1931-05-08 — Page 12

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Friday, May 8, 1931.

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HONG KONG, FRIDAY, MAY 8, 1931,

BRITISH TRADE IN THE FAR EAST.

Young China's Zeal to Learn.

TRADE SHIP SUGGESTED,

London, Yesterday.

en-

refers to rationalisaton schemes at low prices, and it recommends

there and thinks that if trade re- the British Government to forth- vives the importers' may secure with summon a conference to low price orders.in lines in which study the financial and industrial Japanese production is insuffi- interests and to explore the pos- cient and accordingly suggests sibilities of participation in the that manufacturers have resident | development of China which experts in Japan.

would open up new markets, "Educate China to Our Methods."

Engineering in Japan. On the subject of engineering in Japan the Mission strongly manufacturers to

The full report of the Econo-recommends mic Mission to the Far East is supplement the knowledge and being publishel on May 13.

sales capacity of their agents Sir Ernest Thompson and Sir and information in catalogues Thomas Allen, interviewed to- and trade literature by attaching Weis direct technical representatives day, emphasised that

to their agents' offices. It also suggests that several manufac- turers might care to combine in employing a joint expert to save also closely investigate the possi- expense. Manufacturers should

bilities of co-operation with the Japanese industry.

sion was unanimous that gineering should be representa tive and believed that there was still purchasing power in China for high class British engineering ing products.

They ponted out that a pro- posal as regards the grouping of trades and competitors followed a plan which had been most suc- cessful in China, and believed that if Britain made a National effort to get its products on a more competitive basis she would succeed.

The Mission was much struck by the ability and strong in- clination to learn on the part of young Chinese, and had em- phasised very strongly the neces sity of much more intensive Bri- tish propaganda ip every chan-

nel.

They deprecated the disposi- tion of British newspapers to de- preciate the value of the British trade effort, and urged Britain to organise her industrial

pro- ficiency in the public Press.

The mission, while making no recommendation, strongly advo cated the despatch of a British trade ship, which would show British goods in all ports and also many inland centres of China, owing to the great water-

Ways.

Earlier Report.

Textile Industry.

In commenting on the wool and textile industry the Mission thinks that British high-class cloths are likely to continue to serve this limited market, but apparently it is only a question of time before Japan will be able to produce the whole of its needs. There is no indication of effi- ciency in the Japanese woollen worated industry but it is seri- ously lower than ours and it is calculated, allowing all possibili- ties, that the Yorkshire wages and costs per unit of production are at least two and a half times or perhaps three times greater than those of the Japanese.

Japanese Marketing Methods. The Japanese export marketing methods are declared to favourably compare with the British. A seri- ous investigation on the question of freight rates on raw wool imported into Britain, and finished exports, particularly to the Far East is urged. Japanese competition in the wool markets will certainly increase and the British wool and textile in dustry must take steps to meet it and ensure that the cotton trade experience is not repeated.

British Representation Unsatisfactory.

Under the heading of metala the Re- and metal manufactures port says that the co-operation of Anancial interests is essential in order to counteract financial pene- tration by the United States. "If we are to fight a winning battle

for the China trade we

must

educate China to our methods and products."

and

It is observed in the course of suggestions offered that a "gen-

not an order geiter; it also re- eral" agent without an expert is usually a mere order taker

commends the organisation of Bri- tiah machinery exporters into groups to prevent wasteful inter- British competition, and to strengthen British representation, which must be given close repre- sentation. The Mission feels it is a matter of urgent necessity to promote more intimate cultural relationship between China and Britain for the purpose of attract ing Chinese students to British universities and workshops. The Department of should summon a conference at an early date at which British uni- versities and business men, inter- ested in the China trade, should be represented.

