I said earlier that, according to Frank, China's decision to continue to rely on its old technology was "rational" given China's cheap labor. Cheap not because it was poor but because of its agricultural efficiency and productivity which, by providing cheap and plentiful foodstuffs, allowed wages to stay low. "[N]o matter through what institutional mechanisms those cheap subsistence wage goods were or were not distributed, they could only have been made available by an agriculture that was more productive and thereby able to produce those wage goods cheaper in China that in Britain and Europe" (307). I then went on to examine Elvin's "high level equilibium trap" to conclude that China's post-1400 *extensive* growth had reached a point beyond which it could not continue without substantial technological changes. But we still have to answer the question why China's extensive agricultural growth could provide such cheap foodstuffs. The answer lies in Adam Smith, whose observations about India equally apply to China as we will soon see in another quote: "as the money price of food is much lower in India than in Europe, the money price of labour is there lower...But in countries of equal art and industry, the money price of the greater part of manufactures will be in proportion to the money price of labour....The money price of the greater part of manufactures, therefore, will naturally be much lower in [India] than it is any-where in Europe". Asia was more competitive in the world market because of it cheaper labour because of the lower price of food. But why was the food cheaper? Smith continues: "In rice countries, which generally yield two, sometimes three crops in the year, each of them more plentiful than any common crop of corn, the abudance of food must be much greater than in any corn country of equal extent...The precious metals, therefore, would naturally exchange in India...for a much greater quantity than in Europe. The money price...of food, the first of all necessaries, [would be] a great deal lower in the one country than the other." Apparently Frank did not deem these passages fit for his argument in a book which otherwis makes multiple references to Smith's keen grasp of Asia. Perhaps he thought these passages would take away something from his argument - that it was China's (and India's) superior productivity in agriculture which accounted for its cheap wages. However, I took these passages from Prasannan Parthasarathi's just published article "Rethinking Wages and Competitiveness in the 18th century: Britain and South India"; where it is argued, *in tandem with Frank's thesis*, that "agricultural productivity, not oppressed labourers, was the secret to South Asia's pre-eminent position in the world textile trade" (102). Parthasarathi (P), in other words, does not think that India's greater productivity was a matter of chance - which I don't either - due to the greater *natural* output-to-seed ratio of rice over wheat. Well, he does say at one point that this "difference [in productivity] was due in part to the intrinsic qualities of rice, which crops more abudantly than wheat", but adds that "we must not underestimate the importance of the sophisticated cultivation regime in South India". Sophisticated cultivation is one thing, *increasing* output per capita (due to innovations) another, as we saw happenning in Britain. But P also says that land in India was more productive, that output per acre was higher - an issue which seems to me difficut to separate from output per seed; I mean how do we compare output per acre for wheat and rice in terms of land fertility or productivity independently of output-to-seed ratio? Anyways, P concludes, without equivocation, that "South Asian textiles owed their competitiveness to the *superior* productivity of Indian agriculture. In Europe, industrialization was a means to overcome relative agricultural backwardness" Forget the "intrinsic" superiority of rice, or that India just had a "sophisticated cultivation regime"; no, India was superior technologically (in contrast to "backward" Europe). Now it is clear that when P wrote this article he had not yet read Re-Orient (we will see later that P's findings on Indian wages are opposite to Frank's). And while P raises the inevitable question why Europe industrialized first if it was not superior economically to Asia, he does not go into Asia's decline, or into Elvin's idea about China's high-level equilibrium trap. But I think we can argue that Asia's superior output-to-seed ratio regime was indeed facing a crisis in the 18th century, in the sense that an upper limit had been reached as to how much produce could be obtained from the land without further innovations. Can one argue that Asia was facing a high level equilibrium trap eventhough it had a superior output-to-seed than Europe's? (Remember Frank himself has taken us down this road - except that he interprets the "trap" as lack of incentive to invest existing sources of capital due to the presence of cheap labor and higher agricultural productivity). But I am saying that this higher productivity was due to a higher output-to-seed agriculture, and not innovations; and that by the 18th century this agricultural regime could not grow any further, as it had done so extensively in the previous centuries, without technological change.