ASIA. 



BRITISH INDIA. 



In response to Department circular dated November 16, 1898, I 

 have to say that from financial and commercial statistics for British 

 India or from other sources I have not been able to get the necessary 

 information to enable me to answer the questions in detail, and can 

 only make a general report, covering the questions asked so far as 

 possible. 



I referred the circular with the questions to the secretary of the 

 Indian Paper Makers' Association for such information as he could 

 give, and he says that, though he is unable to answer the questions 

 in detail, "the paper mills in India have hitherto been able to 

 supply the requirements of the Indian market at rates which have 

 checked imports from foreign countries, assisted as they have been 

 by the advantages derived from being on the spot, and thus saving 

 5 per cent import duty, in addition to having cheap raw material 

 and cheap native labor; and it has been found that, owing to a 

 rapid increase in production by Indian mills, the supply has over- 

 taken the demand; in consequence, trade is now in an unprofitable 

 state, and, in order to reduce stocks and to find an outlet for their 

 manufactures, an export trade from India is being fostered." He 

 also refers me to certain issues of Capital, an able commercial 

 newspaper published in Calcutta, containing articles on the "Paper 

 trade of India," for more specific information, and I inclose here- 

 with the articles referred to. 



From these articles, as well as from the report of the secretary, 

 to which I refer as the most reliable data, the paper-mill industry of 

 India would appear to be in an unprofitable condition, and there 

 seems to be no room for other mills, unless the process of manufac- 

 ture can be cheapened by improved machinery or a cheaper raw 

 material found. 



PRODUCTION. 



The following gives the number of paper mills and quantity of 

 paper produced in India in the year 1897, as given in the Financial 

 and Commercial Statistics of British India: 



377 



