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primarily in relation to the Atlantic passenger trade. The conditions of the passenger trade on the China coast are so different that the application of the proposed rules without modification would be a serious burden upon British shipping in the Far East. The experience of many years' trading on the China coast has not shown the need for further and more stringent regulations, and any addition to or alteration of existing conditions should not be made until after careful consideration of local conditions. The rules for construction laid down by the Convention call for material alterations in design of the existing type of vessels-a type which has run safely for years, was specially designed for and is well suited to the special trades in which the steaners are engaged. Whatever may be decided in regard to new vessels, it is essential that no expensive alterations in existing vessels should be required. Broadly speaking, no vessel registered under a foreign flag should be allowed to trade with a British port unless it conforms to the rules and regulations by which British ships are bound.
(0) It is difficult to see how the preferential status of Japan can be terms which dealt with except perhaps in connection with the "favourable " may be negotiated with her, as one of our Allies, in the event of a preferential basis of trading being established between Great Britain and the rest of the Empire. The advisability of continuing the privilege of carrying cargo from one British port to another, at present enjoyed by Japanese ships, although denied to British ships in the case of Japanese ports, might also be borne in mind if an appeal to Japan to carry out in practice her declared policy of equality of opportunity and the open door in Manchuria proved to be ineffective. General Conclusions and Recommendations.-It is to be regretted that, on the whole, the recommendations of the various bodies consulted are not as helpful as might have been expected. It should be borne in mind, however, that with the exception of the British Engineers' Association, the views expressed are, in the main, the views of merchants whose activities are world-wide and are not confined to distributing British goods.
The Shanghai Chamber of Commerce conclude their report in the following
terms:---
It may be considered unfortunate that this report suggests so few changes, and that it indicates a general satisfaction with conditions as they are. There are a few questions of principle which it is believed that His Majesty's Government could commend to the serious consideration of British mercantile interests in the United Kingdom with advantage to all concerned.
(a) No merchant house in China can reach its full scope or make the best use of its capital and resources unless its policy is controlled in China. The German houses were mainly China houses, and this fact gave them an elasticity and strength which is impossible for any house which is controlled from home. It was this fact which induced so many capable and energetic Britons to throw in their lot with German firms; they knew that they would find there a greater scope for their enterprise, their character, their love of responsibility, than was offered by the British firms which were controlled from London or Manchester. Conditions are changing very rapidly in China; the younger men are getting more closely in touch with the Chinese and learning more of their needs and possibilities. Since the war began this has had the effect of attracting capital from home and placing in the hands of young and energetic men in China the control of British-China houses. This is a trend of policy which is likely to become more marked every year; it cannot be disregarded by any who are interested in the China trade.
(b) Non-competing manufacturers in the United Kingdom will have to combine and to work the China market in groups; this had been tried in many cases; sometimes with poor results, but in other cases with marked success; the representation of such groups should be placed with merchant houses in China in order to keep expenses at a minimum, and to secure the advantages of a knowledge of local markets and local connections. Such groups can best be formed in consultation with the Commercial Attachés in China, who can best advise as to suitable connections.
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(c) British manufacturers must devote more attention to sending good and attractive samples; they are greatly outclassed in this respect by their German competitors, who send free samples in generous quantities, clearly priced on separate lists, quoted c.i.f., and suitable for display.
(d) British manufacturers must consider proposals for goods on consignment and for contracts on deferred payment, when put forward from responsible sources.
The lack of constructive suggestions in the body of this report arises in no way from the failure of the Chamber to appreciate the value of Government support. They desire, indeed, to record their very sincere appreciation of the thoughtfully conceived and thoroughly executed plans of the Foreign Office, the Board of Trade, and the Authorities in China for the assistance both of the general interests of the British trade aud the individual interests of merchants in China during the period of war. It is believed that the members of this Chamber are responding to the efforts of His Majesty's Government in every possible way, and that they are already working out their individual policies for a more thorough and more energetic conduct of the Chinese business than was ever contemplated before the war. The Chamber does not suggest radical changes or new legislation, because it is not at present clear that any specific change would re-act to the general advantage of British interests in China. The prompt assistance rendered by His Majesty's Government during the war period gives them confidence that all practical suggestions and requests will receive the fullest consideration whenever occasion may arise. In the meanwhile they believe that the beat hope for the future lies in the individual efforts, the enterprise, courage and hard work of those who are actively engaged in the China trade, and in the true appreciation by the repre- sentatives of His Majesty's Government of the difficulties which are encountered from time to time by the mercantile community in the somewhat unusual conditions of trade in China.
The Hankow Chamber of Commerce state that inasmuch as the principal trade of the port is the export of China produce, a great deal might be done in stirring up interest in the United Kingdom in such articles, and in endeavouring to stimulate the laying down of plant for handling the same, so that the trade may be diverted to the United Kingdom from the Continent. The China Association also deals with this suggestion as follows:-
H.M. Government should actively encourage the extension of industries capable of dealing with Chinese produce, which has the past found its principal market in Germany and on the Continent generally, owing to the limited capacity for dealing with it in the United Kingdom. Plants for crushing oil-seeds (such as seaanium seed, rapeseed, beans, ground nuts, &c.), margarine factories, smelting works for zinc and lead ore, and similar works would enable this country to increase her trade with China.
The Tientsin Chamber of Commerce draws attention to the necessity for a close watch on the part of H.M. Government over the railway tariffs of Chinese railways. They recommend that the question of railway tariffs should receive the constant attention of the Commercial Attaché, whose business it should be to obtain and file all such tariffs, to watch that their incidence is not used to the detriment of British trade and British interests, and to take prompt and decided action in the form of repre- sentations to and through H.M. Minister at the first sign that they are being so used.
(NOTE. The Chamber apparently have in mind the flagrant case of the preferential rebates to Japanese goods in force on the South Manchuria Railway. The case of the French Yunnan line is also notorious.)
The China Association.The principal recommendations put forward are :-
(a) Finance. The early formation of a "British International Corporation
with a capital of not less than 10,000,000, and with a strong board of directors assisted by able and experienced management for the promotion of British trade in the Far East.
Such an institution might be supported by the British banks and industrial concerns with the express object of assisting individuals,
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