Taxation is a difficult matter, but to one principle at least we must adhere and that Is that British sul Jeets should not be subjected to taxation in China except on a. basis of equality in all. respects with Chinese and other foreigners.
T have touched on some of these specific questions because you, Mi Chairman, mentioned them "and because I want you to be assured of my sympathy and of my desire to help. If 1 have given my opinion frankly I have done so from a sin" core desire to be of service in improving the position for my own countrymen carrying on business in China and with no wish to criticize unfairly or complain unreasonably of any on the other side who may be responsible for what we consider, from our own point of view, to be unnecessary difficulties and! hind ranees, But do not think we need be unduly depressed by the obstacles in our ath, The one thing which is more Important than anything else is that there should exist close personal rela~ tions, mutual goodwill, a study of tone another's needs, on our side an understanding of and sympathy with the new China, on China's side a realization of our diMiculties and of the benefits which China herself has gained and will gain from British enterprise and from British—good-
For I hope the darkest days are past. We see China stronger, more United, more conscious of herself Her new Ideals and her new requirements are of the kind which Haturally arouse our sympathy, her thirst for scientific development should afford us ample openings for flourishing trade. 'The need for Jeapital goods could be expanded to fan almost limitless extent. As more Stable political conditions are established' trade should be easier and more certain and if in addition to political stability, we have have now had for over a year, a stable currency, a fact. which re-Gounds to the great credit of the National Government in more senses than one, there should indeed be hope for the future.
We must realize that there are new factors and we must prepare to act upon this realization, "As China develops along the lines she has drawn for herself, the old system Will become less and less practicable. Personal contact and ce-operation with the people of this country: will prove lo be a more profitable method. The existence throughout China of the well tried and long established business organizations Which we have set up is an asset
Text read from the printed page and cleaned; old type leaves the occasional error.