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fully utilitzed in any systematic development of China's resources. The war has given powerful impetus to economic reconstruction in China.

After four years, industrial output has been increased, mines have been developed, the heavy industries have been rebuilt, and handicraft and light industries have been encouraged.

Many mines were destroyed and others occupied by the Japanese. A number of large coal mines in Free China have been newly-developed under government auspices in various parts of Kiangsi, Hunnan, Yunnan, Kweichow, Kwangsi and Szechwan. They will have a combined productive capacity of roughly 500,000 tons a year when engineering and installation works are completed. Additional [[strikethrough]] collieries [[/strikethrough]] coal mines are being planned. [[strikethrough]] Her [[/strikethrough]] Our coal reserves have been recently estimated at 250 billion tons -- enough to last 10,000 years. In Free China new wells are producing oil in increasing quantities. These may soon replace the annual 145,000 tons of crude oil that have been lost to China since Japanese occupation of Manchuria.

China's iron reserves are estimated at one billion tons. She has substantial reserves of lead, copper and manganese.

In short, China is in possession of nearly all the potentialities for developing into an important industrial nation, and she holds the key to many of the materials needed by our [[strikethrough]] defense program [[/strikethrough]] war effort.

[[strikethrough]] As to cooperatives -- One reason for China's economic resistance lies in the chains of small "vest-pocket" industries throughout China, that use local materials and that produce manufactured goods for civilians and the military. These depend upon American funds to keep going. The organizers of the Chinese industrial cooperatives have established three zones of industry: 1. Heavier industries which cannot