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Fourthly and lastly, I would make a most cogent appeal to the British merchant houses in China, most of whom have their headquarters in this country, to take advantage of the temporary lull in German competition during the War in order to take stock of their position, to revise their system and organisation, bearing in mind the changing conditions in China, and the many facts with regard to the methods of our competitors which are now coming to light, and, in short, to put their own house in order. Owing to the extent to which our industrial organisation is mobilised for war purposes and the shortage of men it is often difficult to take advantage of many immediate opportunities in China, but even so a great deal of the business in British goods formerly handled by enemy firms can be diverted to British houses if only they will make a strenuous effort to secure it, and if only they are met, as is only just and right they should be met, in a spirit of co-operation and goodwill by the suppliers concerned in this country. What is required is the adoption of a marketing organisation which will be in a position to increased competition at the end of the War, closer co-operation with the Chinese, whether as employees or as clients, a wider outlook on trade, in the realisation that commercial activity in the great undeveloped hinterland is going to play a more important rôle than ever before, and steady, patient, painstaking effort. There is little to learn in many vital things from the methods employed by the enemy, but there is one thing we can all take to heart, and that is his infinite capacity for taking pains, and his close application to detail, and the minutiae of business.
meet
In conclusion, I would like to make a brief reference to the present political situation in China. Certain misgivings have been expressed in various quarters as to the outcome of the proposed change in the Constitu- tion from a Republic to a Monarchy, which will probably be effected on the 1st of January next, Chinese Calendar. It is unfortunate that such a vital step should have to be taken at a time when the majority of the nations of the West are engaged in conflict, but there is every reason to believe that it will be taken without serious
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disturbance, and with the approval or rather tacit acquiescence of the vast majority of the Chinese people. The President has proved himself to be the one strong man capable of governing the country, and if the change will only maintain the stability and increase the efficiency of the Central Government, and settle the important question of the succession, upon which so much depends, then I think we may congratulate the new Empire of China upon having made a wise and far-sighted decision. The past two years have been marked by a steady centralisation of authority in the hands of the Executive at Peking. Law and order have been restored in the distant provinces, the depreciated paper currency of the revolution has been gradually redeemed, largely through the medium of the two powerful semi-official institutions the Bank of China and the Bank of Communications. The Revenue derived from the Salt Administration, under the able direction of Sir Richard Dane, has expanded almost beyond belief, and the over-subscription of the recent internal loan affords definite proof that the Chinese mercantile community is gradually regaining confidence in the stability of the Central Government.
The openings for an extension of the foreign trade of the country are greater than ever before. We have an industrious and commercially minded people of some 400 millions, whose present purchases of foreign articles average not more than three shillings and ninepence per head per annum, beginning to feel their feet in the indus- trial world. I do not anticipate a great boom in China, but all my observations and experience lead me to believe that we shall witness a steadily increasing expansion of her overseas trade, and in that expansion I trust that British merchants and manufacturers, by their own efforts and by the excellence of their goods, will secure an increasing share, and so maintain and place on an unassailable foundation that great and dominating edifice of British trade in China.
The CHAIRMAN, in moving a vote of thanks to Mr. Ainscough, said they had listened with great pleasure to his very interesting address, and he hoped
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