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on entertaining railway officials passing through Tsinan. It is only fair, however. to state that the present chief inspector of the Hanchuang Tsinan section, who is also assistant traffic manager for the whole line, is making an honest attempt to suppress bribery, and has dismissed several officials for this offence.
It is important to note that the obstacles to trade which I have endeavoured to describe in this report have been discovered by importers, namely, the large firms who spread an intensive organisation over the interior of China with a view to laying down their specialised products at the lowest possible price. The exporter must suffer equally severely from these obstacles, but he probably suffers in ignorance. The importer goes himself into the interior, and by means of his foreign brains. foreign enterprise and capacity for organisation, is able to a large extent to overcome these obstacles. The exporter with few exceptions remains in the treaty port and leaves the whole business of bringing cargo down from the interior to his compradore and Chinese staff. His own organising ability is not brought into play at all. But if the importer cannot sell his goods at a profit without going himself into the interior to grapple with difficulties of transport it would seem to follow that the exporter cannot buy bis produce at a profit unless he does the same. It is a matter which needs careful consideration and it probably cannot be done without setting up an organisation on a very large scale, but I would suggest that the time has now come in China when the exporter should go up country after his cargo and no longer wait in the treaty port for his compradore to bring it down to him.
The faulty management of the Tien-tsin-Pukow Railway results in much traffic which might go along the railway being diverted to other channels. A vast amount of produce from the Yellow River districts, which should be transported by rail to Tien-tsin. is now brought overland from Lokow to Tsinan and shipped by the Japanese railway to Tsingtao for export, or else finds its way to the north by devious water routes. When one hears of cargo waiting at a wayside station for two months for cars it is certain that the produce of that district does not finds its way to market by rail, and also that the district does not produce all that it might produce, both in kind and quantity, if the railway properly performed its full economic functions. This is a point on which the utmost emphasis should be laid. This report perforce deals with the question from the point of view of the foreign trader. but for every dollar which the foreigner loses through inefficient management of the Tien-tsin- Pukow Railway the Chinese themselves probably lose a thousand. There is no doubt that one of the main contributing causes of the disastrous famine now devastating North China is the lack of adequate transportation.
I have made no mention of military interference with railways nor of the vast and burning question of taxation. I have confined myself solely to matters in respect to which it is within the power of the railway authorities to effect the necessary reforms of their own volition. Foreign-owned railways on Chinese soil succeed in avoiding most of the abuses here complained of, but I do not for a moment. suggest that lines such as the Tien-tsin-Pukow Railway should be placed under foreign control, That is no real solution of the problem. These railways run through Chinese territory and are for the benefit primarily of the Chinese people. The Chinese undoubtedly have sufficient ability to manage such undertakings efficiently. and there can be no reasonable doubt that in time they will succeed in doing so. The only permanent solution of this, as of other administrative problems in this country, is to assist the Chinese by expert advice and by friendly constructive criticism to set their house in order in the hope that China will gradually attain a standard of honesty and efficiency comparable with that of the nations thronging within her gates."
RAILWAY STANDARDISATION.
In connection with the railway question, attention is called to the following resolution, which was passed unanimously:
That in view of the vast potentialities of railway development in China, and with special reference to the efforts now being made by the Chinese Govern- ment, with the assistance of an international advisory committee, to standardise the national railway system this conference regards it as a matter of primary importance that British engineering and technical skill, as applied to railway
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construction and equipment, should be adequately represented in this country, and commends this view to the careful consideration of manufacturers in the United Kingdom."
AIDS TO NAVIGATION.
Wireless at Hong Kong.
It was unanimously agreed:-
"That in view of the fact that the Hong Kong Government has approved the use of diaphones and wireless position finders as used in European, American and Canadian waters, and intends shortly to install these at the approaches to Hong Kong Harbour, this Conference is of opinion that China, through the Maritime Customs, should similarly install such aids to navigation on the China coast.
Further, that weather signals and cable communications should also be considered in connection with the wireless position finders, more especially in view of the recent frequent stoppages of the Swatow-Hong Kong Shanghai Telegraph services, and that a sufficiently powerful wireless installation should be established at Swatow in conjunction with one at Hong Kong at the earliest possible moment to provide telegraphic and wireless communication with Hong Kong and other places which is at present inadequate.”
In moving this resolution Mr. Holyoak, on behalf of the Hong Kong Chamber, said
"The main part of the resolution is a continuance of the resolution which was passed last year at the conference under the same heading. And immediately after the return to Hong Kong of the delegates the matter was taken up with the Hong Kong Government, and through them with the Home Government for the establish- ment in Hong Kong of diaphones and wireless position finders, and only a very few weeks ago permission was received to establish them in Hong Kong. We are now pressing for the full connection to be made with the Chinese coast in order that the greatest benefits to all may be obtained from these two most important things. It is unnecessary for me to dilate upon the necessity for every protection to shipping which can possibly be afforded in these waters, upon the immense amount of shipping which traverses them during the course of the year, nor upon the importance of the trade which is carried, nor upon the fact that the coast for several months in the year is about the most fog-bound coast in the world. These things are so well known to most of us as shipping men and merchants that it is quite unnecessary for me to argue any length upon the importance of representing to the Chinese Government through the Maritime Customs the desirability of completing the chain which will be established by the installation of wireless in Hong Kong.
at
"The resolution falls under four headings: (1) the establishment of diaphones and wireless position finders in Chinese waters; (2) increased weather signals and communications along the coast: (3) establishment of increased cable service or a powerful wireless station at Swatow, and (4) the establishment of a wireless telegraph station of sufficient power at Hong Kong.
"I have raised the latter question because I understand there will be present in this room this morning one whom we all regard as an expert on this subject, and that with the permission of the Admiral, he will be allowed to speak upon it. The necessity for a wireless telegraph station at Swatow has been 80 amply demonstrated that I need not argue that point. Swatow has been cut off repeatedly for as long as four days, and even longer, from communicating with Shanghai and Hong Kong by telegraph. Therefore the matter of laying a submarine cable connecting Swatow or establishing a wireless station needs no further urging on my part.
"Upon the fourth part of the resolution, dealing with the establishment of a powerful station in Hong Kong. I have to point out that for the whole duration of the war it was increasingly forced upon us-all of us having to do with commerce that communication is hopelessly insufficient with Europe or the United States of America. I know the war placed the matter in abeyance, but the war has been over for a long time, and even now communication with London and the United States It is a matter takes as much as forty-eight hours and sometimes longer than that. for experts to tell us whether it is practicable to establish so powerful a
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