52 per cent. on her share of the previous year's figures. The export to British India, as given in the returns, also increased by over 21 per cent., but it is not possible to say if any or what proportion of the total credited to Hong-Kong should be added to the totals for the other destinations, that port being primarily a distributing and transhipping centre. The fact remains, however, that the export of cotton goods to British India, consisting chiefly of underwear, is increasing at the expense of British manufacturers of the same articles. Of the whole export of cotton underwear from this port, amounting in value to 349,258, British India absorbed at least 269,9971., or 77 per cent. of the total.

Indian and Japanese cotton yarns.-The total production of various counts during 1909 reached a total of 1,025,244 bales, this being an increase on the previous year's figures of 146,674 bales. As regards the volume for export in 1909, this reached 258,878 bales, an advance on the previous year of 91,036 bales. Notwithstanding the curtailment of spindles to the extent of 27 per cent. for home consumption throughout the year, there was an excess in the total production, this being due to the addition of new spindles to several of the mills, and to the measure adopted by the Ringokwai (Mills Association) of granting a subsidy for the encouragement of the production of yarn for export. In regard to actual business transacted, the year 1909 cannot be described as entirely bad, but, from the financial standpoint, matters were not altogether satisfactory, owing to the repeated fluctuations in the prices of yarn and cotton. At the opening of the year 1909 the market was active, and a series of very large export transactions was recorded. This must be attributed to the high prices of silver; added to which there was a large domestic demand which cleared off the stocks then on the market, and maintained quotations at a high level for several months. A decline in the value of silver set in in the summer, however, and that had the effect of placing a check on the export business, while there was also a marked decline in the domestic demand. In the meantime the price of cotton had much advanced-to such an extent, indeed, that the price of yarn for some time dropped to below the cost of production. Towards the end of the year under review silver showed signs of improvement again, and several important transactions were concluded with Shanghai, the year 1909 thus closing under more encouraging conditions than had prevailed during the summer and autumn. Prices of 20's ranged in the Osaka exchange from 103 yen 55 sen to 132 yen (say, 101. 11s. 5d. to 137. 9s. 6d.).

Metals. The export of copper, the principal item among metals, showed a recovery upon the export of 1908 of 161,8631., although it did not reach by over 250,000l. the figures for 1907. The largest share was taken by the United Kingdom and Hong-Kong, from which latter port much of it found its way to China. The quantity of copper exported in 1909 was 24,827 tons as against 20,950 tons in 1908, whilst the value taken by the four principal purchasing countries is given in the returns as follows:

Straw braids and chip braids.-There was an increase of 106,405l. in these goods over 1908, the export for 1909 having reached a value of 472,3731.

Of the seven special open ports notice need only be taken of two, viz., Yokkaichi and Tsuruga. A separate report has been prepared for Osaka, and is annexed at the end of this report.

Yokkaichi. In spite of the promising outlook presented last year, it cannot be said that much extra benefit appears to have accrued to British trade in 1909. Compared with last year's returns, Annex 6 (A) shows that only 17 British vessels called at Yokkaichi in 1909 as against 28 in 1908. Apart from the Japanese steamers, the tonnage of the United States takes the lead, although British call there in greater numbers. The United States steamers of fairly large burden are the trans-Pacific liners which find it to their profit to call there for cargo. Altogether 301 vessels of 817,169 tons entered and cleared during 1909.

It is quite certain that, with the increasing trade in porcelain goods and tea from the back country round that port, Yokkaichi will have the right to claim facilities for shipping in the shape of harbour improvements. At present, with the open roadstead for anchorage, there is no comfortable berth for ships when north-east or easterly winds are prevalent.

As regards imports and exports, Yokkaichi, in common with other parts of the district, shows a great falling-off in the import of rice, and for the same reasons. The value of the import of this staple fell from 130,2241. in 1908 to 26,636l. in 1909. The import of raw cotton has risen from 227,0697. in 1908 to 359,7331. in 1909. In exports there is an increase in the figure for cotton yarns, but on the total trade for the year 1909 there is an increase of some 10,000l. only in both imports and exports added together.

