4.

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poorer classes in Canton and "small towns where but few foreigners ever visit" I must really beg leave to doubt. I would like to believe all you say on the subject. I would like to be able to

think that not only in Canton but in Shanghai the man and his wife

who have been out working all day can, on their way home, drop into

a store to buy "the best of strengthening foods, medicines, and

clothes" made in England for their children. I would be happy to

think that "even among the poorer classes" the rule is "nothing but the best is good enough" where children are concerned, but I know

as you must know, also, that the cost of such things as you allege

to be in "enormous" demand represents much too high a percentage of the family budget in a poor household to be given a moment's thought. Moreover, you contradict yourself by saying in one place that the demand is "enormous," and then admitting that although the Chinese can and will buy the majority of British products, they are not

doing so "in any quantity to speak of."

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The primary reason, in your opinion, is that British firms show a lack of interest in the market, and "must adopt new sales

efforts." To this end you suggest they should take part in an All-British Exhibition to be held in Hong Kong at the end of this

year - a business enterprise in which, I believe, you are not

altogether disinterested. By taking part in this "British Empire and China Trade Fair" you suggest that British firms will be able to test their ability to compete with other exporters in finding favour

with the Chinese. That is quite possible - but is it not also

possible that British merchandise houses established in Hong Kong for nearly a century are already well informed on the subject? Is it not also likely that they are already well posted on the possibilities of selling perfumery and cosmetics in country villages, along with the silk stockings, canned provisions and radio-sets which you say are in great demand even in out-of-the-way places up-country? After all, the taipans even of British firms like to show "the heads" at home they are doing business, and have

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