During the last few years, the willingness of German firms to give more credit has been notable.
Credit is due to themselves for mere buyers. Much external finance has been extended & it is probable that ingenious trading appears to have sourced credit.
It is very possible that it has been facilitated by the advantage derived from the German traders' own misuse of the London Acceptance System by Mr Bonar Law.
Mr Bonar Law would be glad if the Board would obtain Mr Hull Jackson's observations on the points put forward in the preceding paragraphs with regard to the effect of the Chinese Engagements in this.
As regards the effect of the "cold storage" arrangements on the situation, Mr Bonar Law understands the suggestion of the China Association to be that His Majesty's Government should not have advanced accepting Houses on Bills secured by letters of lien or trust, in respect of goods shipped to Chinese territory, but should have left the accepting Houses to realize their security as they could.
It may well be that it would not have been possible at the outbreak of war to make any distinction between Bills of the kind mentioned, but the point made by the China Association appears to have some substance, especially if it were established that the Banks in question had acquiesced in, or connived at, the action of the German houses in disregarding their obligations under the letters of trust and lien.
In this connection, I am to enclose...
Page 184
DRAFT... mentioned in the preceding para... other Bills...
the Tast Jew
during has been the years, willingness of Jerman firms to five more.
Credit to себе
for mere brugers. Mus
exter here formline
septem of
extended
тірекон
& it
credit is probabl ingenions
to souced trading
appears
BimBonar
Law very posille that it has been facilitated
the advantage derived 6 the German tradus from their own misuse
by
Mr London Acceptance System.
4.5 Mr Bonan Law would
be glad if the Boar would Lattain b Hull Jacksons Observations on the poniti hut forward in the preceding paragraphs Filte рагазгарно regard to to effect of the Con Chas Englingments in this.
6. St. I had much off [ast]
обрат
nexth. - expend
+
DRAFT.
-tioned in Un
preceding para
other Bills,
184
6.
As regards the effect of the
" cold storage "arrangements on the situa-
tion, Mr.Bonar Law understands the
suggestion of the China Association to
be that His Majesty's Government should
matt not have advance accepting Houses, Ón
S
aspectof Bills secured by letters of
lien or trust, in respect of goods ship-
non.
enoug ped to de
territory, but
should have left the accepting House, to
iti
realize their security
7.
could.
It may well be that it would
not have been possible at the outbreak
(for the fort to make any)
of war
distinction
between Bills of the kind min-
but the point made by the China Associa-
tion appears to have some substance,
•
is assumed (as
especially if it were established fat
the association appear to asseny that the Banks in question had acquierced in,
or connived at, the action of the German
houses in disregarding their obligations
under the letters of trust and lien.
8.
In this connection, I am to
enclose
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