CO129-426 - Public Offices - 1915 — Page 534

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transactions lies with the British manufacturing or insurance

companies and that the minor advantage, which is often merely

in the nature of a commission lies with the German agents.

It is a fact, however, that the Verman firms are exporting

considerable quantities of cargo in the names of neutral

firms; those cargoes are doubtless insured in British

Companies where British agencies are held by the German firm

in question, for there is much more liklihood of obtaining

compensation from British companies than from German ones at

the present time. In case of lose the neutral firm, and

consequently the German firm behind it, is compensated by

the British company. The continued use by British companies

and British manufacturers of German agents indeed appears to

me to assist materially the continuation of business by

German firms, who would otherwise disappear from the markets

in the Far Esat during the course of the war, whilst the very

fact that they are able to continue to represent Eritish

houses and British companies has a most prejudicial effect

on the mind of the Chinese,

(Signed)

I have C.,

E.H. Fraser.

Consul General