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country. We recommend that British manufacturers interested in the Japan market should consider the three following methods of strengthening their sales organisation.—
(4) Attaching at their own expense technical and sales promotion experts to efficient merchant houses in Japan;
(b) Undertaking sale and distribution themselves through their own branch establishments;
(c) Employing resident agents working on commission. 272. By the employment of efficient representatives and agents in Japan, by acting upon their advice, and by personal visits of principals of the home firms, where this is possible, British manu- facturers should be in a much better position to offer the Japanese market suitable products. It is unfortunately too true that Great Britain does not lead in close study or knowledge of market require- ments, whereas our competitors are increasingly active in this respect.
273. As is observed in the main body of our Report, it is the common complaint that British manufacturers do not give atten- tion to proper advertisement, the use of catalogues suitable for the market to be served, efficient and suitable packing, and the ade- quate labelling of their goods. These are obvious aids to successful business.
274. We desire to emphasise the importance of publicity as a means of increasing the sale of British goods and of promoting British prestige. British publicity is far behind the times and ineffective in comparison with that of our competitors. We could not fail to notice in the Far East signs of propaganda on the part of other nations, the effect of which is harmful to British interests. We commend this subject to the consideration of His Majesty's Government.
CHINA.
275. China has the lowest purchasing power per capita of all countries. The goods of Great Britain are, with few exceptions, the highest in quality and price, and, generally speaking, China cannot afford them. Our trade decline in China is due, in the main, to our inability to suit the needs of a buyer of very modest means. For practically all her imported requirements China is a price market. The immediate problem for Great Britain in regard to the China market is whether she can produce goods of low or medium quality at low prices.
276. The future development of the China market will depend on the increase of transport facilities, and the installation of indus- trial equipment. If financial and industrial interests in Great
Britain could co-operate in equipping China with the means of transport and the industrial equipment which she requires, there
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would be immediate stimulus to British industry, with the prospect of an increasing market for British goods in the future. We recom- mend that a conference of financial and industrial interests should be summoned forthwith by His Majesty's Government to explore the possibilities of British participation in the development of China. 277. The value of the total imports into China in 1929 was nearly £170 million, of which 290 million represented goods, raw material, etc., not produced by Great Britain, and nearly £80 million goods in the supply of which Great Britain can compete. We regret to record that the proportion of China's total import trade secured by Great Britain in 1929 was only 9 per cent. or little more than half the proportion secured by Great Britain in 1913, and that, since the war, the decline in our trade with China has been persistent. In contrast, the United States with 18 per cent. of the total has trebled her share of China's import trade, and Germany, in spite of complete elimination from the China market in the war years, has regained her pre-war position. Japan shows a substantial advance and is now the largest source of supply, with one-quarter of the total imports of China. If the 1929 figures for imports from Great Britain into China are reduced to the basis of 1913 values, the magnitude of the decline in the volume of British trade to the China market becomes apparent. It amounts to over 30 per cent. in contrast with very substantial increases secured by our competitors ranging from 36 to 270 per cent.
COTTON.
278. Our conclusions and recommendations in regard to the British cotton trade to Japan and China are summarised in para- graphs 304 and 305 of this Report.
METALS AND MANUFACTURES THEREOF. 279. The reconstruction and modernisation of China will absorb increasingly large quantities of metals and machinery.
280. The Chinese Government are fully alive to this, and in Ministries, Boards, and Commissions are giving close attention to the formidable problems of speeding up development.
281. The nations which go furthest to help China in her task will reap the richest harvest.
282. In large contracts and large plant, credit is a more im- portant factor than price, and risks will have to be taken if orders are to be obtained.
283. As merchants and manufacturers cannot take a sufficient place in financing their developments by themselves, intelligent and sympathetic co-operation of financial interests is essential. Only thus shall we counteract the financial penetration of the United States which, by granting credits and purchasing con-
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