OUR TRADE WITH THE FAR EAST
[To the Editor of THE SrEcrarou.]
Sut,—The threat of hostilities on a large scale in the north- east corner of China proper focusses world attention again upon Far Eastern affairs. Once more, as has so often hap- pened in the past, there are established British interests in the seat of conflict—this time in the great coal fields of Hopei.
These recurrent situations, created through the absence of any central authority in China strong enough to enforce a reasoned and co-ordinated administration throughout the country, have had a most discouraging effect upon those responsible for British trade policy in the world's greatest potential market. This discouragement is reflected in what may become a disastrous policy of laissez faire, both in industrial circles at home and throughout our distributing organizations in China—a policy that takes into account neither the rapidly developing markets in the more settled areas along the coast and in the Yangtze valley, nor the even more rapidly changing social and economic conditions in those areas.
Trade figures in China for the first half of 1932, and the specialized activity of our principal competitors, reveal dearly that other industrialized countries are fully alive to the immediate trade situation and to its probable reper- cussions in the future. They are building up efficient distributing and trade intelligence systems in sympathy with modern Chinese tendencies and in anticipation of the trade revival that must come sooner or later.
British industry is represented in China almost entirely through the agency system. This system is based upon individual commercial units independent of strictly British interests ; conforming to an obsolete pattern ; trying to handle simultaneously such an overwhelming number of different goods that necessary specialization is barely possible.
It is abundantly evident that the initiative lies with British industry itself. Now is the exact moment in China for an enlightened and dynamic trade policy. This can only become
effective when manufacturing interests establish a reliable source of detailed information through which they may learn exactly what the highly individual market of China requires ; through which discouraging reports of unrest and civil disturbance may be interpreted in terms of actual reality ; and through which the preliminary organization of direct distribution may be effected. To-day Great Britain is faced with a unique opportunity to open a new chapter in Sino-British trade relations, and in that opportunity rests no small share of the future prosperity of the British
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