CO129-619-1 Parliamentary delegation to China 1-9-1947 - 23-12-1947 — Page 154

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published, will amplify this in great detail,

It is

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certain that the domand cxists, but it must be emphasised,

however, that unless and until China can so restore

the balance of her economic life as to be able

to pay her way by her exports or, at least, show

horself deserving of e.g. foreign loans from the

U.S.A., she will not have means to pay for her imports

and it is a fallacy to hope that she will be a good

long-term market.

Since the odds appear to be

heavily against any successful outcome of her prosent

position, we are reserving judgment about our future

prospects there.

British Investments in China

The above gives an outline of our views about

This,

our prospects of direct trade with China.

however, is only a part of our economic interest in

Chinas A considerably more valuablo part in the

past was played by the large investments wo had in

China, mostly in the form of capital undertakings,

mining, manufacturing, public utilitics, shipping, but

including large merchanting businesses and other

professional firms. In 1936 it was estimated that

British direct investments out there cxcluding

old loans to the Chinese Government for railways,

which were scaled down totalled £250 million. Evon

today, the Commercial Counsellor has estimated these

recently at £170 million. Much British property was

previously concentrated in the International Settlement

in Shanghai, the British Concession at Tientsin, etc.

These/