1 have dealt at some Tength with the aaneiat and administrative problems of China because sound currency and sound credit and stable Government are the basis of trade activities. 1 have mentioned some points to which I attach importance, Hour in general T believe that the Chinese Government are working on the right lines and 1 am convinced that the fundamental conditions for the development of trade are present in. China to-day, To turn to trade questions, the euro rency reform had an Immediately beneftelal effect on the economic situation, The adverse balance of trade was immediately reduced and Thelieve that China is now a creditor on current international recount, The re-adjustment of the exchange encouraged exports and internal trade and discouraged. imports, The figures for the frst eight months of 1936 as compared with 1995. show a fall of Imports by $02. (000,000 or 9 per cent; an Increase of exports by $07,000,000 or 28 per cent; and a reduction of the adverse balance of trade by $150,000,000 or Just over $0 per cent, 'Motcover, the reduction In imports has been effected. almost entire Targe reduction in. the Imports of cereals and other foodstuffs, which China' should' be ina position to produce for herself. During the frst eight months of 1935 China imported cereals and wheat flour toa value of '$126,000,000 during the first eight months of this year the imports of these commodities were valued at rather less than $44,000,000 or roughly one-third of what they had been in the preceding year, 'This has lett all the more foreign exchange available for Imports of manufactured goods, and, apart. from cotton piece goods. the' volume of Imports of manufactures has, generally speaking, remained stable or increased, "This is the right economic trend, for China should be self-supporting in' staple. agricultural products but needs 10 import manufactured goods. 'And this tendency. should continue. 'The recent harvest has given China bumper crop, fully 30 per cent. greater' than Fast year's production, and this applies not only to cereals but to cotton and other products, ould be able to dispense still further with Imports of ageieultural products which she can produce at home and should be able to expand her exports of these commodities with beneficial effects to liber purchasing, power at home and to her imports of manufactures, While the British Empire taken as a whole has a larger share of the trade with China than any other nation Tam sorry to say that the United Kingdom has no longer ite old place as the most important exporter to China, "In fact, according to the Chinese Customs statistics at present we come fourth, The exports from the United States, Germany and Japan all substantially exceed those of, the United Kingdom.
The Customs statistics. naturally, do not include smuggled goods: and account is taken of this factor, it seems probable that Japan's position is, more favourable than the Statistics show, "In regard to cotton pees goods and other similar articles, the advantages which Japan enjoys are such that it ig natural that she should obtain the hullo of the trade such consumption goods.
Text read from the printed page and cleaned; old type leaves the occasional error.