the same time water power could be developed. The Weiho and the Fenho can also be treated in the same manner so as to make them navigable to a great extent in the provinces of Shensi and Shansi. Thus the provinces of Kansu, Shensi, and Shansi can be connected by waterway with our projected port on the Gulf of Pechili, so that cheap carriage can be provided for the rich mineral and other products from these three hitherto secluded provinces.

The expenses of regulating the Hoangho may be very great. As a paying project, it may not be very attractive but as a flood preventive measure, it is the most important task to the whole nation. This river has been known as "China's Sorrow" for thousands of years. By its occasional overflow and bursting of its embankments, millions of lives and billions of money have been destroyed. It is a constant source of anxiety in the minds of all China's statesmen from time immemorial. A permanent safeguard must be effected, once for all, despite the expenses that will be incurred. The whole nation must bear the burden of its expenses. To deepen its mouth, to regulate its embankments and to build extra dykes are only half of the work to prevent flood. The entire reforestation of its watershed to prevent the washing off of loess is another half of the work in the prevention of flood.

The Grand Canal, the former Great Waterway of China between the North and the South for centuries, and now being reconstructed in certain sections, should be wholly reconstructed from end to end, in order to restore the inland waterway traffic from the Yangtze Valley to the North. The reconstruction of this canal will be a great remunerative concern for it runs right along from Tientsin to Hangchow in an extremely rich and populous country.

Another new canal should be constructed from our projected port to Tientsin to link up all the inland waterway systems to the new port. This new canal should be built extra wide and deep, let us say, similar to the present size of the Peiho, for the use of the coasting and shallow-draft vessels which the Peiho now accommodates for other than the winter seasons. The banks of this canal should be prepared for factory sites so as to enable it to pay not only by its traffic but also from the land on both sides of its banks.

As for planning and estimating these river and canal works, the assistance of technical experts must be solicited.

PART V
The Development of the Iron and Coal Fields in Chili and Shansi, and the Construction of Iron and Steel Works

Since we have in hand in this program the work of the construction of the Great Northern Port, the work of the building of a system of railways from the Great Northern Port to the North Western Extremity of China, the work of the Colonization of Mongolia and Sinkiang, and the work of the construction of canals and improvement of rivers to connect with the Great Northern Port, the demand for materials will be very great. As the iron and coal resources of every industrial country are decreasing rapidly every year, and as all of them are contemplating the conservation of their natural resources for the use of future generations, if all the materials for the great development of China were to be drawn from them, the draining of the natural resources of those countries will be detrimental for their future generations. Besides, the present need of the post-bellum reconstruction of Europe has already absorbed all the iron and coal that the industrial world could supply. Therefore, new resources must be opened up to meet the extraordinary demand of the development of China.

The unlimited iron and coal fields of Shansi and Chili should be developed on a large scale. Let us say a capital of from five hundred to a thousand million dollars Mex. should be invested in this project. For as soon as the general development of China is started we would have created a vast market for iron and steel which the present industrial world will be unable to supply. Think of our railway construction, city building, harbor works, and various kinds of machineries and implements that will be needed! In fact, the development of China means the creation of a new need of various kinds of goods, for which, we must undertake to create the supply also, by utilizing the raw materials near by. Thus a great iron and steel works is an urgent necessity as well as a greatly profitable project.

In this First Program, we have followed the four principles set forth at the outset pretty closely. As needs create new needs and profits promote more profits, so our first program will be the forerunner of the other great developments, which we will deal with shortly.

PROGRAM II

As the Great Northern Port is the center of our first program, so the Great Eastern Port will be the center of our second program. I shall formulate this program as follows: