1. INDUSTRIAL SHANGHAI VS. INTERIOR CHINA-part three The tragedy
of Shanghai industry is that it does nothing to improve the
economy of the interior. Shanghai is actually a foreign city.
Only 20% to 25% of the raw cotton in 1940 was supplied by
Chinese farmers, and this came from Japanese territory. During
the first five months of 1940 Shanghai imported US$24,000,000"
worth of cotton (101,428 tons) from the United States, India,
Egypt and Africa. During January-May, 1940, Shanghai exports of
cotton yarn and piece goods averaged US $2,000,000 monthly, one-
third being yam and two-thirds piece goods. Half the piece goods
and 65% of the yarn was marketed in the Asiatic parts of the
British Empire. British India, the Netherlands East Indies, Siam
and the Philippines are the best customers outside the British
Empire. Shanghai accounted for over half of all the foreign
commerce of China, and only 1/5th of the city's trade was
produced from, and goods sent to, the interior. Of China's total
imports in 1939 valued at