c. Sugar control and rationing. Between the manufacturer of sugar and the consumer of sugar are four levels of distribution and control: (1) the distributing company; (2) primary dealers; (3) wholesalers; and (4) retailers. Consumers have purchase tickets or ration coupons of some sort which they must stamp with their signature when exchanging them for sugar. Manufacturers who use sugar as a raw material secure it from the wholesalers.

The sugar control regulations were outlined in the Government-General Ordinance number 93, dated July 11, 1940. The essential paragraphs in the order are as follows:

1. No persons engaged in the manufacture, import, or introduction of sugar... shall be able to sell the same except by consignment to a company (hereafter to be called the Distributing Company) designated by the Governor-General of Taiwan.

2. The Distributing Company shall sell no sugar except to those designated by the Governor-General of Taiwan as primary sugar dealers (hereafter to be called Primary Dealers); except that in case permission is secured from the Governor-General of Taiwan this restriction is voided.

4. The Primary Dealers shall sell no sugar except to those designated by the Governor-General of Taiwan as wholesale sugar dealers (hereafter to be called Wholesale Dealers); except that in case permission is secured from the Governor-General of Taiwan, this restriction is voided, 5. The Wholesale Dealers shall sell no sugar except to those designated by the Provincial and District (shu and cho) Governors, falling under one of the following categories:

13. . . . Retail dealers selling sugar in exchange for purchase tickets should get the stamp of the purchaser in question.

14. The Distributing Company, Primary Dealers, Wholesalers, and Retailers should record circumstances of sale or purchase in account books provided for the purpose.

The ordinance goes on to state that the distributing company is to report to the Governor-General; the primary dealers to the Governor-General and the provincial governors; the wholesalers and retailers, to the provincial governors.

d. Control of fresh fruit. The Government-General attempts to control the fresh fruit market by using the Taiwan Amalgamated Fruit Dealers Association and the subordinate provincial fruit dealers associations as in

struments of control. This procedure was outlined in Government-General Ordinance No. 139, dated July 25, 1941, the essential paragraphs being as follows:

3. When need therefor is recognized for regulation of fresh fruit supply, the Governor-General of Taiwan may issue orders to the Taiwan Amalgamated Fruit Dealers Association to work out or alter plans for stipulated varieties of fresh fruit and dealing with shippers, shipments, amounts, times, and anything else essential thereto. 4. On receiving such orders, the Taiwan Amalgamated Fruit Dealers Association shall speedily fix the necessary plans and submit them for approval of the GovernorGeneral.

5. On receiving such approval, the Taiwan Amalgamated Fruit Dealers Association shall make the necessary suggestions to the provincial (or cho) fruit dealers associations. The latter, on receiving such suggestions, shall speedily fix the necessary plans, based on the suggestions, and submit them for approval of the provincial (or cho) governor.

7. The provincial (or cho) Fruit Dealers Association, on receipt of approval ** ** * shall issue to its members or member bodies directions necessary for the shipping of fresh fruit, based on such plans.

9. Producers of fruit in any provincial (or cho) jurisdiction shall not be able to export same for purposes of sale outside of the territory of the province (or cho) unless they are in or hold a commission from the regional Fresh Fruit Dealers Association.

11. The Governor-General, on recognizing any special necessity therefor, may issue to those designated under provisions of the above articles any orders necessary for the regulation of supply, fixing the varieties of fresh fruit, and dealing with its export, import, shipment, introduction, or distribution.

e. Rice control. Rice is rationed to the consumer, different quantities being allowed according to whether the person is engaged in heavy labor or not. Rice delivering stations are scattered through Taiwan. Probably almost every shi, gai and sho has one or more such stations. Many of the stations are under the immediate control of associations with names such as Tamsui Credit Buying and Selling Co-operative (with surety responsibility).

Superior to these local associations, according to an announcement of January 9, 1942, is the Taiwan Beikoku Nonyu Kyokai (Taiwan Rice Supplying Association) to which the government assigned the handling of the purchase, storage, transportation and sale of rice. The Rice Bureau of the Government-General on April 3, 1942, assigned to the Rice Purveyors Council of the Rice-growers Association the task of gathering and distributing brokengrained rice. It may be that rice is now under the Foodstuffs Control Co. which was established in December, 1943. The control of rice acreage and of the delivery of rice by the farmers probably is controlled through the Taiwan Nokai (Taiwan Farmers Assn.) and by the economic police,

f. Monopolies. (1) General statement. The net income received by the Government-General from the monopolies in 1938 amounted to ¥68,188,611 as follows: opium, ¥2,613,035; common salt, ¥4,012,859; camphor, ¥9,422,487; tobacco, ¥24,516,306; and liquor, ¥27,623,924. Weights and measures, including water, gas and gasoline meters, are under the Monopoly Bureau. (The Japanese are trying to have the metric system used exclusively in Taiwan.) A report of November 18, 1942, states that the new match manufacturing plant of the Monopoly Bureau is to be established in Shinchiku-shi. The Monopoly Bureau was reported to have ten branch offices, twelve agencies, one experimental station and six factories, but these figures are believed to be too low.

