PROGRAM VI
THE MINING INDUSTRY
　Mining and farming are the two most important means of pro-ducing raw materials for industries. As farming is to produce foodfor man, so mining is to produce food for machinery. Machineryis the tree of modern industries, and the mining industry is the rootof machinery. Thus, without the mining industry there would beno machinery, and without machinery there would be no modernindustries which have revolutionized the economic conditions ofmankind. The mining industry, after all, is the greatest factor of ma-terial civilization and economic progress. Although in the fifth partof the first program I suggested the development of the iron andcoal fields in Chihli and Shansi as an auxiliary project for the de-velopment of the Great Northern Port, still, a special program shouldbe devoted to mining in general. The mineral lands of China be-long to the state, and mining in China is still in its infancy. So todevelop the mining industry from the outset as a state enterprisewould be sound economic measure. But mining in general is veryrisky and to enlist foreign capital in its development in a whole-sale manner is unadvisable. Therefore, only such mining projectswhich are sure to be profitable will be brought under the Inter-national Development Scheme. I shall formulate this mining pro-gram as follows:
　I. The Mining of Iron.
　II. The Minign of Coal.
　III. The Mining of Oil.
　IV. The Mining of Copper.
　V. The Working of Some Particular Mines.

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　VI. The Manufacture of Mining Machinery.
　VII. The Establishment of Smelting Plants.

PART I
THE MINING OF IRON
　Iron is the most important element in modern industries. Itsdeposits are found in great quantities in certain areas and be easilymined. The iron mines should be worked absolutely as a state prop-erty. Besides the Chihli and Shansi iron mines, the other iron fieldsmust also be developed. There are very rich deposits in the south-western provinces, the Yangtze Valley and the northwestern pro-vinces in China Proper. Sinkiang, Mongolia, Manchuria, Kokonor,and Tibet also possess large deposits of iron. We have the Han YehPing Iron and Steel Works in the Yangtze Valley and the Pen ChiHu Iron and Steel Works in South Manchuria, both of which arelargely capitalized by Japan and are working very profitable lately.There should be similar works in the vicinity of Canton, The GreatSouthern Port, and also in Szechwan, and Yunnan, where iron andcoal are found side by side.The iron deposits in Sinkiang, Kansu,Mongolia, etc., must also be developed one after the other, accord-ing to the needs of the locality. Iron and Steel Works must be putup in each of these regions to supply the local demand for man-ufactured iron. What amount of capital should be invested in theseadditional iron and steel works must be thoroughly investigated byexperts. But I should say that a sum equal to or double the amountto be invested in the Chili and Shansi iron and steel works will notbe too much, because of the great demand which will result in thedevelopment of China.

PART II
THE MINING OF COAL

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China is known to be the country most rich in coal deposits,yet her coal fields are scarcely scratched. The output of coal in theUnited States is about six hundred million tons a year. If China isequally developed she should, according to the proportion of herpopulation, have an output of four times as much coal as the Un-ited States. This will be the possibility of coal mining in China whichthe International Development Organization is to undertake. As coaldeposits are found in great quantities in certain areas so its outputcan be estimated quite accurately beforehand. Thus, the risk is ofno consideration and the profit is sure. But as coal is a necessityof civilized community and the sinews of modern industries, theprincipal object for mining should not be for profit alone, but forsupplying the needs of mankind. After the payment of interest andcapital of the foreign loans for its development, and the securingof high wages for the miners, the price of coal should be reducedas low as possible so as to meet the demands of the public as wellas to give impetus to the development of various industries. I sug-gest that besides the mining of coal for the iron and steel works,a plan for producing two hundred million tons of coal a year forother uses should be formed at the start. Mines should be openedalong the seaboard and navigable rivers. As Europe is now seekingcoal from China this amount will not be over-production from thebeginning. A few years later when the industries of China will bemore developed more coal will be needed. How much capital willbe required and what mines are to be worked, have to be sub-mitted to scientific investigation under expert direction.Besides coal mining, the coal products industry must be deve-loped under the same management. This is a new industry withoutany competition and has an unlimited market in China. Great pro-fits will be assured on the capital invested.

