100
Co-operation of British Banking
avoided; for example, a guarantee might be given to
Messrs. Matheson who were domiciled in the United Kingdom
and used by Messrs. Jardine & Matheson who were not.
In reply to the suggestion that the rates charged by
the Department were too high, MR. NIXON pointed out the
premium ought to come out of the interest paid by the buyer
to the vendor and depended on what was paid. He did not
think the rate charged was an insuperable difficulty in
the long run. SIR FREDERICK LEITH-ROSS said that he
regarded it as of great urgency that a satisfactory scheme
should be devised, in order to help British interests to
take advantage of an important opening for capital goods.
MR. NIXON undertook to give close study to the problem.
SIR FREDERICK LEITH-ROSS said that he had stated in
institutions. his report that British banking institutions in China
appeared to him to grant inadequate credit facilities to
British firms operating there. It was desirable that they
should co-operate with the Export Credits Guarantee
Department. This was a matter which it would be necessary
to discuss with the bankers themselves, but he thought
that Mr. Nixon would find that the banks would object if it
were the practice of the department to take a first charge.
MR. NIXON said that the Department took what it could get
and was open to a pari passu arrangement which would no
doubt suit the banks better. In reply to a question by
Mr. Nixon as to what the Germans and others were doing in
China, SIR FREDERICK said that M. Monnet was negotiating
right and left but had not done much business up to the
present. His method was to get hold of some Chinese
proposal, keep it Chinese in form, and introduce European
control which was undoubtedly essential for proper
management. His China Finance Development Corporation
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