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attach the prestige of the British merchant to the sale of competing products and our sympathy for their difficulties is therefore much diluted. The troublous times in China have undoubtedly weakened the financial strength of our merchants and keen competition has reduced their ability to secure an adequate turnover. But it is not good to increase this turnover by taking on a litter of assorted agencies to which the available staff cannot do justice or to force prices down by cosmopolitan not to say unpatriotic commission hunting.
183. The chief need for improvement of our prospects lies in the provision of as many experts as possible not only to sell, but also to educate the buyers in the use of the plant. Experts are also needed to keep close touch with the buyers' engineers, for one ounce of personal touch is worth a ton of correspondence.
Often agents' criticisms, advice or complaints are scantily re- garded because they are looked on as inexpert. The presence of a trained engineer with the agent will lead to better understanding. The situation will be helped if some of the attached experts are trained Chinese students who will be able to secure close touch with their compatriots. The gradual introduction of Chinese into our selling organisations not only in this way but also as partners or through subsidiary contracting companies deserves close considera- tion.
184. The use of an agent house in China is the usual method of liaison between manufacturer and customer though large concerns or groups of manufacturers may see sufficient turnover to justify a China office of their own. With direct representation, of course, the conduct of affairs is simpler, but even in these cases there must be sympathetic and generous treatment from head offices and more constant touch should be kept with home developments than appears to be arranged at present. Visits of principals and of supplementary experts to branch offices will have a stimulating effect and similar stimulation is also necessary when agents are employed. Many of our firms would find that their agents were lazy and were sitting in their offices waiting for orders instead of going out after them. Closer touch would either shake the agents up or cause a change of representation. With agents there is great néed for co-operation. Manufacturers must realise the highly com- petitive nature of the market. They must see to it that there is sufficient force of expert assistance and can assure this by bearing much of the expense of this force. When they are unable to see a turnover sufficient to justify the expense it will be necessary to consider grouping and co-operation from home. Manufacturers expect a reasonable amount of advertising by their agents; but when starting an intensive campaign should be prepared to assist in the expense.
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185. Another point in which manufacturers could help, is to be more liberal with consignment stock. Standard lines might be held in China not only to meet deliveries in that country but also for giving quicker deliveries to other agencies in the Pacific area. British co-operative showrooms or sales fairs have been suggested as a good advertising proposition. An extension of this idea to a permanent trade fair established at a suitable place with attached warehouses for stock might be considered. If the contents of the fair were approved by Government commercial officers as well as by local expert committees, the goods so consigned might come under the aegis of the Export Credits scheme to at any rate 60 per cent. of their value. The fair would serve as both showroom and sales room and be replenished from its own warehouses, or from mer- chants' godowns. The agents are often called upon to act as consulting engineers, in their endeavour to secure business. Often their work of this kind may be wasted and the order go elsewhere, but it is worth trying and manufacturers must help by supplying full particulars in the early stages ungrudgingly. Manufacturers must realise the importance of making their catalogues not only instructive but educational. Special Chinese leaflets and pamphlets could be devised in collaboration with agents.
Agents, if assisted by real experts, could also give advice on such a point as getting some of the heavier or simpler parts of machinery made locally. There are many native shops as well as important works like dockyards or arsenals which could turn out excellent work. The saving in freight might make all the difference in competition.
Finally, the efforts of our Consular and Allied Services might be reinforced by attaching trained consulting engineers to assist in the co-ordination of British engineering interests at home and
overseas.
If all who are interested in the restoration of British trade in China, both there and in Great Britain, will get together and work together in the common interest, the future will be full of hope and of achievement. Only lack of faith in one another can stand in the way.
THE WOOL TEXTILE INDUSTRY.
186. This report is divided into two parts. The first part is con- cerned with the Chinese native industry, including the production and export of raw wool, the domestic industry, the making of Chinese carpets and the manufacture of knitted goods. The second part deals with China as a market for wool textiles (yarn and piece- goods), and Great Britain's position therein.
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