May 24.
Dr. H. H, Kung has happily found the atmosphere in London most favourable to his advocacy of British ce-operation in the development of China's resources. He will probably be the first to admit that the ground had been well prepared by the steady labours of Mr. Quo Tai-chi, whose success as China's representative at the Court of St. James has earned for him the deep gratitude of both countries, The recent visit of the Leith-Ross Mission and its material consequences have also paved the way for Dr. Kung, as Special Ambassador, to bring' to British attention certain important aspects of developments here. China's need of capital and technical knowledge was appropriately pointed out to the China Association and the Federation of British Industries who conspired to do honour to China's chief Corons tion delegate. It is impossible, of course, for the oratory of a banquet to cover the ground as fully as, say, an official report. The principal speakers can deal only with the salient features of the situation and, in a complimentary mood, they are' precluded from insisting on reservations which are essential to} 'a complete presentation of the subject for the purpose of formulating] policy. Mr. Walter Runciman, whose presence at the banquet showed the importance which the British Government attaches to Di Kung's mission, was, however, moved to combine his congratulations of China's successful handling of the managed currency scheme with the friendly hint that adherence to sound principles of currency would "most gain British admiration", The Finance Minister of China thus had the assurance that his pledges to set up a Central Bank on modern lines and to balance the budget, so that the unification of the currency and the stabilization of the dollar could be secured on a firm basis had the cordial approval of British commerce and finance.
If Dr. Kung's efforts—admirably reinforced as they are by the direct personal interest of General Chiang, Kai-shek and the Government at Nanking and by the ce-operation of the Leith-Ross Mission and other representatives of the British Government—are {0 be pressed to a successful issue, it is essential that here in China, they should have full Chinese and British support. When broad lines of policy are laid down either in Nanking or London it is impossible to enter into those details which, by men on the spot actually engaged in testing the execution of that policy, must be examined and proved. That where, sometimes, criticism is apt to find expression which, unless viewed in the proper light, may seem to be obstructive, When Mr.
Runciman asserts that the posibilities of trade in China are "stupendous", he is making a statement which must be assessed by the long view. It must not be taken to imply the conviction that he has uttered. the "open sesame" for the immediate admittance of British traders to a cave of limitless treasure. Given steady severance in the goodwill now marking Sino-British relationships, satisfactory political conditions, ¢3 ternally and internally, for China's development, steadfast adherence by the Chinese Government and the people at its back to the programme of economic reconstruction and resolute action in improving administrative machinery, there is no reason why Mr. Runciman should fail to be a true prophet of is destiny. It would be fatal, however, if his words were to be accepted without reservation, either by the British financier and trader or by the. Chinese exponent of what Japan calls "the new concept" of China's affairs. Dr. Kung was justified in $2] drawing attention to the improved trade returns, but, unless his advisers who were present at the banquet have been momentarily disconcerted by that Coronation feeling, he was well aware that the development of China's resources for establishing the surpluses of which he spoke depended not only on technical, financial or even fiscal measures' of reform but! largely on the ability of the Chinese Government to maintain political and administrative equilibrim.
To attain to that guarantee of of economic progress is no light task, It demands considerable statesmanship from the Government and, let it be added, considerable Understanding from those who here have to deal direct with Chinese officials and business men. On that account it would be pleasant to think that the spirit of the speech of Mr. Walter Runciman could find frank and enthusiastic support from the British in China, Much has been done to remove former diffidences which seemed to cloud the way of approach to Sino-British accord. British feeling here is generously inclined but it has perhaps to cultivate the sense of proportion which assigns obstacles and disappointments their right degree of significance. When a country is slowly but manfully emerging from a revolutionary condition the utmost tolerance and patience are required by its friends. There is every reason to believe that those qualities are at the disposal of China in seeking British ce-operation. They will be the more readily forthcoming it China on her side can show an alert appreciation of the realities which He at the base of sound commercial relationships. Similarly here in Shanghai patience and discernment can be generously engaged the Government shows ite Self alive to the importance of commanding public confidence by responding to reasoned criticism of such legal and administrative defects as have led to the stagnation of credit. This attitude is not inspired by carping scepticism but by a realist conception of the origin of credit. Just as delay in reforming mortgage law, in clarifying the relations between tenant and landlord, thus re-establishing the liquidity, of mortgages as instruments of credit, has retarded the growth of understanding, so. nonrecognition of the incompatibility of welcoming foreign capital with the imposition of unfair diserimination against foreign trade, must of necessity raise impediments to the natural cultivation of those contacts which by his admirable energies in London Dr. Kung is so wisely encouraging.
Text read from the printed page and cleaned; old type leaves the occasional error.