CO129-443 - Governor Sir May - 1917 [7-9] — Page 28

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23

China has by no means reached the limit of her power of consumption. Her present chief obstacle lies in the lack of sufficient modern means of transportation and communication to enable goods to be despatched to and from the interior profitably. She has now only a few well worked and constructed railway lines, though it is hoped that when the various lines in the different provinces to connect the trade centres are comploted the prospects of trade will be improved.

It is not imaginative to state that China, with her vast territory, her teeming millions of people, her numerous un- -developed mineral resources and power of cultivation, is a field of commercial and trade possibilities of immense value.

The prize is awaiting the enterprising ones to capture. Great Britain for has held the supremacy of Trade in China: it rests with her whether or not she wil“ wint in this supremacy, in the World's keen and vigorous intemational commerci- -al competition and struggle.

In reply to your question (~) I would suggest that whatever industries which had a good Chinese markot should be maintained, encouraged and improved in order to attract a still better market. With reference to any industries or manufacturers which had only a limited consumption in Chin ́, pricr to the Wr, oing to the fact that other nationalities (specially the Germans) could produce the same class of goods better and cheaper, it is then the duty of British scientists, specialists, and manufactureri to discover the secret of the success of their competitors and ( a few points better.

Regarding questions (bid.) I can only reply in an abstract fom. I do not anticipate that Great Britian will experience grent difficulties when pesoe is concluded, in recover- -ing the home or foreign trade that she may have lost during the Wor.

Len's interests and wants aro overned by necessiti-

-es

4.