·
3:1
has submitted a most valuable report on the whole
subject of German trade in this Colony to the Board of
Trade agree with the results of the investigation made
by this Government.
I have had the privilege of perusing that
report and I may inform you confidentially that
Mr. Ainacough attributes German success in securing
business in Hongkong to: (1) lucrative agencies in
such articles as dyes, watches and cotton thread (the
agency for the latter I may remark was offered to var-
ious British Firms when Messrs Coats and others first
sought to find a market in China for their thread but
was refused because British firms were too conservative
to open up a business in what they dubbed "muck and
truck"). These agencies form a substantial basis of
business; (2) the granting of credit facilities to
buyers due to exceptional financial facilities in London
of which the Germans availed themselves; (3) close co-
operation with their Chinese Staff; and (4) great industry
and close application to detail.
3. In