THE situation with regard to foreign trading in Tsingtao has now become so serious that British, American, German and other foreign businessmen here are unanimous in the view that, unless some action is taken by their. respective Governments, foreign trading interests will be completely driven out of Shantung.
'A canvass of foreign firms reveals that this situation has been reached by a series of gradual steps, First, the export trade of Tsingtao had practically reached a standstill by the time the Japanese forces re-tured here in' January, 1998, The harbour was blocked by a ' boom which had been laid down by the Chinese forces. What shipments moved had to be handled by sampan from an open beach allotted for the purpose by the Japanese navy authorities, Of course, it would have been pos sible, and much more convenient for the foreign exporters to handle their cargo by Junks and lighters from the small harbour, but that small privilege was denied the foreign vessels, The Japanese navy immediately took steps to remove the sunken boom and within a short time small size Tapanese vessels were allowed to proceed into the harbour, When Vessels of foreign ownership wished to use the wharves, they were politely told that the' entrance to the Harbour was not safe and only Japfanese vessels could usc the wharf area, It was said that foreign vessels would be allowed to proceed to the wharves after the entire boom was removed.
Japanese Grms, however, continue trading In peanut oil to New York and Europe at current market prices, indicating that these firms are not working on the basis of the fixed Fates of exchange laid down by the Japanese authorities but are utilizing the Shanghai open market rates for Chinese national currency.
The Yokohama Specie Bank refuses to handle ordinary banking business for foreign firms, yet the Japanese Navy Mission has indicated that export permits would be granted provided the Yokohama Specie Bank nanced the business, The Yokohama Specie Bank will only buy foreign exchange and will not sell, They will accept bills of exchange for collection but will "not conduct ordinary banking business such as buying and selling of foreign ex-
Central Government Foreshadowed Peiping, Sept. 23.
Text read from the printed page and cleaned; old type leaves the occasional error.