Canada to study the Canadian Pacific system, and the 

 Chinese Minister of Communications this year asked for 

 the privilege of sending six of their brightest railway men 

 to Canada to study the business methods of the railway 

 which has done so much for the development of travel to 

 and through China. These young men are here now. The 

 trans-Pacific travel developed so rapidly that the Cana- 

 dian Pacific found it necessary to increase the first-class 

 carrying capacity of the "Empress of Asia" and "Em- 

 press of Russia" from 296 to 377, and an order was given 

 to the builders for the construction of the "Empress 

 of Canada" which will be the largest and most luxurious 

 steamship in the trans-Pacific trade. The fleet has been 

 further augmented by the purchase of the "Empress of 

 Australia". These ships should both be in service about 

 May 1, 1922, and the Canadian Pacific will then operate a 

 fortnightly service with the four large passenger ships 

 from Vancouver to Yokohama, Kobe, Shanghai, Manila, 

 and Hong Kong. 



Canadians abroad are great advertisers. While they 

 do not always appreciate the wonderful resources and 

 advantages of their country when living in it, they certain- 

 ly do as soon as they take up residence in a foreign country. 

 The Canadians residing in the Orient, whether in business, 

 missionary work or Y. M. C. A., are continually singing 

 the praises of Canada and are a great factor in diverting 

 travel to and through this country. They have also 

 urged the educational institutions to make it possible for 

 Chinese students to come here to pursue their studies and 

 familiarize themselves with modern business methods. 



In 1914, the hotels throughout the Orient were able 

 to take care of all traffic, but as the business developed 

 from year to year, it has been found necessary to in- 

 crease the hotel accommodation materially to take care 

 of the tourist travel. The capacity of the Grand Hotel 

 at Yokohama has been doubled. At Tokio, the new Im- 

 perial Hotel is to be compjeted about the end of the yea^r. 

 Other small hotels are being opened at various places in 

 Japan. At Shanghai, an immense hotel is being planned. 

 At Hong Kong, the Repulse Bay Hotel has been built, and 

 a large new hotel is also in course of construction at Kow- 

 loon. 



Increase in General Traffic 



The growth of passenger travel to and from the Orient 

 is paralleled by the freight activities. Despite world- 

 wide depression, an aftermath of the war, freight activities 

 of the Canadian Pacific Steamships on the Pacific indicate 

 satisfactory progress in the development of Canada's 

 trade with the Orient. During the twelve months ending 

 December 31, 1921, the Canadian Pacific had twenty-three 

 sailings from Vancouver, carrying 60,224 deadweight tons 

 of cargo, equivalent to 70,826 measurement tons of 40 

 cubic feet. In comparison with this, in 1913 there were 

 the same number of sailings with 43,452 deadweight tons, 

 equivalent to 61,059 measurement tons of 40 cubic feet; 

 an increase of 16,772 deadweight tons or 9,767 measure- 

 ment tons. 



The imports from the Orient for 1921 were 70,759 tons, 

 with twenty-three sailings, as against 69,600 tons in 

 1913, with the same number of sailings. The showing 

 of 1921 is the more remarkable from the fact that com- 

 petition was never so keen on the Pacific as to-day; while 

 the route, via the Panama Canal, which was only opened 

 a short time before the war, has developed an entire change 

 in the means of communication between the American 

 Continent and the Orient. The exports from Canada 

 consisted chiefly of lumber, fish, flour, asbestos, pulp, lead 

 and spelter, which will be noted comprise largely our 

 natural products of agriculture, the mines and the fish- 

 eries. The volume of manufactured merchandise is com- 

 paratively small and suggests the opening of a vast field of 

 endeavor for Canada as a market for her industries. In 

 this particular, reference is had to China, which con- 

 sumes large quantities of textiles, metals, machinery, 

 hardware and numerous other articles now supplied from 

 Europe and the United States. 



The Canadian manufacturer looking for export would 

 be wise to pay a visit to the East, as only by personal 



contact can he see and appreciate the possibilities of 

 trade. The conservatism of the Chinese is well known, 

 but once having established business relations he can be 

 trusted to maintain and develop a line of trade with loy- 

 alty and persistency. China, with a population of between 

 three and four hundred million people, is essentially agri- 

 cultural. With this population, there are approximately 

 only 6,000 miles of rail way as against 40,000 miles in Can- 

 ada with a population of nine million. Aside from the rail- 

 ways, China has large navigable rivers and a wonderful sy 

 tern of canals, which are the principal means of long-distan 

 communication. The development of foreign trade wit 

 China has been very slow, and while the political situatio 

 at the present time is unsatisfactory, progress is amply 

 evident. A marked improvement in China's relations 

 with the world may be confidently expected from the 

 Conference now sitting at Washington. If China i 

 given an opportunity to develop unhampered by the ad 

 verse conditions which have prevailed in the past, a gre 

 new market will be opened up. Canada is in a particu 

 larly fortunate position to take adavantage of this ne 

 field. The feeling of the Chinese towards Canada 

 friendly, and this in no small measure is due to the 

 putation which the Canadian Pacific has established ar 

 maintained for many years through its Pacific fleet. 



Japanese Industrial Development 



The market for Canadian goods in Japan differs some 

 what from that in China. The industrial development 

 of Japan has been nothing short of wonderful in the last 

 quarter of a century, and this growth took on an impetus 

 during the war, until to-day Japan ranks as one of the fore- 

 most manufacturing countries in the world. The market 

 in Japan for Canadian products is therefore largely restricted 

 to such commodities as lumber, fish, grain, flour, woodpulp, 

 paper, lead and spelter, but there is the possibility of deve- 

 lopment in other lines of Canadian manufactured goods. A 

 movement of wheat in bags to Japan commenced some time 

 ago, and is increasing year by year. It is anticipated that 

 before long Canadian grain will be handled through Van- 

 couver to Japan in bulk. The demand for wheat has come 

 about through the establishment of flour mills; flour, 

 as time goes on, displacing rice, millet and other articles 

 of food. 



Imports from the Orient consist mainly of tea, silk, 

 spices, Chinese provisions, porcelain, toys, curios, etc. 

 The market for such goods is largely in Eastern Canada 

 and the United States, and while the competition of the all- 

 water routes via Panama and Suez Canal is a strong factor 

 in diverting traffic from the Pacific, it is a tribute to the 

 efficiency of the Canadian Pacific service, with its high 

 class of ships the finest and fastest in the Pacific trade 

 that the considerable volume of the trade has been retained 

 for the trans-Pacific and trans-Continental route. 



A special feature of the new ships "Empress of Canada" 

 and "Empress of Australia," which will be in service next 

 year, is provision for the carriage of perishable goods, such 

 as butter, cheese, and apples. The "Empress of Canada" 

 has 20,350 cubic feet of space and the "Empress of Aus- 

 tralia" will have similar accommodation. This should 

 prove a decided advantage to Canadian shippers. 



At the close of the war Siberia gave promise of inter- 

 change of trade with Canada, and for a time business of 

 considerable volume was done through the port of Vladi- 

 vostok. The political and economic conditions in Siberia, 

 involved with the collapse of Russia, have since brought 

 about practically an entire cessation of business. It is 

 hoped that some time in the not too distant future trade 

 between Canada and Siberia may be resumed, but it is 

 questionable if this can ever reach any considerable volume 

 from the fact that the two countries have similarities 11 

 climate and resources. 



Canada's Industrial Growth 



As Canadian agricultural development is largely based 

 on immigration so does the importance of Canada's indus- 

 try increase with greater farming production and a swell- 

 ing domestic consumption. Canadian agricultural and 



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