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newer tools are American or German, a common reply is, can we buy British when British industries are obsolete? If British public men and British newspapers would stress the un- doubted quality and excellence of British manufactures, the effect could not but be favourable to British exports to Japan and else- where. It is notorious that any scientific or industrial achieve- ment by America is broadcast, while even more notable or meri- torious British successes are never mentioned. Further, the news agencies of competing nations are in the habit of sending out big budgets of technical propaganda which contrast strikingly with the ineffective propaganda emanating from Great Britain. There is also an undoubted lack of co-operation between finance and industry. Most countries lending abroad have some sort of agree- ment whereby the proceeds of a loan shall be spent on the manu- factures of the lending country. This procedure is rarely followed in the case of British finance.
REPRESENTATION IN JAPAN.
38. But assuming that there is trade to be got and that pub- licity and finance are right, there arises the all important problem of representation in Japan.
(a) Agents are either direct representatives who are, of course, technically competent, or more commonly, general agents, who cannot be fully conversant with the technicalities of all their lines. The knowledge of agents can only be supplemented by catalogues and trade literature, unless a direct technical repre- sentative with up-to-date knowledge can be attached to the agent. This course is strongly recommended, and is the usual practice of German firms who back their agents very well in this way.
(b) To meet the expenses of an expert, several manufacturers of kindred, but not clashing lines, might share the expenses of a joint expert. The expert in such case should spend a reasonable time at the different works to train himself before coming out. This system has been applied successfully by the United States, but has not been so far satisfactory when attempted by British firms owing to lack of co-ordination.
(c) The Japanese are expert critics of catalogues, and unless the agent can back up the catalogue with good arguments based on first hand information, business will suffer. The agent may even sow the seed leading to an enquiry, only to see a competitor secure the order, because the latter's final arguments have been technically more convincing.
That British manufacturers are not always ready to take their agents' advice on suitable goods for the market-a complaint which is sometimes made is often due to mistrust of the agents' tech- nical soundness, and this should be counteracted by reports from a trusted expert on the spot.
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Above all, an expert can prevent the dangerous mistake of sell- ing something which is not suited to the job. It is better to lose an order than to do this.
(d) The danger of placing an agency in the hands of a large concern is that it is not sufficiently interested unless the turnover is large, or the profits quick. A small active house to whom the agency consideration is of relative importance is more likely to be satisfactory, but such small agents are hard to find and not always easy to finance.
Incidentally, if the large concern is Japanese, it will be tempted to start manufacture on its own should the turnover be sufficient. (e) For the East it is very essential for our agents to be able to maintain a good style. This makes them more expensive than, say, in a British Dominion. The usual 5 per cent., when allow- ance is made for freight, etc., only works out at 3 per cent. in Japan, and is not enough. In many cases, the agent is not paid till the plant is put into operation. Hence, if something goes wrong, as, for instance, a breakage in transport or fault at starting up, the payment to the agent may be much delayed, and the loss of interest may wipe out his commission.
(f) The following difficulties which were reported from different sources could be removed by a little mutual consideration :
(A) Manufacturers have their standard designs and are very This unwilling to change them to suit specific enquiries. leads them to quote for what they think the customer ought to want, instead of what he actually asks for. The resident expert ought to be able to overcome this tendency.
(B) British manufacturers are often over-secretive with their agents in the matter of prices and technical details, and only supply the former when an actual order is imminent, and the latter often after it is placed.
(C) Manufacturers delay too long the preparation of draw- ings and instructions, obviously on grounds of expense; this handicaps the agent and delays the preparation of building and foundation plans.
(D) A condition that detailed drawings must be returned, or even paid for, is often made. Such precautions are use- less against copying, and bad for the agent's popularity with buyers. It is much better to refuse to give them or even to refuse to show them.
(E) Some British catalogues are deficient in information, and the lack of detail compares unfavourably with the very full detail of American ones. Nice get-up and pretty pictures
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