1930-09-27 — Page 2

FAVOUR ISM

S safe and wholesome

as good Scotch Whisky" is a simile often heard. The wisdom of this apt saying is fully realised when the whisky is "Highland Nectar The rich malt flavour and mellow maturity fully justify its choice.

THE DISTILLERI AGENCY, LTD

DISTILLERS, EDINBURGH.

This Illustration 12 depicts the attractive, "Highland Nectar Decanter

"Highland

Nectar"

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HONG KONG DAILY PRESS. SATURDAY, SEPTEMBER 27, 1930:

COMPETITION FOR CHINA'S TRADE.

WHERE BRITAIN HAS BEEN HIT,

PROSPECTS OF INCREASED BUSINESS WHEN TRADE

REVIVES.

Conditions in Chinn, viewed from the British and Chinese standpoint, are described in n very interesting manner in the articles reproduced below, both of which have been printed in London. In the article appearing in British Industries, the trade situation and outlook is dealt with by Mr. G. W. Sewell, the F.B.I. Correspondent in South China, who is at present in Eng land. He emphasises the need to maintain contact with the market so as to be ready to take advantage of the trade revival when it comes.

China's Loss of Markets,

Italy and Czecho-Slovakia at ex- No one will deny the immensstremely low prices. Japan and Germany are supplying the bulk of

articles possibilities of trade with. China electrical

of inferior with her 409,001,000 prople and quality at prices very much below

those of British manufacture. great natural resources, but con- tinued civil strife, niisgovernment

Britain's Good Name. and wrong ideas have killed all

In spite of all these drawbacks, hope of a speedy recovery. The the British name stands high in biggest blow, perhaps, has been the the Far East for quality, integrity and character. It counts:) in

you

The growth of the Press, the spread of education on Western lines, and an intensive propaganda by the Nationalist Party and others has enormously increased the number of politically conscious individuals who take more or less of an interest in the foreign affairs of their coun- ry. It is often not a very well- informed intorest, and sometimes it is grotesquely prejudiced, but in the mass it is powerful and can be

steady drop in silver, which has our favour that there is less dangerous, and must be taken into Berions consideration. That is not during the past nine months in-chance of claime arising in

to say that we must not protect our creased the cost of imported goods respect of goods bought from Engselves against outrage and insult. land than from any other country. into China by 37 per cent. This Our foreign competitors cannot im- such as occurred in the times of would normally he offset to a great prove on our export machinery, nor actual rioting and turmoil. These extent by increased exports, but

can they teach us anything regard-acts are deplored by decent Chinese, China has been gradually losing ing methods of distribution. If the and any reasonable action we take her markets for tea, silk, wood-ail, British manufacturer is in a posi-to protect ourselves is not resonted

by them.: etc., in which by rights, no country tion to quote a competitve price, should be able to approach her. he will invariably get the business, These markets have been lost solclyne we are more favourably placed because of deterioration in quality. in China than any other nation,

The Chinaman's ward is no longer

as good as his bond.

To quote one or two examples: The cinnamon trade has gone large ly to Colombo because there purity of quality can be relied on, which is not, the case with China. The export of fire-ernekers to America and other countries has decreased because of the number of duds" The falling off in the import of saltpetre, which is used in making these crackers, tells an eloquent stor in this respect. The cana trade, especially to the Balkans, which used to be considerable, has dwindled because shipments have been made wet instead of dry; tes is being adulterated, as also is -wood-oil; sa much so in the latter rave that buyers in England have been forced to seek a new source of supply, and a company has been formed to grow wood-oil bearing trees within the Empire,

The Need to be Prepared, Undor these conditions it is in- evitable that the purchasing power. of the people should decrease, and the result is either a reduction in the consumption of the higher grade productions or the aubstitution of inferior qualities of foreign manu- fucture. In the hoavy trades; con- sisting of Government stores, rail- way and harbour plant and equip ment, structural, steel, machinery and engineering stores for the maintenance of power stations and so on, British firms are on quite a firm basis, more especially for structural steel. The demand for these lines will continue to expand in proportion to the general deve- lopment of the country. With re- gard to the lighter trades, compris- ing cotton and woollen piece goods, the cheaper qualities of metal and hardware, aluminium ware, soft goods, etc., we are losing a certain amount of business, 2s the Chines now regard pries na the paramount factor irrespective of quality.

