40
The exports to Japan are very meagre, amounting to only 45,000l. in 1913-14, There is not the stimulus, therefore, of having to provide a return traffic.
American Competition.--American competition in Siam is virtually negligible. The United States do not import Siamese products, and the import into Siam of American goods consists, in the main, of kerosene oil for distribution by the local branch of the Standard Oil Company of New York.
Probable German Activity after the War.It is realised that whether restrictions are imposed upon German enterprises in the British Colonies or not, there is bound to be a recrudescence of German activity in the adjacent neutral countries, and Siam would appear to be specially marked out for this. Provided that the local British merchants are supplied with adequate shipping facilities under the British flag, that they are loyally supported by home manufacturers as regards local representation, and that they remain atert and resourceful, there is no apparent reason why they should not only maintain but greatly increase their trade. It is hoped that finance in Germany will be so crippled after the war as to render the granting of unduly long credit facilities impossible, and in this respect it will be incumbent on British Eastern Exchange Ranks to assist the local British merchants in their endeavours to keep the trade on a safe and profitable short-credit basis.
British Chamber of Commerce. For the purpose of co-operation, and the providing of a body for collective action with a view either to the redress of grievances or the extension of mercantile interests, it is suggested that a purely British Chamber of Commerce be appointed in Bangkok, in order to voice British opinion and to strengthen the hands of H.M. Legation.
Commercial Intelligence Service. It has been suggested to me by the British merchants in Bangkok that a commercial attaché with a good business experience and in close touch with the Board of Trade should be stationed with his headquarters at H.M. Legation, and that exporters in the United Kingdom should not be allowed to place their representation in the hands of foreign firms except for reasons approved by the Board of Trade, based on reports from the commercial attaché.
I am in complete accord with the second suggestion and consider that this method of controlling the awarding of British representation should be applied to all Far Eastern countries. There are numbers of competent British merchants in every large port, and agencies should only be granted to foreign firms when it can be proved to the satisfaction of the Board of Trade that such a course would be of benefit to the broad national interest.
As regards the first recommendation, I consider that the market is too small and localised to warrant the appointment of a commercial attaché. I would recommend, however, that an ordinary member of the staff of H.M. Legation should be detailed to specialise on the commercial side of the work, and that Siam should fall within the province of H.M. Trade Commissioner for British Malaya, whose appointment has been advocated in Section L of this report.
Siam is largely a commercial dependency of Singapore, the main articles of import are common to both markets, and H.M. Trade Commissioner should periodically visit Bangkok, which is merely a three days' journey by steamer. When the through line of railway is completed within the next year or so, communications will be mach improved, and the ties which link the two ports materially strengthened.
SUMMARY OF CONCLUSIONS.
1. The foreign trade of Siam is a relatively small but lucrative one, and under the present régime of good government, and a systematic State policy of economie development, should continue to expand after the war.
-
2. British interests and influence are very strong in the country owing to-
(a) The friendly relations existing with H.M. the King of Siam, who was
educated in England, and whose sentiments are very pro-British.
(b) The share taken by British officials in the administration of the govern- ment, particularly in regard to the departments of Finance, Customs, Justice, Education, Agriculture, Forests, Mines, Police, and the Registration of Companies and Trade Marks, all of which are supervised by British subjects.
41
(e) The number of powerful and influential British trading concerns operating at Bangkok, including such well-known firms as the Borneo Company, Ltd., the Bombay-Burmah Trading Corporation, Steel Bros. & Co., Ltd., the Arracan Company, Ltd., the Siam Forest Co., Ltd., Denny, Mort and Dickson, Ltd., and Syme & Co.
3. The bulk of the export trades in rice and teak is in British hands, and the import of British goods has not only considerably increased of late years, but British manufacturers have maintained their relative position.
4. lu the distribution of imported goods, however, severe competition was experienced before the war from local German merchants, who not only marketed German articles but were distributing an increasing proportion of British manufac- tures, notably cotton textiles.
This state of affairs was due to the following main causes :-
(a) The extensive credit granted to the Chinese and native dealers by the German firms, credit which their British rivals did not care to give, as they had proved the unsoundness of the system,
(b) Looser methods of enforcing contracts on the part of the German merchants, which have operated in favour of the Chinese and native dealers.
(c) The control by German steamship companies of the regular shipping lines between Bangkok and Singapore, and Bangkok and Hong Kong.
(d) The number of lucrative British agencies for imports, shipping, and
insurance held by the German houses.
(e) The active political support given by the German Legation authorities to
their subjects, irrespective of the strict fairness of their claims.
5. The principal cause of the German success was undoubtedly the fact that the Norddeutscher Lloyd had bought out the British steamship companies which formerly controlled the Straits and China traffic, and consequently the (ferman agents of this line were able to utilise the knowledge and influence which this position gave them to coerce business away from British firms into their own hands. Since the outbreak of war, Messrs. Alfred Holt & Co. have decided to resume the Singapore- Bangkok service, and three specially constructed boats have been laid down for this run. It is hoped that Messrs. Butterfield & Swire will operate a regular service between Bangkok and South China ports after the war. maintained it will be difficult for local British merchants to strengthen their position Unless these services are after the war. Most of the bulk rice and teak shipments are made in chartered vessels.
6. Japanese competition is so far not serious, but is growing. American com- petition is negligible. Danish competition, represented by the activities of the East Asiatic Company, is felt in the shipping, teak, and general export branches.
7. Conditions of trading in Bangkok are eminently suitable. Pleasant conditions of residence, good government, a low revenue tariff of 3 per cent, ad ralorem, a gold standard of currency, and ample financial facilities, render business conditions in Siam comparatively simple, while the completion of the through railway line to Singapore will bring the country into close touch with the through trade routes.
S. It is strongly recommended that, in view of the growing necessity for collective action by British raerchants overseas for the redress of grievances and the extension of their interests, a purely British Chamber of Commerce should be formed at Bangkok.
9. In view of the stimulus given to the activities of German firms by the many British agencies held by them. I would recommend that exporters in the United Kingdom should not, whether as regards Siam or any country in the Far East, be allowed to place their representation in the hands of foreign firms except for reasons approved by the Board of Trade after consultation with the local British officials,
10. I would strongly recommend that a member of the staff of HL.M. Legation at Bangkok should be detailed to attend to commercial matters, and that Siam should fall within the province of a Trade Commissioner for British Malaya. The country is largely a commercial dependency of Singapore, the main articles of import are similar in both markets, the methods of trading and the type of Chinese dealers are the same, and in view of the fact that Bangkok is within three days' journey from Singapore, H.M. Trade Commissioner should make frequent visits. Upon the com- pletion of the railway in the next year or so, Bangkok will be brought within easy reach of Penang and Singapore for both passengers and mails, and the commercial ties uniting these ports will be materially strengthened.
2047
|
617