that year, and thus explains the greatly increased output of sugar in 1909, as mentioned in the preceding paragraph.

Percentages of total trade.-Japan's share of the total trade in 1909 was 90 per cent. as compared with 723 per cent. in 1908, 82 per cent. in 1907 and 83 per cent. in 1906. Other countries shared approximately in the following proportions, percentages for 1908 being given for comparison :

Imports (Table 2). Total import trade. The total import trade shows a decrease of 192,8107. in 1909 as compared with 1908.

From foreign countries.-The total value of goods imported from foreign countries in 1909 was 366,5087.against 771,4477. in 1908, showing a decrease of 404.9397.

From Japan. The total value of goods imported from Japan in 1909 was 980,264/. against 768,1357. in 1908, showing an increase of 212,1297.

Japan took 723 per cent. of the total import trade in 1909 against 50 per cent. in 1908, 69 per cent. in 1907, and 65 per cent. in 1906.

Other countries shared as follows, percentages for 1908 being given for comparison:

Exports (Table 3). Total export trade.-The total value of the export trade in 1909 shows an increase of 1,237,0487. over that of 1908. As the increase in the value of sugar exported amounted to 1,373,2491., the export of other commodities shows a total decrease of 136,2011. This is very nearly the amount by which the value of exports, not including sugar, advanced in 1908 over 1907, and probably points to the fact that the greatly increased business in sugar has left the export in other goods for the moment practically in the same position as before.

To foreign countries. The total value of the export trade to foreign countries in 1909 was 45,0687. against 65,8117. in 1908.

To Japan. The total value of the export trade to Japan in 1909 was 2,720,4907. against 1,462,6997. in 1908.

Japan, which takes practically all the sugar, thus had over 98 per cent. of the total export trade in 1909 as compared with 95 per cent. in 1908. Most of the remaining 2 per cent. went to China.

Exports in 1909 show an excess in value over imports of 1,418,7861. In 1908 imports exceeded exports in value by 11,0721.

Raw sugar. The total amount of raw sugar exported in 1909 was 2,442,542 cwts., valued at 2,301,1747., against 1,188,451 cwts., valued at 927,925l., in 1908, showing an increase of 1,254,091 cwts. and 1,373,2497. In 1907 the export was 1,055,407 cwts., valued at 734,5811.

Review of sugar market.-In reporting on the sugar season of 1909-10, mention must first be made of the changes in the consumption tax proposed by the Japanese Government during this period, which are expected shortly to be put into force.

The present rates are as follows:

The great bulk of the sugar produced in Formosa coming under the present Class 2,i.e., from No. 8-15 Dutch standard, at 5 yen 50 sen per100 kin, will now pay 5 yen per 100 kin. As, however, according to the complaints of sugar refiners in Japan, most of this sugar, though really over Dutch standard No. 8 in colour, was passed as Class 1 at 3 yen per 100 kin, it was feared that the new rates, which are to be strictly enforced, would throw back the industry. It is therefore proposed to grant a subsidy to planters, and cane is to be graded by the Government, and farmers paid according to this classification. The maximum subsidy to be granted will work out at about 1 yen 15 sen per 100 kin of sugar, and as under the old system of passing sugar over Dutch standard No. 8, as under Dutch standard No. 8, an unfair advantage of 2 yen 50 sen per 100 kin was reaped, under the new system, with the tax reduced by 50 sen and the subsidy amounting to 1 yen 15 sen, the difference would only amount at most to 85 sen per 100 kin less profit: for the mills, which should be covered by economy and improvement in working as the efficiency of the mills increases.

In the proposed tariff, Class 3 sugar, namely that below Dutch standard No. 18 to be taxed at 7 yen per 100 kin, represents apparently what is now classed as Dutch standard 15-20 at 8 yen 50 sen per 100 kin, so the loss of 1 yen 50 sen as compared with last year, when this sugar was passed as Class 2 at 5 yen 50 sen per 100 kin, will still more nearly bé covered by the subsidy of 1 yen 15 sen.

