Treaties, Laws and Speeches

Agriculture in China

Cabinet Information Bureau

In the three and a half years of the conflict with China, the Japanese Army has come to occupy approximately one-third of that country, extending from Hainan Island in the south to the Mongolian Provinces in the north. This vast area includes a fertile rice zone in Kiangsu and Chekiang, two provinces which make the Chinese boast that "so long as these provinces raise bumper crops, starvation will never threaten." In view of the importance attached to the occupied area as an agricultural zone, it is most pertinent that agricultural China should be re-studied from a new point of view as an integral part of the Greater East Asiatic sphere of common prosperity, the establishment of which forms the basic national policy of Japan today.

In the initial stage of the conflict the devastation of land caused by the extension of hostilities and also the shortage of labour caused by the desertion of the farm population considerably reduced the productivity of small-scale farming, which is the characteristic form of Chinese agriculture. In addition, disastrous floods increased the possibility of famine. With the restoration of peace and order in the occupied area, however, such difficulties have been overcome, rendering possible the rehabilitation of rural communities, the stabilization of the life of their people, and the development of agricultural resources—a state of affairs which has been brought about by the new Central Government in their policy of creating a new order in Chinese agriculture. Since the agricultural population constitutes the backbone of new China, an established agricultural policy which is steadfastly carried out is a matter of urgent necessity. In order, therefore, to appreciate the measures taken along this line by the new Government with Japanese assistance, the structure and peculiarities of Chinese agriculture must be looked into first of all.

Peculiarities of Chinese Agriculture

Chinese agriculture bears the following distinct characteristics of its own: (1) semi-feudalistic high rent with payment in kind as a rule; (2) farm management conducted on an exceedingly small scale; (3) low agricultural productivity; (4) prevalence of rural usury; and (5) lack of technical means of overcoming natural

adversities.

The factors contributing to the growth of these peculiarities are many, of which the most outstanding is that China has been made completely a market for Western Powers, thereby checking any normal growth of its industries and keeping the greater part of the farm population in the doldrums almost permanently. Even when farmers have attempted to migrate to towns or cities, they have perforce been reduced to the precarious existence of the coolie class, which is a new labour force in Chinese urban life. Thus the liquidation of feudalistic economy in the agricultural sphere has been retarded. Moreover, the Chiang Kai-shek régime has failed to carry out any agricultural policy of a positive nature, while feeding itself upon the reckless exploitation of the farmers to the verge of their exhaustion. In Table 1 the percentage of farmers with reference to their tillage, which will make clear the extent to which Chinese agriculture has been operated on a small scale, is given.

TABLE I

(Based on the China Economic Year Book for 1936. In this Table 1 mou is equivalent to approximately .15 acres.)

With regard to the area under cultivation per family in 17 provinces of North, Central and South China, the highest figure is 32 mou in Shanhsi, and the lowest 12 mou in Hunan Province, the average being 18 mou. Of course, southern provinces, where profitable paddy fields of several crops prevail, cannot be compared to northern provinces with a preponderance of dry farming. The smallness of scale in farming can be inferred from the fact that the minimum area under cultivation for feeding one family is about 20 mou or so. As is shown clearly in Table 1, peasants owning extremely small plots under cultivation and farm hands hired by others

constitute the bulk of the farm population throughout South and North China. They form the so-called agricultural masses. Although their lot is hard and their work miserable, the existence of these peasants has an important bearing upon the national and social life of China.

With regard to the payment of farm-rent, the most popular method is a profit-sharing system. Also there is a system of payment in kind. Payment in money, usually to the extent of 30 or 40 per cent of the crops, however, is practiced least. Table 2, compiled by the Accounting Bureau of the Nationalist Government, embodying a survey of 23 provinces (including Manchuria), shows that relation clearly.

TABLE II

(In this table figures for the systems of profit sharing and payment in kind are in per cent of crops and for those of payment in money in per cent of land value.)

