United States imports of British Indian products in 1938 decreased 39 percent in value, as compared with 1937, to the lowest annual value since 1934. The weakness in commodity prices was a factor in the decline, and United States purchases of practically all leading commodities were smaller in quantity. The decrease in the quantity of burlaps, our leading import from British India, was approximately 20 percent, and decreases in carpet wool, shellac, and mica ranged from 40 to 50 percent. Our imports of only two principal commodities in table 38-tea and titanium ore-increased in quantity in 1938.

Although the Province of Burma has been a separate political entity since April 1, 1937, separate statistics of trade with that area are not available prior to 1938. For this reason the data in table 38 show United States trade with British India and Burma. The value of United States exports to Burma totaled $2,322,000 in 1938, while imports from that country were valued at $224,000.

BRITISH MALAYA

Principally as a result of lowered business activity in the United States, our imports from British Malaya decreased more than 50 percent, from $242,872,000 in 1937 to $112,274,000 in 1938. The MILLIONS OF DOLLARS (Logarithmic Scale)

4001

300

6-19401

D.D. 9160

1901-1905 1906-1910 1911-1915 1916-1920 1921-1925 1926-1930 1931-1935 1936-19. Figure 28.-Trade of the United States With British Malaya (Not Recorded Separately, 1901–08).

United States continued to obtain the greater part of its crude rubber and tin from British Malaya, which is the largest producer of these products; but in 1938 both these products were imported in much smaller quantities than in 1937. While the United States purchased a slightly larger proportion of its imports elsewhere in 1938 than in 1937 (the exportable quotas of both Malayan rubber and tin having been revised sharply downward during the year in an effort to maintain prices), 60 percent of the total United States imports of crude rubber and 74 percent of its imports of tin were of Malayan production.

Imports of minor products, which comprised about 3 percent of the value of the total import trade in 1938, showed as a group a smaller relative decline than these two leading products.

Table 39.-Principal Commodities in Trade of the United States With British Malaya

NOTE. Data for individual export items include only United States products. Import commodities are "general imports" in 1929 and 1932 and "imports for consumption" in 1937 and 1938.

'Not shown separately.

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

In the export trade, there were decreases in shipments of some commodities in 1938, including motor trucks and busses, passenger automobiles, tin plate, electric batteries, and lubricating oil; but increases in other exports more than counterbalanced the decreases.

Construction and conveying machinery, well and refinery machinery, natural gasoline, sardines, and medicinals were principal commodities exported in increased quantity and value in 1938 as compared with 1937. While the total exports of the United States to British Malaya continued small in 1938, the 1938 figure of $8,855,000, as compared with $8,836,000 in 1937, was the largest yearly total recorded since 1930.

CEYLON

The value of our total imports (for consumption) from Ceylon in 1938 decreased 21 percent, from $20,673,000 in 1937 to $16,286,000, principally as a result of reductions in United States purchases of crude rubber. Imports of tea were larger in quantity and in value in 1938 than in 1937, and changes in the minor items in the tradewhich, as a group, comprise less than 10 percent of the total-were relatively moderate.

Principal United States imports from Ceylon in 1938, with 1937 figures in parentheses, were as follows: Crude rubber, 55,683,000 pounds, valued at $8,525,000 (67,038,000 pounds, $12,859,000); tea, 22,145,000 pounds at $6,707,000 (19,967,000 pounds, $6,367,000); papaya juice, 173,000 pounds at $252,000 (121,000 pounds, $135,000); citronella and lemon-grass oil, 766,000 pounds at $224,000 (832,000 pounds, $242,000); graphite, 6,543,000 pounds at $129,000 (15,469,000 pounds, $337,000); and cinnamon and cinnamon chips, unground, 678,000 pounds at $82,000 (643,000 pounds, $88,000).

Exports from the United States to Ceylon decreased from $1,724,000 in 1937 to $1,344,000 in 1938. The statistics for principal commodities in the 1938 export trade, with 1937 figures in parentheses, were as follows: Unmanufactured tobacco, 1,048,000 pounds valued at $345,000 (903,000 pounds, $301,000); chemicals and related products, $212,000 ($228,000); petroleum products, $156,000 ($183,000); machinery and vehicles, $240,000 ($443,000) of which automobiles, including parts and accessories, were $71,000 ($180,000); and metals and manufactures, $104,000 ($154,000).

CHINA

United States trade with China in 1938 dropped to the lowest point in many years as a result of continued hostilities in China and interference with its foreign commerce. Exports to China were valued at $34,719,000 (the smallest export total recorded since 1916)-a decline of 30 percent from 1937 and of 26 percent from 1936. While lower prices contributed in part to the decline in the value of exports, it is evident from the statistics of principal commodities shown in table 40 that the volume of United States exports to China in 1938 was also severely curtailed. Imports into the United States from China likewise suffered a sharp recession. General imports were valued at $47,189,000, a decrease of 54 percent from the 1937 import total and of 36 percent compared with the 1936 total. The gains in the 1937 trade over that of 1936 occurred prior to the China incident in July 1937. United States trade with the North China area dropped to negligible figures after the outbreak of military activities, while trade with Shanghai, which is normally the entrepôt for about half of China's total trade, was either completely cut off or diverted to Hong Kong and other ports.

per

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 1938 volume of tung-oil imports did not fall far below the 1932-36 average, although considerably below the large 1937 volume, may be attributed in part to the success of the Chinese Government in moving out export products from Central and West China over the Hankow and Hong Kong rail route up to mid-October. Imports of cottonseed oil and peanut oil from China fell to negligible amounts from the large volumes recorded in several preceding years. The declines resulted chiefly from slackened import demand, in view of increased production in the United States and heavy inventories of vegetable oilseeds and oils.

Table 40.-Principal Commodities in Trade of the United States With China NOTE. Data for individual export items include only United States products. Import commodities are "general imports" in 1929 and 1932 and “imports for consumption" in 1937 and 1938.