Imports of Soft Goods.

The importance of the price factor is illustrated by the remark- able success which has attended the activities of the Japanese in lower grade cotton goods. This trade was largely in our hands before the war, but the Japanese have now got 90 per cent of it. Wo supplied them with textile mathin- ery, and they are now turning out cotton piece goods at prices 15 to 20 per cont. below those of British manufacture, and although, Lan- cashire has formed a combine to endeavour to meet this competition in standard cloths, we do not seem tri be able to get down to the lower. quality supplied by the Japanese, As. recently as seven years ago we controlled the market in woollen piece goods, but a fair portion of this business is now passing to the Continent on account of the cheap cloths being produced there, I do not think, however, that this is likely to last as the material..sup- plied in distinctly shoddy and not always up to sample.

Competition in Hardware. In aluminium ware, padlocks, hacksawa and hardware generally, the Germans are very strong com petitors, and cheap machinery is so being supplied by them. For some time past America has been steadily capturing the provision trade, and I cannot help thinking that we are

to blame for letting her got a foothold in the market. It was, of course, comparatively easy for her to do this during the war, but immediately afterwards we were rather slow in changing our methods to meet altered con ditions.

In chomienie, England aur auten the market, but Aserien is making In noter onrs the U.0.A. is, at present, predominant. Topees are now made in China, and felt bats are being bought principally from

It will be seen that in the light grade, trades the problem to be solved is one of production rather than marketing. On the other hand, a good deal can be usefully done by the British manufacturer taking a personal interest in the market and realising that his goods remain his concern until they ench the consumer. He has in the past often appeared to use interest after receiving payment in London, entirely overlooking the fact that merchants in China have, as a rule, far too many irons in the fire to give close attention to any one agency unless they are assisted and prompted to do so by the manufac turer himself.

E

1

I am a believer in the essential deceny and commonsense of the Chinese and their fair-mindedness when they learn the facts, as they must do sooner or later. It cannot be denied that there are dangers and difficulties ahead, but I do not believe that these will be suficient to prevent a steady increase of our. trade with China, Tho Chinoso standard of living is rising steadily in spite of internal warfare, and there is, I feel sure, a prosperous future for thono, who are flexible enough to adapt themselves to al tered circumstances and to create new channels in which the growing stream of the trade can flow.

China is almost the only country. left without tariff walls, and it is no good building those as she has practically no industries to protect, When she settles down-ne she must do' sooner or later-she will require Chinese National Sentiment.

everything a. virgin country needs -Owing to a variety of cavFES, for development. Contacts should there has in recent years been a therefore be maintained; however remarkable growth of national fechle they may be, for the trade sentiment in China. The same ten-will go to those who are ready to do dency is to be. noteil in Egypt. In- dis, the Philippines, and elsewhere. (Continued on Page 3.)

HOTELS.

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Overlooking the River, the View from the Hotel Gardens,. Verandab, Public Rooms, and many Bedrooms, is incom parable. The River View is Admittedly. Unrolled in Europe.

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ENGLAND

Coming this Year?

The Motherland is calling you and The Residential Hotels Association havé prepared a Guide Book...

"WHAT TO SEE AND WHERE TO STAY” giving conciso particulars of numerous hotels, from which you will be ablo to salect the cue most suitable in position and tariff to meet "your" requirements.

J

FOR LONDON, a map showing the districts and a description of mach is provided, also the illustrations and what to soo and bow to so it will be found useful and interesting. The Association Secretary will be pleased to help you in any way possiblo, or book your accommodation without any booking. foe. A form is provided in the Guide, so post, coupon for a 'copy at once.

To The Secretary, Residential Hotels Association,

4, Upper Bedford Places Russell Square, London, W.01 Please send me'«, copy of What to See and Where to Stay."

(HF.)

THE HON. TREASURER,

HONG KONG BENEVOLENT SOCIETY, 525, THE PEAK,

Enclosed please find cheque for twelve dollars. being subscription to your Society for the current year.

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