CO129-379 - Governor Sir Lugard - 1911 [8-9] — Page 258

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most important firms in Germany, has been approached by the committee as follows:-

256

*As you will see from our prospectus, our company has its own business houses of every branch in every town in Japan. We should, therefore, be greatly pleased if you would form a business connection with us and make us your sole agents for the sale of your goods in Japan and Korea. We are ready to pay all orders cash, and would give you unlimited credit. Of course, you can make the closest inquiries in Tokyo and in Hamburg, at the Japanese Consulate, and to the German- -Japanese Trade Exchange Committee. We can only assure you that it would be much more advantageous for your firm to be connected with us than with any other firm in Japan, and you would thereby increase the sale of your goods in Japan twofold".

With regard to the promises of cash payment, unlimited credit and doubled sales, it is to be noted that hitherto the export trade in Japan has been carried on with cash payments; but the import trade always on long credit, which during the past five years has brought ruin on quite a number of German firms and caused other heavy losses. Any inquiry made in Japan from any trustworthy German source of information as to the Credit-giving capacity of the new Company would elicit the reply that there is neither a foreign nor Japanese bank here which would undertake to guarantee either the millions of capital of the company or ita credit. As to Count Okuma, who is its Pre- -sident, he is the same Count Okuma who recently brought forward the famous plan for establishing a closer connection between the English and Japanese business worlds for the purpose of excluding the dangerous third competitor, namely, Germany.

(We repeat, the above should be taken in conjunction

with "The Eastern-Asia Co-operative Association" page 104) Editor.)

Jaola