FO371-23515 — Page 196

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IN SHACH

GYD

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do. 97. (xef:4/548/58) (and 6 copies)

Copied to

Department of over- seas ïrade ïo, 88. Consul-General,

Shanghai, No. 25.

OFFICE OF THE COMMENCIAL COUNSI LOR

SHANGHAI.

23rd December 1988.

sir,

Report by 3.4.C. for the month of November, 1938.

With reference to my despatch No. 95

of vatober 26th, 1988, on the subject of the in-

dustrial situation in Shanghai, I have the honour

to forward herewith a further report by the

Industrial Section of the Shanghai Municijal

Council for the month of November.

2.

The gradual recovery, especially of the

silk industry, noted in the previous report, con-

$inues. It remains, however, to be seen whether

this recovery will persist if there is no radical

change in the situation. There are, for instance,

reports that the silk filatures

re embarrassed by

a shortage of cocoons as a result of the purchasing

monopoly which the Japanese are endeavouring to

set up in the interior.

3.

Any rapid return of prosperity to the

Northern and castern districts of the Gettlement

is, however, dependent on their return to the

control of the Shanghai kunicipal Council, which

alone oan restore the confidence of the Chinese

owners of the many industrial plants still lying

His Excellency,

idle.

Sir Archibald Clark Kerr, K.G.M. G.,

His Majesty's Ambassador,

SHANGHAI

علمات

14.

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