(2) Opium. Opium goes from the Monopoly Bureau to local governments who have designated wholesale dealers and designated retailers. The retailers can sell only to purchasers who have a license and passbook in which is written the amount permitted per day and a record of each transaction, including the name and address of the seller. The consumer may not purchase or have in his possession more than a three-day's supply. The opium is sold in five-gram tubes which are sold by the government to the wholesaler at 64 sen 6 rin and by the retailer to the consumer at 70 sen. Licenses were issued in 1938 to 8,918 In 1920, 48,011 males and 1,870 females in Taiwan. licenses were issued.

(3) Salt. Salt goes from the manufacturer to the Monopoly Bureau and then directly to industrial users in lots of 6,000 kilograms or more, or to 75 wholesalers who in turn distribute it to 2,656 retailers in Taiwan. The Tainan-shi branch of the Monopoly Bureau and the four monopoly agencies (at Rokko in Taichu Province, Hotei and Hokumon in Tainan Province, and Ujurin in Takao Province) purchase the salt from the manufacturers at prices which vary according to the relative difficulty of production and the economic condition of the producer. As of December, 1936, the price for first grade salt was from 62-67 sen; ordinary salt, 54-58 sen; ordinary salt, second grade, 46-57 sen; and cooking salt, 2 yen 55 sen. The retail price of salt is the same throughout Taiwan except that the retailer is permitted to add the cost of transportation from the place of the wholesale dealer.

The Monopoly Bureau has a salt-industry experimental station in Tainan Province.

From 1937 to 1941 the Taiwan Salt Manufacturing Co. and the South Japan Salt Industry Co. opened new salt works in Tainan and Takao Provinces to product industrial salt to meet the increasing demand created by the expanding war industries.

(4) Camphor. Camphor manufacturing is carried on by the Monopoly Bureau in its own factory or factories. Most of the raw camphor and liquid camphor are handled at the Nanmon factory owned by the Monopoly BuWhile they are being converted into second-grade camphor, various by-products are obtained. The by-products are red, white, indigo (blue) oil, superior perfume oil,

reau.

and (ordinary) perfume oil. A portion of the liquid camphor is sold to the Camphor Remanufacturing Co. of Kobe, Japan. The camphor sold by the Monopoly Bureau is the "improved second-grade" in powder form, and is used directly as a raw material for celluloid or for refined camphor.

(5) Tobacco. The Taihoku Tobacco Factory, owned by the Monopoly Bureau, employs about 1,000 workers and makes 6 brands of cigars, 11 of cigarettes, and 5 of pipe tobacco. In order to grow tobacco, farmers must obtain a license from the Monopoly Bureau. Tobacco dealers are also licensed.

(6) Liquor. On July 1, 1939, there were 93 wholesale dealers who received liquor from the Monopoly Bureau and sold it to 7,421 retailers, who in turn sold at fixed prices to consumers. Thirty-one liquor manufacturing plants were in Taiwan, five being in Kagi-shi. The annual production increased from about 15,000,000 gallons in 1926 to about 21,000,000 gallons in 1938. Thirty-four types of liquors were produced; refined sake, 4; rum, 2; sweet-potato brandy, 1; shochu (distilled spirits), 1; red wine, 2; medicinal liquor, 6; glutinous rice sake, 1; rice sake, 4; white sake, 1; sweet wine, 1; sweet sake, 1; foreign liquors, 5; spirits, 6.

3. Puble finance. The Government-General income for 1940 was Y352,908,590 of which almost an even 50 percent, or ¥179,392,615 came from government-owned enterprises and properties, as follows:

The figures are for gross income. It is not possible to tell from the budgets what the operating expenses chargeable against each item were. The Taiwan Jijo states that the government made a net profit on the railroads in 1936 of ¥11,246,177; in 1937, Y11,166,620; and in 1938, ¥14,490,150. The gross income in 1938 from the bus service was Y1,384,101.

In 1939 the Government-General planned to spend ¥208,602,000; the eight provinces, ¥34,690,806; and the shi, gai and sho, ¥36,961,486. The Government-General expenditures included subsidies of ¥6,140,369 to the provinces and ¥908,269 to the shi, gai and sho, which also received subsidies from the provinces amounting to ¥2,367,961.

The Tainan provincial budget of ¥8,014,206 was the largest of the provincial budgets, Taichu Province coming second with ¥7,003,190. The following tables give the breakdown of income and expenditures for Tainan Province and for the shi, gai and sho in the Province.

From property--

Rent and commissions.

Grant

Subsidy from national treasury.

Subsidy from Tainan Province_

Shi, gai, sho tax..

Shi, gai, sho loans.

¥8, 224, 875

Expense for adjusting land boundaries_.

77,822

4. The hoko, soteidan, and chokai. a. General statement. The hoko system of organization according to households is an old Chinese institution which has been so modified by the Japanese that it has become an important instrument of government and of police control. Each ho has an office with a secretary in the local police station. A ko consists of about ten households; a ho consists of about ten ko, the number varying in each instance according to local circumstances. The ko are organized according to houses adjacent to each other. Both the ho and the ko ordinarily are within the boundaries of a single gai or sho (town or village area). A number of gai or sho can form a single ho, but one gai or sho cannot belong to more