China's share in the foreign trade of the United States, particularly in the export trade, has been diminishing in recent years, that country having received only 1.1 percent of our total 1938 exports, against 1.5 percent in 1937, 1.9 percent in 1936, and 4.0 percent in 1931. China supplied 2.4 percent of the United States import trade in 1938, against 3.4 percent in 1937 and 3.2 percent in 1931.

Of greater significance is the change that has occurred in the position of the United States in China's total foreign trade. In every year from 1930 through 1937 the United States ranked first in that trade, but in 1938 fell back to second place, having relinquished the premier position

| 1901-1905 1906-1910 | 1911-1915 | 1916-1920|1921-1925 1926-1930 1931-1935 1936-1940
Figure 29.-Trade of the United States With China.

to Japan. Whereas the United States supplied 20 percent of China's total imports in 1937, against 16 percent from Japan proper, the share of the United States in 1938 was 17 percent while Japan's advanced to 24 percent. The United States, moreover, supplied only 11 percent of China's total exports last year, compared with 28 percent in 1937, while Hong Kong's share increased from 20 percent in 1937 to 32 percent in 1938 and Japan's increased from 10 percent to 15 percent. Export Commodities.

Declines in 1938 exports to China occurred in shipments of wood, paper, refined mineral oils, chemicals and related products, and metals. Items in the latter group experiencing substantial declines included tin plate, steel scrap, structural shapes, iron and steel plates, and refined copper. Resisting the downward trend and showing some increase over 1937 and 1936 were raw cotton, motortrucks, and aircraft. The shortage in China's raw-cotton supplies, as a result of the curtailed 1938 crop and large takings by Japan, necessitated increased purchases of American cotton for Shanghai mills.

Import Commodities.

While the slowing down in business activity in the United States during the first part of 1938 was a factor in reducing imports from China, much of the trade decline resulted from transportation difficulties in China, coupled with export restrictions imposed on certain North China products and diversions of some commodities to Japanese

trade channels. Accordingly, imports of undressed furs, goatskins, tin, carpet wool, raw silk, raw cotton, sausage casings, and egg products showed sharp recessions. That the 1968 volume of tung-ol imports did not fall far below the 1952-36 average, although considerably below the large 1937 volume, may be attributed in part to the success of the Chinese Goremment in moving out export products from Central and West China over the Hankow and Hong Kong rail route p to mid-October. Imports of cottonseed c and peanut oil from China fell to negligible amounts from the large volumes recorded in sevarul preceding years. The declines resulted chiefly from slackened Imogen demand. En view of increased production in the United States and heavy zventories of vegetable oilseeds and ols.

FOREIGN TRADE OF THE UNITED STATES IN 1938

Tadie 40-Prampal Commodines in Trade of the United States With China X-Con tr nämnul enem tems quite my Tuoad Shapes profters. Import commodities are renem mora' in 35 st une and impurs firmou a ser and 1968.

Table 40.—Principal Commodities in Trade of the United States With China-Con.

Tons of 2,240 pounds in 1929 and 1932; tons of 2,000 pounds, air-dry weight, in 1937 and 1938.

2 Less than 500.

Figures for 1929 and 1932 have not been adjusted for minor transfers in classifications of later years.

4 Not shown separately.

Includes camel's hair.

1, 512

301

597

351

96 2,514

28

22

1,125

141

64

4,741

38

4, 278

2,993

339

1, 144

62

4, 234

1,054

2,225

1,066 10, 007

482

5, 127

1,808

HONG KONG

As in the last 5 months of 1937, a large part of the trade of South and Central China in 1938 passed through the port of Hong Kong. Accordingly, exports to Hong Kong from the United States were maintained at a comparatively high level-totaling $21,288.000 in value, compared with $20,266,000 in 1937 and $8,550,000 in 1936, the year prior to the outbreak of Sino-Japanese hostilities. With the outting of the Kowloon-Canton and Hankow-Canton railways in the fall of 1938, however, trade with Hong Kong diminished. The decline was particularly marked in United States imports from Hong Kong during the last 3 months of the year. The difficulties encounford in moving goods from the interior of China to Hong Kong for shipmont, together with slackened demand in the United States for Chinose taw materials in view of our business recession, resulted in a i gynoral imports into the United States from Hong Kong for the vast to a value of only $3,367,000, compared with $9.213.000 in 1987 and 88.341.000 in 1936, 8. 328ial memes ocurred in United States exports to Hong Að æð, me, Misery and vehicles, includ

2658. 2ompared with

Table 41.-Principal Commodities in Trade of the United States With Hong Kong Continued

1 Less than 500.

Figures for 1929 and 1932 have not been adjusted for minor transfers in classifications of later years. Not shown separately.

KWANTUNG LEASED TERRITORY

The Kwantung Leased Territory, which includes the port of Dairen, is the gateway through which passes the bulk of the foreign trade of Manchuria. The recorded statistics of United States trade with this area, however, do not reveal the trade trends before and after the segregation of Manchuria in 1932, in view of the fact that these records do not include goods transshipped to Manchurian ports via Japan, nor do they include, in years previous to 1932, transshipments from Shanghai and other Chinese ports. Prior to 1932 only a small portion of United States trade with Manchuria was direct. The bulk