This will also be a new industry in China, despite the fact that there are a few tanneries in the treaty ports. The export of hides from and the import of leather goods into China are increasing every year. So, to establish a system of tanneries and factories for leather goods and foot-gear will be a lucrative undertaking. f. The Manufacturing of Clothing Machinery The machinery for the manufacturing of various kinds of clothing materials is in great demand in China. It is reported that the orders for cotton mill machinery have been filled up for the next three years from manufacturers in Europe and America. If China is developed according to my programs, the demand for machinery will be many times greater than at present and the supply in Europe and America will be too short to meet it. Therefore to establish factories for the manufacturing of clothing machinery is a necessary as well as a profitable undertaking. Such factories should be established in the neighborhood of iron and steel factories, so as to save expenses for transportation of heavy materials. What will be the capital for this undertaking should be decided by experts. PART III The Housing Industry Among the four hundred millions in China the poor still live in huts and hovels, and in caves in the loess region of north China while the middle and the rich classes live in temples. All the so-called houses in China, excepting a few after western style and those in treaty ports are built after the model of a temple. When a Chinese builds a house he has more regard for the dead than for the living. The first consideration of the owner is his ancestral shrine. This must be placed at the center of the house, and all the other parts must be complement and secondary to it. The house is planned not for comfort but for ceremonies, that is, for "the red and white affairs," as they are called in China. The "red affair" is the marriage or other felicitous celebrations of any member of the family, and the "white affair" is the funeral ceremonies. Besides the ancestral shrine there are the shrines of the various household gods. All these are of more importance than man and must be considered before him. There is not a home in old China that is planned for the comfort and convenience of man alone. So now when we plan the housing industry in China in our International Development Scheme, we must take the houses of the entire population of China into consideration. "To build houses for four hundred millions, it is impossible!" some may exclaim. This is the largest job ever conceived by man. But if China is going to give up her foolish traditions and useless habits and customs of the last three thousand years and begin to adopt modern civilization, as our industrial development scheme is going to introduce, the remodelling of all the houses according to modern comforts and conveniences is bound to come, either unconsciously by social evolution or consciously by artificial construction.