This article looks at the economies of Manchukuo and Mengjiang, in the period 1931-1945. The effective Japanese annexation of 1931 led to a colonial system (see Manchukuo (administration)). Japan invested in heavy industry, and to a lesser extent, agriculture. The General Affairs State Council retained Japanese control of official economic policy. The Central Bank of Manchou was the national central bank. The Kwantung Army held the highest authority, representing the Emperor of Japan, and the respective ministries of the nominal Manchoukou central government were also involved. Agriculture The effective annexation gave Japan an area suitable for farming, such as scarcely existed on the country's islands, or other parts, generally mountainous, of the Empire of Japan. The area was primarily agricultural in character, although with some urbanization. Agriculture employed 85% of the population. Farmers produced many crops, particularly on the southern plains. Manchu farms practiced crop rotation frequently with primitive culture methods. Kaoliang (70%), corn and maize (70%), wheat (80%) and soy (35%) were popular crops. Others in quantity were: alfalfa, apples, apricots, chestnuts, col, cotton, cucumber, forage, garlic, giant radish, hemp, indigo, lupulus, millet, nuts, onions, opium poppies (for opium), peaches, pears, peanuts, rice, ricine, rye, sesame, sugar beet, sweet potatoes, thyme, tobacco, and others. In Amur land (Manchu side) honey (1,800 tonnes) was collected. From kaoliang and corn liquors were made, including vodka, sake, beer, soy juices and vinegar. The modern wheat and flour industry was located in Harbin from Russian times apart from basic mills in other areas. The most intensive farming occurred in a zone, extending from the Liaotung Gulf to the Northwest. In 1934 it totaled between . The proportions of the principal crops in 1934 were: Soy: 28% Corn: 9% Other legumes: 2% Wheat: 7% Kaoliang:(Zahine-Sorgum): 23% Rice: 2% Mice: 18% Other crops: 11% Soy Soy was Manchukuo's principal crop. The first exports were made in 1908 to England. The economic expansion of soy is attributed in great part to the South Manchurian Railway Company, which enabled direct export from Dairen abroad, in particular to China and Japan proper. Manchukuo hosted many types of processing mill. 1933 to 1934 saw a reduction of more than in cultivated extent and production fell from 4-6 million to 3.84 million tonnes. The Japanese developed industry to use soy, with average production of 1,500,000 tonnes. Half was exported to Europe. Crude oil paste for fertilizer and soybeans for food