Shanghai, Apr. 8.
will be apparent that we have a very real interest in the outcome of the struggle which even now has seriously impinged upon our rights and legitimate aspirations, and that we cannot ignore the implications of the Japanese invasion," said Mr.
Calder Marshall, Chairman, during the course of the annual general meetings of the British Chamber of Commerce, Shanghai, and the China Association, Shanghai Branch, held in the chamber's offices at 27 The Bund at 5.15 pam. yesterday.
Mr, Calder Marshall, who presided the meeting of the British Chamber of Commerce, gave his annual Feport as follows "The work of the Chamber during the "frst seven months of 1937 has been entirely overshadowed by the events of the last five months of the year.
'When speaking at the last annual meeting it was possible to take an optimistic view of the future, for it appeared thatthe depression' under which trade had been languishing for so long was passing, and that we could justifiably regard the future with confidence, But even at that ime, in reviewing the general situation it was mentioned that "while the "status quo' with the Japanese is still situation potentialities which being maintained in North China, the
inevitably give rise to misgivings and thus unavoidably cloud what might otherwise be a clear prospect."
Little did any of us think in April that events would take place a bare three months later which would dev troy much of the material development that had been achieved and would bring untold loss to the country and to all those whose interests are dependent on the well-being of China, Polities and Trade It is not for this Chamber to take any part in political issues except Insofar as politics impinge on trade. But when it is remembered that British capital invested in China aggre kates approximately £300,000,000, that some of this is in jeopardy, as a result of the present invasion and the sibilities Inherent in the situation, While ils earning capacity must inevitably be prejudiced and when we think of our businesses which since August have been crippled, and con= Sider the potentialities of the present hostilities in relation to trade, commerce and industry, it will be a parent that we have a very real Interest In the outcome of the struggle which even now has so seriously im= pinged upon our rights and legitimate aspirations, and that we cannot ignore Bx the implistions of the Japanese invasion.
Though the Japanese Government has given repeated assurances regard~ ing the maintenance of the territorial and administrative integrity of China and though her spokesmen have been equally emphatic regarding non-int ference with foreign rights and me rests, I is dificult to reconelte such statements with the events of the past ight months.
The establishment, under nominal Chinese control, "of "the "Provisional Government of the Republic of China"
Peking and of the "Reformed Government of the Republic of China" in Nanking may, in theory maintain the administrative and territorial. integrity China, but such independence is more apparent than real, and if the Ueclaved intentions of Tokio become effective and Japanese corporations fire established under franchises from the ""Provisional" and "Reformed" Governments to operate and control all railways, telegraphic communica tions, mining, electrical undertakings and some of the Key industries, such monopolies would naturally seriously effect British interests, British Interests hus been frequently stated that British interests in Ching are. trade interests, Our interests are dependent tupan the "Open Door" and "equal op~ portunity." Though Japanese spokes men have emphasized that the "Open Dear" policy will be maintained it is evident from the statements emanating from Tokio that it is not intended that enjoy "equal port br industry or even commerce.
Atvealyy aw we learn from North citi, 1 Japanese monopoly for woof fas been established to the detriment important foreign interests which fave been corsying on this trade for many Sears.
The ross discrimination of mono polies in favour of one troup need hot be stressed, but when that gran Consits of nationals of an alien country, the discrimination is far more Serfous and almost assiiness the ¢ha= for of an unfriendly act considering future trade. pros= neets and possibilities in, Shangha we Inist of necessity ive close attention to activities in. North, China and the plans being advocated by the Japanese for the exploitation of the ares occupied by their forces as though it planned that the "Reformed Govern ment of the Republic of China" inaugrated at Nanking shall only have separate existence until such time as the-occupied area in the North joins the occupied areas in Central China when the "Reformed Government" will be merged in the "Provisional Government"—in the meantime it is slated that there will be close cooperation. between the {wo governments, a fact which must be borne in mind.
strife May Continue"
Since the incident in the North last July which precipitated major hostilities, fighting has been incessant, losses of men and equipment on both sides have been heavy, but though the Japanese are occupying very large areas, such areas, though occupied, can hardly be regarded as conquered, and unless some reasonable and honourable and acceptable basis for peace can be formulated it would appoor that the strife nay continue for 2 very considerable time.
Prior to the outbreak of war there had been consistent progress made by China in the extension and improve~ ment of her. railways and highways, her radio and telegraphic communica. tions, conservancy work and general industry, while at no time had there een greater unity in the country or seemingly fairer prospects for material prosperity for harvests were good and the stability of the currency material assisted the traders and gave con-_ fidence to investors, but it is futile to discuss what was in being or what might have been In view of the hos~ lites, in Central and Northern Chino, which' have destroyed the material achieverient of years and crippled business, industry and agriculture in these areas.
"To turn from the general to the For purpose of record the following figures of the trade of China are giver they serve to emphasize the traged; hat has overtaken this country Exports osinstans $33288-708 imports 941.544.730 9583.396.007 On the basis of the frst seven months of the year it is obvious that 1937 would have provided record AAgures, and while the last Ave months are belter than might have been expected, It must be borne in mind that these iyures include imports and exports, the contracts for which were entered' into prior to the "incident" fand that the effect of the trouble will become more apparent during' the present year which will reflect the general absence of new business, since August, in this and Central China ports.
"Duty-tree Cargoes The Agures given do not represent the actual import and export, as, in addition to the smuggling which has continued unabated in East Hopel and to which reference has been made in previous years, since August considerable quantities of Japanese {goods have been imported into Shang-hal. and 'Tientsin without being enfered at the Customs, thereby, incidentally, seriously damaging' the Interests of foreign traders, other than Japanese.
Though the foregoing figures show the effect of the hostilities on the trade of China, the following comparative Agures, relating to Shanghat only, show the effect of the war on the irade of this port—Shanghat jog 1807 ahd Poports, S185 an7 duly si60040s 440 s6aren Jan /uly, 20a 2on4et 301399-901 AuE./Dee, Sanzms.407 °aa-20.344 Exports: Aut/Dee: 1s0.198:154 102490477
In an abnormal year such as 1937, figures as to percentages of trade Jconvey but little meaning and have! but small bearing on the general trend but for purposes of comparison the following are the percentages of the trade of China of the four main trading nations—
Text read from the printed page and cleaned; old type leaves the occasional error.