Evening star., 1933-01-30

clearly reflected in the decrease in the
consumption Of kerosene, which Is one
of the stable imports. Consumption
Of this commodity, I am reliably in
formed. Is SO per cent below the figure
for a normal year. The commercial
consumption of gasoline for the year
has likewise been greatly reduced.
Two circumstances have contributed
toward diverting Manchukuo govern
ment purchases to japanese firms;
first, the presence Of Japanese officials
and advisers in various government de-
partments. and second, the deprecia-
ton in the exchange value of the yen,
which has made it possible for Japa-
nese firms to underquote other foreign
firms on competitive business.
Since the slump in the yen, kerosene
from Japan has been flooding the
South Manchurian market at prices
considerably below those of competing
dition, however, Is regarded as only
temporary and will adjust itself when
Japanese oil companies replenish their
present stocks at prices adjusted to
the present exchange value Of the yen.
Americans Lose Markets.
One large market which, at least
temporarily, has been lost to American
importers is the trade in electrical
equipment. Japanese enterprise now
enjoys a virtual monopoly for supply
ing electrical power Throughout the
region traversed by the South Man
churia Railway system.
The American importing firm OF An
derson & Meyer some years ago sold
and installed the electrical equipment
for the Chinese municipal electric light
plant at Antung The equipment was
sold on credit. Following the .Septem-
ber incident, the Chinese plant at An
tung was closed by the japanese mill
tary on the grounds that there was not
enough business in the city to justify
two plants. The japanese plant, owned
by the South Manchurian Electric
Co.. subsidiary Of the South Man
trical output for the city. Anderson &
Meyer, through the American consul
late, has lodged claim Of 100000 gold
for damages. The claim, after having
beer, under negotiation for more than
a year, appears likely to be settled soon.
The main obstacle in the way Of a
settlement has not been japanese re-
fusal to recognize the American claim,
hut inability of the officials Of the
Chinese plant and the officials Of the
South Manchurian Electric Co. to agree
on the plant valuation.
Although Anderson g. Meyer will In
all Likelihood be compensated for their
immediate loss, they will have lost q
valuable future customer.
The Manchukuo government has just
announced settlement Of claims repre-
senting money due to both domestic
and foreign creditors for goods sold on
credit to the old Manchurian regime
prior to the September incident Of 1881.
These creditors include Japan, Great
Britain, the United States. Germany.
France, Austria, Norway, the Neither
lands, Czechoslovakia and Sweden.
The claims aggregate 100000 yuan
in Manchukuo currency, or nearly $3,-
100000 gold, and represent some LOO
which do not include the case of An
derson g. Meyer at Antung. total about
$4,000 gold.
Claims In Two CategOrieA
The claims have been placed in two
categories. Those for contracts con-
cluded since 1880 and wherein goods
were duly delivered will be settled on
the following basis: Thirty-five per
cent will be paid in cash during the
fiscal year. July l, 1882, to June 80,
1888. Twenty per cent will be paid in
cash during the following fiscal year
and the balance in per cent bonds
redeemable in 20 years, the face value
of the bonds to be equivalent to the
sum to be paid.
In the second category are contracts
agreed upon prior to and including