China is known to be the country most rich in coal deposits, yet her coal fields are scarcely scratched. The output of coal in the United States is about six hundred million tons a year. If China is equally developed she should, according to the proportion of her population, have an output of four times as much coal as the United States. This will be the possibility of coal mining in China which the International Development Organization is to undertake. As coal deposits are found in great quantities in certain areas so its output can be estimated quite accurately beforehand. Thus, the risk is of no consideration and the profit is sure. But as coal is a necessity of civilized community and the sinews of modern industries, the principal object for mining should not be for profit alone, but for supplying the needs of mankind. After the payment of interest and capital of the foreign loans for its development, and the securing of high wages for the miners, the price of coal should be reduced as low as possible so as to meet the demands of the public as well as to give impetus to the development of various industries. I suggest that besides the mining of coal for the iron and steel works, a plan for producing two hundred million tons of coal a year for other uses should be formed at the start. Mines should be opened along the seaboard and navigable rivers. As Europe is now seeking coal from China this amount will not be over-production from the beginning. A few years later when the industries of China will be more developed more coal will be needed. How much capital will be required and what mines are to be worked, have to be submitted to scientific investigation under expert direction. Besides coal mining, the coal products industry must be developed under the same management. This is a new industry without any competition and has an unlimited market in China. Great profits will be assured on the capital invested. PART III The Mining of Oil