I do not propose this year to refer; to political events in the Far East cept In so far as they affect certain topics with which we are particularly: concerned. One of these topies re-tex 10 the Chinese Government for-ign loans, in floating many of which we took a leading part. During. the past year these loans, as T am afraid some of you are painfully aware, have gone Into complete default for reasons Beyond the control of the Chinese Government, The measures taken Fast Spring to set up a currency stabitization fund Jed to hopes that it would be possible for the Government to come to a temporary arrangement whereby: during the period of hostiities the transfer of funds abroad for the service of the Customs and Salt secured Toans would continue to be possible, even though at a reduced Fate, Negotiatoins were in fact Initiated by the Minister of Finance fand discussions took place with the: [Chinese Bondholders' 'Committee in London. A question which was raised at that time' in the home press. was that of the prior rights of certain loans. It was. strongly represented, and quite justifiably in our opinion, that under the terms of their contracts the various loans had claims on. Customs, or Salt Revenues, or both, ing in order of date, and that notion should therefore be ized ax a matter of principle. Unfortunately: before a final decision was reached, the difeultics which arose in the Shanghai Exchange Market forced the Atinister of Finance to stspencl action. He made it clear, interruption of the service was only a temporary ure, and that the Chinese Government had every intention of resuming the full service of" their fons at the earliest possible As a gesture of yood-faith, mated quotas of the shares duc from Customs and Salt offices, which still remain under the direct ada Stration of the Government, have throughout the pact year been te-salary set n the Central Ban find over Been in the history of the Banke kan year sour Noted how precnviows and {he auto must inevitably Ching and: Japan remained. tale," Now we find ours {ia year of this SinonJapancse Met afhich has been tan that very doorsteps andthe" end of this ly not yet tu sight. "On tp of Tine Our own gauntry is inven a war which may prove to be the most Nfl in is Jong history. Consider~ this state of airs ga wel sour posal to reduce the final dividend.
elders would have justication expecting gloomy. report nei Bosrd of Directors. But as a hnatier of fact the. strengtlt of our intange sheet is only too Tithe poitial outlook Bank's Branches would remind you sour ranches sch Han oochow and Swalow ty ports which are virtually closed ile, From Hamburg we at of course, have no information, but the British members of the stall got home safely, Other branches are tt. pk where trade is greatly handicap Lieut diieutties, eurre rate of 1/2
Customs Revenue total revenue collected by tne Maritime Customs Adbini stration amounted "to 331 milieu Gollars in the year 1949, "Blut iw fact tiily 3 per cent. of this revenue collected! In ports under Japauiese ned we estimate that at the the year some 380 million dollars of Customs funds should have been lying in the Yokohama Specie: Bank awaiting the outcome of the Sino-Japanese conflict. It is ok therefore, that responsibility for failure to meet the service of the Customs Loans does not for the being rest on the Chinese Govern The Customs Foreign Trade fAxures for 1939 must again be interpreted ith great caution owing to the fact their method of presentation, the actuating exchange rates, trade con trols and' other complications, make comparisons very unreliable.
However, an examination of these figures makes it clear that, compare with any of the last three years, iineased appreciably Cand jons). whilst port values were lower. The growth in the adverse balance of trade, which, particularly pronowuced first hale of the yea which fell almost dislocation at some closure of certain eh Shanghai exchange fete Inve developed rise in the prices of eon duced in the countries operate bias caused show
Text read from the printed page and cleaned; old type leaves the occasional error.