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bills accepted by the discount house, but did not surrender the shipping documents to the discount house.
It was alleged that the German firms con- sistently ignored the terms of the letters of lien, sold the goods, and paid the proceeds into their ordinary trade accounts, meeting the bills in due course out of those accounts.
It was also alleged
that British traders could not get the same facilities
That
from the discount houses, and the preference thus giver to the German firms enabled them to give Jong credits
a period of twelve months being mentioned as an instance of extreme length) to the Chinese traders.
1 ac not think that any of the people who made these allegations have succeeded in establishing
the that British traders of equal standing with, German
The for these faciliter traders could not get the same good facilities from
Otherwise, I think there is no
the discount houses.
doubt that the above statement is substantially true.
It refers, however, as you will note, to facilities
M.
On the other hand, there have been state-
ments that German banks and large manufacturing
houses in Germany were willing to advance money on
long credit to German houses in the Far East in
respect of contracts (particularly contracts for
public works) involving acceptance by the contractor
of deferred payments, and that the facilities thus
afforded gave the German contractors advantage over
their British competitors who were not acle to
obtain similar facilities from Britisa banks.
Possibly the Chancellor may find these statements of use. In this connection I would
refer to the confidential report on the probable
position of British trade after the war (T.M.
Aynscough) recently published by the Board of Traie
see especially pages 17, 23, 26, 50, 69 and 83.
Yours very sincerely,
(Sd.
C.T.
afforded not by German but by British banks, d prentar advantage Leaned Mr
Jennan readers won Leones by
On
Thaban of the facilite fören