For the Economic Mission To the Editor of the "Nowra-Ciuna Dai News."
Sim—Whatever conclusions the Economic Mission may draw, what-fever decisions they may adopt for the increase of British trade with China, it is to be hoped that body of business. representative will realize that without, an unified and genuine spirit of cooperation between the Foreign Pow-vers and China with regard to he> economic reconstruction, an increase of goods sold on the part of any one nation will be but a mere scratching on the surface of things.
the years immediately following the Treaty of Versailles it was clearly demonstrated to the ignorant statesmen who drafted the treaty that a country's ability 18] meet her obligations depended upon liber national prosperity. The pri ciples of economics were being forced. upon statesmen. But they Jearned slowly. It has taken a World-wide business depression to illustrate clearly that national prosperity depends on world-wide prosperity., That prosperity ca not be locked up in national watertight compartments. Economic eonditions in the more industrialized countries are forcing business men to become more "internationally-minded." And therein lies the hope for this country and for business China's problen—that of habilitation and world problem, lem calling for unifies despite the apparently ce interests. Unfortunately, 80 many side issues involving tion aspirations. And Young, \—representing 80 small a country—is sponsoring. these ing of in effect, they are—by a reason of their prematurity—a hindrance to, ional economic welfare. ming the issues clearly they.
(1) Peace throughout the country (2) the development transport facilities (3) the ability to borrow en pital in the world money market (4) the growth of Industralization (5) the increase of purchasing power and the introduc. tion of a decent stands for the people (6) no, for: ference or infringement eign tights."
Those are from the Chinese view. point. From the foreign point of view they are:—The expansion of the Chinese market—which involves adequate protection and security for the lif, property and capital of their nationals; fair and open com petition to the benefit of all cone 'Whether Nanking can establish' peace throughout the country remains to be soon. Unfortunately, this phase of the problem is peculiarly China's own. Popular Chinese opinion absolutely precludes the iden of intervention. In view of this it must be assumed that China can solve that phase without, foreign assistance. But the oth phases involve foreign ce-operation. Politics and internecine warfare have forced the railroads and her hipping companies on to the order of bankruptey. Warfare thas drained the fluid capital of the Defaults on payments, miding of domestic loa vities of the, international: in-Vestitent market. Which is more serious than it appears at first glance.
As a2 undeveloped country, China mast, for years to come, take the capita) goods of the more industrialized nations. For years to come her visible imports will exceed: her visible exports. For years to come ske will need acutely that justment Ju her balance of pay: ments caused by the inflow foreign capital. Well—where is to come from? Will the foreign financial groups supply iv?. Will the foreign manufacturing interests supply it in the form of goods on extended credit? Will the foreign merchants in this country continue to supply free and easy credit? From the broad viewpoint of progress maybe it doesn't matter what tion, what group, what in-Jdividuais supply it. The important point 's whoever "carries the baby" must be in-a position to command the security. For China's sake ana for the sake of world economic welfare that is absolutely imperative. No capital or credit without adequate security. Loose credit at] this juncture will sink the last remaining fragments of Chinese integrity and seriously impair world economic recuperation. You see, in' ease of defaults on forei ments, unless you are pr able to persuade your country to go to war, you can't foreclose on a government and appoint a receiver. Nanking knows that—however sincere and willing she may be with regard to meeting China's obligations. So please what
Modern business has evolved We consider a ing to do about it?
corporate machine that fuelled the international financial groups, drove economic progress through the shaky post-war years. If can't be applied to this vital matter then we are at the end of our ingenuity there—and that is one Kind of a problem. If it can then the problem is one of method—presenting only organization dificulties. "Which it Is becomes a question of fact. On the one hand we might as well consign China to her own particular Hades, out our: losses, readjust the economic fabric of our own countries and prepare ourselves to carry the economic corpse of China after she has successfully committed suicide. On the other hand we have only to apply to China's problem the methods of modern corporate activity that' have given us the supremacy in the social structure we so fondly At this point it might be timely to stress the fact that there is) growing up in the bus Jot Great Britain and Am body of young men who ha the defects in our financial system, These wen have proposed remedial menmures—correctives—which ought be given wholesome considera tion, Our efforts in, China at bringing about world economic pro-ress need not be burdened with the heritage of mistakes left us by the older generation of executives.
Returning to the meat. It seems to me that there is only one group powerful enough (and with the possibility of being unified enough)
rey the baby." That group is the Consortium. Therein could ie adequate machinery for dealing mind. groups composing the Consortium are the very flaws that have given the business world its misteumed "overproducproblem. Now the new school terms this an "under-consumption" problem and there is no reason why fts modern policy should not be adopted in this country—sponsored by the established groups. The new of necessity, have tobe men with solid experience of the condit obtaining in China and their policy would have to be flexible and broad fenoxgh to admit the modern financial precepts.
There will be a storm of protest] against any active participate auch a group as the Gonsot Haman nature being what it is the popular argument will be that the member nations will seek to gain a "region of inflaengé" through thei representative bath cial groups snd the pernicious system of secret rebates, etc. at present widely prevalent' will 02 augmented.
Well here again it's a question of organization difficulties and, of course, Honesty of policy. Were the Counefl to institute an Import Guaranty Trust it would have access to all information on any transaction and any irregularities
Text read from the printed page and cleaned; old type leaves the occasional error.