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DEVELOPMENT OF CHINA
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ment Organization to manufacture this linen. A system of modern factories should be established all over the ramie-producing districts in South China where raw materials and labor are obtainable.


c. The Cotton Industry

Cotton is a foreign product which was introduced into China centuries ago. It became a very important Chinese industry during the hand-loom age. But after the import of foreign cotton goods into China, this native handicraft industry was gradually killed by the foreign trade. So, great quantities of raw cotton are exported and finished cotton goods are imported in large quantities into China. What an anomaly when we consider the enormous, cheap labor in China. However a few cotton mills have been started recently in treaty ports which have made enormous profits. It is reported that during the last two or three years most of the Shanghai cotton mills declared a dividend of 100 per cent and some even 200 per cent! The demand for cotton goods in China is very great but the supply falls short. It is necessary to put up more mills in China for cotton manufacturing. Therefore, I suggest in this International Development Scheme to put up a system of large cotton mills all over the cotton-producing districts under one central national control. Thus the best economic results will be obtained and cotton goods can be supplied to the people at a lower cost.

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