CO885-(25-26) — Page 545

505

PUBLIC RECORD OFFICE

Reference :-

mmimmim C.O.

885/25

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO

PUBLIC RECORD OFFICE, LONDON

110

The latter have taken special pains and trouble to study most closely the taste and requirements of their Chinese customers, and have accordingly manufactured and supplied them with various classes of goods and commodities, to suit their needs and financial means. Whereas, the British merchants, adhering to their conservatism, have not thought it necessary to alter their system and manner to meet the change of time, but were content to remain in the old and easy grooves.

Take, for instance, in the matter of learning Chinese, hardly any attempts have been made by the British commercial communities in this direction. It is an obvious advantage to be able to know the language of the people with whom you do daily business. The Japanese and Germans have taken this advantage, for many of them know Chinese well.

I am pleased to hear that there is a movement afoot to encourage young British merchants to study Chinese. The three principal dialects essential for a I think if a business man to know are Mandarin, Cantonese, and Shanghai. person has a fair knowledge of one or two, it will enable him to get on very well in most of the Treaty Ports and in the interior.

I believe the British Consular and Colonial Services in China require their cadets to pass examinations entailing a certain knowledge of Chinese. Would it not be profitable for the commercial class to follow this good example?

The Chinese Maritime Customs Trade Returns show that the British trade in China stands foremost in many articles of import and export. I am of the opinion that a greater expansion might be realized if proper steps were taken to create mutual demands and supplies.

China has by no means reached the limit of her power of consumption. Her present chief obstacle lies in the lack of sufficient modern means of transportation and communication to enable goods to be despatched to and from the interior profitably. She has now only a few well worked and constructed railway lines, though it is hoped that when the various lines in the different provinces to connect the trade centres are completed the prospects of trade will be improved.

It is not imaginative to state that China, with her vast territory, her teeming millions of people, her numerous undeveloped mineral resources and power of cultivation, is a field of commercial and trade possibilities of immense value.

Great Britain, so The prize is awaiting the enterprising ones to capture. far, has held the supremacy of trade in China; it rests with her whether or not she will maintain this supremacy in the world's keen and vigorous international commercial competition and struggle.

In replying to your question (a) I would suggest that whatever industries which had a good Chinese market should be maintained, encouraged, and improved in order to attract a still better market. With reference to any industries or manufactures which had only a limited consumption in China, prior to the War, owing to the fact that other nationalities (specially the Germans) could produce the same class of goods better and cheaper, it is then the duty of British scientists, specialists, and manufacturers to discover the secret of the success of their competitors and go a few points better.

Regarding questions (b), (c), (d), I can only reply in an abstract form. I do not anticipate that Great Britain will experience great difficulties when peace is con- cluded, in recovering the home or foreign trade that she may have lost during the

War.

Men's interests and wants are governed by necessities, hence we often hear the expression, "Necessity is the mother of invention.”

Great Britain, at the commencement of the War, with her despised "insigni- ficant army" of a few hundred thousand men, insufficient in arms and ammunition, But look at her present magnificent was indeed in a state of unpreparedness.

army of several millions, which she was able to train and put into the field in three short years, to the wonder of the world and astonishment of her enemies. She has now not only sufficient materials of war for her own use, but a surplus to supply to Because it was a matter of her Allies. How and why has she done all this?

necessity.

Great Britain has no doubt made many mistakes, and was often over confi- dent, to her cost. But with the sacrifice of thousands of her best sons and expendi- ture of millions sterling in order to uphold honour, liberty, and equality, that the weak may live alongside the strong, she has learned many valuable lessons in connexion with this War, and will not fail to profit by them.

111

When this gigantic struggle ends, and when there is again peace on the earth, the British nation, with her many sterling qualities and her people ready to adapt themselves to meet necessities, and with her usual recuperative power and bull- dog tenacity, will, in course of time, be able to recover her losses and increase her national resources and maintain and add to her prosperity.

41039

No. 33.

I am, &c.,

CHAU SHAU-SON.

FEDERATED MALAY STATES.

THE HIGH COMMISSIONER to THE SECRETARY OF STATE. (Received 14th August, 1917.)

(No. 214.)

SIR,

Government House, Singapore, 12th July, 1917. I HAVE the honour to inform you that at the annual general meeting of the Federated Malay States Chamber of Mines, held on the 31st March, 1917, the following resolution was unanimously passed :-

That it is resolved to make the strongest representations to the Government of the Federated Malay States not to alienate mining lands to any subject of the German Empire under any circumstances and for all time.'

2. In reply to a question, the President of the Chamber states that reference to Austrian and other enemy subjects was designedly omitted.

3. I may state that I hold the same views as held by the Chamber of Mines, as I have come to the conclusion that it is very desirable to differentiate between Germans and our other enemies, for the more we differentiate the greater the prospect is of Austria-Hungary and Turkey dissociating themselves from Germany. I consider, however, that it is preferable that the last three words of the resolution, "for all time," should read "for at least twenty years, when the matter can be further considered."

I have, &c.,

ARTHUR YOUNG.

42920

SIR,

(No. 121.)

No. 34.

WINDWARD ISLANDS (GRENADA).

THE GOVERNOR to THE SECRETARY OF STATE. (Received 28th August, 1917.)

Government House, Grenada,

Windward Islands, 31st July, 1917. WITH reference to Mr. Bonar Law's Circular despatches of 25th September, 1916, and 24th October, 1918,* on the subject of the recommendations of the Economic Conference of the Allies, I have the honour to forward a report from the committee which I appointed to consider the subject. The committee was comprised solely of mercantile and representative men of the island, with the exception of the Chairman, who was the Colonial Secretary, and who only took over the duties on the departure of the Honourable D. S. De Freitas.

2. The report I enclose makes similar recommendations as were made in the report from St. Lucia transmitted to you under my despatch No. 58, St. Lucia, of 18th March, 1917. In that despatch I expressed my views, so that there is no need to reiterate them on this occasion.

* No. 1, and 45879: not printed. + No. 20.