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competitors are not only watching for every opportunity of sup- planting us, but are studying with far keener intimacy than we are, the needs, desires and productive and consumptive capacity of the world's markets. If the British manufacturer took a greater personal interest in the distribution and use of his goods, he would, with the co-operation of an intelligent and industrious overseas staff, be in a far better position to compete with the manufacturers of other nations in anticipating the needs of the world, and in catering for them.
In the promotion of an aggressive sales policy for British goods abroad, the State has a duty to the home manufacturer, and this aspect of the matter will be dealt with later. (Chapter X.)
98. Publicity and Catalogues. From the evidence we have received, there appears to be no doubt that publicity for British goods and achievements is far behind the needs of the time. Indeed, lack of advertising of British goods and the frequent publicity of failure in Great Britain (unemployment, the " dole," strikes, etc.), are the prevailing notes, with consequent discourage- ment of British merchants abroad, and loss of credit with old and prospective customers. National publicity is a subject which involves financial and political considerations, but we are of opinion that more publicity of British achievement and less of British failure would be of undoubted advantage and would act as a stimulus to British welfare abroad. We commend the subject to His Majesty's Government for their careful consideration.
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99. As regards the more technical side of publicity, we have found that British manufacturers do not advertise their goods as clearly or as frequently as their competitors. Artistry in catalogues must be supported by practical details so worded and priced in the language of the country that they are readily understandable both by the distributor and the ultimate consumer. Vague statements such as "equipment of suitable power and strength
carry little weight when they are in competition with definite statements of the capacities of a competitive article. Our attention, for example, has been drawn to the defective advertisement of British motor cycles, British prices being often quoted for bare machines, with tyres but without lamps and other accessories, whereas the customer wants to know what the complete machine costs, and looks like. Labels on goods and leaflets of instructions should be in the language of the country. American and German goods, for instance, are sold in containers bearing descriptions and instruc- tions in Japanese of the article offered. In fact, these aids to the sale of goods, though occasionally found on British products, are generally found on those of our competitors.
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CHINA.
CHAPTER V.
GENERAL SURVEY.
100. Despite the fact that the value of imports into China in 1929 was double that recorded for 1913, China remains the poorest market in the world on the basis of purchases per head of popu- lation. China's total foreign trade was, in 1928, approximately £320 million. The foreign trade of Canada-a country with one- fiftieth of the population of China and a comparable area-was, in that year, more than £200 million greater than that of China, and the foreign trade of Argentina-a country also with one-fiftieth of China's population-was in that year greater by £60 million than that of China.
The main reasons for these striking contrasts are the possession by Canada and Argentina of peace, security, and the means of transportation and communication, and the comparative absence of these essentials in China.
101. China is a vast potential market of 4-500 million people. It is, however, an undeveloped market. Security, transportation, and communications are of paramount importance for its full development. From whatever angle the problems of China are viewed, it is evident that the attainment of an adequate economic development can only be brought about by the provision of means for the exchange of goods. The very necessities of life are to-day denied to millions of Chinese through lack of transportation, and full co-operation among the many communities in that vast country is impossible for the same reason. China is an agricultural country employing primitive methods of production, sufficient only for purely local needs. Four-fifths of the population live on the barest necessities-produced by themselves locally-and do not, and cannot, under existing conditions, participate in the exchange of goods with the rest of the world, except to the extent of a few shillings annually per head. Equipped with efficient means of production and transport, China would produce a surplus far beyond her own needs and thus be enabled to take that place in the trade of the world to which her natural resources entitle her.
102. The China market, as it exists to-day, is essentially a low price market, and two questions arise :—
(1) How Great Britain can secure a greater share of this low price market;
(2) How the China market can be increased in volume and raised in quality.
As regards Question (1), it is obvious that British goods must, generally speaking, be far more competitive in price than they now
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