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existing plants and also to standardise rules governing them. It will almost promote schemes for new plants (see Appendix C).
British makers have participated by taking a 15,000 k.w. ex- tension for Hangchow, part of an elaborate scheme of electrical development of the lower Yangtse area. The scheme will link up over 200 stations to the capacity of 85,000 k.w. and included are two large 20,000 k.w. stations run by Chinese companies in greater Shanghai. It is interesting to note that for this scheme 50 cycle current has been adopted as standard. British tenderers have also been successful at Kowloon, Antung and the Kailan Mines,
138. In general, finance schemes will be required for the ex tension of China's power supply. These schemes may take the form of municipal bond payments or of arrangements to pay out of revenue, and only in a limited number of cases will companies be floated to do their own finance in the usual way. Possibly co-operation with foreigners will be possible in some of the large schemes through some form of construction and operating cor- poration. The recent order for two 5,000 k.w. turbo-generators for Nanking has been accepted on terms arranged by the National Construction Commission-20 per cent. will be paid in cash and 80 per cent. in 8 per cent. seven year bonds issued by the com- mission and backed by the States Council of China. The terms were accepted by the Siemens Schuckert Company, and it would be interesting to know what support they got from their Govern- ment.
WATER SUPPLY AND SANITATION.
139. The pioneers of these important utilities have been British and with numerous examples in China of excellent works carried out by them, they should stand well for future contracts, if they are enabled to arrange the necessary finance. This may not be easy as the terms of payment are not gilt edged. The foreign concessions have all got works of their own which are constantly in the market for plant and materials. Of such orders a great proportion goes to British firms. But in purely Chinese supplies the market is very open. The Chinese determination to modernise their towns is obvious and from it will come large contracts for plant and materials but the terms of payment will need careful negotiation and scrutiny in most cases. A British firm is at present carrying out a considerable water supply and purification contract for Canton. They report that they had difficulty with earlier payments but now that the works are getting on they are finding the contract is being met. In another town the contract has been taken by a German firm which has accepted payment in 8 year municipal bonds, which British firms considered risky
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COMMUNICATIONS.
140. American enterprise has been particularly active in com- munications which have a bearing on industry, above all tele- graphic and telephonic communications. The International Tele- phone and Telegraph Corporation has been especially active in this connection through its manufacturing subsidiary, the China Electrical Co., which had record sales in 1929. An example of its activities is to be found in the construction of a rotary automatic exchange in Canton which was opened in August, 1929. For this work payment out of revenue was accepted. In 1928, American radio engineers, acting as consultants without pay to the Govern- ment Radio Administration, prepared plans and specifications for a complete international radio service to and from China under joint American and Chinese control. On November 3rd, 1928, a contract was placed by the Chinese Government for two 20 k.w. short wave transmitters together with receiving and central office equipment. On November 11th, 1928, a ten-year traffic agreement for handling radiograms between the United States and China was signed in Shanghai. On January 15th, 1929, an eight-year traffic agreement was signed between the National Committee of Reconstruction and the Philippine sudsidiary of the American Corporation for traffic between China and the Philippines with temporary direction of American and European traffic via Manila. On June 1st, 1929, China opened a service to Hongkong, and it was decided later in the year to set up a central transmitting and receiving station with French and American equipment which would be used for radiograms between China, the United States, France and Germany. It was expected that about October the service would be initiated. The cost of the equipment was given as 170,000 gold dollars supplied by the United States, and 130,000 gold dollars supplied by France. In this way United States interests have secured control over wireless transmission and this must play a considerable part in the development of trade between the United States and China in the near future. It is peculiarly unfortunate that British interests should have had no say in this matter.
In actual construction work good orders have been secured by British contractors in the past but they are now losing them owing to strong competition. In many parts of China and in particular Manchuria the local Chambers of Commerce are strongly in favour of telephone installations. It is probable that similar terms of credit will be asked for to those granted at Canton and probably the risk will not be serious.
FIRE PREVENTION.
141. The increasing sense of civic responsibility in China is calling attention to this branch of public service and the use of modern methods of fire prevention will provide a growing market.
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