CO129-428 - Public Offices - 1915 — Page 180

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then to organise a network of Chinese retail agents in 170 the principal villages all over the district. Each agent

deposits a substantial guarantee, receives supplies from

the Head Office and sells them on terms which are a matter

of arrangement. The stocks in an agent's hards at any time rever

exceed the security deposited by him. Inspectors of

agencies tour the disrtict continually and report on con-

ditions and new places which it would be advantageous to

open. This system succeeds best and is most simple

to operate with more or less homogeneous articles, but as

the Chinese become used to the procedure, its application

to new articles would probably not involve very great

difficulities.

The Russians are said to have made a success]

in Manchuria with cheap cotton prints, an article which is

sufficiently complicated. Their goods are much in evidence at Canton, being used for childrens' dresses rickshaw covers

and the like. The business is aone through Chinese agents at Shanghai, and it is always possible that the Russian firms may open in Canton and carry on the business in as

much detail as they are doing in Lanchuria.

Many difficulties would no doubt have to be faced in dealing with all the ramifications of 'fancy' goods, but there seems no reason why a concern sufficiently strong to ivercome initial opposition should not meke Canton the base for organising the retail sale of the staple cotton goods imported, Shirtings and Sheetings. Cotton thread, the agency for which has recently been taken away from a German firm, is admirably suited for a detailed scheme of distribution and it is a matter for regret that Lessrs Coats, who have their own representative in South China, have not shown the way to other manufacturers.

There can be no doubt that British merchants in Canton at the present time have an exceptional opportunity for cutting into the import business formerly done by German

firms.

They are handicapped, it is true, by the difficulty

of

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