MARKET LOST

Evening Post, Issue 52, 2 March 1935, Page 6

MARKET LOST

BRITISH AEROPLANES

Great Britain's position in the Chinese aeroplane market became seriously weakened three years ago, when the U.S.A. and Italy attacked it. Now the United States is retiring before the Italian advance, and Britain is, as the saying is, "nowhere," writes Major C. C. Turner in the "Daily Telegraph." Nearly four years ago China asked Great Britain, the U.S.A., France, and Italy to make proposals for sending Air Missions to China. So quickly did America act that long before the British plans were prepared America's had been drawn up in every detail and considered and accepted by the Chinese Government. Large orders were received and have been continued ever since.,. The Italians, determined to get a looting in the • market, sent an Air Attache post-haste from Rome, and succeeded in getting their mission appointed in charge of advanced military aviation. Their immediate reward was orders for aircraft. The Italian entry had the effect, owing to pricecutting, of hitting the Americans hard and of pushing the British right out. The Chinese would willingly work with the British, but they point out that this is impossible on account of the prices and the system of dealing through agents, instead of, as in the case of America and Italy, directly with the manufacturers. ,; u I am informed on a high -Chinese authority that the agents'■"■commission is never less than. 10 per cent;,- and that on orders amounting to £200,000 or £300,000 this means a payment to the intermediary which the Chinese do not tolerate, quite apart from the disadvantage of not being in touch with the manufacturer direct. If the market in China is ever to be regained it will only be by reduction of prices, by cutting out agents' commissions, and. by studying Chinese needs in every way.