Mr. Godfrey Isaacs, managing director of the Marconi Ca., Witness said plaintiff was duced to him by one of col-Jeagues. 'There appeared to be a arrangement between plaintiff and Mr. Birchal, and in consequence of Mr. Birchal's experience in China' witness was anxious o secure his services in connexion with the Marconi Co's operations in that. country. The company's first scheme was a big tone for a loan and the supply of goods to the Chinese Government. Messrs. Birchal and Malcolm wore to receive 1 per cent. on the financial part and 13 per cent. on the business part. Prior to the company had never lent money as a condition of obtaining an order. The business which was then contemplated did not, in fact, materialize.
Before it fell through, however, witness received a report that the Chinese Government were asking for tenders, and as the Germans were then active competitors China—that was the year 1923—withness was anxious that Great Britain should, if possible, get in there. Witness said he had never heard of a commission of 5 per cent. in respect of the fixing of loan. Such a commission would be an impossible one. Five per cent. was the usual commission on forders received. Defendant company had always been willing to pay that commission to plaintif's agency on orders received from the Chinese Government, but no orders were, in fact, obtained through plaintiff's agency. son, K.c.: It is common for'two gentlemen to si with most serious faces and make oura formal agreement which means something quite different to what it appears to be and both of them know it?
Witness said he had no knowledge personally of ow business was done in China, but knew that certain payments had to be made. Witness, said he approved of the business, but did not approve of the payments to the Chinese Government officials, and knew noth-about such payments till some time after they had been made. The whole business was left entirely to the syndicate, which had been formed for the purpose. Witness agreed that the rebates ete., to officials amounted to £80,000, and imagined the price of £220,000 of the contract was increased to £300,- 000 for that purpose. Plaintiff Know all that was being done and approved of it, Plaintiff and Mr. Birchal stayed their hands at defendant company's request. It wa: found impossible to do big busi ness in China unless you had behind you the British Foreign Office and the British Legation in Peking.
Br. Henderson: Your company is associated with companies carrying on business as bankers?—Yes, ina way.
For instance, in Hungary you fre bankers?—We are largely interested in a bank, You control it?—We have together with someone else a controlling share.
T think you are president 2—1 am a ce-president.
Text read from the printed page and cleaned; old type leaves the occasional error.