12.1

assistance by training the young Chinese engineers in

British methods, would be of great potential value in

securing future orders.

(8)

Co-operation with Chinese.

In present conditions in China, it seems to me

essential that British officials and traders should

establish as wide contacts as possible with the Chinese.

So far as I could judge from my own experience it is far

easier to get difficulties settled, or proposals amended

to meet our views, by unofficial discussions than by

formal representations. From this point of view, it is

most desirable that business firms should encourage their

permanent staffs to learn Chinese; and the same thing

applies of course, "to the Official Services in China.

The Chinese authorities seem not only willing but anxious

to obtain advice from persons in whom they have confidence.

British traders have in the past had the reputation of

standing rather aloof from the Chinese, but the best firms

are now fully alive to the necessity of working as

closely as possible with the Chinese and securing their

co-operation. While I was in China, unofficial Sino-

British Trade Councils were established by the local

British and Chinese Chambers of Commerce at Shanghai and

Hankow to promote friendly discussion of all questions of

mutual interest. The Chinese Government also agreed, in

principle, to the establishment of an official Committee

at Nanking to which difficulties of British traders

resulting from action of the Chinese authorities could

be referred. It was arranged that the Commercial

Counsellor should prepare a definite project for the

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