organisation of this Committee and I hope that it will
be successfully carried into effect.
(9) British Banke in China,
The policy of the British Banks in China,
and particularly of the Hongkong and Shanghai Bark,
appears to me to need a radical revision if they are to
maintain their position there. Their main business
hitherto has been that of purc exchange tanka and their
prosperity has depended on the constant fluctuations in
the value of silver: With the stabilisation of the
Chinese exchange, this business should case and they
will be compelled to give greater attention to the
financing of trade. At present they do a moderate
amount of business with British merchants but the
facilities they offer to these might well be extended;
and their relations to the Chinese must be improved.
On this latter point, the policy of the Chartered Bank
compares favourably with that of the Hongkong and
Shanghai Bank, which appears to prefer nursing its
frozen assets in China rather than co-operating with the
Chinese banks to re-organise the concerns affected.
The Hongkong and Shanghai Bank's policy is directed by
the Hongkong office and it is not likely to be altered
save as the result of experience. But the Governor of
the Bank of England might be asked to discuss the whole
position with the London Committee of the Hongkong and
Shanghai Bank and with the Chartered Bank.
(10) Relations of Diplomatic and Consular Officers
to Trade.
I heard a number of complaints from British
traders as to the attitude of H.M. Embassy and Consular
Service to their difficulties.
As regards the Embassy,
-13-
122