whether they are suitable for agriculture, for pasture, for forestry, or for mining. In this way, we can estimate their value and lease them out to the users for whatever production that is most suitable. The surplus tax of the cultivated land and the proceeds of waste land will be for the payment of the interest and principal of the foreign loan. Besides the eighteen provinces, we have a vast extent of agricultural and pastural lands in Manchuria, Mongolia, and Sinkiang, and a vast extent of pastural land in Tibet and Kokonor. They will have to be developed by extensive cultivation under the colonization scheme, which is alluded to in the first program.
(2) The establishment of factories for manufacturing agricultural machinery and implements. When the waste land is reclaimed, cultivated land improved and waste labor set to work on the land, the demands for agricultural machinery and implements will be very great. As we have cheap labor and plenty of iron and coal, it is better and cheaper for us to manufacture than to import the implements and machinery. For this purpose, much capital should be invested, and factories should be put up in industrial centers or in the neighborhood of iron and coal fields, where labor and material could be easily found.
b. The Storage and Transportation of Food
The most important foodstuff to be stored and transported is grain. Under the present Chinese method,
