Aprit 14.
One of the features of the official speeches at yesterday's annual general meeting of ratepayers was the very sine and sensible manner in which the Chairman of the Municipal Council dealt with the effects of the hostilities around Shanghai last year and the quiet note of optimism which he sounded concerning its future prospects. It was obvious that he could not discuss the many grave and complicated questions which arise out of that crisis and the existing state of affairs, but, speaking with that inner knowledge, which in his position Mr. Franklin must of' necessity Possess, it may be assumed that his expression of confidence in the future arises out of no parental relationship of the wish to the thought. One of the important things to remember is that, after the experiences of 1932, endeavours were made to protect this great city from a recurrence of the deplorable events witnessed on that occasion. All manner of plans were investigated for the securing of the neutrality of Shanghai, and though much earnest consideration was given to the matter, the Council and other groups interested failed to make any headway. It may readily be believed that the main obstacle to any plan that might have been put forward was the natural disinclination of the Chinese government to agree to any scheme which would have diminished its sovereignty over the immediate environs of Shanghai. It was a perfectly natural objection, and though its effects} have been almost disastrous there can be ne real criticism of the Chinese in that matter.
It may not have been wise to refuse to adopt any of the schemes put forward, but the spirit of the nation was opposed to any such concessions as they would necessitate, an opposition which had been rendered alt the stub-Dorner by the events which inspired such planning. The political developments during the period between 1932 and 1937 made it almost inevitable that an outbreak of armed conflict should occur around Shanghai, That was inextricably involved in the general conflict between China and Japan, and.as a result catastrophe of much greater magnitude than that of 1932 befell Shanghai last year.
The full tale of the damage done to Shanghai is not yet known. It probably never will be, for it continues to be inflicted upon Shanghai in ways which are not easily transmutable into figures, and must for all time remain as mere estimates. The Municipal Council's xeport for the year, however, does give specific information as to the degree to which municipal finances have been harmed. Grave as that is in dimensions, it is apparent that no shattering blow has yet been dealt the fortunes of the International Settlement. That damage is still accumulating is, unfortunately, only too true, but save for very unexpected developments' there will be a progressive dimination, and there is every reason for not regarding the future outlook with undue pessimism, That point is admirably made by the Chairman I am, however, enough of an optimist to believe that our plight, bad as it is, might have been much worse, and that unless we are overtaken by fresh and unforeseen di shall emerge from our present that Shanghai will eventually full its destiny of becoming one of the greatest commercial and industrial centres of the world.
The first requisite for that happy eventuality is that measures should be devised for the removal of any possibility of Shanghai being subjected to the catastrophes which befell it in 1932 and 1937. Failure to achieve such an end after the first unhappy experience is no reason for abandoning efforts to reach success in this direction in the future. Unless there is a very great change in the fortunes of the two contestants it is apparent that entirely different conditions will apply when the matter comes again to be discussed. That does not discount the fact that for the future development of this important city it is imperative that such arrangements should be made securing the future of the whole area and making it possible for investments to be made in full confidence in the security of the place. Such is the prime essential on which alone can the future prosperity of Shanghai and the surrounding areas be based.
Much has appeared in the foreign press considerably exaggerating the condition in which Shanghai finds itself today. It is a regrettable fact that a certain portion of the press of these days seeks sensation rather than accurate fact, and while the stories concerning conditions here are in the main truthful they have been presented in such a manner' as to create unnecessary pessimism abroad, which may have an adverse effect upon the developments which it is hoped will evens tually take place. Mr. Franklin's restrained optimism may help to discount that. At least that must be the hope of residents here. This journal, after a very long acquaintance of Shanghai expresses the conviction, which it has all along, that the very vitality of this port, the energy and determination of its people, the commanding position which it cubies vis-a-vis of trade with the vast basin of the Yangize, are all factors which properly directed should lead it on from strength to strength. 'The wisdom of the manner in which the Council has budgeted for the coming year, viewed from that aspect, is apparent. 'The financial proposals do not unnecessarily' pledge Shanghai's future, and should not unduly humper a quick return to prosperity.
Of course conditions in the hinterland have also to be taken into consideration, as also the possibility of a longer period of hostilities than was originally anticipated, But peace has {o come eventually, and with its.restoration the rehabilitation of the country present so severely stricken, with immediate effects upon the fortunes of Shanghai. That the local industrialists appear to have Yealized this, is to be found in the fact that there has been a very substantial increase in the number of new factories which have been and are being set up. Many of them cannot expect to have an immediately profitable return upon their investments, but those responsible for them are by the very fact of their investment proving their confidence in the future-of this port. Por reasons such as these, it is urged that the only sensible manner of looking on present conditions is with a degree of ro-strained optimism, and the realization that while things are bad, they might very easily have been much worse,
Text read from the printed page and cleaned; old type leaves the occasional error.