The International Order of Asia in the 1930s and 1950s Edited by Shigeru Akita and Nicholas J. White The I NTer NATIo NAl o rder of ASIA IN The 1930s ANd 1950s Modern economic and Social history Series General editor: derek h. Aldcroft Titles in this series include: Alfred Herbert Ltd and the British Machine Tool Industry, 1887–1983 r oger l loyd-Jones and M.J. l ewis Rethinking Nineteenth-Century Liberalism Richard Cobden Bicentenary Essays edited by Anthony howe and Simon Morgan Governance, Growth and Global Leadership The Role of the State in Technological Progress, 1750–2000 espen Moe Triumph of the South A Regional Economic History of Early Twentieth Century Britain Peter Scott Aspects of Independent Romania’s Economic History with Particular Reference to Transition for EU Accession david Turnock Estates, Enterprise and Investment at the Dawn of the Industrial Revolution Estate Management and Accounting in the North-East of England, c.1700–1780 david oldroyd Across the Borders Financing the World’s Railways in the Nineteenth and Twentieth Centuries edited by r alf r oth and Günter dinhobl Economics in Russia Studies in Intellectual History edited by Vincent Barnett and Joachim Zweynert Mining Tycoons in the Age of Empire, 1870–1945 Entrepreneurship, High Finance, Politics and Territorial Expansion edited by r aymond e. dumett British Conservatism and Trade Unionism, 1945–1964 Peter dorey The International o rder of Asia in the 1930s and 1950s edited by ShIGeru AkITA Osaka University, Japan and NIchol AS J. WhITe Liverpool John Moores University, UK © The editors and contributors 2010 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise without the prior permission of the publisher. Shigeru Akita and Nicholas J. White have asserted their moral right under the copyright, Designs and Patents Act, 1988, to be identi.ed as the editors of this work. Published by Ashgate Publishing limited Ashgate Publishing company Wey court east Suite 420 union r oad 101 cherry Street farnham Burlington Surrey Gu9 7PT VT 05401-4405 england uSA www.ashgate.com British Library Cataloguing in Publication Data The International order of Asia in the 1930s and 1950s. — (Modern economic and social history) 1. Asia—economic conditions—1918– 2. Asia—foreign economic relations. I. Series II. Akita, Shigeru. III. White, Nicholas J., 1967– 330.9’5042-dc22 Library of Congress Cataloging-in-Publication Data Akita, Shigeru. The international order of Asia in the 1930s and 1950s / Shigeru Akita and Nicholas J. White. p. cm. — (Modern economic and social history) ISBN 978-0-7546-5341-7 (hardcover : alk. paper) 1. Asia—economic conditions—20th century. 2. International cooperation. I. White, Nicholas J. II. Title. hc 412.A375 2009 337.5009’041—dc22 2009010367 ISBN 9780754653417 (hbk) ISBN 9780754696001 (ebk) V c ontents List of Tables vii List of Figures ix Notes on Contributors xi Acknowledgements xv General Editor’s Preface xvii Introduction: The International order of Asia in the 1930s and 1950s: contexts, hypotheses and Scope 1 Shigeru Akita and Nicholas J. White PArT 1 The In Tern ATIOnAL OrDer Of AsIA, The Br ITIsh emPIre AnD The sTer LIng Are A 1 British economic Interests and the International order of Asia in the 1930s 17 Shigeru Akita 2 British Imperialism in Asia and Anglo-Japanese r elations, 1930s–1950s 49 Yoichi Kibata 3 The formation of an Industrialization-oriented Monetary order in east Asia 61 Kaoru Sugihara 4 The korea-centric Japanese Imperium and the Transformation of the International System from the 1930s to the 1950s 103 Bruce Cumings 5 Sterling, hong kong and china in the 1930s and 1950s 131 Catherine R. Schenk 6 Malaya and the Sterling Area r econsidered: continuity and change in the 1950s 151 Nicholas J. White vi The I NTer NATIoNAl order of ASIA IN The 1930s ANd 1950s PArT 2 The In Tern ATIOnAL OrDer Of AsIA AnD AsIAn reg IOnAL eCOnOmIes 7 Japan’s commercial Penetration of South and Southeast Asia and the cotton Trade Negotiations in the 1930s: Maintaining r elations between Japan, British India and the dutch east Indies 179 Naoto Kagotani 8 china’s r elations with the International Monetary System in the 20th century: historical Analysis and contemporary Implication 207 Tomoko Shiroyama 9 china’s economic development and the International order of Asia, 1930s–1950s 233 Toru Kubo 10 continuity and discontinuity from the 1930s to the 1950s in Northeast china: The ‘Miraculous’ r ehabilitation of the Anshan Iron and Steel company immediately after the chinese civil War 255 Toshiro Matsumoto 11 The Survival of economic elites during r egime Transition: Government-Merchant cooperation in Taiwan’s Trade with Japan, 1950–1961 275 Man-houng Lin Index 303 l ist of Tables 1.1 The Sources of Supply of Yarns to India and Indian Mills Production (lbs) 34 1.2 exports of Indian r aw cotton