CO129-434 - Governor Sir May - 1916 [7-8] — Page 511

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bills accepted by the discount house, but did not surrender the shipping documents to the discount house.

It was alleged that the German firms con- sistently ignored the terms of the letters of lien, sold the goods, and paid the proceeds into their ordinary trade accounts, meeting the bills in due course out of those accounts.

It was also alleged

that British traders could not get the same facilities

That

from the discount houses, and the preference thus giver to the German firms enabled them to give Jong credits

a period of twelve months being mentioned as an instance of extreme length) to the Chinese traders.

1 ac not think that any of the people who made these allegations have succeeded in establishing

the that British traders of equal standing with, German

The for these faciliter traders could not get the same good facilities from

Otherwise, I think there is no

the discount houses.

doubt that the above statement is substantially true.

It refers, however, as you will note, to facilities

M.

On the other hand, there have been state-

ments that German banks and large manufacturing

houses in Germany were willing to advance money on

long credit to German houses in the Far East in

respect of contracts (particularly contracts for

public works) involving acceptance by the contractor

of deferred payments, and that the facilities thus

afforded gave the German contractors advantage over

their British competitors who were not acle to

obtain similar facilities from Britisa banks.

Possibly the Chancellor may find these statements of use. In this connection I would

refer to the confidential report on the probable

position of British trade after the war (T.M.

Aynscough) recently published by the Board of Traie

see especially pages 17, 23, 26, 50, 69 and 83.

Yours very sincerely,

(Sd.

C.T.

afforded not by German but by British banks, d prentar advantage Leaned Mr

Jennan readers won Leones by

On

Thaban of the facilite fören