Meanwhile strict enforcement of the present rates is being made, and manufacturers are anxiously anticipating the putting in force of the suggested revised rates.

In the trade report of this district for 1908 the sugar market was reviewed up to the middle of March, 1909.

Prices for brown sugars rose slightly from then, and remained higher for the rest of the season, being from 9 yen 20 sen (18s. 9d.) to 10 yen 80 sen (17. 28.) according to grade, delivered at the merchants' godowns at Takow or Anping.

The 1909-10 crop opened in November with the price at 9 yen 40 sen (19s. 2d.) for low grades and 10 yen 20 sen (17. Os. 10d.) for high, but fell off in December and has since remained lower, from 9 yen 20 sen (18s. 9d.) to 9 yen 80 sen (17.).

In January, 1910, the uncertainty regarding the new consumption tax, and the conditions attending the levying of the same, produced for a time an absolute state of chaos in the brown sugar business, which came practically to a standstill. No definite idea prevailed as to the classing of the sugar, and, profits being diminished owing to the increased labour required for the various examinations by the tax assessors, different methods of packing, &c., the manufacturers tried to get the farmers to lower prices. This led to much discontent and threats to burn the cane rather than sell it at a lower price, and for a time no business was possible. The cane grown in the brown sugar districts was sent, in several cases, to the centrifugal mills. The question of colour is now settled, but uniformity in this respect in the different districts not yet having been attained, much inconvenience is still being experienced. Whereas last year at Takow, moreover, it was possible to get 1,000 bags classed and passed through daily, the packing now has all to be done under inspection and, at the most, 200 bags a day are passed. The estimate of the total amount of brown sugar to be produced was about 1,000,000 piculs, but, owing to the difficulties experienced, this amount will probably not be reached.

Of centrifugal sugar, the estimated total output this season is now (end of February) given as 1,161,000 piculs for direct consumption and 450,000 piculs for refining.

This is considerably less than the estimates made at the beginning of the crop, the proportion of sugar realised being less than was anticipated, due, among other reasons, to some damage among the new varieties of cane by insects and disease.

Prices were high at the opening of the crop in November, and much sugar was sold forward. One company sold 250,000 piculs forward at 13 yen 5 sen (17. 6s. 8d.) out of an estimated total output (not likely now to be fully realised) of 280,000 piculs. Another company sold some of their best grade raw sugar at 14 yen 20 sen (17. 9s.), but later there was no demand at this price. In general, prices for centrifugalled sugars ranged from 12 yen 50 sen (17. 5s. 6d.) to 13 yen 50 sen (17. 78. 7d.) c.i.f. Yokohama, the higher prices being realised early in the crop.

Two factories are experimenting in the manufacture of white (refined) sugar in Formosa, that of the Ensuiko Seito Kwaisha being of No. 30 Dutch standard (called "Dai Nichi "), at a nominal price of 20 yen (21. Os. 10d.) per picul.

The Taiwan Seito Kwaisha has also been attempting the manufacture of rum as a by-product, but without much success at present, as the taste and smell of that so far made are said to be inferior, and to prevent its being of value as a commercial article. Further experiments are being made in order to improve the product.

In August, 1909, it was said that the total capital invested in sugar mills in Formosa was some 44,000,000 yen (4,500,0007.) and the profits of the largest companies from July 1, 1908, to June 30, 1909, were returned as follows:

