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a heavv duty will be imposed upon European soaps, which would 

 undoubtedly result in a greater development of the Japanese soap 

 industry. Perfumery of the better grades is also gradually becoming 

 more popular in Japan, and the use of scents is no longer restricted 

 chiefly to musk, etc. The chief export market for toilet soaps is 

 China. The boycott in Hong-Kong has not particularly affected the 

 exportation of Japanese soaps, because the chief market for these is 

 Shanghai, from which port the goods are forwarded further into the 

 interior. Corea and Manchuria are gradually acquiring more importance 

 as consumers, but the demand from Formosa still continues extremely 

 restricted. On the other hand, the exportation of Japanese manu- 

 factures to Singapore, Colombo, Java, and India is increasing steadily, 

 although slowly. Vladivostock has unfortunately ceased to be a customer 

 of Japan, owing to the closing its free port, and efforts to import 

 soaps, etc. via Kharbine have failed owing to the excessive railway 

 freight. But as in Vladivostock itself there are two or three soap 

 works, it is in any case probable that in the course of time the im- 

 portation of Japanese soaps would have become unremunerative. 



In spite of the development of the Japanese soap industry, the 

 importation both of toilet and common soaps still continues to be 

 considerable. According to a British consular report, the value of 

 imported toilet soaps in 1908 was £ 41000, of which Jf 16000 

 came from Germany, c £ 10 000 from France, ■£ 7000 from Great 

 Britain, and £ 5000 from Austro- Hungary. Common soap was im- 

 ported to the value of c £ 23000, principally from France, Great 

 Britain, and the United States. 



There has been very little change in the general economic con- 

 dition of Japan, and it may be asserted that the crisis, which in 

 any case has cleared the air considerably and has resulted in the 

 elimination of most of the unsteadying elements, may be regarded as 

 past. Business has assumed a much more healthy tone, and, made 

 wiser by bittg: experience, all traders are careful to restrict their 

 purchases and their stocks to the smallest possible limits. It is not 

 likely that there will be a sudden improvement in Japan any more 

 than throughout the rest of the world, but if the prospects of a good 

 rice crop should be realised, the healthy gradual revival in trade is 

 likely to make further progress. If we take into consideration that, 

 in spite of the many unfavourable factors, such as the Chinese boycott 

 and the depreciation of almost all produce, the economic conditions 

 of the country have been able to maintain themselves on a tolerable 

 basis, it is fair to assume that there is no possibility of the present state 

 becoming worse; while, on the other hand, Japan is likely to profit 

 from any general revival of the world's markets. We are informed 

 that there is hardly any prospect of a serious reduction in taxes, but, 



