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140 of mining supplies supports this contention. Bags and ropes for packing, machinery for agricultural and mining purposes, and sewing machines are in greater demand. Railway material is, of course, wanted. The new industries may not be upon a large scale. Primitive methods doubtless will continue for the most part to govern native manufactures such as grass cloth, straw mats, ropes, &c. Excellent paper has been made since the replacement of the use of native lye by caustic soda and soda-ash, while the innovation is one to which the people have taken kindly enough. Again, while the paper industry is capable of expansion, a brisk business in leather could be built up in the country. Hides, which are exported to Japan in their raw state, are abundant, and might be converted into leather so easily on the spot. The straw braid industry contains great possibilities, while the climate of Korea is naturally suited to the growth and treatment of silk.

Many things would be necessary to the success of such enterprises. The work must be based upon a knowledge of the country and its language. The manufacturer or the merchant must take the pains to accommodate a direct import trade to the exigencies of the local market. As an example, smaller bales and shorter lengths are requisite in the piece goods. The establishment of sample warehouses at the treaty ports, and in the more important trade-centres of the interior, where bales of shirting, cotton and woollen goods, cases of farming implements, &c., could be opened and sold for cash, would appeal to the natives. This departure would avoid the increase in the prime cost of the articles necessitated by the existing system of transhipment. At present, goods come from Shanghai to Chi-fu and