PART III
THE MINING OF OIL

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It is well-known that the richest company in the world is theStandard Oil Company of New York, and that the richest man inthe world is Rockefeller, organizer of this company. This provesthat oil mining is a most profitable business. China is known to bea very rich oil-bearing country. Oil springs are found in the pro-vinces of Szechwan, Kansu, Sinkiang, and Shensi. How vast is theunderground reservoir of oil in China is not yet known. But thealready known oil springs have never been worked and made useof, while the import of kerosene, gasoline, and crude oil from abroadis increasing every year. When China is developed as a motoringcountry, the use of gasoline will be increased a thousand-fold, thenthe supply from the foreign fields will not be able to meet the de-mands, as shortage of oil is already felt in Europe and America. Themining of oil in China will soon become a necessity. This enter-prise should be taken up by the International Development Or-ganization for the state. Production on a large scale should be startedat once. Pipe line systems should be installed between oil districtsand populous and industrial centers in the interior and also riverand sea ports. What amount of capital should be invested in theproject will have to be investigated by experts.
PART IV
THE MINING OF COPPER
　The copper deposits, like iron ores, are found in great quan-tities in different places. So the quantity of ores in each mine canbe accurately estimated before it is opened and its working gen-erally runs no risk. Thus, the mining of copper should be taken upas government enterprise, as was always the case in China, and fi-nanced and worked by the International Development Organiza-tion. The richest copper deposits in China are found along the borderof Szechwan and Yunnan on the Yangtze River. The governmentcopper mine in Chaotung, in the northeastern corner of Yunnan,has been working for many centuries. Cash, the standard currency
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of China, was made mostly of the copper from Yunnan province.The currency still absorbs an enormous quantity of copper. Owingto the difficulty of transporting the Yunnan copper, most of the me-tal for currency is being imported from foreign countries. Besidescurrency, copper is very commonly used for many other purposesand when the industries in China are developed the demand willincrease a hundred times. So the demand for this metal will be verygreat in the market of China alone. I suggest that production ona large scale should be adopted and modern plants should be in-stalled in copper mines. How much capital to be invested in thisenterprise should be decided by experts after careful investigation.
PART V
THE WORKING OF SOME PARTICULAR MINES
　In regard to the mining of various kinds of metal, some par-ticular mines should be taken up by the International Develop-ment Organization. There are many famous mines in China whichhave been worked for many centuries by hand, such as the Kochuitin mine in Yunnan, the Moho gold mine in Heilungkiang, and theHotien jade mine in Sinkiang. All these mines are known to havevery rich deposits, - the deeper the richer. Hitherto only the sur-face parts of those mines have been worked and the larger depos-its are still untouched, owing to the lack of means of getting rideof the water. Some of the mines are still in the hands of the Gov-ernment, while others have been given up to private concerns. Ifmodern machinery is adopted the mines should revert to the Gov-ernment so as to secure economy in working. Many discarded minesof this kind should be thoroughly investigated, and if found pro-fitable, work should be resumed under the International Develop-ment Scheme. All future mining, other than government enterprise,should be leased to private concerns on contract, and when theterm is up, the government has the option to take them over, iffound profitable as a state property. Thus all profitable mines will
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be socialized in time and the profit will be equally shared by allthe people in the coutry.

PART VI
THE MANUFACTURE OF MINING MACHINERY
　Most of the metal deposits of the earth are in small quantitiesand scattered far and wide in various places. Most of the miningenterprises resemble farming in that it is more profitable to workby individuals and small parties. As such is the case, most of themining enterprises have to be worked out by private concerns. Inorder to accelerate the development of mining, more liberal lawsshould be adopted; education and information should be given freelyby experts employed by the state; and encouragement and finan-cial assistance should be given by the state and private banks. Thepart that the International Development Organization should takein general mining enterprises is to manufacture all kinds of min-ing tools and machinery, and to supply them to the miners at lowcost, either on cash or on credit. By distributing tools and machin-ery to the surplus workers in China, the mining industry would bedeveloped by leaps and bounds. And the more the mining indus-try is developed the more will be the demand for tools and ma-chinery. Thus the profits for the manufacturing concerns would belimitless, so to speak. Of course, the factories should be started ona small scale and be extended gradually according to the ratio ofthe development of the mining industry. I suggest that the first fac-tory of this kind should be established at Canton, the seaport ofthe southwestern mining region, where raw materials and skilledlabor can be easily obtained. The other factories should be estab-lished in Hankow and the Great Northern Port afterwards.
PART VII
THE ESTABLISHMENT OF SMELTING PLANTS

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Smelting plants for various kinds of metals should be put upin all mining districts to turn ore into metals. These smelting plantsshould be conducted under the cooperative system. At first, a re-asonable price should be paid to the miner when the ore is col-lected. Afterwards, when the metal is sold, either at home or inforeign markets, the smelting works will take a share of the profitto cover the expenses, the interest, the sinking fund, etc. The sur-plus profit should be divided among the workers according to theirwages, and among the capitalists according to the proportion of orethey contribute to the furnace. In this way we can encourage pri-vate mining enterprise which forms the root of other industries.All smelting works should be put up according to local needs andtheir scale should be determined by experts and managed undera central control.

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