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