Overseas Trade

The same department is also re- commended to convene an early conference at which British bank- ers, industrialists, exporters, and merchant houses interested in the Far Eastern market should be re- presented for the purpose of en- quiring into complaints of inade- quacy of British finance to meet the needs in the Japanese market and decide on desirable action. The conference should consider the question of the provision of long-term credits for the export of machinery equipment to China. "It is clear that the Chinese Gov- ernment and the nation have set their faces towards a policy of in- dustrialising China and British capital should play its part in the development."

Stabilisation of Silver.

the

London, Yesterday: That price is by far the heavicat handicap from which British goods, generally speak-

"The important point fer Britain ing, suffer from in Far Eastern is that of recent years the tendency markets, and it primarily ac- of Japanese exports of all kinds of counts for the decline of British finished goods is to increase both trade in comparison with the in-in volume and variety in the mur crease in the goods of our prin-kets to which they are consigned," cipal competitors - Germany,

The stabilisation of silver Japan and the United States.

should be sought by every means These authoritative conclusions After reference to the United (says the Report) thus restoring emerge from the Report of the States and German Imports into China to her full purchesing British Economic Mission which Japan and Japanese distribution power. Britain should take visited China and Japan under the Mission cannot, avoid the con- leading part in attaining the the Chairmanship of Sir Ernest clusion that Japan will henceforth necessary international agreement Thompson.

offer but little attraction for foreign thereon. Prices Must Be Competitive. merchant houses except in special The Report confirms the Cotton Stressing the foregoing ob- limited goods which are not pro- Mission's recommendations and servations the Report says that duced in Japan, and it considers further is of the opinion that:- all other aids to sale, however that the representation of British "Ne industry which is so depen- | efficient, would be. only truly manufacturers in Japan is uneatis dent on exports as the British

effective when the price of our factory. It states that British cotton industry is, can continue to goods was competitive. In the manufacturers would be in a much exist unless it is fully competitivo opinion of the Mission all costs better position to offer suitable with other countries." Whatever (must be reduced until prices of products if they employed and steps are necessary to prevent the British goods again reach a acted ол the advice of efficient, calamitous further decline in the competitive level. At that level representatives and if principals Lancashire cotton industry, due to the natural advantages we pos- paid personal viests. Britain un cheaper Japanese production, must wess in the world trade (amang fortunately does not study market be taken without delay. which are mentioned our arti-¡ requirements whereas her competi- |ficial skill manufacturers,, con- tors do. A common complaint is venience of our trading stations stated to be the lack of attention fand our

good name) would re- to proper advertisement, the use assert themselves. There is no of suitable catalogues, proper pack doubt that such a policy would ing and labelling. require sacrifices from all classes of the community if Britain is to assert the report of the Mis- sion.

A. Serious Rival.

China' Market. British publicity is far behind the times and is Ineffective com- pared with that of her competi- tors. The Mission had not failed The Mission, in the course of to notice in the Far East signs of a number of recommendations, propaganda on the part of other fully recognises the importance 'nutions, the effect of which is of Japan as a competitor to Bri-harmful to British interests "We tain in the supply of useful commend this subject to the Bri- manufactured articles at low tish Government for considera- prices, notably - cotton goods, tion."

The Mission recommends the establishment of a British service of specialists, or experts, in coun- tries which are undeveloped or where British trade shows the greatest decline. This service should report direct to the De- partment of Overseas Trade and the personnel be recruited from first class mon. Secondly, export firms should consider without de- lay whether the method of group- ing for export purposes

can be profitable and applied to them- sclves-Reuter.

A rug, 4 ft. by 2 ft. with the insignia of the Rotary Inter With regard to Japanese imports Turning to the China market to national' in the centre, the words these are likely to decrease and which many of the foregoing ob- Tientsin in both English and Chin- the market become more com-servations also applied, the Mis- ese on top, and Wien below, is be- petitive.

elon says Britain's immediate pro- ing sent by the Tientsin Rotary Examining the iron and steel) blem is whether she can produce Club to the Conference to be held. industries in Japan, the Mission | low and medium qualities of goods | shortly in Vienna.

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