SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 229

practically barter. Moreover, Japan possesses 70 per cent of the total
trade of Manchuria and receives the greater part of Manchuria’s
products, its imports from Manchuria exceeding its exports to that
istrict.
In a word, with little or no competition the Japanese are unloading
in Manchuria the products of their cheap home labor, unrestricted by
factory legislation and favored by Government subsidies, special
steamship and railway rates, preferential customs treatment, and
exemption from internal taxation. Herein exists the nucleus of a
gigantic Japanese importing and exporting trust which is in process
of development. The day is not far off, if indeed it is not already
here, when there will exist but one wholesale trading, banking, and
forwarding agency in Manchuria; i. e., the South Manchuria Railway
 and its allied enterprises and services. Over all is the directing
hand of the paternal Government of Japan lending every encouragement
 and affording every means of protection and support to its
subjects and firms connected with Manchuria and its trade.
In promoting trade relations in Manchuria it seems advisable as
well as practicable for American commercial interests to act through,
and in certain instances to combine with, the Japanese, who possess
such superior facilities for handling this trade. Though this field is
being systematically exploited by Japanese manufacturers and exporters,
 yet with serious concerted effort American manufacturers
should expect to share the prosperity of this country.

FRENCH INDO-CHINA.
Special report of Consul Lawrence P. Briggs, Saigon, French Indo-China,
November 16. 1915.

The only domestic organization in Cochin China which could possibly
 be included within the scope of this inquiry is the Syndicat des
Exporteurs de Riz de Saigon. This is merely an association of business
 men, rather than a trust or combination. There is little, if any
attempt to regulate prices. Different members of the Syaiiante will
on the same day quote different prices for the same product.
The members of this organization operate separately, in competition
 with each other. They operate only in Saigon; i. e., they have
no agents elsewhere, although their products will be delivered in
other ports if desired. Their operations are confined principally to
rice, which forms between 70 per cent and 80 per cent of the export,
by value, from this port.
This syndicate is a voluntary organization and receives no encouragement
 from the local government.
There is no foreign syndicate doing business here, unless the Standard
 Oil Co. and the Franco-Asiatic Petroleum Co. be considered as
such. Nor are there any international combinations doing business
in this district, nor any combinations of buyers of American goods.
There are nb competitive conditions affecting the importation of
American products into this district except taste, custom, and national
 prejudice. There are no restrictions on the investment of foreign
 capital, the employment of foreign managers or engineers, or
the purchase of land from private owners. Domain lands, however.