The close trade relations betw China and Germany, and the special system of trade practised by the latter, occasioned increasing difficulties to British merchants, Importers of Machinery found themselves severely underquoted largely in consequence of the peculiar exchange facilities with which the German Government assists is exporters. There is indeed strong reason to believe that Mark/Sterling exchange rates are adjusted to meet the requirements of each individual transaction. On the Export side (from China), even where Barter transactions. are not involved, British completely dislocated, and, except for a few ships and lightertows which ran down to Wuhu before the new barrier was erected at Matung and eventually got through to Shanghai, there has been no direct communication, and, during most of the period, the transport of freight has been virtually, if not entirely suspended.
An exception to this period of stagnation was the admirable effort of the two British Carriers to organize a substitute service via canals north of Kiangyin. It proved a difficult and not altogether satisfactory undertaking, but some 7,000 tons of export cargo were moved out and a very considerable quantity of imports was brought to Hankow.
We deplore the destruction of our old friend the "Tuckwo" by Japanese aircraft at Wuhu and the damage similarly inflicted on the "Tatung."
Other exceptional activities of the River Shipping Companies were the carriage of very large numbers of refugees and the transportation of large quantities of machinery from factories in the war zone to points further up-river.
In regard to Ocean Shipping I should like to mention that the system of the Central Booking Office has continued to give very tolerable satisfaction. It is not claimed to be an ideal system, but its virtues have outweighed its vices, in that it has evidently proved itself a successful barrier to malpractice.
Prior to the outbreak of hostilities, there was much adverse comment among shippers regarding the paucity of direct-loading steamers during High Water. Good trading conditions elsewhere have evidently been leading to the progressive neglect of Hankow as a port of loading. If normal trading conditions should eventually be restored, shippers will certainly expect this to be remedied. In their opinion, satisfactory service is an essential to the Conference system.
Text read from the printed page and cleaned; old type leaves the occasional error.