:
:
104
our machinery, and the fullest and most efficient use of our facilities for transport, finance, and distribution.
China. The relative position of the United Kingdom and Japan in the China market in 1913 will be seen from the following table compiled from the Chinese Customs Returns :---
Cotton Yarns.
Of which Imported from
Imported from sil Sources.
1
United Kingdom.
Hong Kong,
British India.
Јярво.
Thousand £ 10,941
Thousand £. 97
Thousand £. 2.836
Thoranad £ 2.765
Thousand f 4,865
Cotton Piece Goods.
Of which Imported from
Timported from all Sources.
United Kingdom.
Hong Kong.
Japan.
Thousand £.
8.734
Thousand £. 1.471
Thousand £. 2,812
Thousand £. 15,510
In 1913 the
NOTE.--Accurate statistica for China are diffenlt to obtain, owing to the lack of statistical information with regard to the Hong Kong trade. It should be noted that the imports of yarn from Hong Kong are mainly Indian spinnings, while the imports of piece goods from that port are mainly British. total shipments of piece goods from the United Kingdom to Chius and Hong Kong smounted to 11,733,387. The above table must only he considered therefore as showing the general approximate values,
The imports of British yarns into China are negligible, and are confined to a few special counts of dyed and mercerised yarns, and to sewing cotton. The bulk import trade in grey yarns of 10's, 12's, 14's, 10's, and 20's counts is divided between the Bombay mills and Japan. Prior to the last few years Indian spinnings held their own, but Japan has now overtaken her rival, and Japanese yarns may be expected to increase still further at the expense of the Indian product.
Japanese competition in piece goods prior to the war was mainly confined to unbleached goods, notably sheetings and drills, but the past three years have witnessed a considerable increase in the import of grey jeans, bleached shirtings and even fast black Italians and printed cloths, and there is no doubt whatever that Japan is making a determined effort to increase not only the volume but the range of her exports to China. The Japanese have many advantages in the market. Apart from their low costs of production, the through differential freight rates vid Korea and Antung enable them to lay down their goods in the Manchurian market at a remarkably small cost; they secure a rebate of one-third of the Chinese customs duty on goods entering China over the Korean land frontier; their large merchant houses and banks afford every facility for the furtherance of the business; and their intimate knowledge of the language, character, customs, and requirements of the Chinese, coupled with a plentiful supply of young Japanese who are prepared to travel and live in the interior for a comparatively low wage, enable them to carry out methods of direct distribution up country which British merchants have not found practicable to undertake in the past. The war is giving them an excellent opportunity of establishing new qualities and trade marks in China, in addition to greatly strengthening their financial and industrial organisation in Japan, and it is only reasonable to expect greatly intensified competition in a constantly widening range of articles after the war.
The Japanese exports to China in the past have been mainly the coarser, unbleached cloths, but great efforts are being made by Japanese bleachers to turn out white shirtings equal to the British productions, while progress is being made with plain dyed goods such as sateens and brocades. There is good reason to hope that Lancashire will still retain the important and rapidly-growing trade in bleached, dyed, and fancy woven cloths where fineness of quality and finish are essential, but she may expect to see a falling-off in the shipments of the coarser qualities of unbleached calicoes, while the development of the bleaching, dyeing, and printing industries in Japan will require to be carefully watched.
105
It might he expected that with the great expansion of the native industry, together with the competition of Japan, a decline in the volume of British exports to the country is inevitable. The marked rise in the standard of living in China however has been reflected during recent years in a considerable expansion of the trade in better quality dyed goods, both plain and figured, and I would contemplate not so much a future shrinkage in the total trade as a gradual change in the character of it. The elimination of most British grey goods with the exception of the finest standard qualities, and more severe competition in the coarser qualities of white shirtings and T cloths would appear to be almost inevitable, but to counterbalance this I look for a considerable expansion in the shipments of the finer grades of bleached goods, and a greatly increased trade in dyed, printed, and fancy woven articles. Inasmuch as these highly finished products are of much greater value and represent a higher labour cost than the unbleached fabrics which are being displaced, I am of opinion that the total value of our shipments to China may not only be maintained but may tend to expand in future years, provided that our merchants in China, by increased activity and improved organisation for distribution, make a determined effort to secure their share in the development of that country.
Minor Markets.-While China aud India are apparently the two markets where Japanese competition in textiles will be most severely felt, there is evidence of increased Japanese activity in the Straits Settlements, Netherlands Indies, Siam, and the Philippine Islands.
The question arises, How can the facts of this menace to the British cotton trade be brought home to the industrial and mercantile interests in Lancashire, and how cau this increased competition be met by British manufacturers and distributors?
I would suggest that a small Commission of, say, seven members should be appointed by the Cotton Trade to investigate the actual conditions on the spot, and to report and make suggestions as to what steps should be taken by the trade to meet the situation. Such a Commission might with advantage consist of :-
One cotton spinner interested in the yarn trade to the Far East.
One manufacturer with experience of the Indian trade.
One manufacturer with experience of the China trade.
One merchant with knowledge of the Indian market.
One merchant with knowledge of the China market, and also some experience
of the Straits, Dutch Indies, and Philippines trade.
Two representatives of the operatives.
H.M. Government. might give its support by lending the services of an official with knowledge of the commercial conditions existing in the Far East, who could accompany the Commission as its secretary and adviser.
The Commission should visit, in turn, India, Burma, the Straits Settlements. Dutch East Indies, Siam, and China, and should wind up its tour with a close examination of the textile industry in Japan in order to ascertain the sources of its strength and weakness.
The expenses of the Commission might easily be defrayed by the great organi- sations in the cotton trade, such as the Federation of Master Cotton Spinners' Asso- ciations (representing spinners), the Cotton Spinners and Manufacturers' Association (representing manufacturers), and the Manchester, Blackburn, Preston, and other Chambers of Commerce (representing merchants).
H.M. Government should facilitate the work of the mission by providing a competent official as secretary and adviser, and by providing the mission with intro- ductions to all British authorities in the countries visited.
Such a mission might do useful work in reporting on other matters, which would suggest themselves to the cotton industry, but I am convinced that Japanese com- petition alone is well worth investigating. It may be urged that it is still very small (the exports of cotton textiles from Japan to all markets in 1914 were 12,681,000, or approximately 10 per cent. of the exports from Lancashire to all markets). The trade, however, is in its infancy, enormous extensions to the industrial plant are in progress and planned for after the war, and there is no doubt that all the Japanese interests--official, financial, shipping, mercantile, and industrial will combine in order to secure a much greater share of the cotton trade of the East in the future. British trade will not only have to meet individual competition, but will naturally be required to face a national organisation, highly perfected in the art of combining and co-ordinating all possible means to achieve the desired end.
A 2687
0
649
No comments yet.
Private notes are available after approval.