What is shown above is the normal farm-rent, which is usually accompanied by various unfavourable terms such as yatsu (pawn rent) and futsu (collateral rent). These accessory charges are evidently extortions tending to undermine agricultural productivity in China. The prevalence of usury in Chinese rural communities can be understood by the fact that 56 per cent of the farmers in debt borrow in money and 48 per cent in crops; the bulk of their creditors, 80 per cent, are private persons such as landlords, wealthy farmers, merchants or business firms, as well as pawn brokers and money exchangers. It is no exaggeration to say that 95 per cent of the entire farm population are in debt. The interest rate ranges from 20 to 40 per cent per annum. Needless to add, under such adverse conditions, Chinese farmers can ill afford to operate an independent enterprise. Nor is it any wonder that the productivity of Chinese agriculture is extremely low. The average crop harvest from a given plot in China is known to be about one-third that of Germany or one-half that of Japan. Crop harvests from a hectare of land in leading countries is given in Table 3.

TABLE III

(Per hectare average for three years, 1928-1930. Figures are in kilogrammes.)

Agricultural Policy of the New Government

From the foregoing review, the probable orientation of the new Government in agrarian reconstruction can be envisaged, particularly as compared with the helplessness that characterized the Chiang Kai-shek régime in facing the impoverishment and exhaustion of the farmers, which was the outcome of its policy of leaving the productive power of agriculture in stagnation. It means that unfavourable natural conditions besetting Chinese agriculture must be overcome by means of modern technique, and that the farmers must be emancipated from social and economic forces restraining the full development of their productivity.

On the other hand, the problem of agricultural development in China comprises two phases: the problem of developing farm products such as cotton, wool and tobacco, in conformity with a comprehensive economic policy embracing Japan, Manchukuo and China; and one relating to silk and tea, the production of which stands in competitive relation with Japanese agriculture. Accordingly, the new Chinese Government is taking appropriate measures for positive, rational development of agricultural resources in close cooperation with the two neighbouring Governments. In the meantime, they are counting in a large measure upon the material and technical assistance coming from Japan. In the following, the state of development of agricultural resources in different parts of China and governmental measures being carried out for its promotion are reviewed by regions.

North China

Roughly speaking North China is an agricultural region. Its

staple products include wheat, millet, and kaoliang; cotton, peanuts, maize, tobacco, soya beans, and sugar beets are also among the noted products. The principal product, however, is wheat, with an annual production in three provinces prior to the China Affair, amounting to 135,901 piculs¹ with kaoliang accounting for 84,414 piculs. Of recent years, this part of China has had to depend upon the importation of foodstuffs from outside. This appears rather strange, in view of the fact that Chinese farmers in North China comprise 70 or 80 per cent of the total population. The peculiarities of Chinese agrarian structure already referred to, however, will explain this anomaly.

The importation of wheat flour is estimated at 18,000,000 sacks out of the total 36,000,000 sacks for general consumption; while 1,000,000 koku² of rice out of the total demand amounting to 3,000,000 koku, as well as 400,000 tons of other cereals, are imported—a situation indicative of the urgency of working out adequate policies for ensuring and increasing the food supply in North China. Accordingly, the North China Political Affairs Commission, that is, the former Provisional Government in Peking, has carried out immediate measures for rehabilitation and, at the same time, has adopted the following as measures for coping with the agrarian problem in a fundamental way:

1. Establishment in various localities of agricultural experimental stations and agencies for the improvement of cotton and enlargement of the North China Industrial Scientific Research Institute. 2. Emancipation of Chinese farmers from old social and economic shackles through the popularization of agricultural cooperatives. 3. Planning public works on an extensive scale, aiming at the relief and development of rural communities. 4. Improvement of waterways as related to agriculture, commencing with the conservancy works of the Yellow River and the repairing of other rivers.

Assisted by the Liaison Bureaus of the China Affairs Board, Corps for Rehabilitation and Enlightenment and other Japanese agencies, such undertakings are steadily carried on with an appreciable measure of success. Above all, the plan for increasing the production of cotton is being energetically carried out in expecta-

¹ A Chinese measure of weight equal to 133.3 lbs.

