Aug. 24.
To-morrow Mr, Louis Beale, H. 'M. Commercial Counsellor, leaves for England on a special official mission the chief object of which, it is understood, is to give British industry "at home the benefits of the very energetic work which he has done in China. He has had a particularly varied experience of trade conditions throughout the world prior to his coming to this country and during the short time he has been here he has acquired an exceptional grasp of conditions under which it is pos~ sible to do business here. The result is that it would indeed be difficult to find a man better fitted to undertake the particular task which he has ahead of him, which should inevitably lead to' closer Jand better informed contacts between British industry on the one hand and the markets in China on the other. During the two and a half years in this country, coming they did after his first visit as member of the British Economic Mission in 1930, Mr. succeeded in obtaining the confid-Jence and trust, not only of the British merchants in China, but also of an exceptionally large number of [Chinese with whom he has come in contact, and who have learned to appreciate his good qualities, Added to a remarkable grasp of the facts of his subject, Mr, Beale has great ability as an orator which has enabled him to command the attention of the many gatherings which he has so ably addressed. If Mr. Beale, during his stay in England, is able to influence a wider industrial public to take a greater interest in affairs in China, he will have done an enormous service, not only to the British trader, but to the Chinese nation, which the former, after all, is merely out to serve.
It requires bue a ttle consideration to show that China presents potentialities which have not yet been fully recognized by traders in other countries. Glibly they talk jof the possibilities of this market, but when they do so they are more concerned with articles of tempora ary requirement than with the development of the country in the direction which other nations have followed in the comparatively cent past. It would, of course, be incorrect to state that even the limited market which many trad-Jers up to recent times have only seen in China has been exhausted. But it is becoming more and more 'a demonstrable fact that the real service to be rendered to the Chinese is in the supply of those capital goods upon which economic Progress must ultimately be based, It is along these lines that Sino-British ce-operation should pro-Gress. It is by no means an exaggeration to state that there are Possibilities for the investment of Chinese and foreign capital in China such as probably cannot be paralleled in any other part of the world. The fact that this potentiality has not been availed Jof in the past is due in the main to circumstances over which the foreigner has had little or no control. There is, first of all, the Jack of that security without which foreign capital will not lenter a country. Secondly, there has been a tendency on the part of legislators in Nanking to produce enactments—probably dictate ed by an exaggerated nationalism which has still to disappear—ealculated not only to hinder the co-Joperation of British and Chinese [capital, but to place such obstacles in the way as to render it practi-[cally impossible of execution. Proof, of this may be seen in the fact that, with one or two notable exceptions, it is difficult to obtain Jany foreign capital investment outside the protection afforded by the treaty ports. It is further Jemphasized by the knowledge that, /Sino-British ce-operation, outside the same areas is subject to re-[strictions and, possibly, interferlence, which leads the British vester to look upon any proposals to launch his money in this direction, not only with a fair amount }of diffidence, but no small amount scepticism.
The recognition of the fact that foreign expert aid is necessary for the improvement of China's prospects in the realm of Jgovernmental administration, carries with it the corollary" that similar assistance is required in its ordinary private economic life. In addition it is clear that considerable capital, more it is to be believed than' China can easily find itself, is needed, and with the large investments which British eapital-{sts have in this country already, who better could be asked to supply what is necessary for its further development? It is not exploitation which is desired, But there is available in the world large sums of money, idle, awaiting some—investment ' outlet such as China in certain circumstances could present most attractively. In one way the country is, different from all other large tracts which have been developed. Unlike Canada, America, Australia which had to be populated frst, China is already fitted with huge population providing a reservoir of labour which is practically inexhaustible. AN it wants the capital and that can be found by joint Sino-foreign investment. Factors militating against such a development have already been outlined. They do not represent insuperable obstacles, and it is difficult to escape the conclusion {hat if China made prospects some-What more inviting than they are at present the assistance which she obviously needs to take her place amongst the really-developed na-lone of the world would speedily be forthcoming.
Text read from the printed page and cleaned; old type leaves the occasional error.