It must also be remembered that the success of the Residency-General in the economic, educational, and judicial reform of Korea depends largely upon husbanding and developing the resources of Korea. In all this, Mr. Megata, the Financial Adviser, has been the right-hand man of Marquis Ito, the Resident-General. If these resources are squandered, or “conceded” in such a way as to deprive the Korean Government and the Korean people of the natural wealth of their own land, then the plans for every kind of reform will be crippled, if not wholly thwarted. To encourage legitimate business with all nations is for the advantage of both the Japanese and the Korean Governments; such a policy is directly in the line of Marquis Ito’s intentions for the reform and uplifting of the economic condition of the peninsula. No one person would suffer so severely in mind and in reputation as would the Resident-General himself if this policy failed through any fault of his own or of his country’s administration in Korea. But, on the other hand, to check the evil consequences of illegitimate schemes of promotion already accomplished, and to prevent the initiation of such schemes in the future, is an equally necessary part of this policy. On the whole subject of the attitude of the Japanese Government toward foreign business interests in Korea the following lengthy quotations may be considered as authoritative: The foreign trade of Korea has been steadily increasing, especially during the past six years. Making due allowance for the increase of imports brought about by the war, the proportion of normal increase gives every sign of healthy growth. Japan’s trade is much the largest. Korean exports go almost exclusively to Japan, except ginseng, which is sent to China. Of the imports from Japan a large proportion are foreign, as Japan is put down in the Customs Returns as the country from which the importation was made, the country of origin not being given. As Japan is the place of transhipment for much of the trade, and as much of it passes through Japanese hands, it would be difficult to differentiate. There are certain important staples, however, concerning which there can be no ambiguity—American kerosene, for example, which practically monopolizes the market. Rails and railway equipment also come from foreign countries, the cars and engines from the United States. As Korea increases in wealth and her purchasing capacity grows correspondingly, there will be a field for other machinery, modern farming implements among the rest, no doubt.