68
Extract from a letter from the Tientsin Branch, dated 17th November, 1914.
This question of trading with the enemy has been occupying the attention of my Committee for some considerable time, the opinion being very generally held that existing conditions permit an undesirable latitude to German and Austrian firms. I enclose a rough summary of a meeting of the Committee in conference with representatives of all interests in this Port from which you will gather an impression of local opinion A copy of this summary has been forwarded to Shanghai, Hongkong and Hankow, and at present we are in receipt of strong support from the last named place. At the same time His Majesty's Minister has been apprised of the existence of the views entertained locally on this important subject and is understood to be far from unsympathetic.
We shall keep you fully informed of the course of the discussion, and as you will gather from the enclosure in this connection, it is improbable that any action will take place unless there is a strong sense of unanimity in the chief trade centres as represented by the China Branches.
MEMORANDUM BY CHAIRMAN OF TIENTSIN BRANCH ON TRADING WITH THE ENEMY.
This subject has been occupying the attention of my Committee for some considerable time, as it is thought that the present conditions permit as undesirable latitude in these relations We presume that the conditions which prevail here are identical throughout the Treaty Ports of China. But in order that we may be sure that we stand on common ground, I enclose copies of two circulars dated the 13th October last, addressed to the British Banking and Shipping firms in this port. They represent the result of an express application to His Majesty's Minister for instructions.
The feeling here is very strong in several quarters, that the position thus constituted is a very unsatisfactory one. It is thought that steps should be taken whereby German firms should be subjected to all possible commercial pressure... At the same time every effort should be made to take advantage of the present situation to the permanent improvement of British trade at the expense of that of Germany.
In these circumstances my committee held a meeting last night, at which they met some fifteen representatives of the principal British interests, whom they had invited to join them in conference. The meeting was unanimous in the sense that representations should be made for the application of far more stringent conditions than those which
69
at present apply. The belief was expressed that fuil enquiry into trade conditions would show the soundness of such a course.
The following general lines of argument were developed :-
(1) In the Far East it should be practicable to render German trade virtually impossible subject to the condition of effective combination among the Allies.
1
(2) It was recognised that the foundation of any action must rest in the main upon such disabilities, if any, as it might be found expedient to impose upon the Financial and Shipping interests.
(3) The Financial and Shipping interests would suffer in the immediate future from any restrictions at the present time, but it was believed that this would only be of a temporary nature. The trade of China could not come to a standstill simply by reason of the Germans being compelled to remain inactive. The trade must find other channels, which, in practice, would be through houses of the Allied Powers,
(4) The fact was not overlooked that British manufacturers would be deprived of several of the agencies through which they reach the Chinese. But here, too, the consequences would be only temporary. The trade would find its way largely into British hands. This would afford an opportunity for re-constituting the Import Trade on sound lines. This argument was strongly emphasised. It was pointed out that the valuable results thus achieved would long outlast the war. The economic effects of the war in Germany must spell the ruin of their credit system. British merchants had been robbed of a large share of their Import trade in past years by the unsound terms on which alone the bulk of the business could be done. But if the import trade were once established on sound lines there could be no question of the British merchant's ability to compete with his German rival.
(5) Incalculable harm is being done to British credit in China by the German campaign of calumny. Measures forcing the German houses to commercial inactivity, which in many cases would involve permanent extinction, would provide a practical answer which it is thought might bring something of the real truth home to the Chinese mind.
Such roughly may be said to be our position.
The meeting concluded by strengthening our Committee by the addition of four of those present to go into the matter from all points of view and prepare a memorandum for His Majesty's Minister. At the same time it was determined to act in conjunction with the other branches of the China Association and we shall submit to you a copy of the draft of our memorandum as soon as it is completed. But in the meantime we shall be glad to hear from you by telegram whether you are of opinion that you will bo able to accord your support to the general principle of the foregoing views,
!
467
No comments yet.
Private notes are available after approval.