The New Stress on Agriculture in Manchuria

Abstract

Not the least significant of the many economic meas? ures which may be ascribed to the war in the Far East is the new stress on agriculture in Manchoukuo. The latest steps, even should they be successful, represent no revolution in the economy of the country. In fact the implications are more negative than affirmative. In a country where 85% of the population still lives on the land engaged in farming of the traditional type, government aid and encouragement have been conspicuous by their absence, especially when so much money and energy are being poured into nonagricultural enterprises of all types. One thing is abundantly clear at the start. The new emphasis on agriculture does not derive from any par? ticular desire to improve farming conExchange ditions as such or to better the lot of Badly the Chinese peasant. In Manchoukuo, Needed as in Japan proper, war demands have led to a stringent foreign-exchange situ? ation. The much heralded five-year plan has been putting a severe strain on the new state's resources. Most of the equipment has been coming from Japan, but for? eign machinery is also needed for various objectives of the industrialization program. Since foreign capital and credits are not available, except in a limited way from Germany, exports are the only source of foreign exchange. Despite strict exchange control, trade with third countries is no longer yielding a surplus of ex? change. Manchoukuo has therefore turned to agricul? ture ; for by increasing the export of farm products she hopes to obtain the exchange to keep the five-year plan going. Aside from the motive, the methods that are being employed to increase production do not promise any striking rise in farm output in the near future. Instead of stimulating Chinese immigration and settlement, the Japanese are centering their attention on large-scale farming to develop uncultivated land in North Man? churia in connection with the program of Japanese im? migration. This is not only an expensive process, but the results are quite problematical. Chinese immigra? tion is still being restricted, so much so that Manchou? kuo has been handicapped by an actual shortage of labor. Under the circumstances it is doubtful whether the new stress on agriculture will accomplish what the Japanese hope. The curious thing is that agriculture in Manchuria was already recovering from its worst days despite official neglect. Prior to the Incident in 1932 the coun? try was almost entirely agricultural. There was some mining, two iron works of moderate size and a few in? dustries. The two principal industries?oil milling and