196
THE TIMES HISTORY OF THE WAR.
PRKING.
which China had been threatened with a naval demonstration), there was nothing but the policy of laissez-faire, and a somnambulistic belief in the benevolent purposes of internationalism in high finance. The British Government, as Mr. McKenna complacently admitted in the House of Commons as late as 1916, "had no evidence that the relations which have existed between the Hongkong and Shanghai Banking Corporation, and the Deutsch-Asiatische Bank have had a prejudicial effect upon British in- terests or British prestige in the Far East, or that German influence has had an opportunity in this commexion of being exercised to the prejudice of British interests." Such being the convictions, such the policy of the British Government, it is perhaps not a matter for wonder that British financiers should have felt justified in following the line of least resistance, and should gradually have become more and more closely associated with the German State- controlled Bank.
They were certainly not alone in their failure to realize the fact that the "cosmopolitanism" of Gennan finance, like that of German Socialien, wär B deliberate conspiracy of intrigue and falsehood, akilfully directed by the German Government. Indeed, if we look to the condition of affairs obtaining in England before the outbreak of the war, and bear in mind how far-reaching was the "peaceful penetration " of Germany's State-controlled finance and industries in the most vital centres of our national life, the stranglehold obtained by Germany over our political finance in the Far
THE TIMES HISTORY OF THE WAR.
gent stated that in consequence of "support ro Manchester" German trade was reviving China. The China Association recorded its pinion that "it was bad policy in our own nterests to help Germans in China to maintain heir commercial position in China as we had been doing for the past ten months." The Times erved that there was ample evidence to rrant the belief that trade between Man- Buster and Germans in China, which the British Government had refused to prohibit, really anwanted in many instances to trading between Manchester and Germany. The contention of Manchester merchants interested in this Tude was that if their German distributors en prevented from obtaining Lancashire
deference to this view, Germans in Chine were not regarded as enemies within the beaning of the Act until the strength of public
East sinks into comparative insignifi One is prompted, indeed, to wonder what woods they would obtain supplies from Japan; have been the eventual results of the Tents "peaceful penetration" had there been no we In China, at all events, his patient unser mole work had taken such advantage of opinion on the subject became unmistakable. easy-going "free-trade " blindness that i Hongkong and the Treaty ports much of th position secured for British traders by a earlier wars and treaties with China had pass into German hands. German interests ha been steadily developed and extended at na expense. As the result of this policy, at le 25 per cent, of the Manchester piece god trade was handled in Chins by Chenna agents, a state of affairs which natur created a strong undercurrent of sympathy | German interests, only too clearly reflected i our financial and diplomatic activities. Hongkong, in particular, the results of subtle and insidious influences brought to ba by Germany were most marked. For expl the Board of Directors of the Hongkong si Shanghai Bank in the Crown Colony 1 four Germans in 1914; the whole business d administration of the Colony was, indeed, permeated by German influence tha after the outbreak of war, it continual to) characterized by such benevolent sympathy, Gorman interesta as to evoke strong pet from patriotic British residenta. In June, 1 the British Chamber of Commerce at S passed a resolution regretting the notion of th British Government in giving its tacit on to German trading at the same time d
Li Ching-fong, Chinese Minister Trai Fu.
in, London.
meaTa
285
(rd. xiv. fest 173)
part
On June 28, 1915, & Royal Proclamation was issued forbidding trade with Germans in China and Siem. The ingenious Tauton, however. still confident of sympathy and support from unregenerate free traders. frequently found of evading the King's regulations, According to dispatches sent from Shanghai in July, special licences issued by the Board of Trade enabled him to obtain possession of all supplies in the hands of shippers before July 26: at the same time many German merchants became Chinese traders by the simple expedient of a nominal transfer to dummy Chinese firms, of which they resiŋad managers. In Hongkong vigorous action by the community was required before the interned German merchants were eventually deported, despite undeniable evidence of their continued intrigues witn the Chinese, despite the fact that German agents were using the Crown Colony and the Treaty Ports of China as centres for a Bolo
Tang Shao-yi.
Mr. Chung, Secretary. SPECIAL MISSION, UNDER TANG SHAO-YI, TO STUDY THE BRITISH FISCAL SYSTEM, 1908.
J