CO129-557-9 British protection of companies in China 26-3-1936 - 27-2-1937 — Page 36

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MEMORANDUM ON THE BRITISH PROTECTION OF

COMPANIES IN CHINA.

Sir John Brenan's proposals for the amendment

of the Orders in Council dealing with the protection of

British companies in China are intimately connected with

the present state of British trade in that country, and

also with the difficulty which Chinese living in British

Colonies, i. e., mainly Straits-born Chinese, find in

obtaining denationalisation certificates.

(1) At present British trade in China is suffering

heavily from German and Japanese competition, and

Sir Frederick Leith Ross and others urge that an

increased supply of credit should be given for the

purchase of capital goods from this country. Mr. Beale,

the Commercial Counsellor at Shanghai, remarks in his

memorandum (see enclosure (40) on 15314/36 General

Economic) that British channels of trade in China are

tending to decrease in number, and that with some out-

standing exceptions they do not compare favourably with

their German competitors, i.e., not merely are the prices

of British goods being undercut, but the supply of British

technical and business experts resident in the country

It would seem, therefore, that any

proposal which would tend to decrease channels for the

promotion of British trade in China is undesirable.

is insufficient.

(2) There are in Malaya Chinese families who have

had no direct association with China for several genera-

Many of these are Directors, owners or share-

holders of firms with branches or headquarters in China

itself.

tions.