At the time of writing of this report a quasi-official announcement has appeared in the Press stating that Yokkaichi is to be made into a second class port (that is, a port to be constructed with the aid of a Government subsidy), and the Home and Finance Departments have sanctioned the raising of a Prefectural City Loan in order to meet the expenses accruing. The works are to be begun during 1910. The harbour works will consist of a stone breakwater 840 yards. long enclosing a basin of some 58 acres area with a mean depth at low water of 28 feet, to which access will be had through an entrance of the same depth measuring between 150 and 200 yards in width. The dredging operations connected with forming the basin will give sufficient soil to reclaim some 62 or 63 acres of land to be laid out in streets, and to afford facilities for the erection of wharves, storehouses and the like, in connection with which a canal 1,910 yards long will also be constructed. The estimated expense is stated to be 105,6141., the expenditure to be spread over the five years 1910-14.

Tsuruga.-321 vessels of 448,777 tons entered and cleared in 1909. They are smaller than those calling at Yokkaichi, the Russian flag leading with vessels of about 1,700 tons, the Japanese with ships of 1,500 tons and the German flag with vessels of about 1,100 tons burden. Only 2 British ships called at Tsuruga during 1909.

Although the drawbacks connected with the arrangements made for

connections between the railway and the steamers for the transSiberian route, which start from this port, leave much to be desired, it is not probable that passengers will ever prefer the South Manchurian route, in spite of the obvious desire of the Japanese Government to deflect the line of travel in that direction. There has been some talk of substituting for the port of Tsuruga the naval port of Maidzuru, which is some five hours distant from Kobe and Osaka, but the question, if ever seriously considered, seems to be for the present in abeyance. Shipping. With a decrease of some 130,000 in the total tonnage of vessels calling at the port of Kobe during the year 1909 as compared with the year 1908, there was an increase of two vessels in the number of ships entered (Annex 4).

British shipping calling at this port in 1909 showed a decrease on 1908 of 69 in number and 104,560 tons in tonnage. This decrease is almost entirely due to the fact that by arrangement with the Nippon Yusen Kaisha Line of Japanese steamers the service of the China Navigation Company's steamers between Shanghai and Yokohama was withdrawn about the middle of the year. Excluding Japanese shipping, British vessels formed over 57 per cent. of the total tonnage entered at this port, and, including Japanese, 31 per cent. of the tonnage of all nations, a very satisfactory showing. For 1908 the respective proportions were 56 and 33 per cent., so that it may be seen that, whilst gaining a slight advantage over foreign shipping on the one hand, British shipping has only receded a little on the other from its share of the total owing to the withdrawal above-mentioned and to the increase in tonnage of Japanese vessels. Only one British sailing vessel called at Kobe.

General remarks.-Under this heading it will only be necessary to repeat what was stated in last year's trade report, viz., that in industrial enterprises the development of electric railways or tramways, electric light and gas is remarkable. No special mention need be made, however, of these undertakings, as those foreign firms on the spot who supply machinery always keep themselves fully posted as to the requirements of the companies. These supply themselves by means of private contracts and not by public tenders.

The Asahi glass factory.-This factory was established by the Mitsubishi Company at Amagasaki near Kobe in 1907, and is now stated to have succeeded in manufacturing sheet glass for window panes, &c. The factory employs 231 hands with seven Belgian experts. The company hope in a short time to be able to carry on the manufacture without foreign assistance, and also, with the help of the prospective new tariff, to produce sufficient glassware to replace a large proportion of the trade from Belgium.

The Mitsubishi dockyard.-During the course of the year 1909 only one vessel, a steam launch, was built, but repairs to 368 vessels of all kinds were carried out at the yard and in the two floating docks belonging to the company. The larger of these, launched in 1908, is of 12,000 tons, length 532 feet 6 inches, breadth 100 feet, and can float a vessel of 12,000 tons with a length of 580 feet, breadth 66 feet and a draught of 26 feet in four hours. The following additions were made to the yard during the year, all housed in iron sheds, no wood being

used in their construction: A 1,000 horse-power gas generator and a 480 horse-power gas engine, one hydraulic forge, a boiler-making shop and an iron foundry, whilst the electric shop and plant were also considerably extended.

The Kawasaki dockyard.-Repeated applications for details of last year's work at this yard have so far met with no success, but the " Japan Year Book" gives the following particulars :- "They (the Kawasaki dockyards) launched in 1908 two 8,600-ton intermediate steamers for the Nippon Yusen Kaisha and a 6,000-ton cargo steamer for the Osaka Shosen Kaisha. The works are equipped with a large electric-driven floating crane of 100 tons lifting capacity. The graving dock is 377 feet long on the keel blocks, and is built on permeable sand with a concrete bed 12 feet thick, supported by 8,400 piles underneath. They have also two slip docks 600 and 394 feet long on the rail respectively, giving facilities for the repairing of ships up to about 4,000 tons gross. Their steel foundry at Hiogo was started about two years ago. It is provided with a 20-ton Siemens furnace, and can turn out very fine steel castings.'

