The material loss suffered by Foreign Interests in Shanghai though large is much Jess than might have been anticipated. Even at the present time it not practicable to give any reliable estimates of British material losses, it Is the consequential and potenial losses that really matter if" we take the longer view. The destruc~ lon of Chinese manufacturing plants and property, the loss of stocks and the destruction of Chinese markets end Industries, and the dislocation of (rade represents a far more serious Joss to British interests and one from which it must take decades to recover. While we know from personal observation the enormous. industrial ess that has been suffered by Chinese in Shanghai, the destruction of mills and industrial plants in Wusih, 'Changchow and other important centres is of. equal Importance, to the welfare of the country, for it must be remembered' that these industries provided a livelihood for many thousands of workers who, instead of cor: tributing to their country's. progress, now destitute, Claims for losses and damage caused bby and during the hostilities have received the attention and consideration fof your Committee. Such claims are now being received at the Consulate and it is hoped that HIM. Government Will be able to secure satisfaction.
On January 21st a revised Customs 'Tarif was promulgated in North China by the "Provisional Government" and made operative in the territory under ite control, viz, in the territories in the North' in Japanese occupation. Though merchants general will be disinclined to grumble at any downward revision in rates of uty and though for many years past attention has been drawn to the desirability of abolition of export rities, the present revision by the "Provisional Government," applying: fs it does mainly to articles which affect Japanese trade and applicable to a part of China only, cannot be regarded as satisfactory. A uniform {tariff applicable throughout China is not only one of the provisions of the Treaty of 1928 with China, but is necessary to prevent smuggling from ne part of China to another, there being no Customs barriers and no means of instituting such barriers between the different areas, To. the provisional Government" in North China the possibility or rather pro-ability of smuggling may cause concern, but 40 the merchants located the areas of the higher tariff the matter is one of serious importance, as it must also be to the Foreign Governments interested in maintain" ing the integrity of the Customs and the service of foreign loans secured fon the Customs revenue Phe Customs Problem The question with regard to the Shanghai Customs is still the subject of diplomatic conversations and nothing has yet been settled. Cargo by neutral shipping is still "entered through the Customs in the usual way, but ig is understood that. Japancs0 Owned cargo, brought by Japanese vessels. and landed at Japanese wharves, dispenses with Customs formalities both as regards entry and payment of duty.
On March 22, certain regulations wore issued by the Japanese authori-tos in connection with Inland Water Navigation, which required that all vessels plying on inland waters must cbisin a permit from the Japanese authorities. The principle involved is,
mat denied the right' of Japan, to Important and LIB. Government apply such regulations to British vessels While obviously the immediate prospects for British trade and British traders cannot be regarded as bright, and while the present situation 18 probably the" most critical that Shanghai has ever been called upon to face, we need not take too gloomy fa view of the future as once the channels of trade are opened to the Interior it will not be long before business is resumed, and we must therefore, concentrate on securing that the present impediments to free access to the northern and eastern districts" of Shanghai and to the hinterland and up river are removed.
The foregoing deals with some of the problems that have arisen since the commencement of hostilities, but though these are important and occupy our attention it is realized that other and far more important questions may arise during the current year that may tend to deprive us of the "equal opportunity and door" which we can" legitimately. claim as our right and we are con-dent that our officials will give us every support in resisting any threatened impairment of these rights or any unfair discrimination, 'The special thanks of the Chamber are due to the members of its Sub-Committees, who met to study and advise the' General Committee on various matters. The Chemicals JSub-Committee met to discuss: the regulations governing patent and
Text read from the printed page and cleaned; old type leaves the occasional error.