With the idea of supplanting Java crude sugar in supplying the sugar refineries in Japan, an agreement was made in November, 1909. between the Taiwan, Meiji, Toyo and Ensuiko companies in Formosa and the Dai Nippon, Yokohama and Kobe sugar refining companies in Japan for the supply of 250,000 piculs of crude sugar for refining during the 1909-10 crop. The agreement stipulates that the sugar shall be shipped from Formosa between January 1 and March 31, 1910, the price being fixed at 6 yen 51 sen (13s. 3d.) per picul. A special bounty is to be given by the Government on sugar for this purpose, equal to the amount received as reimbursement of customs duty on crude sugar imported from abroad and refined in Japan. Later in the season, owing to the high price of Java crude sugar and the probability of the output of centrifugalled sugar exceeding the demand, this amount was increased by another 200,000 piculs, making in all 450,000 piculs for refining purposes. As this new arrangement did not take place till February, 1910, companies which had not sold their output forward in the meanwhile should benefit somewhat by a probable rise in price resulting from the reduction of the excess of centrifugalled sugar destined for direct consumption.

With the idea of improving the cane in the island, in each district a certain proportion of the land is in future to be set apart as an experimental plantation for new kinds of improved cane. In all, some 3,800 acres are to be so set apart, and the treatment of the cane there planted is to be in accordance with the regulations issued and to be under Government supervision. Cultivators of these "model cane plantations are to receive a bounty partly in money for planting expenses and partly in the shape of manure, amounting in all to the value of about 37. 108. per acre. The regulations stipulate the conditions under which planting is to take place, the date, the amount of manure to be used in addition to that supplied by the Sugar Bureau, and the reserve of young cane to be provided in case of failure of first planting, &c.

Semi-open ports.-The total trade of the three semi-open ports in this district (see Tables 6 and 7) has decreased by 8,6917. as compared

with 1908. The falling-off is chiefly in the export of rice to China, most of Formosa's superfluous stock now going increasingly year by year to Japan. The trade of Toko and Toseki (Hokkokei has no longer a customhouse and has been absorbed by Toseki) is confined to junk traffic. Regular steamers between Japan and South Formosa call at Makyu, the port of the Pescadore Islands.

The oil cake mentioned in the export table is made from pea-nuts and sesamum seed, and is produced in the Toseki district, some of it, as shown in the table, being transhipped at Makyu. It goes to China.

The flour imported at Makyu is of American origin, obtained through Japan and China.

Shipping (see Table 9).-Foreign shipping shows in 1909 a decrease of 7 vessels and 16,246 tons as compared with 1908.

Japanese shipping shows an increase of 19 vessels and 39,973 tons

in 1909 over 1908.

British shipping has decreased by 11 vessels and 18,182 tons in 1909 as compared with 1908. In 1908 most of the machinery for the various new sugar mills came out in British bottoms, whereas, in 1909, German vessels, which increased by 7 in number and 2,967 tons, brought large quantities of rails for the light railways on the sugar plantations, prices for these being cut down by the German manufacturers to a very fine point, leaving but a small margin of profit, in order to get into the market.

Takow Harbour works.-Steady progress is being made with the large scheme for making a good modern harbour at Takow, details of which were given in the trade report of this district for 1908. In 1912 the main works will be completed, after which it will be possible to handle 450,000 tons of cargo annually.

Eight steamers of 400 feet in length will be able to be berthed alongside the quays simultaneously, while buoys for separate mooring of three more steamers will be provided.

The blasting of the sunken rocks at the entrance is proceeding, and has been very successful so far.

Anping, a badly-situated open roadstead, will probably no longer be a place of call for other than an occasional tramp steamer.

Railways. As mentioned in the trade report for 1908, the Government railway on the west coast connecting the extreme north and south of the island, was completed in that year. Since then no further extensions have taken place on this line, the improvements made being confined to an increase in the number of trains and an accelerationof the service. Two through trains now run daily between north and south, the quicker of the two doing the distance of 247 miles between Keelung and Takow in slightly under 14 hours. It is proposed to shorten this, when the time table is revised in April, by putting on an extra engine for the central part of the line, which has a steep gradient for several miles.

On the east coast, slow progress, according to the scheme arranged, is being made with the line destined eventually to connect Pinan with Taihoku. There is a very small annual outlay provided for this work, and it will be many years before much progress is seen.

Irrigation and electric power.-At the end of December, 1909, electric