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transactions lies with the British manufacturing or insurance
companies and that the minor advantage, which is often merely
in the nature of a commission lies with the German agents.
It is a fact, however, that the Verman firms are exporting
considerable quantities of cargo in the names of neutral
firms; those cargoes are doubtless insured in British
Companies where British agencies are held by the German firm
in question, for there is much more liklihood of obtaining
compensation from British companies than from German ones at
the present time. In case of lose the neutral firm, and
consequently the German firm behind it, is compensated by
the British company. The continued use by British companies
and British manufacturers of German agents indeed appears to
me to assist materially the continuation of business by
German firms, who would otherwise disappear from the markets
in the Far Esat during the course of the war, whilst the very
fact that they are able to continue to represent Eritish
houses and British companies has a most prejudicial effect
on the mind of the Chinese,
(Signed)
I have C.,
E.H. Fraser.
Consul General