CO129-563-18 Sino-Japanese War- stopping of British shipping by Japanese 11-9-1937 - 29-12-1937 — Page 24

THIS DOCUMENT IS THE PROPERTY OF HIS BRITANNIC MAJESTY'S GOVERNMENT

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FAR EASTERN (JAPAN).

CONFIDENTIAL.

December 2, 1937.

SECTION 4.

[F 10359/10358/23]

Copy No. 132

Memorandum respecting British Interests in Formosa, by Consul Archer, Tamsui. (Enclosure to Tokyo Despatch No. 548 of November 1.-(Received December 2. 1937.))

THE protection of British interests in Formosa consists mainly of safe- guarding the business and property of British commercial firms, individuals and religious missions established in Formosa, and upholding the rights of British shipping, calling at Formosan ports or passing through Formosan waters.

Commercial Interests.

2. British exports to Formosa are trifling. The old trade in sulphate of ammonia has died, and the principal item of British origin consists in very occasional shipments of British machinery for new factories. The British firms are concerned rather with exports from Formosa of tea or minerals, and imports into Formosa of oil.

3.

There are four foreign tea firms:

Jardine, Matheson and Co. (Limited).

Tait and Co. (Limited).

Carter Macy Tea and Coffee Company, Incorporated. Anglo-American Direct Tea Trading Company.

The first of these is purely British, and besides exporting tea it represents the Blue Funnel, Glen, Indo-China and Canadian Pacific Steamship Companies, besides some insurance interests. The second is a British firm, represented by British subjects, but largely financed by American capital. It holds the agency for P. and O. and associated lines, besides foreign steamship and some insurance interests. The third is an American firm, with an American manager, but the other two foreign members of the staff are British, as is also the capital backing. It represents the Ellerman lines. The fourth is an American firm, run by American locally, but supported by British capital.

4. The foreign tea firms in the past had in their hands nearly the whole of the export of Formosan tea; but in recent years Mitsui and Nosawa have made great advances, and a great number of Formosan firms, largely disreputable, have also made their appearance. Nevertheless, it is estimated that in 1936 the four foreign firms handled about 90 per cent. of the oolong exported, 25 per cent. of black tea and 2 per cent. of pouchong. Some time ago an export guild was organised under the name of the Taiwan Tea Association, and this year member- ship was made compulsory by the Government. This step was most unwelcome to the foreign firms. They felt that the association was dominated by the disreputable element; that membership of it would lower their own standing abroad; and they feared that, if they joined, they would be compelled to disclose to disreputable trade rivals confidential details of their business. Official enquiries made by His Majesty's consul quieted some of their worst fears, but their position remains uncomfortable. It was not made any happier when Mr. Iwata, the director of the association (an ex-police official), had up a number of the foreign firms' native employees, harangued them on their lack of patriotism in serving foreign firms, and openly boasted that he would drive the foreigners out of business within a few years.

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5. It may further be mentioned that for some years Messrs. Jardine, Matheson and Co. (Limited) have found it advisable to pay to the local police a yearly benevolence of several hundred yen, in order that the latter should turn a blind eye to the alleged obstruction to traffic caused by loading and unloading of tea at their godowns. The street is very narrow, but this is an inheritance from Chinese days, which the Japanese have not seen fit to improve;

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