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¡This Document is the Property of His Britannic Majesty's Government. 1

CHINA TRADE.

CONFIDENTIAL.

[29141]

(No. 163.)

Sir,

No. 1.

[August 31.]

SECTION 2.

Sir C. MacDonald to Sir Edward Grey.-(Received August 31.)

Tokió, July 22, 1907.

I HAVE the honour to transmit herewith copy of a despatch from His Majesty's Vice-Consul at Dairen, inclosing a Memorandum on the subject of counterfeit British goods at Dairen.

While thanking Mr. Parlett for his interesting Memorandum, I have instructed him to continue to devote his attention to this subject, which is attracting much notice in this country.

Mr. Parlett has forwarded a copy of his despatch to His Majesty's Minister at Peking and Consul-General at Mukden.

I have, &c.

(Signed) CLAUDE M. MACDONALD.

P.S. Since writing the above, I have received a further Memorandum from Mr. Parlett on this subject, drawn up on information furnished by Mr. Garner, the travelling agent of Messrs. J. Buchanan & Co., copy of which I have the honour to transmit herewith.

Inclosure 1 in No. 1.

C. M. MACD.

(No. 29.) Sir,

Vice-Consul Parlett to Sir C. MacDonald.

Dairen, July 12, 1907. AS your Excellency is aware, reports have of late appeared in the English papers drawing attention to the frequent appearance in Manchurian markets of imitations of foreign and, more especially, of British goods. It is also generally asserted that Japan is the place of origin of these counterfeit articles.

If this assertion is correct one may naturally presume that at least a number of these spurious goods must be imported by way of Dairen, and that, in such case, some would certainly remain bere, to be disposed of locally. Acting on this supposition, I have visited various shops and bazaars in the port with a view to ascertaining whether any information likely to be of value could be obtained in those places on the subject. The results of my inquiries are embodied in the Memorandum which I have the honour to inclose herewith in duplicate.

Your Excellency will observe that I have been quite unsuccessful in obtaining any evidence of the counterfeiting of the "chops" of British piece-goods, which is the chief point of interest. This is to be attributed, I think, mainly to the fact that the demand for these commodities is in the leased territory-the chief market of which is Dairen- but a small one.

As a natural result, the wholesale dealers here are virtually only forwarding agents for their branches in the real markets of the north.

With regard to imitations of toilet articles, whisky, and like, I am in doubt as to how far some of the specimens I saw were definite imitations of the productions of individual firms, how far simply pseudo-foreign goods. The far-eastern travelling agent of the well-known firm of distillers, Messrs. James Buchanan & Co., who happens to be visiting Dalny and called on me this morning, was unable to recognize any of the names of the "brands" described in my Memorandum, though the name of J. Brown & Co., was of course quite familiar to him. He told me, however, that, as he proposed, in the interests of his firm, investigating as fully as possible the trade in foreign spirits at Dairen, he would, if he obtained any information of value on the subject of counter- feits, communicate it to me.

I have, &c.

(Signed) HAROLD G. PARLETT.

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