CO129-426 - Public Offices - 1915 — Page 549

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British chops and would be very slow indeed to return

to the German chops. The Chinese, in their opinion

were quite ready to accept the natural effects of a

great war and were astounded at the pusillanimous

policy of the British in trade matters.

I told Mr. Bain that you heard that at home 50%

of the Manchester trade in China was gaid to be in alien

hands;

but he assured me from his special knowledge

of the piecegoods business here that such a claim was

ludicrous. He saw quite clearly that the German could

get Chinese orders since the German ran no risk whatever

and could promise the Chinese not to take any steps in

case when the goods should arrive consigned to the

custody of a British bank, the market was not favourable,

for the lose would of course fell on the British shipper

through the British bank. What he could not see was any

sound reason for Manchester to keep alive anery firms in

China at their own cost and risk through their being

paid for the goods only after sale in China, eince the

British