² A Japanese measure of capacity equivalent to 4.9629 bushels.

tion of an increase in 8 years to 10,000,000 piculs. For this purpose, Japan is giving, besides the material and technical aid to the North China Cotton Production Improvement Association and the North China Experimental Station, assistance by distributing superior seeds as well as providing guidance in the methods of fertilizing the soil, in the prevention and extermination of pestilence and harmful insects, and in the improvement of land. It will certainly form one of the basic factors in establishing the Greater East Asiatic economic bloc.

Mongolian Provinces

In consideration of natural conditions obtaining in that part of the border provinces as well as from the point of view of the East Asiatic economic policy, the Mongolian Provinces have mapped out a programme of augmenting the production of livestock, especially that of sheep. With respect to an agricultural policy in the narrow sense, however, the Government there takes a negative attitude. Measures being carried out in these provinces can be summarized as follows:

1. Land policy: A modern system of land tenure will be established, thereby ensuring private ownership of land, while prohibiting its free disposal. All land will be put under a license system, subject to the control of local authorities or the Mongolian Government Provinces. Various customary rights for the use of land will be kept intact and respected. 2. An increase in production of hemp and fodder will be secured as war supplies. 3. Superior seeds of various agricultural products will be distributed; agricultural experimental stations will be set up; technicians will be invited from Japan; and funds for spring-time cultivation will be loaned. 4. Live-stock policy: Mongolia has been known for ages for its livestock. This special type of agricultural industry has been the mainstay of Mongolian industries. Although it has gradually declined on account of the ill-advised administration of the Chiang Kai-shek régime, the outbreak of the China Affair has given impetus not only to its revival but to its promotion. The Mongolian Government has accordingly launched a positive drive for the increase of pastoral production. As a result, sheep-breeding, wool-clipping and wool-processing have been improved; pastures have been secured; agricultural experimental stations have been set up; and winter

camping stations have been established with a view to preserving fodder for the winter season. Thus it will not be long before the Mongolian Provinces become a base of wool supply for Japan.

Central China

The Yangtze Valley, which covers the Provinces of Kiangsu, Chekiang, Anhui, Kiangsi, Hupei and Hunan, being favoured by nature, abounds with farm products. And paddy fields in these provinces generally give two crops. Rice is the staple product, other products being silk, cotton, tea, wheat, barley, pig's bristles, skin and leather.

In the early stages of the hostilities, fierce battles were fought in this important part of China, with consequent ruthless havoc. Following the establishment of the Renovation Government in Nanking, however, a rural rehabilitation plan was put into immediate execution, carrying out an agricultural survey and relief work for refugees. When the new Central Government returned to its seat, Nanking, the administrative machinery was perfected, thereby enabling it to formulate and put into force a definite agricultural policy. Thus, by Japanese aid the following programme is already under way: (1) establishment of agencies for improving the cotton industry; (2) radical improvement of the sericulture industry; (3) extension of the cooperative system; and (4) establishment of other technical research and survey institutes. The Huachung Silk Reeling Company is operating in that industry under the direction of the Central China Promotion Company. It has been engaged in the distribution of select breeds and in giving guidance in silkworm culture.

South China

Taken as a whole, South China is mountainous, the only plains accessible being in the delta zone of the lower reaches of the Pearl River. Accordingly, farm products like rice, silk, soya beans, sugar cane, peanuts, millet and maize are produced only in this zone. South China as a whole has not reached a stage of self-sufficiency in the supply of food. In point of the output of rice, however, it accounts for 25 per cent of the entire rice production of China, while that of tobacco and peanuts represents 17 and 11 per cent respectively of their total production. Other products are only 1 or 2 per cent of the total China output. In these circumstances no

agricultural policy worth noting has as yet been employed by the new Government.

Hainan Island

The farmland under cultivation in Hainan Island is less than 100,000 cho.³ The technical level of agriculture there is extremely low. No irrigation system is provided; even the area under cultivation has to be changed from one place to another in order to find water. Rice has two or three crops per year, falling, however, far short in output of one crop in Japan. Rice, sugar cane, rubber, cocoanut palm and hemp are produced in negligible quantities. Since, however, peace and order prevails and nature is not parsimonious but luxuriant, any programme of planned development, if persistently carried out, will certainly bear abundant results.

³ A Japanese measure of area equivalent to 2.4507 acres.