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WATER TRANSPORTATION.
132. The increased use of mechanical power to replace or supple- ment sail on the Chinese waterways leads to a considerable demand for engines. Small steam engines are now easily made locally and local firms are also prepared to make some of the simpler types of oil engine in small sizes. But there is a good market in imported Diesel engines. Unfortunately our prices are on the high side and our ability to service our engines is less than that of some of our competitors. Also our manufacturers are more insistent on the cash basis than our competitors. Discrimination should be made between good and bad risks, and there are many of the former.
How great is the competition in crude-oil engines is shown by the fact that 44 different makes are represented in China. Three im- portant Continental firms MAN, Sulzer and Deutz have strong staffs of experts and engineers. This is a market where a real expert and a good supply of exhibition and consignment sets is necessary. Deutz, for instance, carry about 2,000 H.P. from 8 to 200 H.P., in stock.
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British engines can be sold on quality by a live agent, but this is a business which is no use to mere order takers a description which after all fits many of the merchants. Order getters are needed and these must be expert engine salesmen. The sizes in demand are from about 8 H.P. up to 600 H.P.
133. The following example of a contract for a coasting vessel is instructive:-
Twin Screw Atlas Polar Diesel Marine Engines.
Direct reversing, 6-cylinder, 2-cycle, solid injection, complete with necessary compressors, pumps and spares, 750 h.p. each engine at 220 г.p.m.
Price, including one 10 k.w. and one 7 k.w., crude oil lighting sete, two 1 ton electric winches and electrically-driven anchor windlass.
Total price, United States, $61,000.
Payment, 5 per cent. with order.
5 per cent.
10 per cent.
90 days after.
on shipment. 20 per cent. 6 months later. 20 per cent. 12 months later.
20 per cent. 18 months later.
20 per cent. 24 months later. Interest on deferred payments, 6 per cent.
134. A Swedish marine diesel of 300 h.p. is sold in China for about £2,000. German prices run about £9 per h.p. down to quite small sizes.
In Manchuria, steamers for the Sungarei river are built locally by both Chinese and foreign builders, in particular the Skoda works are constructing three boats. The terms on which these vessels are sold are stated to be 10 per cent. bargain money, 20 per cent. on the launching and 35 per cent. at the end of each of the two first
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voyages. At Shanghai there is considerable shipbuilding for river and coasting work. It is said that for many of the detailed parts our knowledge of marine requirements gives us a good chance but our prices tend to be too high.
AVIATION,
135. Aviation forms the subject of a separate and confidential memorandum.
(b) Public Utilities.
ELECTRICITY SUPPLY.
136. In China the use of electric light is very popular and to-day every town of any importance has electric light, but often in very small units. Each of these towns is, however, a nucleus for develop- ment either by linking into a comprehensive scheme or by normal extension. In Manchuria the growing towns all want electricity stations, and officials and merchants will support schemes but con- struction will undoubtedly have to be on credit terms, say 20 per cent. down and then payment out of revenues,
There are, altogether, over 400 supply stations large and small ranging from Shanghai with its great installation of 140,000 k.w. and an output of over 500,000,000 units per annum down to small town Diesel stations of 20 k.w, or even less.
The British share in electrical development in China has been very considerable so far as power plant is concerned. British industry has equipped the greater part of the big Shanghai power house and has supplied large plant for such installations as the Mukden Arsenal, Tientsin, Kowloon, Hankow, Hangchow, and for a large number of small isolated installations depending on Diesel engines or small steam engines.
Since 1923, the British contribution has averaged about 40,000 k.w. a year compared with an estimated annual increase in the plant capacity of between 50,000 to 60,000 k.w.
137. Outside Shanghai stations of over 20,000 k.w. capacity exist at Dairen, Fushun Colliery, Hongkong, Kowloon, Canton and Hankow. In addition there are about half a dozen stations of from 5 to 10 thousand k.w. and as many more of 1 to 5 thousand. Ex- cepting the large foreign run stations in treaty ports, development of existing stations is fraught with many difficulties. Lack of capital, depreciated plant, leaky mains and thefts of current are among these. At Canton, for instance, of actual units generated only 30 per cent. are paid for and it remains to be seen whether stringent regulations which have been introduced to stop illicit use of current will be effective. It is interesting to note that a Govern- ment Department has been formed to investigate the expansion of
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