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brother and Mr. Kom of Jardines helping him in executive positions,

whereas Mr. Lee is carrying on alone unpaid. He has suggested that

in Mr. Cheung Tak In he has found a very reliable and very experienced

commercial man and that he should be made his personal assistant.

Mr. Cheung has been in Rice Control since September, 1945, and is now

drawing $175 per month. He has been highly recommended both by

Mr. M.K. Lo and Mr. Harkins and now by Mr. Lee. He wanted to resign

when Mr. Lo went, but he continued to work because he was promised that

a case would be put up for a rise in salary to $400 per month. I feel

that I must endorse this claim.

Mr. Lee has also asked for one clerk whose primary duty would

be to go through all the Chinese newspapers (these as you know are legion)

and take cuttings of all adverse comments about the rice situation and

also the supply situation. Mr. Lee lays much stress on this particular

point, and he claims that not only does this help him to keep in touch

with public opinion, but very often he can offset adverse opinion by

having a chat with the editor in question. He suggests we should pay

a salary of $250. Mr. Lee, as yet, has been unable to find a suitable

applicant for the third vacancy.

(v)

Trade and Industry.

In the

I have seen

admittedly

This section might eventually become part of the permanent

structure of the Government, possibly under another department.

past, part of its present functions were performed by I. & E., but

relations with merchants and industrialists were very nearly casual

a state of affairs which cannot be allowed to continue.

in America and Canada the Departments of Trade and Commerce

on a much larger scale playing a very personal part in furthering the

interests of their merchants, exporters and industrialists in foreign

countries. Abroad they gathered information and statistics and probed

the possibility of new markets and generally aided and abetted the

furtherance of trade; at home they fought the importers and

manufacturers battle against restriction and taxes and generally to

obtain the best conditions for trade.

At present owing to the peculiar circumstances of rehabilita-

tion, industry, particularly, has been thrown into very close partnership

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