Railways.-56.7 miles of railway were opened to traffic in this district during the year 1909, consisting of three sections at different points on the west coast to the north of this Consular district. These were as follows:-Yonako to Shinji, in the Shimane Ken, 28 6 miles ; Yoka to Kinosaki, in the Hiogo Ken, 16.7 miles; and Tottori to Iwami, in the Tottori Ken, 11.4 miles.

The Kobe harbour works.-More than two years have now elapsed since the work in connection with the Kobe harbour works scheme was commenced, and considerable progress has already been made. Up to September last an area of 21,500 tsubo (17.75 acres) had been reclaimed. This reclaimed land is at present in three parts, the spaces between which will not be filled up till the work on the piers is completed. An area of 59,100 tsubo (48 75 acres) still remains to be reclaimed, making a total, including the spaces between the quay walls, of 80,600 tsubo (66.5 acres). The land already reclaimed is now being used for the making of concrete blocks and other work connected with the construction of the harbour.

Some alterations have been made in the plans since the commencement of operations. The three basins, which were to have had a width of only 140 yards each, are to be made slightly wider, one being 180 yards in width and the other two 160 yards each. At the same time the piers will be made 8 yards narrower than was originally intended, each of the three double piers having a width of 112 yards instead of 120 yards. A slight alteration has also been made in the plans for providing land connection between the newly reclaimed land and the former foreign settlement on the west of the harbour works. A glance at the plan will show the scheme as it at present stands. The original intention was to complete the work in seven years from the commencement (May, 1907), but subsequently this period was prolonged by one year and then again by two years, so that the work is not now expected to be completed until the year 1917.

As already reported, the total sum to be spent on the work is 16,740,000 yen (1,708,8751.), including the sum of 3,600,593 yen

(367,5611.) spent in 1906 on the eastern breakwater, which is being made use of in the present scheme. Of the total sum, one-third is to be contributed by the Kobe municipality, and in July, 1909, a loan of 2,500,000 yen (255,000l.) was floated in order to raise part of the total amount-4,370,000 yen (446,1047.)-thus to be contributed. The issue price of the loan was 95, the rate of interest is 6 per cent., and the principal is to be unredeemed for five years, after which time it is redeemable by the year 1933. A sum of 3,000,000 yen (306,2501.) had already been spent on the work by the end of 1909.

There are to be four piers, three of which are to be double. The total length of quay accommodation will thus be 2,800 yards, capable of accommodating 19 vessels. The piers will have a depth of water alongside ranging from 30 to 36 feet, capable of accommodating vessels of very large tonnage.

It has now been decided to construct the quay walls with ferroconcrete caissons. The laying of solid concrete blocks is rendered difficult by the bad weather which at times prevails at the entrance to the harbour, and it is mainly with a view to obviating this difficulty that the said new scheme has been put into practice. The staging necessary for the construction of the caissons has been erected, and one caisson is practically complete. The dimensions of each will be as follows:Length 120 feet, width 24 feet and depth 30 feet. The floating dock for transporting these caissons to the site of the piers has been constructed at the Kawasaki dockyard at a cost of 250,000 yen (25,5207.). Altogether about 80 caissons will be required. The quay walls are to be built up on the foundations thus formed, and the intervening spaces then filled up with sand, rubble, &c. Dredging is now being carried out at the spots where the caissons are to be placed. The weight of each caisson before filling will be 2,500 tons, and after filling 7,000

tons.

The eastern breakwater, on which a sum of 3,600,593 ven (367,5611.) was spent in 1906, is to be used as one of the walls of the eastern pier. The blocks for this breakwater have mostly been completed, but have not yet all been placed in position. Altogether about 8,000 blocks will be required, each weighing about 7 tons.

The scheme upon which work is now being carried out makes no provision for a breakwater outside the harbour, without which shipping will always be liable to serious inconvenience in high winds from the south. A scheme of breakwaters has been approved by the Harbour Investigation Committee of the Home Department. It is a modification of the many that have already been advanced and will include a breakwater starting 500 yards from the end of the eastern pier and extending in a slight curve southwards and westwards towards Wada Point. The idea is to complete a distance of 1,200 yards of this breakwater (about one-fourth of the whole) at the same time as the harbour works, and work is to be commenced as soon as the scheme is sanctioned by the Diet.

The stone jetty for passenger launch traffic at the western side of the harbour is now in course of extension.