"The development of China will require the importation of much capital foods and this is probably the most promising eld for British exports. Buch exports would be greatly facili taled by a flow of credit to China, where capital Is scarce and the yield under proper management should be be fully remunerative, In the past the United Kingdom tas done much to develop the railway system of China, but unfortunately many of the Toan obligations thus incurred have) not been fully met, These defaults have seriously prejudiced the credit of China, and her efforts to secure nance for new development purposes have been correspondingly hampered. The National Government on pear genuinely anxious to settle outstanding Obligations, within the limits of their financial possibilities, and also to remedy the serious defects in the administration and management of the Failways, with a view to enabling them to meet their charges. It must be borne in mind that defaults are, in the main, a heritage of years of civil strife and social disorganization. It' a reasonable settlement could be reached in regard to these old debts, the way would be open for financing extensions to the present railway system and opening vast stretches country to foreign trade. No other form of enterprise could be more beneficial both to China and to the United Kingdom, and every effort should be made to overcome the dimeculties, "Apart from railway financing, which calls for long-term credit. the
Text read from the printed page and cleaned; old type leaves the occasional error.