"Considering the huge size of her population, China Is reasonably tran~ quit and peaceful, and trade can be carried out without diMeulty in moat the country, Sir Frederick drew attention to the amazing rapidity with which reforms and developments had been carried out by the Government "during the past five years. In this connection, mentioned road and railway con: struction and legislative reform, "The danger," he said, "is not that China is progressing too slowly but that she is trying 10 go too fast."
Paying a tribute to the success of the Chinese currency reform, Sir Frederick said that China was' probably a creditor on current intor~ national account, Of course," he continued, "much has yet to be done. "China's currency reform needs to be completed by the reorganization of the Central Bank her budget needs to be balanced, and hor public service needs to be reformed and strengthened, "I believe that the Government working on the right lines. The fundamental conditions for the devel lopment of trade are present."
"The speaker also paid a tribute to the railway loan settlements as a genuine effort to put China's house {in order, The move should open the door to" fresh long-term borrowing, which was the right method of finance: ing railway construction, Welcoming Mr. W. M. iirkpatrick's appointment og representative—in China of the Export Credits Guaran-{eo Department, Sir Frederick phasized that "our export guarantees Gre not subsidies. They run strictly commercial tines and are an Insurance against credit risks, T be-Have that properly prepared schemes wil entail no greater risk in China than in other countries."
Troubles External Sir Frederick believed that the main "risk' was -exlernal political troubles.
In this connection, he quoted the statement of Mr. Anthony Eden, the Foreign Scerotary, in the House of Commons on November emphasiz~ ing' that there were definite indica tion of a distinct casing of Sino-Japanese tension and expressing the hope that a revival of the. former tense situation would be avoided.
Referring to his two visits to Japan, sir Frederick said: "We should feel much sympathy with Japan's dimeulties, which are very" similar to our own, in maintaining a large popula Von, There is now a growing tend-one) among the leading industralists in Japan to admit that her dim-cuties are partly due to over-pr duction and. cut-throat competition between the Japanese themselves.
"There is a growing movement in favour of control of production and export trade. We have no desire to {nlensity the economic troubles of Japan so long as they recognize that we cannot allow our industries to be upset. It is much to be hoped that some understanding for Anglo-Japenese ce-operation can be reached."
"tam distinctly an optimist about Ching" he said in conclusion. feel that the development of a pro-sporous and stable China will do more than anything else to help Japan to Dr. J. M. W. Beaudry Author, Lecturer and Edueator engaged on writing " histor
Text read from the printed page and cleaned; old type leaves the occasional error.