495
18
The work of the mercantile firm will still go on but there is room for the direct representation of British firms in China to do the work which is being done by mercantile firms."` (Applause.)
"I am very glad to see you approve of that. There need be no antagonism-- there must be co-operation. I do not suggest for one moment that direct representa- tives should solicit orders-that is not their work. They are not here to do anything else but to explain directly the British products, their excellence, the quality of the material and the superiority of workmanship. Although I am going to talk quite frankly to-day I am not antagonistic to the great firms in China who have done so much in the past, but I think the time has come when something more has to be done if British trade is to maintain the proud position which it holds in China. I have been for the past year associated with the Commission on Railway Technics which was appointed some two years ago by the Ministry of Communications in Peking, and there, of course, I have come into contact with foreign advisers, American, French, Belgian and Japanese. I myself have been British adviser on technical matters and naturally I have come to certain conclusions, and one of those conclusions which I have come to is that during the current year it has been deplorable that British manufacturing firms have not been directly represented in Peking during the sittings of the various conferences which have taken place in connection with railway standardisation." (Applause.)
I am glad you approve of those sentiments because it has been forced upon me over and over again, and I am going to England at the present juncture to a considerable extent because I feel so strongly on that point.
55
The direct representation of British firms in China is essential. If the position of Great Britain as regards trade, particularly in connection with railway matters, is to be maintained, if your success is to continue, the suggestions I have made will have to be adopted.
If I have succeeded in persuading you of this, I shall look back to this conference and feel glad that I have had an opportunity of meeting you.”
Mr: H. E. Arnhold, of Arnhold Brothers and Co. (Limited), said in part:
Mr. Johnson's address to us has been one of the most encouraging things I have heard for the last year or two. The merchant in China who has an engineering organisation has always welcomed co-operation with the manufacturers. He has tried to create an interest in the manufacturers in Great Britain, tried hard to make them realise it is a time for spade work to be done. The most discouraging thing that the merchants out here have had to contend with is that the manufacturers at home have taken no interest in China since the great war If the merchant is to do any good work for engineering in China he has to build up a technical organisation which cannot work to the best results unless it has the support of manufacturers."
Mr. H. J. Brett. Acting Commercial Counsellor of Legation, Shanghai, said: There is one point which 1 should like to emphasise, and that is that this expression of opinion on the part of the association is not a mere empty form of words. As far as the Shanghai Chamber is concerned they have already given practical evidence of their feeling on the point, in electing locally three direct representatives of manufacturers to assist them in the engineering sub-committee of the Chamber, which shows that they are only too anxious to co-operate with British manu- facturers.
THE CROWN LEASE QUESTION.
It was unanimously agreed :-
That this conference deplores the prolonged delay in arriving at a satisfactory decision regarding the extension of Crown leases in the British concessions at Canton, Hankow and Tien-tsin, which is seriously affecting British trade interests, and urges His Majesty's Government to effect an early settlement of this important question."
In moving this resolution, Mr. Fraser, on behalf of the Hankow Chamber, after dealing with the history of the question, and pointing out how, in the early sixties, the British Government obtained grants in perpetuity of the land which now forms the British concession of Hankow and apportioned it into lots of approximately
19
232 fang each, which were sold at auction at an upset price of 1,0007. per lot, proceeded to explain the terms on which the Government is prepared to renew leases. He said :-
The prevalent impression of what this document is intended to convey is that the Government by a zone scheme of valuation places an imaginary value on your land. The sum so ascertained they project to 1961 (i.e., the expiration of the lease), when they discount it backwards to the present day at such a rate of interest as may be obtained in first-class Chinese Government securities. Having arrived at that figure they proceed to charge you the annual rental for all time at this same rate of interest on the figure so ascertained. The iniquity of this proposal is at once apparent. Every year you delay in dealing with them for the next forty years makes a large addition in your rent for all time in other words, this is a coercive scheme and not a straightforward deal. When the meeting of lotholders was held in Hankow there was some suggestion that it would be advisable to attempt to negotiate terms for the renewal of leases with His Majesty's Government, but a little consideration showed that any attempt to negotiate along the lines of the present Government's proposals would be hopeless, so the community and the Hankow Chamber decided first of all to fight this case on its plain merits, that is to say the plain merit of having the Crown leases put on the same basis as those in the concession extension and other concessions without any payment at all."
Continuing, Mr. Fraser said:
The Hankow Chamber made strong representations on this subject, and the purpose of this resolution is to urge upon His Majesty's Government that these representations shall receive immediate, fair and impartial consideration, but above all, immediate consideration, as the present state of uncertainty is having a very prejudicial and depressing effect upon land values in the British concession.
In seconding the resolution, Mr. Carter, on behalf of the Tien-tsin Chamber, said in part
The question of renewal was first brought up by the Chartered Bank of India, Australia and China some thirteen years ago. As time went on and the term of the leases got shorter it was necessary to take further action. A lease of ninety-nine In 1913 the years is one thing, one of only forty years is quite another matter. British Government sent out officials to investigate and report. The British Municipal Council in Tien-tsin as representing the landrenters held several meetings with the Government's representatives. The subject was discussed at length and the council brought forward arguments why free renewals should be granted. That the arguments were not altogether unreasonable was proved by the fact that they received the sympathetic consideration of one of the Government's representatives who, it is understood, in a minority report, gave it as his opinion that if payment were demanded for renewal of the Crown leases it should only be a small amount, and furthermore, that the resultant sum should not be paid into the Treasury but used in some public way for the benefit of the British community. Unfortunately. these broad-minded views were not followed by the powers that be, and the majority report was adopted which laid it down as a broad principle that renewal would only be granted on payment of the fixed annual sum. We still had hopes, however, that only the value of the land would be considered and building values ignored, the leases not being building leases.
At a public meeting which was held on the 4th June, 1918. in Tien-tsin, dealing with the amalgamation of the municipal areas, Mr. Ker, in the course of his remarks, stated as follows: The majority report to which I have referred was not very definite on this point, but the conference is strongly of the opinion that as the leases contain no covenant to build or maintain, and in view of all the circumstances, it is most unlikely that the Crown will try and exact a rental for renewal on a basis of value in which buildings are included. In any case we should not dream of saddling the future ratepayers with such a burden, and in my opinion, it is one of the valuable features of the clause as drafted, that it implicitly puts on record the view of the British community in Tien-tsin, of the British consular authorities at Tien-tsin, and of the British Minister in China as to the maximum terms which can fairly be demanded by the Crown for the renewal of the Crown leases.'
No comments yet.
Private notes are available after approval.