and home Mills consumption in the early 1930s. unit: Thousand bales (400 lbs) 37 1.3-1 The direction of china’s foreign Trade in the early 1930s 44 1.3-2 The distribution of china’s foreign Trade in the Middle of the 1930s 45 1.4 Imports and domestic Production of cotton Piece-Goods in British India 46 3.1 direction of World Trade, 1918 and 1938 62 3.2 r egional composition of uk Trade Balances, 1928 and 1938 70 3.3 Geographical composition of the Trade of Areas belonging to the Imperial Tariff Preference, 1928, 1935, 1938 71 3.4 exchange r ates against Sterling, 1929–1938 75 3.5 east Asia’s Share in the World economy, 1933 80 3.6 The Share of the West in Asia’s Trade, 1928–1938 82 3.7 Geographical composition of chinese Trade, 1928–1939 83 3.8 Geographical composition of Imports of Main chinese Ports, 1936–1939 93 3.9 Geographical composition of Imports of Machinery to Main chinese Ports, 1937–1938 94 4.1 Industrial companies, Japanese empire, december 1937 113 4.2 development of Taiwan’s Industry, 1929–1939 114 4.3 Gross Value of Industrial Production in Japan, korea and Taiwan, 1929 and 1937–1938 114 6.1 Malaya (including Singapore, North Borneo, Sarawak and Brunei): Net current Balance, 1950–1956 153 6.2 Imports into the federation of Malaya by Britain and its Principal Industrial competitors, 1961 162 6.3 Sources of called-up capital for Pioneer Industries in the federation of Malaya, 1958 to June 1962 164 7.1 Imports of cotton Textiles into Singapore from Main countries and by Main Merchants 187 viii The I NTer NATIoNAl order of ASIA IN The 1930s ANd 1950s 7.2 The Principal Types of Textile Goods Imported by the Principal ethnic Groups of Merchants in Singapore, June to december 1934 188 7.3 The Main course of the first and Second Indo-Japanese cotton Trade Negotiations 192 7.4 The Imports of Japanese cotton Goods into the dutch east Indies by the Principal ethnic Groups of Merchants 1932–1935 204 8.1 Note Issue of Government Banks, November 1935–June 1937 226 9.1 china’s foreign Trade by countries, 1933–1937 237 9.2 commodity Group composition of chinese Imports from the united States, 1926–1936 238 9.3 commodity Group composition of chinese Imports from Japan, 1926–1936 238 9.4 china’s foreign Trade by countries, 1938–1945 241 9.5 foreign Trade in occupied china (a), North china, 1938–1941 242 9.6 foreign Trade in free china, 1938–1941 243 9.7 foreign Trade in occupied china, (b) central and South china, 1938–1941 243 9.8 china’s foreign Trade by countries, 1946–1948 245 9.9 direction of china’s Imports, 1946–1948, revised 245 9.10 china’s foreign Trade by countries, 1950–1960 247 9.11 chinese (Prc ) Trade with hong kong 248 9.12 hong kong’s Trade with china (Prc ) 248 10.1 output of the Anshan Iron and Steel company, 1943–1955 258 10.2 damage to the Iron-Smelting department in Autumn 1945 261 10.3 Type of damage to the Blast furnaces and Perpetrator in 1945–1946 262 10.4 damage to the furnaces at the Steelworks: Number of furnaces and r emoved furnaces in Autumn 1945 267 11.1 ROC Government Offices in Japan, 1951 277 11.2 Taiwanese Merchants Trading in Japan (April 26, 1951) 279 11.3 Taiwanese Banana Merchants in Taiwan and Japan and their Inter- r elationships 281 11.4 chartered Steamships with r efrigeration facilities Sailing between Taiwan and Japan in the 1960s 290 11.5 Value of Particular commodities exported from Taiwan to Japan as a percentage of Taiwan’s Total export Values of those commodities, 1966 292 11.6 Value of Particular commodities Imported from Japan to Taiwan as a percentage of Taiwan’s Total Import Values of those commodities, 1966 299 l ist of f igures 1.1 Imports and domestic Production of cotton Piece-Goods in British India 48 1.2 The Indo-Japan non-governmental cotton conference of 1933: The first meeting at The Cecil Hotel, Simla, 4 October 1933. © Asahi Photo Archive, ‘Nichi-In Mengi kyogikai [Indo-Japan cotton Trade conference’(No. 065178), The Asahi Shimbun, Tokyo. 48 3.1 changes in the Patterns of Multilateral Trade Settlements 63 3.2 exchange r ates against Sterling, 1929–1938 76 3.3 Movements of Japanese exchange r ates against the chinese currency, 1929–1938 87 7.1 The emerging ‘devaluation Sphere’ in east Asia and the economic order of Asia in the 1930s 183 7.2 Nominal exchange r ate, July 1931–december 1936 195 7.3 Price fluctuations, export and stock of Javanese sugar, 1929–1939 203 7.4 The Indo-Japan Cotton Trade Negotiations of 1933: The first official visit of the Japanese delegation to Joseph Bhore, head of the Government of India delegation, 22 September 1933, Simla, India. © Asahi Photo Archive, ‘Nichi-In kaishou [Indo-Japan Trade Negotiations’(No. 065345), The Asahi Shimbun, Tokyo. 206 10.1 historical conditions for the Miraculous r econstruction of the AISc 260 10.2 conversion of Preliminary furnaces at the AISc 266