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COPY.
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186
24728
7th Ajaf, 1916.
REG 26 A 16
Dear Ashley,
over
I think I cannot do better than hand you a copy of a letter that I addressed to kr. Blackett on the 17th. of January
last commenting on the memorandum from the China Association which
he had sent me. I might perhaps add one or two observations.
Firstly, from evidence given by Manchester Export
Merchants before the Committee of which I am Chairman, it would
appear that the distribution of Manchester goods in China, has in
recent years passed very largely from British to German firms in
China. We were informed that on the outbreak of war/50;. of the
Lanchester exports to China were handled by German firms there.
One of the Witnesses, in reply to a question, stated that the
reason why this had taken place was probably because Manchester
exporters accepted orders for goods indifferently from persons
of any nationality and that he supposed that the German firms
had sent more orders for goods to Manchester than British firms.
Secondly, I should like to say that while Mr.
Ainscough's description of the methods of finance of exports from
this country to China are, on the whole, correct, it must be
remembered that the competition of the Eastern Banks in London for
the financing of this business is always very keen, and if at any
time they find that the rates they are charging are higher than
those at which the goods can be financed outside, they are in the
habit of reducing their charges.
I think Mr. Ainscough's summary of the advantages of
the London Acceptance system (on page 2) requires some comment
lio