C. O.

Mr. Rogers

4/2/37

Mr.

Gent.19.2

Mr. Duncan." w Geat

26.2

Sir C.arkinson.

Sir G. Tomlinson.

Sir C. Bottomley.

53680/36. Hony Kury

274

43

MEMORANDUM ON THE BRITISH PROTECTION OF

COMPANIES IN CHINA

Sir J. Shuckburgh.

Permt. U.S. of S.

Parly. U.S. of S.

Secretary of State.

DRAFT. can on

Cofce of

D

1 translato

tu French

regulation (Evil 4 to (1)

53660/36.H.K.)

H. K.

2) encloswes to (8) a 53680/36 (memorandum draft order i

Connied by H.K. Attorney Gewal Whe attached

FURTHER ACTION.

Sir John Brenan's proposals for

the amendment of the Orders in Council

dealing with the protection of British

are

companies in China appear to be intimately

connected with the present state of British

trade in that country, and also with the

difficulty which Chinese living in British

Rom Colonies, i.e., mainly Straits Settlements

Chinese, find in obtaining denationalisation

certificates.

-

At present British trade in China

is suffering heavily from German and

Japanese competition, and Sir Frederick

итеров

that Leith Ross and others are endeavouring to

(should be given encourage an increased supply of credit for

the purchase of capital goods from this

country. Mr. Beale, the Commercial

Counsellor at Shanghai, remarks in his

memorandum (see enclosure to (40) on 15314/36

General Economic) that British channels of

trade in China are tending to decrease in

with

number, and that/ some outstanding exceptions they do not compare favourably with their German

competitors, i.e., not merely are the prices

of British goods being undercut, but the

supply of British technical and business

experts resident in the country is

insufficient.

It would seem, therefore,

that

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