exported, practically the whole amount going to China from Tamsui. Keelung is a coaling port for steamers on the Japan-Formosan lines, and foreign-going vessels occasionally take in bunker coal there.

The neighbouring mines yield considerable quantities of good steaming coal.

Sulphur. About 3,500l. worth of sulphur was shipped from Tamsui to Hong-Kong.

The hills in the vicinity of Tamsui contain large quantities of this article, but are at present only worked in a few places.

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Imports. The import trade of the district amounted to 2,276,4801., the principal items being :-Cotton goods, 347,338.; opium (a Government monopoly), 242,8917.; metals, metal manufactures, 126,0197. ; timber, 124,7047.; and dried fish, 93,450.

About two-thirds of the imports are from Japan-opium, kerosene, cotton goods and leaf tobacco being the only ones of any importance from foreign countries.

There is practically no import of raw materials to the island.

Cotton goods.--Under this heading the leading items are white shirtings (40,4911.), cotton sateens (34,998.), grey shirtings (16,8867.); 90 per cent. of the first mentioned and the whole of the last two coming from the United Kingdom.

In all cases there is a slight increase on the figures for the previous year.

Piece-goods, valued at 42,3301., were imported from Japan.
Opium. The opium import was as follows:-

Metal and metal manufactures.—Of the 126,019. worth of metal and metal manufactures imported, 107,788.-consisting largely of iron pans and miscellaneous articles-are from Japan.

Timber.-Timber, valued at 124,7047., was imported from Japan, principally for building purposes. Although the interior of Formosa contains large forests of valuable timber, which will be available when the construction of railways into the mountains is effected, supplies are at present somewhat limited and it is cheaper to ship from Japan. Other imports from Japan.--The following articles are practically entirely imported from Japan :

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Sugar, refined

Other imports from foreign countries.-The following are chiefly imported from foreign countries :

The import of provisions (92,8107.) and drugs (52,7357.) is divided almost equally between Japan and foreign countries.

Government monopolies.-From the annexed statistical tables it will be observed that the Government monopolies-camphor and opium-account for 611,356., or 30 per cent. of the exports, and 242,8917., or 10 per cent., of the imports respectively.

Openings for imports.--Extensive electrical supply, harbour, irrigation and water works are in progress, and light railways will probably in a short time be laid into the interior.

There is likely to be a considerable demand for the machinery and materials necessary for such undertakings.

Practically all these works are being carried out by the Department of Public Works of the Formosan Government.

The only private enterprise of any importance requiring machinery, rails, &c., is sugar planting and milling; modern style mills are being established throughout the island. There has been strong competition between American, British and German manufacturers for the supply of sugar machinery.

Large quantities of German light rails were imported during 1909. Fertilisers. It was expected that large supplies of phosphates would be obtainable from Pratas Island and work was commenced there by a Japanese subject, but abandoned on the intervention of the Chinese Government. During the time it was worked the quantity and quality of the deposits did not fulfil expectations.

Tobacco and rubber.-Experiments in growing tobacco and rubber are being made by the Government. Small quantities of wild rubber collected in the mountains have been shipped to Japan.

Shipping.-Practically the whole shipping business of North

Formosa is now transacted at Keelung, the only trade at Tamsui, apart from junks to and from China, being a weekly Japanese steamer to Hong-Kong viâ Amoy and an occasional light-draught tank steamer bringing Sumatra oil.

Keelung is the port for all shipping between North Formosa and Japan.

The Nippon Yusen Kwaisha and Osaka Shosen Kwaisha each run a weekly service with vessels of about 6,000 tons, having excellent accommodation for passengers between that port and Kobe.

These companies have also several other smaller passenger and cargo steamers on the same line.

As already stated, all the large Trans-Pacific lines make Keelung a port of call during the tea season, coming in about once a week, and the Peninsula and Oriental Steamship Company's steamers call at regular intervals for tea for London.

Shipping subsidies.-The following subsidies, amounting in all to 93,7007., are granted by the Japanese Government for 1910 in connection with the Formosa trade (gross tonnage is given in each case):

No foreign vessels are now engaged in the trade between Formosa and Japan or China.

Lighthouses. The erection of a permanent first class flashlight on Agincourt Rock has considerably facilitated the navigation between Keelung and Japan.