outside the line of regular diplomatic duties and they were exceedingly joyable experiences. Two other ships, ne from each of the same yards, filled out the year's shipbuilding pro: gramme for China in Great Britain. You may have noted the report this month of a contract to an engineering firm in Kent for a complete power station, together with all storage and handling equipment in connection with the development of a new port at Haichow for the Chinese Government railways. in Honan, Also you will be interested to hear that a" contract has been. recently signed with the Standard Telephond and Cables Company of this country for the installation of a long-distance telephone system linking up nine Provinces. "Commercial aviation, Which is admirably sulted to country ike China, has also improved communications by further dev> lopment this last year, A. general rehabilitation of all the'Government Railways has been effected, resulting in @ sounder business management. Water conservancy, road. building, improvements in tea, silk and cotton culture, rural reconstruction and land reform, public health and fuel probblems,' have all been energetically forwarded by the Government thtouga the National Economic From North To In the four Northwestern Provinces the greatest effort is being made, The National Economic Couneit has vided - two million dollars. for hydraulic works, 50,000 dollars for road building, '000,000 dollars for combating human and animal: diseases and for public health generally, and) 200000 dollars for ce-operativ No doubt many of you read in "The Times" within the last three weeks the interesting account of the vast work being done in the South. "The Times" correspondent said, "A Journey of two thousand. miles through three southern provinces of China leaves one in no doubt about the progress that is being made or the capacity of 400,000,000 Chinese to, absorb tion of the worl transportation The Need of Stabiilty China's full economic development must, "however, largely depend on security and political stability in the Far Enst. Joint Anglo-American Slatesmanship twelve years ago. of Washington envisaged the world's, necessity "to provide the fullest and most unembarrassed opportunity (for China) to develop and maintain for herself an effective. and ernment" in Peking was nothing more than the shadow of a Government, whose writ did not run outside the city walls, The dominant political force Of the country, represented by the Nationalist movement, centred Canton, was stil in its naissant stage and had not yet into. control. Yet the Powers clear-sightedly insist ted on this guarantee of good faith towards China and security for the world at large. There ensued th Interval between the conclusion the Washington Treaty in 1922 and the emergence of the present National Government in 1027 and its general recognition in 1928. Our history since then is the history of definite and steady improvement under the tional Government, which has in power longer than the term of Governments despite unprecedented climatic and The time seems again at hand for British and American statesmen 10 take th principl established Times" leader to-day refers to present conditions og so different from those in which the Washington and London. treaties were negotiated, But there is no difference in the fundamental characteristics of the situation. "The difference is solely that the need for the principles: and for the support of the principles set forth in the Wathington treaties 1s even greater now than it was' then. It'is a quantitative and not a quality uve difference. This is a matter of high policy and must invoke support from all who feel a concern to unite Europe and Asia and America in a course set true and to be followed unswervingly. T am confident that with this opportunity and the requ site political stability and security the Far East the progress of. China toward national consolidation and reconstruction will be rapid; and 1 hold it a truism that a strong and rosyerous China is as directly British interest as it is certainly 5 world interest.
The confidence in good faith and good fellowship that is go abundantly {nour mood here to-night is born of the community of interests and the existing friendly relations between our two countries. Tt can more than Stand. the strain of an_ occasional episode when interests have to clash.
Text read from the printed page and cleaned; old type leaves the occasional error.